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30 June 2014
Methamphetamine Transportation Coordinator Sentenced to 210 MonthsRead the Press Release
SAN DIEGO – Tijuana-based methamphetamine trafficker Salvador Walker was sentenced today by U.S. District Judge Roger T. Benitez to more than 17 years in prison for his leadership role as a transportation coordinator in a large drug-trafficking conspiracy.
Walker, 56, was convicted by a federal jury in September of 2013 after a three-day trial. According to evidence presented at trial, Walker’s trafficking activity first came to the attention of authorities in 2011 after Customs and Border Protection officers arrested Jaime Garcia-Covarrubias, George Ramirez and Gerardo Ramos-Tabardillo as they attempted to drive separate vehicles loaded with methamphetamine through the San Ysidro, California Port of Entry. All three couriers were subsequently convicted of importation of methamphetamine.
According to court documents, an investigation conducted by the Department of Homeland Security identified Salvador Walker as the link among each of the methamphetamine loads. The investigation revealed that Walker was responsible for recruiting drivers to import narcotics into the United States, and that he directly oversaw efforts to load methamphetamine into compartments in vehicles to bring to the United States. Agents learned that the three couriers alone made dozens of trips to Tijuana to load their vehicles with methamphetamine and then successfully crossed the drugs into the United States and traveled to deliver the methamphetamine to Walker’s associates in the Los Angeles area.
During Walker’s trial, the United States presented evidence that Walker supervised these drug couriers as they transported methamphetamine to associates in Anaheim as well as narcotics proceeds back to Mexico. After the presentation of evidence, a jury convicted Walker of conspiring with others to import methamphetamine.
“Methamphetamine is a particularly dangerous drug with devastating effects on the user and the community,” said United States Attorney Laura E. Duffy. “The leaders and organizers of drug importation rings face significant consequences for their actions. Today’s sentence is a warning to all those leaders that they will be brought to justice and face significant custodial time for their aggravated crimes.”
DEFENDANT Criminal Case No. 12-CR-0909-BENSalvador Walker
Age: 56 Tijuana, Baja California CHARGESCount 1: Title 21, United States Code, Sections 952, 960 and 963 - Conspiracy to Import Methamphetamine; Maximum penalty: Life Imprisonment
INVESTIGATING AGENCIESHomeland Security Investigations
Customs & Border Protection*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
McLaughlin Woman Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Gwendolyn Iron Shield, a/k/a Gwendolyn Taken Alive, age 40, was indicted on June 10, 2014. She appeared before U.S. Magistrate Judge William D. Gerdes on June 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 20, 2014, Iron Shield assaulted a male adult with a knife, which resulted in serious bodily injury.
The charges are merely accusations and Iron Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Iron Shield was released on bond pending trial. A trial date has not been set.
McLaughlin Man Charged with Child Abuse and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Child Abuse and Domestic Assault by a Habitual Offender.
Kyle White Bull, age 27, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on June 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 16, 2014, White Bull abused, exposed, tortured, tormented and cruelly punished three juveniles, as well as committed a domestic assault. At the time of the assault, White Bull had at least two separate prior convictions for assaults that were against a spouse or intimate partner.
The charges are merely accusations and White Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
White Bull was released on bond pending trial. A trial date has not been set.
Madison Man Sentenced to more than 7 Years Imprisonment for his Role in a Conspiracy to Distribute Methamphetamine, Heroin, and CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that Heriberto Avila-Mercado of Madison, Nebraska, was sentenced on June 27, 2014, to 87 months in prison by United States District Judge John M. Gerrard. Avila-Mercado had previously pled guilty for his involvement in a conspiracy involving the distribution of multiple pounds of “ice” methamphetamine, heroin, and cocaine in the Madison, Nebraska area dating back to January of 2002.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
Latin Kings’ Leader of Little Village Region Sentenced to 35 Years in Prison for RICO Conspiracy and Related Gang CrimesRead the Press Release
CHICAGO — A high-ranking leader of the Latin Kings street gang was sentenced today to 35 years in federal prison after being convicted of racketeering conspiracy and related charges involving narcotics trafficking and violence that plagued the Little Village neighborhood on the city’s west side. The defendant, JUAN AMAYA, 38, was convicted by a jury in March of this year after a trial in U.S. District Court.
In 2008, Amaya was the leader, or “Regional Inca,” of the Almighty Latin King Nation’s 26th Street Region, encompassing Little Village, the gang’s most important stronghold. Amaya was “in charge of over 1,000 soldiers ― many of whom were simply boys sent off to kill or be killed” under rules and policies he oversaw, the government argued in seeking a sentence of 40 years imprisonment.
Amaya was held responsible for participating in a conspiracy to commit murder, according to findings by U.S. District Judge Rebecca Pallmeyer, who imposed the sentence in Federal Court. Amaya must serve at least 85 percent of the sentence.
Last week, Nedal Issa, who was the Inca of the Latin Kings’ Cicero Section of the 26th Street Region and who pleaded guilty, cooperated, and testified as a government witness, was sentenced to nearly 17 years in prison by U.S. District Judge Charles Norgle. Amaya’s sentencing marks the last significant event in cases since 2008 that resulted in federal convictions of, and lengthy sentences for, Augustin Zambrano, the Latin Kings’ leader or “Corona;” Vicente Garcia, the gang’s “Supreme Regional Inca;” Fernando King, who preceded Garcia as second-incommand; and more than two dozen other top-ranking leaders.
“These sentences hold these defendants accountable for the barbaric enterprise known as the Latin Kings and for their roles in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state and federal law enforcement partners for their brave and outstanding work resulting in a major impact on this gang enterprise,” Mr. Fardon added.
The evidence at Amaya’s trial showed that by 2008, just a couple of years after he was released on parole from a 24-year sentence for a 1992 murder conviction, Amaya was promoted to Regional Inca of the Little Village Region, reporting only to Garcia and Zambrano and effectively running the gang at their behest. During his tenure, Amaya discussed 25 shootings committed by his underlings while expressing pride at the consistency of violence. All told, hundreds of shootings resulting from Latin Kings conduct occurred in Little Village during the period of Amaya’s prominence, according to the government.
Amaya was indicted separately in 2012 following the 2008 and 2009 indictments of more than 30 top leaders of the Latin Kings. All have been convicted and sentenced except for a few defendants who remain fugitives. From its origin and base in the west side Little Village neighborhood, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to trial evidence and court records.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, the Cook County Sheriff’s Police, and the Joliet Metropolitan Area Narcotics Squad also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including Zambrano and numerous co-defendants. In total, nearly 100 Latin Kings members and associates have faced state or federal charges since 2006. The convictions resulted from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly-organized, often violent Chicago street gangs.
Zambrano was the highest-ranking Latin King to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
The government was represented by Assistant U.S. Attorneys Andrew Porter, Nancy DePodesta and Tiffany McCormick.
Jury Convicts Houston Man for Robbery of Postal VehicleRead the Press Release
HOUSTON – Kenton Deon Harrell, 41, has been convicted of conspiracy to interfere with commerce by robbery, announced U.S. Attorney Kenneth Magidson. A federal jury convicted the Houston resident this morning following four days of trial and approximately three hours of deliberation.
The jury heard that on or about Feb. 21, 2013, Harrell met with Charles Ray Blake and Kenneth Shane Howard to plan the robbery of a contract postal vehicle. The three men had received information that the vehicle contained more than $2 million in cash and precious metals. Evidence at trial showed that the three men had been provided with a description of the vehicle, the route it would be taking and the time the vehicle would leave the post office in downtown Houston.
According to testimony, the co-conspirators acted on that information and stopped the vehicle as planned as it entered onto I-10 from downtown Houston. They forcibly removed the driver at gun point and drove the vehicle to a location where they removed jewelry worth approximately $240,000.
Blake, 41, Howard, 34, and Malcolm Derrail Williams, 32, all of Houston, previously pleaded guilty for their respective roles in the scheme and are pending sentencing, Blake will be sentenced Sept. 9, 2014, while Howard, Williams and Harrell are set for Oct. 10, 2014. Blake was permitted to remain on bond, while Howard and Williams were ordered to remain in custody. Previously released on bond, Harrell was taken into custody where he will remain pending sentencing. All face up to 20 years in federal prison and a possible $250,000 fine.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorneys Richard D. Hanes and Sharad Khandelwal prosecuted the case.
Johnstown Woman Pleads Guilty to Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
Rukiya R. Smith, 35, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Smith distributed less than 28 grams of cocaine base, commonly known as "crack," and less than 100 grams of heroin on March 5, 2013, and she possessed less than 100 grams of heroin on April 24, 2013, with the intent to distribute it.
Judge Gibson scheduled sentencing for Dec. 11, 2014, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Smith.
Johnstown Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Quinn Abdul Baxter, 24, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 7, 2012, Baxter distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 8, 2014, at 1 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Baxter.
Jemez Pueblo Woman Sentenced to Probation for Embezzling Pueblo FundsRead the Press Release
ALBUQUERQUE – Mary Cathy Sabado, 48, a member and resident of Jemez Pueblo, was sentenced this morning to a five-year term of probation for her conviction for embezzling money belonging to an Indian tribal organization. The court will schedule a hearing to determine the amount of restitution Sabado will be required to pay to the victims of her criminal conduct.
Sabado pleaded guilty on Feb. 19, 2014, to a felony information charging her with embezzlement and theft from an Indian tribal organization. In entering her guilty plea, Sabado admitted that between Feb. 2010 and Oct. 2011, she embezzled $18,095.28 in monies belonging to Jemez Pueblo. At the time she committed this offense, Sabado was the coordinator for the Jemez Vocational Rehabilitation Project. Sabado abused her position as an employee of the Pueblo by using purchase orders and a tribal credit card to make unauthorized purchases for her personal use.
The case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Houston Man Sentenced for Threatening to Bomb SynagogueRead the Press Release
Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.
On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
The FBI investigated the case with the assistance of the Houston Police Department. Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo are prosecuting in cooperation with the Harris County District Attorney’s Office.
Houston Man Sentenced for Threatening to Bomb SynagogueRead the Press Release
HOUSTON - Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.
On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
The FBI investigated the case with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ruben Perez and Joe Magliolo and Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division are prosecuting in cooperation with the Harris County District Attorney’s Office.
Hinsdale Man Sentenced to 25 YearsRead the Press Release
For Child Exploitation Offense
CONCORD, NEW HAMPSHIRE – Benjamin Maes, 32, of Hinsdale, was sentenced to 25 years in prison on one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in November, 2012, when an FBI/Metropolitan D.C. Police Department task force received images of child pornography from an individual from Hinsdale, New Hampshire. Benjamin Maes had been communicating with an undercover agent on-line and had sent the agent sexually explicit images of children. He was arrested in December of 2012, pursuant to a federal arrest warrant issued in the District of Columbia.
Various electronic items belonging to Maes were seized pursuant to a search warrant and forensic examination of his cellular phones revealed numerous images of child pornography, including images of Maes engaged in sexually explicit conduct with a minor.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
The charge was the result of an investigation by the Federal Bureau of Investigation, the Washington D.C., Metropolitan Police Department, the Hinsdale Police Department and the New Hampshire Internet Crimes Against Children Task Force is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Hazleton Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a criminal information in U.S. District Court in Scranton on June 27, 2014 charging Kelvin Martinez of Hazleton, Pennsylvania, with distributing heroin in Hazelton in 2012 and 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
The government also filed a plea agreement which is subject to approval by the Court.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Guilford Woman Admits Failing to Pay Taxes on Money Received During Gifting Tables Pyramid SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NANCY DILLON, 69, of Guilford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a federal tax charge related to her participation in an illegal pyramid scheme known as “Gifting Tables.”
According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2009, DILLON received $40,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.
DILLON pleaded guilty to one count of willful failure to file a return, supply information or pay tax, a charge that carries a maximum term of imprisonment of one year and a fine of up to $25,000. Judge Thompson scheduled sentencing for September 24, 2014.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Griffin, GA. Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
ATLANTA - A federal judge has sentenced Buffy Drake to three years and nine months in prison for filing false tax returns that claimed over $2.5 million in bogus refunds.
“This defendant stole millions of dollars from American taxpayers through her criminal conduct. She is now going to federal prison as a result of her actions,” said United States Attorney Sally Quillian Yates.
“Return preparer fraud is like a contagious disease, it affects not only the preparer, but the individuals who have filed false information with Internal Revenue Service,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “Criminal Investigation is determined to stop these false tax refund schemes. It is our hope that this sentence will send a strong message that participation in refund fraud schemes does not pay and those who chose to participate will be prosecuted.”
According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin named “Imagine That.” While operating “Imagine That,” Drake filed hundreds of false tax returns that claimed millions of dollars in fraudulent refunds. In total, from 2011 through 2012, Drake filed tax returns claiming in excess of $2,500,000 in fraudulent refunds. Drake retained a substantial portion of the proceeds from this scheme. In some instances, tax returns were filed without the permission of the individuals whose identities were used on the tax returns.
Drake, 43, of Griffin, Ga., was sentenced to three years and nine months in prison and three years of supervised release, and ordered to pay over $2.5 million in restitution. Drake pleaded guilty on March 5, 2014, to one count of wire fraud.
This case was investigated by Special Agents of the Internal Revenue Service‑Criminal Investigation with the assistance of the City of Griffin Police Department.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Glendale Man Sentenced to 160 Months for Transportation of Minor with Intent to Engage in ProstitutionRead the Press Release
TUCSON, AZ – On June 26, 2014, Marques West, 30, of Glendale, AZ was sentenced by U.S. District Judge Cynthia K. Jorgenson to 160 months imprisonment followed by 5 years supervised release. West pleaded guilty on April 17, 2014, to one count of transportation of a minor with intent to engage in in prostitution.
Sometime between January 20, 2013, and January 29, 2013, West transported a minor female from El Paso, Texas, to Tucson, Arizona, with the intent that the minor female engage in commercial sex acts.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Karen Rolley and Arturo Aguilar, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-01493
RELEASE NUMBER: 2014-037_WestFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former President and Owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
Joseph W. Nagle, 53, of Deerfield Beach, Florida and the former president of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 84 months imprisonment and ordered to pay fines totaling $27,600 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter J. Smith, the U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Nagle report to prison no later than September 29, 2014.
According to the U.S. Department of Transportation (USDOT), this scheme which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania, alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
“Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “This sentencing of Joseph Nagle, in what is the largest reported DBE fraud case in USDOT history, sends the clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations. We will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway and Transit Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
"This case represents our continued commitment to protecting the American workplace by identifying and prosecuting criminals who violate the laws relating to public contracts. We will continue to work with our law enforcement partners to combat these types of crimes" stated John T. Spratley, Special Agent in Charge of the Philadelphia Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor.
"The audacious, long-term scheme perpetrated by Mr. Nagle and his cohorts stole money from taxpayers, and opportunity from legitimate small-business owners," said FBI Special Agent in Charge Edward J. Hanko. "This case highlights the FBI's commitment to fighting DBE fraud, and seeing those responsible brought to justice."
Nagle was President, Chief Executive Officer and part- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS) until April 2009 when SPI was sold. SPI was based in Cressona, Pennsylvania, and manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers products, on highways in Pennsylvania and surrounding states. Nagle was convicted of joining an on-going 15-year conspiracy to defraud USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program when he became President in April 2004.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and they require contractors to award a percentage of their subcontracts to eligible DBE’s.
The OIG Regional Special Agent in Charge Shoemaker cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud to us at www.oig.dot.gov/hotline.
Nagle was convicted of participating in the scheme which ran from 1993 to 2008, in which he and other executives at SPI diverted over 300 PennDOT and SEPTA construction contracts worth $136 million to SPI and CDS that were reserved for DBE’s. Nagle and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
The scheme was carried out for over 15 years because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI and CDS personnel routinely pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme and one executive is awaiting sentencing.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI’s former Vice-President, Chief Operating Officer and part-owner is scheduled to be sentenced on July 14, 2014.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler and Assistant United States Attorney Kim Douglas Daniel handled the prosecution.
Former Non-Indian Employee of the Jicarilla Apache Nation Sentenced to Probation for Embezzling Money from the TribeRead the Press Release
ALBUQUERQUE – Robert G. Wells, 63, of Albuquerque, N.M., was sentenced this morning to a five-year term of probation for embezzling money from an Indian tribal organization. Wells also was ordered to pay $214,594.13 in restitution to the Jicarilla Apache Nation, the victim of Wells’ criminal conduct.
Wells was arrested in Nov. 2013, on a three-count indictment charging him with embezzling an aggregate of $214,594.13 from the Jicarilla Apache Nation’s Utility Authority between July 2011 and Oct. 2011. At the time, Wells, a non-Indian, was employed by the Jicarilla Apache Nation as the comptroller for the tribe’s Utility Authority.
On Feb. 24, 2014, Wells pled guilty to all three counts of the indictment and admitted embezzling money from a Wells Fargo Bank account belonging to the Jicarilla Apache Nation’s Utility Authority through an unauthorized withdrawal and two unauthorized transfers. In his plea agreement, Wells admitted stealing money from the tribe’s bank account on the following three occasions: $500.00 in July 2011, $92,331 in August 2011, and $121,763 in Oct. 2011.
This case was investigated by the Albuquerque office of the FBI and the Jicarilla Apache Tribal Police Department and was prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.
Former MoneyGram and Western Union Outlet Operator Sentenced to Federal Prison for Consumer Fraud and Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that today in Harrisburg a Texas man was sentenced by Chief U.S. District Court Judge Christopher C. Conner to 168 months’ (14 years) incarceration plus 3 years of supervised release and ordered to pay restitution for his role in defrauding over 1,200 consumer fraud victims out of $3.9 million and for laundering the proceeds.
According to U.S. Attorney Peter Smith, following a week-long trial in Harrisburg in July 2013, Olufemi Adigun, age 28, of Houston, Texas, was convicted by a jury on 14 counts, including conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, unlawful monetary transactions, and money laundering.
Evidence at trial revealed that in 2008, Adigun operated MoneyGram and Western Union outlets out of an empty Houston storefront known as FAB Tax Services, a phony tax service provider. The location was used by Adigun and two conspirators, Benjamin Chikwe and Stanley Ohiri, to intercept $3,919,721 sent by approximately 1,240 victims from across the United States, including victims in Central Pennsylvania who were induced to send the transfers through mass marketing consumer fraud schemes.
The schemes relied on MoneyGram and Western Union money transfer systems for success. Commonly known as Secret Shopper, Grandma Scams, Advance Fee, or Canadian Lottery scams, these schemes have defrauded more than 500,000 Americans out of an estimated $1 billion since 2004. Typical victims are the elderly.
Many fraudsters contact victims via the U.S. mail, interstate courier, or the Internet promising cash prizes, lottery winnings, fictitious loans, or other payments. Counterfeit checks are then sent to the victims who are induced into cashing them and returning a portion of the funds to the fraudsters via the MoneyGram and Western Union money transfer systems. Victims eventually suffer a financial loss after the counterfeit checks bounce. Other Internet-based schemes induce the victims to purchase non-existent merchandise, such as automobiles and motorcycles, via “too good to be true” pricing.
The fraudsters exploit the way MoneyGram and Western Union operate their money transfer systems to conceal their identities and enlist corrupt MoneyGram and Western Union agents like Adigun to help launder the proceeds. Adigun entered false payee addresses, telephone numbers, and identification information into the MoneyGram and Western Union data-bases, thereby maintaining the anonymity of the fraudsters and creating the illusion that a bona-fide payee had physically entered the receiving outlet.
The victims were instructed to provide the Money Transfer Reference Number (MTRN) immediately after the money is sent. Armed with the MTRN, corrupt MoneyGram or Western agents in the United States could intercept and remove the funds from the systems, even though Adigun was physically located in Texas, thousands of miles away from the intended destination.
After Adigun and his co-conspirators intercepted the $3.9 million, they laundered the funds by converting, approximately $3.1 million into cash. Adigun, who controlled three FAB bank accounts, personally withdrew $1,453,146 cash from the accounts by making 203 withdrawals from 17 different bank branches. On many days, Adigun’s cash withdrawals totaled $40,000 to $70,000.
Other funds were laundered by transferring a portion of the proceeds, approximately $746,000, to other bank accounts before removing the money via cash withdrawals. Other proceeds, approximately $690,000, were sent via the Western Union and MoneyGram money transfer systems to destinations around the world, including in Canada, Nigeria, and Romania.
Adigun’s Indictment identified five mid-state residents from Chambersburg, Hanover, State College, and Mechanicsburg who each lost approximately $3,000 as a result of a mass marketing, consumer fraud scam during the summer of 2008. Their money was intercepted and removed from the MoneyGram transfer system by Adigun and his co-conspirators.
One of Adigun’s conspirators was Benjamin Chikwe, age 33, also of Houston, Texas, who was indicted with Adigun and pleaded guilty to conspiracy to commit money laundering charges pursuant to a cooperation-based plea agreement last year. In December 2013 Judge Conner sentenced Chikwe to 33 months in prison. The third conspirator, Stanley Ohiri, is a fugitive who may be in Nigeria.
Adigun began operating FAB as a Western Union outlet in December 2007 and as a MoneyGram outlet in May 2008. Shortly after, dozens of customers filed Consumer Fraud Reports with MoneyGram and Western Union. MoneyGram did not close FAB until August 18, 2008; Western Union did not suspend FAB until September 2, 2008.
In November 2012, charges of aiding and abetting wire fraud and willful failure to implement an effective anti-money laundering program were filed against MoneyGram in Harrisburg by the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
The charges were, in part, based on the company’s failure to terminate dozens of corrupt, agents in the United States and Canada, like FAB Tax Services, between 2004 and 2009. MoneyGram entered into a Deferred Prosecution Agreement with the government. That required MoneyGram to forfeit the sum of $100 million, implement improvements in the way it conducts its anti-money laundering program, undergo a five-year period of evaluation and oversight by a Corporate Compliance Monitor selected by the Department of Justice, and cooperate with the government. If MoneyGram successfully completes the five-year program, the government has agreed to dismiss the charges. The government is utilizing the forfeiture to establish a consumer fraud victim restitution fund. The U.S. Postal Service has distributed $46,371,155 of the $100 million to 18,784 victims across the country.
The case is part of a long term continuing investigation by the Harrisburg Office of the U.S. Postal Inspection Service. The Adigun, Chikwe, Ohiri, and MoneyGram prosecutions are being handled by Assistant United States Attorney Kim Douglas Daniel.
Former Federal Express Employee Sentenced to 41 Months in Federal Prison for Stealing Suspected Drug-Related CashRead the Press Release
MEDFORD, OR – Victor Manuel Chavez, 40, of Medford, Oregon, was sentenced Monday to forty-one months in federal prison by Senior U.S. District Judge Owen M. Panner, after Chavez pleaded guilty in March 2014 to theft from interstate shipment and money laundering. As part of his sentence, Chavez was fined $25,000, will serve three years of post-prison supervised release, and must pay restitution to victims of the theft.
Chavez was employed by Federal Express for four years as a driver and was responsible for unloading FedEx packages from aircrafts at the Medford, Oregon airport and delivering them to their ultimate destinations. In 2011 and 2012 Chavez engaged in a scheme by identifying packages he believed contained large quantities of cash - suspected by law enforcement to be the proceeds of marijuana sales - as well as electronic equipment, jewelry and other valuable items. Once identified, Chavez reprinted FedEx labels, re-routing the targeted packages to his truck, enabling him to steal the packages. Chavez sold stolen electronics and other items to his friends and associates.
On January 30, 2012, law enforcement served a search warrant at Chavez’s residence and seized evidence, which included rolls of FedEx adhesive labels and several items of merchandise which matched items reported missing by FedEx customers. Law enforcement also searched a suitcase Chavez had given to a friend to hold in return for $10,000. Inside the suitcase was $250,000 in cash. Law enforcement believe that most if not all of this money was the proceeds of marijuana sales by Oregon growers, who use Federal Express and other delivery service companies to send Oregon grown marijuana to out of state customers, in return for cash payments sent back to them via the same companies. Subsequent investigation revealed that Chavez had used some of the stolen money to pay his mortgage, and laundered other proceeds through bank accounts he controlled. In total, law enforcement officials believe that Chavez stole more than $200,000 in cash and property.
The $263,525 in U.S. currency seized from Chavez has been forfeited. Additionally, forfeited items include lap tops, i-Pads, i-Phones, other electronic items and sports equipment.
“People like Mr. Chavez, who abuse their position of trust to steal, will be caught and prosecuted,” stated U.S. Attorney S. Amanda Marshall.
This case was investigated by the Medford Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U. S. Attorney Judith Harper.
Former Employee Sentenced for Stealing $289,000 from A Wichita BankRead the Press Release
WICHITA, KAN. A former employee was sentenced Monday to 21 months in federal prison for stealing at least $289,000 from a Wichita bank, U.S. Attorney Barry Grissom said.
Lisa Marie Evans, 43, Wichita, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted that from 2011 to 2013 she stole the money while working for Southwest National Bank in Wichita. She was responsible for balancing the bank vault on a daily basis. A surprise audit in April 2013 revealed the theft. Investigators examined security footage of the vault that showed Evans taking money from the vault and hiding it on her person.
Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Canistota Woman Convicted of Tax FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that Veronica Fairchild, age 42, of Canistota, South Dakota, and Okoboji, Iowa, was found guilty of four counts of tax fraud as a result of a federal jury trial in Sioux Falls, South Dakota.
The charges carry a maximum penalty of three years in custody and/or a $250,000 fine on each charge, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Fairchild was indicted by a federal grand jury on July 9, 2013. The investigation stemmed from Fairchild’s late filing of her 2005 through 2008 income tax returns in 2010. Bank records revealed she had failed to claim over $600,000 in income over the four-year period of time. Fairchild claimed the unreported income that she received from performing private shows as an exotic dancer was a gift.
A jury trial commenced on June 24, 2014, and completed on June 26, 2014, with the jury convicting Fairchild on all four counts of the Indictment.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 22, 2014. The defendant was released on bond pending sentencing.
Federal Judge Orders Concurrent Prison Time for Farrell Man Serving Two Life SentencesRead the Press Release
PITTSBURGH - A resident of Farrell, Pa., pleaded guilty and was sentenced in federal court to charges of violating federal Hobbs Act conspiracy and Hobbs Act robbery laws, United States Attorney David J. Hickton announced today.
Joshua Stewart, 20, was 18 years old at the time that he robbed the B&M Market in Farrell on Dec. 20, 2011. Stewart, who is serving two life sentences for murder relating to the December, 2011 killing of Farrell bar owner William Basilone, Jr., pled guilty to two counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the Court learned that on Dec. 20, 2011, Stewart, acting together with another, entered the B&M Market, a local convenience store. Upon entering the store, Stewart’s co-conspirator, using force and intimidation, demanded that the store owner open his register and hand over more than $100 in cash. While the co-conspirator did this, Stewart kept watch and served as a “lookout,” making sure that the police did not come in the store. In addition, Stewart stole cigarettes from the store. After these items were taken, both robbers fled from the store.
On Jan. 17, 2014, Stewart’s co-conspirator Devine Campbell pled guilty to conspiracy to commit Hobbs Act robbery and Hobbs Act robbery in federal court and was sentenced to 15-years in prison. Campbell admitted that he shot the owner of B&M Market during the course of the Dec. 20, 2011 robbery.
Subsequent to pleading guilty, Stewart waived a pre-sentence report and was sentenced by Judge McVerry to 10 years in prison. Under the terms of the plea agreement, this sentence is to be served concurrently with Stewart’s life sentence for murder. In September, 2013, a jury in Mercer County convicted Stewart of murdering Basilone. The remaining five years of Campbell’s federal sentence is to be served consecutively to Campbell’s state court murder sentence.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Southwest Mercer County Police, and the Mercer County District Attorney’s Office conducted the investigation that led to the prosecution of Joshua Stewart.
Essex County, N.J., Man Charged with Armed Robbery of Irvington BankRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man made his initial court appearance today on charges of bank robbery in connection with an attempt to rob a bank in Irvington, N.J., U.S. Attorney Paul J. Fishman announced.
Karim Brunson, 24, of Newark, was charged by complaint with one count of bank robbery and one count of possession of a firearm during the commission of a crime of violence. He made his initial court appearance today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
Brunson allegedly entered the front door of the Investors Savings Bank in Irvington at 11:30 a.m. on June 28, 2014, with a dark-colored mask over his face. Brunson pulled out a loaded .357-caliber revolver handgun from his waistband and pointed it into the lobby. An off-duty Irvington Police lieutenant was in uniform and working inside the bank as a security guard. As Brunson entered the lobby, he pointed the handgun at the officer’s head and threw a plastic shopping bag toward one of the bank tellers. Brunson then yelled for the teller to “Put the money in the bag.”
When Brunson looked away momentarily, the off-duty police officer grabbed Brunson’s hand and the gun and fought with Brunson on the floor of the bank lobby. Another bank employee and a second off-duty police officer arrived to help the Irvington Police lieutenant subdue Brunson.
The bank robbery charge carries a maximum potential penalty of 20 years in prison. The weapons charge carries a mandatory seven years in prison to be served consecutively to his sentence on the bank robbery.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and officers of the Irvington Police Department, under the direction of Police Director Joseph Santiago, with the ongoing investigation that led to the charges.
The government is represented by Assistant U.S. Attorney James Donnelly of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-237
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Brunson, Karim Complaint
Easley Dentist Pleads Guilty to Failing to Pay over Employment TaxesRead the Press Release
Contact Person: Will Lucius (864) 282-2100
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that DANIEL PASUI, age 43, of Easley, South Carolina, pled guilty today in federal court in Anderson, to eight counts of failing to pay over to the Internal Revenue Service taxes that had been withheld from employees of his dental practice as well the practice’s share of FICA contributions, each a violation of Title 26, United States Code, Section 7202. Senior United States District Judge G. Ross Anderson, Jr. accepted the plea and will impose sentence after he has reviewed a presentence report which will be prepared by the U.S. Probation Office.
Had the case gone to trial, the Government was prepared to show that during eight quarters between March 2009 and June 2011, PASUI collected employment taxes, accounted for the collections on filed returns, but failed to pay over to the Internal Revenue Service a total of approximately $308,781.00.
Mr. Nettles stated the maximum penalty PASUI can receive on each count is a fine of $250,000.00 and/or imprisonment for 5 years, plus a special assessment of $100.00.
The case was investigated by Criminal Investigation agents of the Internal Revenue Service. Assistant United States Attorney William C. Lucius of the Greenville office handled the case.# # #
Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
David Marrowbone, age 51, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, a minimum of 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 3, 2014, and March 13, 2014, Marrowbone moved and failed to change and update his sex offender registration as required by law. Marrowbone was previously convicted of a sex offense that required him to register as an offender. He signed paperwork acknowledging his duty to register as a sex offender.
The charge is merely an accusation and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service. Trial has been set for August 26, 2014.
Denso Corp. Executive Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
An executive of Japan-based Denso Corp. has agreed to plead guilty and to serve one year and one day in a U.S. prison in connection with the Antitrust Division’s investigation into a conspiracy to fix the prices of instrument panel clusters, also known as meters, installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed on June 27, 2014, in the U.S. District Court for the Eastern District of Michigan in Detroit against Satoru Horisaki, a group leader in Denso’s Utsunomiya Branch Office. According to the charge, Horisaki, a Japanese national, participated in the conspiracy from in or about 2009 to in or about February 2010, by agreeing upon bids and prices for, and allocating the supply of, automotive instrument panel clusters sold to Honda of America Manufacturing Co. Inc., in the United States and elsewhere. In addition to the prison sentence, Horisaki has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement will be subject to court approval.
“This charge is the latest effort by the Antitrust Division to hold executives accountable for engaging in anticompetitive conspiracies that do real harm to the U.S. economy,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The conspirators undermined a competitive bidding process by meeting to discuss and agree on price quotations.”
Instrument panel clusters are the mounted array of instruments and gauges housed in front of the driver of an automobile.
In March 2012, Denso pleaded guilty and was sentenced to pay a $78 million criminal fine for its role in conspiracies to fix the prices of heater control panels and electronic control units. Horisaki is the sixth Denso executive to be convicted in the Antitrust Division’s investigation into the automotive parts industry.To date, 36 individuals, including Horisaki, have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.3 billion in fines.
Horisaki is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges announced today arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. This case was brought by the Washington Criminal I Section and the San Francisco Office of the Antitrust Division, with the assistance of the Detroit Field Office of the FBI. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the Detroit Field Office of the FBI at 313-965-2323.
Dedham Man Arrested on Armed RobberyRead the Press Release
BOSTON – A Dedham man previously convicted of armed bank robbery was arrested Friday for allegedly robbing an Attleboro bank in May.
Lawrence J. Costello, 54, was charged in U.S. District Court in Boston by criminal complaint for armed bank robbery.
According to an affidavit filed with the complaint, Costello and another individual allegedly entered the Bank of America in Attleboro on May 12, armed with a semi-automatic weapon. Once inside the bank, Costello climbed over the teller’s counter and took $17,687. The robbers were observed fleeing the area in a green Ford pickup truck which had been reported stolen earlier in the day from a garage in Canton. Costello was determined to be one the individuals who participated in the robbery based on DNA matches and witness identification.
Costello appeared before Magistrate Judge David H. Hennessy in Boston on June 27 for an initial appearance. He will remain in custody pending his detention hearing on July 15.
The charging statute provides a sentence of no greater than 25 years in prison, five years of supervised release, a fine of $250,000 and restitution to Bank of America in the amount of $17,687. Actual sentences for federal crimes are typically substantially less than the maximum penalties, as they are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Attleboro Police Chief Kyle Heagney; and Bourne Police Chief Dennis Woodside made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Clarks Summit Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Clarks Summit man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Taylor Bzdyr, age 20, admitted to using a computer and a cell phone to persuade a 13-year-old female from Canada to engage in sexual acts which were transmitted live via Skype. Bzdry committed the offense between October 2012 and October 2013.
Bzdyr was indicted by a federal grand jury sitting in Scranton on March 11, 2014, as a result of an investigation by the Federal Bureau of Investigation, Border Patrol Agents in California, and the New Westminster Police Department in British Columbia, Canada.
Bzdyr faces a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of 30 years in prison. Judge Munley ordered a pre-sentence report to be completed, and scheduled sentencing for October 2, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Camp Pendleton Marine Captain Sentenced to Prison for Multi-Year Housing and VA Fraud SchemesRead the Press Release
Former U.S. Marine Captain Shawn A. Joyce was sentenced in federal court today to four months in prison followed by a year of home confinement for submitting tens of thousands of dollars in false lodging receipts to the Marine Corps and the Department of Veterans Affairs from 2009 to 2011. At the time of the offenses Joyce was on active-duty and stationed at Marine Corps Base Camp Pendleton.
U.S. District Judge John A. Houston also ordered Joyce to pay over $90,000 in restitution.
Joyce pleaded guilty on August 21, 2013, to two counts of wire fraud. As detailed in his plea agreement, Joyce had initially been discharged from active duty in October 2008, entered the Marine Corps reserves, and thereafter sought and obtained orders placing him back on active duty at Camp Pendleton. Under certain circumstances, reservists who are called to active duty become eligible for a housing reimbursement benefit during the term of their active duty, in addition to the basic allowance for housing that they receive.
Joyce exploited this housing reimbursement benefit by falsely claiming reimbursement for rent that he never paid. Specifically, in 2009 and 2010, Joyce falsely claimed to be paying rent up to $4,030 per month for an address in Solana Beach. In 2011, Joyce falsely claimed to be paying rent of $3,700 per month for an address in Fountain Valley.
In order to conceal and disguise the fraud, Joyce submitted false rental receipts to the Marine Corps and created a fake email address in the name of his former landlord at the Solana Beach address. This email address was then used without his former landlord’s knowledge or consent to facilitate the fraud.
In his plea agreement, Joyce also admitted to devising a separate scheme to defraud the Department of Veterans Affairs of tens of thousands of dollars. Under federal law, a service member receiving VA disability benefits is not entitled to simultaneously receive active duty compensation. To avoid this type of “double payment,” service members who receive VA disability benefits are required to inform the VA when they are placed on active duty.
Despite this regulation, Joyce failed to advise the VA and continued to receive VA disability benefits to which he was not entitled. Compounding the loss, Joyce contacted the VA from time to time trying to increase the amount of his improper disability payments.
Joyce pled guilty to two counts of wire fraud and acknowledged defrauding the Defense Department of $48,740 (count one) and the VA of $41,862 (count two). In his plea agreement, Joyce also agreed to pay restitution in the full amount of the losses.
This morning, Judge Houston ordered Joyce to pay those amounts back to the Defense Department and the VA as part of the sentence.
U.S. Attorney Duffy stated, “We will vigorously investigate and prosecute those who try to defraud this country’s Armed Forces or to cheat the Department of Veterans Affairs.”
Special Agent in Charge Douglas J. Carver, VA Office of Inspector General Western Field Office in Los Angeles, said: “The Department of Veterans Affairs depends on the honesty of claims filed by our veterans. Cases like this are thoroughly investigated by the VA OIG to reclaim the VA’s limited resources to insure funds are properly paid to entitled veterans.”
DEFENDANTShawn A. Joyce
Age: 34 Encinitas, California INVESTIGATING AGENCIESDepartment of Veterans Affairs, Office of Inspector General
Naval Criminal Investigative Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Business Owner Sentenced to Prison for Obstructing the Collection of $3 Million in Employment TaxesRead the Press Release
ATLANTA - Paulette Bryant has been sentenced to three years in prison for obstructing and impeding the IRS’s collection of almost $3 million in payroll taxes that her business withheld from employee paychecks over a ten year period.
“Honest, hardworking citizens should be assured that employers or business owners who withhold payroll taxes from paychecks and then fail to pay those funds to the IRS will be prosecuted,” said United States Attorney Sally Quillian Yates.
“The manipulation of the payroll system to steal income and evade taxes is a serious offense,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “This sentence is a vital element in maintaining the public confidence in our legal and financial system.”
According to United States Attorney Yates, the charges and other information presented in court: Bryant owned and operated a temporary employment staffing business with several locations in North Georgia. Bryant’s business was responsible for withholding payroll taxes from employee paychecks and, along with quarterly filings, paying those taxes and her company’s share of employment taxes to the IRS.
Between 1998 and 2009, except for brief periods during or relating to an IRS audit, Bryant’s business failed to make the required quarterly filings and to pay the IRS the payroll taxes owed by her employees and business. In 2001, the IRS audited her business and assessed Bryant a personal penalty of $1 million in unpaid payroll taxes going back to 1998. Even after this audit and penalty, which went unpaid, Bryant and her businesses continued to fail to file with the IRS and to pay payroll taxes. By 2009, the unpaid payroll taxes and penalty totaled $2,914,931.12.
Bryant used the funds that should have been paid to the IRS to operate her company and fund her personal lifestyle. Although the operation of her business essentially remained the same during this period, Bryant formed and used new, overlapping corporate identities that had various names and that used various pseudonyms as corporate officers. The effect of this was to delay and hinder the IRS’s efforts to collect the employment taxes that her business owed. The business identities used by Bryant included Selective Employment Services, Inc. (formed in 2001), Corporate Staffing, Inc. (formed in 2002), Corporate Solutions Group, Inc. (formed in 2004), and Optimum Staffing Solutions Corporation (formed in 2009).
Bryant, 68, of Stockbridge, Ga., has been sentenced to three years in prison to be followed by 1 year of supervised release, and ordered to pay restitution in the amount of $2,914,931.12. Bryant was convicted of obstructing and impeding the IRS’s collection of payroll taxes on October 9, 2013, after she pleaded guilty to an Information.
This case was investigated by the Internal Revenue Service-Criminal Investigation.
Assistant United States Attorney Douglas W. Gilfillan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Bronx Tax Preparer Sentenced in Manhattan Federal Court to 57 Months in Prison for Tax Fraud Scheme Involving over $7 Million in Bogus DeductionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARK GOLDBERG, a Bronx-based tax preparer, was sentenced today in Manhattan federal court to 57 months in prison for his participation in a scheme to file fraudulent tax returns on behalf of thousands of clients, falsely claiming more than $7 million in bogus deductions, including false school tuition credits and expenses. GOLDBERG pled guilty in August 2013 before Chief U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Mark Goldberg prepared thousands of fraudulent tax returns that resulted in over $2.5 million in fraudulent refunds for his clients. Now he has to surrender the ill-gotten gains and his liberty.”
According to the Indictment, statements made during court proceedings, and other documents filed in Manhattan federal court:
GOLDBERG ran a tax preparation and multi-service business named E&M Multi-Services, Inc. (“E&M”) out of a storefront building in the Bronx. Through that business, he prepared, and oversaw the preparation of, thousands of federal and New York State tax returns that claimed false deductions, expenses, and credits, including tuition credits and expenses, unreimbursed employee business expenses, medical and dental expenses, charitable gifts, and earned income tax credits. Between 2005 and 2012, GOLDBERG caused the preparation and filing of tax returns for his clients that included over $7 million of fabricated and fraudulently-inflated deductions, resulting in over $2.5 million in refunds being paid to his clients to which they were not lawfully entitled. GOLDBERG also failed to report any of the income derived from his tax preparation activities, and further submitted fraudulent personal returns claiming bogus refunds and tax credits.
In addition to the prison term, Chief Judge Preska ordered GOLDBERG, 40, of the Bronx, to pay restitution in the amount of $2,597,419 to the United States and the State of New York for the losses caused as a result of his scheme, and to forfeit $500,000 in fees generated by GOLDBERG as part of his tax fraud scheme. Chief Judge Preska also sentenced GOLDBERG to three years of supervised release, and ordered him to pay a special assessment of $300.
Mr. Bharara praised the investigative efforts of the Internal Revenue Service-Criminal Investigation and the New York State Department of Taxation and Finance. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division and the Bronx District Attorney’s Office for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Stanley J. Okula, Jr., and Paul Monteleoni, and Special Assistant United States Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.
Berks County Man Pleads Guilty to Participating in Multi-County Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Reading man pleaded guilty today before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine, crack cocaine and other drugs during a four-year time period in Monroe, Carbon, Montgomery and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Juan Mendez-Lazaro, age 34, admitted to participating in the conspiracy from 2011 through 2013. The conspiracy was responsible for distributing more than one kilogram of heroin, more than five kilograms of cocaine, and various quantities of crack cocaine, methamphetamine, fentanyl, and Oxycontin (Oxycodone). Mendez-Lazaro is the fifth defendant in the case to plead guilty in federal court.
The charge against Mendez-Lazaro resulted from an investigation by the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Berks County Detectives and Montgomery County Detectives.
Mendez-Lazaro faces a mandatory minimum 10-year prison sentence and a potential maximum sentence of life in prison. Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in September 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Bank Robber Pleads Guilty to A Series of Robberies in 2013Read the Press Release
Committed at least five Bank Robberies Between June 7 and June 24, 2013
Greenbelt, Maryland – Dallas Eric Dunmore, age 47, of Washington, D.C., pleaded guilty today to bank robbery.Co-conspirators Derrick Hart, age 42, of District Heights, Maryland, and Teddy McCain, age 54, of Germantown, Maryland, pleaded guilty on June 19, 2014, to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to the defendants’ plea agreements, Dallas Dunmore, Hart and McCain robbed or attempted to rob banks in Maryland and Virginia. In each robbery Dallas Dunmore entered the bank and handed the teller a note demanding money. On one occasion, the note also stated that he had a gun, while on two other occasions Dunmore told the teller that he or another conspirator had a gun. McCain waited outside during each robbery. Hart also waited outside during the robberies, except on June 19, 2013, when Hart entered the bank with Dallas Dunmore and another conspirator.The total proceeds from the five robberies in which Dunmore participated are $5,370; and the total proceeds from the six robberies in which Hart and McCain participated are $8,437.
Dunmore, Hart and McCain each face a maximum sentence of 20 years in prison for bank robbery. U.S. District Judge Paul W. Grimm has scheduled sentencing for Dunmore on December 17, 2014 at 9:00 a.m. McCain is scheduled to be sentence on September 29, 2014 at 1:00 p.m. and Hart is scheduled to be sentenced on October 20, 2014 at 10:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI; Prince George’s and Montgomery County Police Departments; the Arlington, Fairfax, and Alexandria, Virginia Police Departments; and the Maryland Attorney General’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas Mitchell and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General, who are prosecuting the case.Baltimore Man Sentenced to over 5 Years in Prison for Dozens of Commercial BurglariesRead the Press Release
Robbed Businesses in Maryland, Virginia, West Virginia and Pennsylvania
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Carl Paschall, Jr., age 32, of Baltimore, today to 66 months in prison followed by three years of supervised release for conspiring to commit bank larceny and interstate transportation of stolen goods. Judge Motz also entered an order that Paschall pay $200,000 in restitution.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department..
According to his plea agreement, from at least November 2010 until his arrest in July 2013, Carl Paschall conspired with Michael Johnson, Thomas Ellis and others to commit commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The conspirators stole cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments during the night. The conspirators often stole or attempted to steal cash from ATMs.
The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chop saws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items.
Carl Paschall, Jr. admitted that he committed, or attempted to commit, dozens of commercial burglaries and that the loss resulting from these burglaries exceeded $800,000.
On May 26, 2012, Carl Paschall, Jr. stole a van from a car rental agency in West Virginia and used the van during the burglaries. On May 31, 2012, the conspirators drove the van to Newport Road in Woodbine, Maryland and park the vehicle on the side of the road. The conspirators left some evidence of their crimes inside the stolen van, including stolen safes and lottery tickets. The applied an ignitable fluid inside the vehicle and set it on fire. Early in the morning on June 1, 2012, Howard County Fire and Rescue Department responded to the scene and encountered the van fully engulfed in flames.
Michael Johnson, age 25, and Thomas Daniel Ellis, age 24, both of Baltimore, previously pleaded guilty to their participation in the conspiracy. Ellis was sentenced to a year and a day in prison. Johnson was sentenced to three years of probation.United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who are prosecuting this case.
BNP Paribas Agrees to Plead Guilty and to Pay $8.9 Billion for Illegally Processing Financial Transactions for Countries Subject to U.S. Economic SanctionsRead the Press Release
According to court documents submitted today, BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions. The agreement by the French bank to plead guilty is the first time a global bank has agreed to plead guilty to large-scale, systematic violations of U.S. economic sanctions.
The announcement was made by Attorney General Eric H. Holder, Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara for the Southern District of New York, FBI Director James B. Comey, Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) and District Attorney Cyrus R. Vance Jr. of New York County.
“BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities. These actions represent a serious breach of U.S. law,” Attorney General Holder said. “Sanctions are a key tool in protecting U.S. national security interests, but they only work if they are strictly enforced. If sanctions are to have teeth, violations must be punished. Banks thinking about conducting business in violation of U.S. sanctions should think twice because the Justice Department will not look the other way.”
“BNP ignored US sanctions laws and concealed its tracks. And when contacted by law enforcement it chose not to fully cooperate,” Deputy Attorney General Cole said. “This failure to cooperate had a real effect -- it significantly impacted the government’s ability to bring charges against responsible individuals, sanctioned entities and satellite banks. This failure together with BNP’s prolonged misconduct mandated the criminal plea and the nearly $9 billion penalty that we are announcing today.”
“By providing dollar clearing services to individuals and entities associated with Sudan, Iran, and Cuba – in clear violation of U.S. law – BNPP helped them gain illegal access to the U.S. financial system,” said Assistant Attorney General Caldwell. “In doing so, BNPP deliberately disregarded U.S. law of which it was well aware, and placed its financial network at the services of rogue nations, all to improve its bottom line. Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal.”
“BNPP banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities,” said U.S. Attorney Bharara. “But that is exactly what we do today. BNPP, the world's fourth largest bank, has agreed to plead guilty and pay penalties of almost $9 billion for performing the hat trick of sanctions violations, unlawfully opening the doors of the U.S. financial markets to three sanctioned countries, Sudan, Iran, and Cuba. For years, BNPP provided access to billions of dollars to these sanctioned countries, as well as to individuals and groups specifically identified and designated by the U.S. government as being subject to sanctions. The bank did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. For its years-long and wide-ranging criminal conduct, BNPP will soon plead guilty in a federal courthouse in Manhattan.”
According to documents released publicly today, over the course of eight years, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of sanctioned entities, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. Government as being cut off from the U.S. financial system. BNPP engaged in this criminal conduct through various sophisticated schemes designed to conceal from U.S. regulators the true nature of the illicit transactions. BNPP routed illegal payments through third party financial institutions to conceal not only the involvement of the sanctioned entities but also BNPP’s role in facilitating the transactions. BNPP instructed other financial institutions not to mention the names of sanctioned entities in payments sent through the United States and removed references to sanctioned entities from payment messages to enable the funds to pass through the U.S. financial system undetected.
“The significant financial penalties imposed on BNP Paribas sends a powerful deterrent message to any company that places its profits ahead of its adherence to the law,” said FBI Director James Comey. “We will continue to work closely with our federal and state partners to ensure compliance with U.S. banking laws to promote integrity across financial institutions and to safeguard our national security.”
“Today’s outcome is a testament to U.S. efforts to stem the exploitation of the American financial system and ensure that if you chose to do business in our country you must abide by our laws,” said IRS-CI Chief Weber. “BNP Paribas will forfeit the historic figure of almost $8.9 Billion representing the proceeds of criminal activity. BNPP had many opportunities to take corrective action and abide by the law, and yet, despite warnings from American regulators and other banks, consciously chose to ignore those warnings and commit literally thousands of flagrant violations. IRS-CI, and our domestic and international law enforcement partners, will continue to pursue these cases and follow the money trail – wherever it may lead.”
“The most important values in the international community – respect for human rights, peaceful coexistence, and a world free of terror – significantly depend upon the effectiveness of international sanctions,” said District Attorney Vance. “Today’s guilty plea marks the seventh major case involving sanctions violations by a large international bank that my Office has pursued and resolved since 2009. These cases are critically important for international public safety and the security of our banking system, which is put at risk when it is used to further criminal activity. The seven investigations have revealed a series of widespread schemes to falsify the business records of financial institutions in Manhattan and have resulted in the forfeiture of approximately $12 billion in total. But, more importantly, they have resulted in a fundamental change in the way all banks conduct their business, have heightened vigilance worldwide with respect to dealing with sanctioned entities, and have increased the integrity of our Manhattan-based financial institutions.”
BNPP will waive indictment and be charged in a one-count felony criminal information, filed in federal court in the Southern District of New York, charging BNPP with knowingly and willfully conspiring to commit violations of IEEPA and TWEA, from 2004 through 2012. BNPP has agreed to plead guilty to the information, has entered into a written plea agreement, and has accepted responsibility for its criminal conduct. BNPP is scheduled to formally enter its guilty plea before United States District Judge Lorna Schofield on July 9, 2014 at 4:30 p.m.
The plea agreement, subject to approval by the court, provides that BNPP will pay total financial penalties of $8.9736 billion, including forfeiture of $8.8336 billion and a fine of $140 million.
In addition to the joint forfeiture judgment, the New York County District Attorney’s Office is also announcing today that BNPP has pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. In addition, the Board of Governors of the Federal Reserve System is announcing that BNPP has agreed to a cease and desist order, to take certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and to pay a civil monetary penalty of $508 million. The New York State Department of Financial Services (DFS) is announcing BNPP has agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years the term of a monitorship put in place in 2013, and pay a monetary penalty to DFS of $2.2434 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it is making in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control has also levied a fine of $963 million, which will be satisfied by payments made to the Department of Justice.
According to documents released publicly today, including a detailed statement of facts admitted to by BNPP, BNPP has acknowledged that, from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions. The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”
Similarly, BNPP provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.
Further according to court documents, BNPP engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the Government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.
This case was investigated by the IRS-Criminal Investigation’s Washington Field Division and FBI’s New York Field Office. This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York. Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.
The New York County District Attorney’s Office also conducted its own investigation alongside with the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.
Documents associated with this press release are available at: http://www.justice.gov/opa/bnp-paribas.htmlBNP Paribas Agrees to Plead Guilty to Conspiring to Process Transactions Through the U.S. Financial System for Sudanese, Iranian, and Cuban Entities Subject to U.S. Economic SanctionsRead the Press Release
BNP Paribas Will Pay Total Financial Penalties In Excess Of $8.9 Billion
Attorney General Eric H. Holder, Deputy Attorney General James M. Cole, Criminal Division Assistant Attorney General Leslie Caldwell, United States Attorney for the Southern District of New York Preet Bharara, Internal Revenue Service Criminal Investigation Chief Richard Weber, Federal Bureau of Investigation Director James B. Comey, and District Attorney Cyrus R. Vance Jr. of New York County announced that BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, has agreed to plead guilty to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of U.S. dollar transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions. The agreement by the French bank to plead guilty is the first time a financial institution has agreed to plead guilty based on large-scale, systematic violations of U.S. economic sanctions.
Attorney General Holder said: “BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities. These actions represent a serious breach of U.S. law. Sanctions are a key tool in protecting U.S. national security interests, but they only work if they are strictly enforced. If sanctions are to have teeth, violations must be punished. Banks thinking about conducting business in violation of U.S. sanctions should think twice because the Justice Department will not look the other way.”
Deputy Attorney General Cole said: “BNP ignored US sanctions laws and concealed its tracks. And when contacted by law enforcement it chose not to fully cooperate. This failure to cooperate had a real effect -- it significantly impacted the government’s ability to bring charges against responsible individuals, sanctioned entities and satellite banks. This failure together with BNP’s prolonged misconduct mandated the criminal plea and the nearly $9 billion penalty that we are announcing today.”
Assistant Attorney General Caldwell said: “By providing dollar clearing services to individuals and entities associated with Sudan, Iran, and Cuba – in clear violation of U.S. law – BNPP helped them gain illegal access to the U.S. financial system. In doing so, BNPP deliberately disregarded U.S. law of which it was well aware, and placed its financial network at the services of rogue nations, all to improve its bottom line. Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal.”
U.S. Attorney Preet Bharara said: "BNPP banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities. But that is exactly what we do today. BNPP, the world's fourth largest bank, has agreed to plead guilty and pay penalties of almost $9 billion for performing the hat trick of sanctions violations, unlawfully opening the doors of the U.S. financial markets to three sanctioned countries, Sudan, Iran, and Cuba. For years, BNPP provided access to billions of dollars to these sanctioned countries, as well as to individuals and groups specifically identified and designated by the U.S. government as being subject to sanctions. The bank did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. For its years-long and wide-ranging criminal conduct, BNPP will soon plead guilty in a federal courthouse in Manhattan."
According to documents released publicly today, over the course of eight years, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of sanctioned entities, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. Government as being cut off from the U.S. financial system. BNPP engaged in this criminal conduct through various sophisticated schemes designed to conceal from U.S. regulators the true nature of the illicit transactions. BNPP routed illegal payments through third party financial institutions to conceal not only the involvement of the sanctioned entities but also BNPP’s role in facilitating the transactions. BNPP instructed other financial institutions not to mention the names of sanctioned entities in payments sent through the United States and removed references to sanctioned entities from payment messages to enable the funds to pass through the U.S. financial system undetected.
FBI Director James Comey said: “The significant financial penalties imposed on BNP Paribas sends a powerful deterrent message to any company that places its profits ahead of its adherence to the law. We will continue to work closely with our federal and state partners to ensure compliance with U.S. banking laws to promote integrity across financial institutions and to safeguard our national security.”
IRS-CI Chief Weber said: “Today’s outcome is a testament to U.S. efforts to stem the exploitation of the American financial system and ensure that if you chose to do business in our country you must abide by our laws. BNP Paribas will forfeit the historic figure of almost $8.9 Billion representing the proceeds of criminal activity. BNPP had many opportunities to take corrective action and abide by the law, and yet, despite warnings from American regulators and other banks, consciously chose to ignore those warnings and commit literally thousands of flagrant violations. IRS-CI, and our domestic and international law enforcement partners, will continue to pursue these cases and follow the money trail – wherever it may lead.”
District Attorney Vance said: “The most important values in the international community – respect for human rights, peaceful coexistence, and a world free of terror – significantly depend upon the effectiveness of international sanctions. Today’s guilty plea marks the seventh major case involving sanctions violations by a large international bank that my Office has pursued and resolved since 2009. These cases are critically important for international public safety and the security of our banking system, which is put at risk when it is used to further criminal activity. The seven investigations have revealed a series of widespread schemes to falsify the business records of financial institutions in Manhattan and have resulted in the forfeiture of approximately $12 billion in total. But, more importantly, they have resulted in a fundamental change in the way all banks conduct their business, have heightened vigilance worldwide with respect to dealing with sanctioned entities, and have increased the integrity of our Manhattan-based financial institutions.”
BNPP will waive indictment and be charged in a one-count felony criminal information, filed in federal court in the Southern District of New York, charging BNPP with knowingly and willfully conspiring to commit violations of IEEPA and TWEA, from 2004 through 2012. BNPP has agreed to plead guilty to the information, has entered into a written plea agreement, and has accepted responsibility for its criminal conduct. BNPP is scheduled to formally enter its guilty plea before United States District Judge Lorna Schofield on July 9, 2014 at 4:30 p.m.
The plea agreement, subject to approval by the court, provides that BNPP will pay total financial penalties of $8.9736 billion, including forfeiture of $8.8336 billion and a fine of $140 million.
In addition to the joint forfeiture judgment, the New York County District Attorney’s Office is also announcing today that BNPP has pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. In addition, the Board of Governors of the Federal Reserve System is announcing that BNPP has agreed to a cease and desist order, to take certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and to pay a civil monetary penalty of $508 million. The New York State Department of Financial Services (DFS) is announcing BNPP has agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years the term of a monitorship put in place in 2013, and pay a monetary penalty to DFS of $2.2434 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it is making in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control has also levied a fine of $963 million, which will be satisfied by payments made to the Department of Justice.
According to documents released publicly today, including a detailed statement of facts admitted to by BNPP, BNPP has acknowledged that, from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions.
The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”
Similarly, BNPP provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.
Further according to court documents, BNPP engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the Government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.
This case was investigated by the IRS-Criminal Investigation’s Washington Field Division and the FBI’s New York Field Office. This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York. Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo, and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.
The New York County District Attorney’s Office also conducted its own investigation alongside with the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.
BNP Paribas Information
BNP Paribas Statement of Facts
BNP Paribas Notice of Intent
BNP Paribas Plea Agreement
BNP Paribas Consent Preliminary Order of ForfeitureAlabama Woman Sentenced to Probation for Helping Friend Conceal Money from the IRSRead the Press Release
JOHNSTOWN, Pa. – An Alabama resident has been sentenced in federal court to one year probation on her conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Linda Reed, 70, of Florala, Al.
According to information presented to the court, from June 9, 2007, to April 15, 2008, Reed conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Reed.
10 Arrested for Illegal Gun SalesRead the Press Release
Montgomery, Alabama - Ten people were arrested for illegal gun sales that took place at Sadie’s Flea Market in Dothan, Alabama, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and Special Agent in Charge Jeff Fulton of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, all of those arrested had rented booths at Sadie’s Flea Market and engaged in the sale of firearms. It is alleged that nine of the ten arrested sold guns to individuals they knew had been convicted of a felony. Four were also charged with selling firearms without a license. Court records indicate that some of those charged with illegal gun sales had been convicted of a felony themselves, which prohibited them from even possessing a firearm. Under federal law, it is illegal to possess a gun if you have been convicted of a felony, and also to sell a gun to someone you know has been convicted of a felony. As a result of this investigation, ATF agents seized over 200 firearms and over 5000 rounds of live ammunition.
The following people were arrested:
- RICHARD ALLEN COHEN, 65 years old, of Graceville, Florida is charged with selling a firearm to a convicted felon.
- ROBERT ARTHUR CHUDZIK III, 27 years old, of Headland, Alabama is charged with selling a firearm to a convicted felon.
- WILLIAM DEAN, 84 years old, of Whigham, Georgia is charged with selling a firearm to a convicted felon.
- CHARLES T. GRIMES, 56 years old, of Opp, Alabama is charged with selling a firearm to a convicted felon, dealing firearms without a license.
- THOMAS P. KNOWLES, 47 years old, of Chancellor, Alabama is charged with selling a firearm to a convicted felon.
- MARVIN T. JONES, 70 years old, of Dothan, Alabama is charged with selling a firearm to a convicted felon, possession of a firearm by a convicted felon, and dealing in firearms without a license.
- DAVID R. LOFTIN, 64 years old, of Lagrange, Georgia is charged with selling a firearm to a convicted felon, and dealing firearms without a license.
- RONALD D. SLOAN, 64 years old, Cottondale, Florida is charged with selling a firearm to a convicted felon.
- CHARLES P. SLY, 75 years old, of Slocomb, Alabama is charged with selling a firearm to a convicted felon, possession of firearm by convicted felon, and dealing firearms without a license.
- BRENT E. UNDERWOOD, 60 years old, of Coffee Springs, Alabama is charged with selling a firearm to an out-of-state resident.
“ATF’s ‘Frontline’ strategy to reduce violent crime includes the investigation of those individuals who sell firearms to prohibited persons,” stated ATF Special Agent in Charge Jeff Fulton. “This investigation demonstrates the continued dedication to provide a safe environment for the public”
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted Cohen, Chudzick, Dean, Grimes, Knowles, Jones, Loftin, Sloan, and Sly face a prison term of up to ten years, a fine of not more than $250,000 and a term of supervised release of not more than three years. Underwood faces a prison term of not more than five years, a $250,000 maximum fine and a term of supervise release of not more than three years.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Chipley, Florida Police Department. This case is being prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
29 June 2014
Ahmed Abu Khatallah Indicted for Terrorist Conspiracy Stemming from September 2012 Attack in Benghazi, LibyaRead the Press Release
Defendant Makes Initial Court Appearance TodayWASHINGTON - Ahmed Abu Khatallah, aka Ahmed Mukatallah, made his first appearance today in the U.S. District Court for the District of Columbia on a federal terrorism offense arising from his alleged participation in the September 11-12, 2012, terrorist attacks in Benghazi, Libya, which resulted in the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty.
Khatallah was indicted by a federal grand jury on the charge of conspiracy to provide material support and resources to terrorists, knowing and intending that these would be used in preparation for and in carrying out a killing in the course of an attack on a federal facility, and the offense resulted in death.
The investigation is ongoing and the Justice Department can bring additional charges as the case continues.
"Now that Ahmed Abu Khattalah has arrived in the United States, he will face the full weight of our justice system," said Eric Holder, U.S. Attorney General. "We will prove, beyond a reasonable doubt, the defendant’s alleged role in the attack that killed four brave Americans in Benghazi."
"Capturing Ahmed Abu Khattalah and bringing him to the U.S. to face justice for his role in killing American citizens in Benghazi is a major step forward in our ongoing investigation," said FBI Director James B. Comey. "Our work, however, is not over. This case remains one of our top priorities and we will continue to pursue all others who participated in this brazen attack on our citizens and our country."
"Ahmed Abu Khatallah's capture and his appearance in court today were critical steps toward bringing him to justice for his role in the terrorist attacks on our diplomatic facilities in Benghazi," said John Carlin, Assistant Attorney General for National Security. "We will not rest in our pursuit of the others who attacked our facilities and killed the four courageous Americans who perished that day."
"In a courtroom in our nation's capital, today we took the first step down the road to justice for the four American heroes killed in Benghazi," said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. "This prosecution is a reflection of our determination to honor the sacrifice of U.S. citizens who perish on foreign soil in service to our country. We will be steady, deliberate, and relentless in seeking to hold accountable all who were responsible for this deadly act of terror."
"The capture and return to the United States of Ahmed Abu Khatallah should be a warning to all those who want to harm the United States," said George Venizelos, Assistant Director in Charge of the FBI’s New York Field Office. "As alleged in the indictment, Khatallah participated in September 11-12, 2012, terrorist attacks in Benghazi, Libya which resulted in the deaths of four innocent Americans. Now he is in the United States to stand trial for his actions. The FBI will continue to pursue and bring to justice those who conduct such heinous acts no matter where they are located."
Khatallah, a Libyan national approximately 43 years of age, was taken into custody earlier this month. He initially was charged in a criminal complaint that was filed under seal on July 15, 2013 and that became public on June 17, 2014. The Justice Department secured the defendant’s initial indictment on June 26, 2014, and the charging document was unsealed today.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI New York Office's Joint Terrorism Task Force with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the Justice Department’s National Security Division.
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28 June 2014
Ahmed Abu Khatallah Indicted for Terrorist Conspiracy Stemming from September 2012 Attack in Benghazi, LibyaRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatallah, made his first appearance today in the U.S. District Court for the District of Columbia on a federal terrorism offense arising from his alleged participation in the Sept. 11 through 12, 2012, terrorist attacks in Benghazi, Libya, which resulted in the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty.
Khatallah was indicted by a federal grand jury on the charge of conspiracy to provide material support and resources to terrorists, knowing and intending that these would be used in preparation for and in carrying out a killing in the course of an attack on a federal facility, and the offense resulted in death.
The investigation is ongoing and the Justice Department can bring additional charges as the case continues.
“Now that Ahmed Abu Khatallah has arrived in the United States, he will face the full weight of our justice system,” said U.S. Attorney General Eric Holder. “We will prove, beyond a reasonable doubt, the defendant’s alleged role in the attack that killed four brave Americans in Benghazi.”
“Capturing Ahmed Abu Khatallah and bringing him to the U.S. to face justice for his role in killing American citizens in Benghazi is a major step forward in our ongoing investigation,” said FBI Director James B. Comey. “Our work, however, is not over. This case remains one of our top priorities and we will continue to pursue all others who participated in this brazen attack on our citizens and our country.”
“Ahmed Abu Khatallah's capture and his appearance in court today were critical steps toward bringing him to justice for his role in the terrorist attacks on our diplomatic facilities in Benghazi,” said Assistant Attorney General for National Security John Carlin. “We will not rest in our pursuit of the others who attacked our facilities and killed the four courageous Americans who perished that day.”
“In a courtroom in our nation's capital, today we took the first step down the road to justice for the four American heroes killed in Benghazi,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “This prosecution is a reflection of our determination to honor the sacrifice of U.S. citizens who perish on foreign soil in service to our country. We will be steady, deliberate and relentless in seeking to hold accountable all who were responsible for this deadly act of terror.”
“The capture and return to the United States of Ahmed Abu Khatallah should be a warning to all those who want to harm the United States,” said Assistant Director in Charge of the FBI’s New York Field Office George Venizelos. “As alleged in the indictment, Khatallah participated in September 11-12, 2012, terrorist attacks in Benghazi, Libya, which resulted in the deaths of four innocent Americans. Now he is in the United States to stand trial for his actions. The FBI will continue to pursue and bring to justice those who conduct such heinous acts no matter where they are located.”
Khatallah, a Libyan national approximately 43 years of age, was taken into custody earlier this month. He initially was charged in a criminal complaint that was filed under seal on July 15, 2013, and that became public on June 17, 2014. The Justice Department secured the defendant’s initial indictment on June 26, 2014, and the charging document was unsealed today.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI New York Office's Joint Terrorism Task Force with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the Justice Department’s National Security Division.
27 June 2014
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Steven M McCloughan, 57, of Elkhart, Indiana pled guilty to the felony offense of possession and distribution of child pornography. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation and United States Secret Service. Sentencing has been set for 9/25/2014. This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Alvin Blade, III, 22, of South Bend, IN was sentenced to 72 months imprisonment, 2 years supervised release and a $100 Special Assessment after pleading guilty to the felony offense of using a firearm during a drug trafficking crime/crime of violence, where the firearm was discharged. According to documents filed in this case, Javon Thomas and Alvin Blade III agreed and planned to sell ecstasy pills to Jerrell Sanders and his brother William Sanders. A January 21, 2011 meeting for the sale of the ecstasy pills was set and was to occur near the Olive St. convenience store. Instead of the sale, Thomas had decided to rob Jerrell and his brother William. Thomas was armed with a 9mm pistol. In the course of the meeting/confrontation, Blade was also armed with a handgun and shot Jerrell Sanders and also fired at William Sanders. Javon Thomas shot William Sanders. Javon Thomas went through the pockets of the two victims and stole the cash that the Sanders had brought for the planned drug purchase. Blade's participation in this episode included his setting up the drug sale of ecstasy pills with Thomas' concurrence, pulling a handgun, and shooting Jerrell Sanders. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
- Robert D Carrico, 29, of South Bend, IN was sentenced to 92 months imprisonment, 2 years supervised release and a $100 Special Assessment after pleading guilty to the felony offense of possession of controlled substances with intent to distribute and possession of a firearm in furtherance of federal drug trafficking crimes. According to documents filed in this case, Carrico was distributing ecstasy pills and marijuana in the South Bend area. He was aware that dealing in drugs created a risk that he would be robbed of the drugs he was selling and the money that he was making from his illegal drug trafficking. In order to try and protect himself from such robberies, he armed himself with multiple firearms including a .44 caliber revolver, a .45 caliber pistol, a 9mm pistol, a .380 caliber pistol, an AK-47 assault rifle, two 12 gauge shotguns, a 20 gauge shotgun and a large amount of ammunition for these firearms. On October 23, 2013, four armed men tried to rob Carrico of his drugs and cash. Gunfire was exchanged. Carrico was wounded, one of the intruders was killed and another was wounded. Two women who were at Carrico’s home were also present during the armed home invasion/robbery attempt. Police who investigated the shooting found a kilogram of marijuana, ecstasy pills, other drug trafficking materials, and several thousand dollars cash (along with some of the firearms) in a safe that Carrico kept. When Carrico was arrested on February 14, 2014 on the federal warrant for this case, police found Carrico carrying a loaded .45 caliber Beretta pistol. Police also found a small amount of marijuana and a loaded 12 gauge Hawk shotgun in his home on February 14, 2014. This case was the result of an investigation by Elkhart County Immigration and Customs Enforcement Drug Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- David Diederich, 58, of LaPorte, IN was sentenced to 41 months imprisonment, 1 year supervised release and to pay a $1000 fine after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on August 23, 2013, Diederich possessed an Empire Ejector shotgun while in LaPorte County, IN. He had been convicted of a felony in St. Joseph County in 1976 in Superior Court. Diederich knew he could not lawfully possess a firearm and he did not dispute that this firearm had traveled through interstate or foreign commerce. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Brian L Baker, 23, of Chicago, IL was sentenced to 75 months imprisonment and 3 years supervised release after pleading guilty to the felony offense of possessing heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, the South Bend Police did a traffic stop for no taillight on August 23, 2013 on a vehicle in which the defendant was riding. Brian Baker was the front seat passenger and his girlfriend Stephanie Rodriguez driving; another man, Michael Mason, was in the back seat. Having consent to search the vehicle, the police found a handgun in a purse along with 42 baggies of heroin (approximately 7.1 grams) and three baggies of marijuana (approximately 3.4 grams). Baker had $384 cash in his pocket. Both the handgun – a Taurus pistol, model PT132 Millennium Pro, .32 caliber, Serial No. FCS12041 – and the drugs belonged to and were in the possession of the defendant Brian Baker. The firearm was used to protect the defendant while he was engaged in heroin trafficking. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Robert Barker, 28, of Calumet City, Illinois pled guilty to the felony offense of Felon in Possession of a Firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Sentencing has been set for 9/9/2014. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Rhonda Murphy, 38, of Gary, Indiana was sentenced to 2 year term of probation to include 6 months home confinement after pleading guilty to the felony offense of tax fraud. According to documents filed in this case, Murphy prepared and filed fraudulent tax returns to obtain grossly inflated refunds for clients. This case was the result of an investigation by the Internal Revenue Service (IRS). This case was prosecuted by Assistant United States Attorney Jill Koster.
- Jeanetta Brown, 33, of Markham, Illinois was sentenced to 2 years probation, with a special condition of 6 months home detention after pleading guilty to the felony offense of making false statements regarding her residence address and state of residence in connection with the purchase of firearms. According to documents filed in this case, on January 31, 2013, Brown purchased two firearms at a federal firearms dealer in Gary, Indiana, and in so doing represented on the firearms paperwork to purchase the firearms that she was living at a residence in East Chicago, Indiana, when in truth and fact she was at that time a resident of Illinois. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Sandra Hatton Mills, 64, of Lafayette, Indiana was sentenced to a 1 year term of probation to include 6 months of home confinement after pleading guilty to the felony offense of filing a false tax return. According to documents filed in this case, Mills failed to report to the IRS approximately $223,000 in income from her home healthcare business in 2006. Mills also paid her employees wages from which no employment taxes were withheld. Mills failed to report similarly derived income to the IRS in each of 2005 ($12,900 in unreported income), 2006 ($22,300), 2008 ($176,000) and 2009 ($87,600). This case was the result of an investigation by Internal Revenue Service (IRS). This case was prosecuted by Assistant United States Attorney Jill Koster.
- Paul Deshaun Robinson, 23, of Gary, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of distribution of heroin. According to documents filed in this case, In May 2013, in Gary, Indiana, Robinson distributed heroin to a confidential informant. This case was the result of an investigation by Federal Bureau of Investigation (FBI) GRIT Task Force. This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Michael C. Bure, 27, of Fort Wayne, Indiana, was sentenced to 67 months imprisonment; 2 years supervised release and to and pay $2,535 in restitution after pleading guilty to the felony offense of bank robbery. According to documents filed in this case, in 2011, Bure was involved in a bank robbery. Bure aided in planning the robbery and drove the vehicle away from the crime. This case was the result of an investigation by FBI Bank Robbery Task Force and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
- Alfred Alcaraz, 34, of Tucson, Arizona was sentenced to 41 months imprisonment; 3 years supervised release after pleading guilty to the felony offense of conspiracy to possess with intent to distribute a controlled substance. According to documents filed in this case, Alcaraz had utilized individuals to send 117 pounds of marijuana from Arizona to Indiana. Through a series of recorded telephone conversations, he agreed to assist an individual living in Ft. Wayne acquire quantities of marijuana for that individual to distribute to others. Alcaraz was to supply the marijuana to the individual living in Ft. Wayne, Indiana. This case was the result of an investigation by the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pulaski County Sheriff’s Department, Missouri. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
- Pedro Salud Rubio-Garcia, 26, of Fremont, Indiana was sentenced to 78 months imprisonment and 4 years supervised release after pleading guilty to the felony offenses of conspiracy to distribute and possess with intent to distribute a controlled substance, distribution of a controlled substance and selling a firearm to a convicted felon. According to documents filed in this case, Rubio-Garcia was involved in the distribution of cocaine, methamphetamine and the trafficking of firearms. This case was the result of an investigation by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
- Amanda J. McBride, 32, of Fort Wayne, Indiana was sentenced to 2 years on probation after pleading guilty to the felony offense of maintaining drug-involved premises. According to documents filed in this case, from on or about April 15, 2013, to on or about June 27, 2013, McBride was the owner of a building which others used for crack cocaine distribution. This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tony Geller.
Waxahachie Man Sentenced to 41 Months in Federal Prison on Firearms ConvictionsRead the Press Release
Defendant Possessed Firearms, Large Amount of Chemicals, Supplies and Literature for Bomb Making Purposes
DALLAS — A Waxahachie, Texas, man, who was arrested a year ago after law enforcement discovered a firearm, bomb-making chemicals and related literature in his vehicle, was sentenced this morning in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Clayton Todd Earthman, 25, was sentenced by Chief U.S. District Judge Sidney A. Fitzwater to 41 months in federal prison. He pleaded guilty in March 2014 to one count of possession of a firearm by a prohibited person and one count of possession of an unregistered firearm.
According to documents filed in the case, on the afternoon of June 18, 2013, officers with the Dallas Police Department (DPD) stopped Earthman for committing a traffic violation in the 6600 block of Lovett Avenue in Dallas. Upon removing Earthman from the car, officers located a loaded Glock model 32 .357 pistol from the driver’s side floorboard. Officers also observed several large pieces of PVC pipe, end caps and assorted unknown chemicals in the back seat of the car. Earthman was the sole occupant of the vehicle.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were contacted, and upon a search of the car, they discovered fuses, handwritten documents, as well as downloaded material and published documents on how to construct an array of destructive devices and improvised weapons, including grenades.
Earthman advised law enforcement that he was a heroin addict and admitted to using methamphetamine three days three days prior to his arrest. He advised law enforcement, according to the complaint filed in the case, that he is a “Doom’s day prepper,” and that he had more firearms and chemicals at his residence.
Agents searched his residence in Waxahachie and located a Ruger .223 rifle, a black bag with pipes, a jar of Pyrodex, a box of 12.5 pounds of potassium nitrate, two bags of Hexamine, six silver caps, a bag of aluminum powder, a container with carbon steel balls, a box of grenade parts, a box of sodium nitrate, a box with 100 feet of cord, sodium bisulfate, a bottle of Thermite Ignition, assorted rounds of ammunition, black iron oxide, a jar of smokeless powder, a coffee can with nails and small silver pipes, primers, white pellets, peroxide, iodine, match heads, pipe collars, bolts and washers, detonators, a scale and ammonium perchlorate.
On June 20, 2013, ATF agents executed a warrant at an additional residence leased by Earthman in Dallas. In the house, agents located a Taurus revolver, ammunition, fifteen marijuana plants, a package of hexamine, assorted wigs, bomb making supplies, unknown liquids and powder chemicals.
A search of the National Firearms Registration and Transfer Record revealed no firearms or destructive devices registered to Earthman. An ATF Explosive Enforcement Officer (EEO) examined all of the items seized in this investigation and determined that the materials Earthman possessed were consistent with an improvised explosive weapon/destructive device. Because of Earthman’s possession of specialized literature regarding mines, grenades and bobby traps, coupled with the necessary parts and components, the EEO believed Earthman could have readily assembled a functioning explosive device.
ATF and the DPD investigated the case. Assistant U.S. Attorney Taly Haffar prosecuted.
U.S. Attorney Again Warns Connecticut Residents of Jury Duty ScamRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a “Jury Duty Scam” has again been reported in Connecticut.
The Clerk’s Office for the U.S. District Court for the District of Connecticut recently learned that three people reported that they received a call from a man falsely identifying himself as “Lt. Steve Smith” with “badge number 8031” from the U.S. District Court in Bridgeport. The man referred to a case number, that the person had failed to appear for jury selection, and there was a warrant for their arrest. The caller told the people that a bond had been set and the matter would be resolved if they gave him four Green Dot pre-paid $500 VISA cards. In one instance, a victim purchased a Green Dot card and, at the caller’s direction, provided the card’s number to the caller.
The public is advised that this is a scam, and if a person were to receive a jury service-related call they should not provide any personal identification information or money to the caller. Federal and state courts in Connecticut do not call prospective jurors and ask for money or personal identifying information over the telephone. Juror information for the U.S. District Court in Connecticut can be found at www.ctd.uscourts.gov.
Anyone receiving a “Jury Duty Scam” phone call should report it, with any available Caller ID information, to the Federal Bureau of Investigation in New Haven at 203-777-6311, or 1-800-CALL FBI (1-800-225-5324).
U.S. Attorney Daly urged individuals who receive phone calls from suspicious sources never to disclose personal identifying information, as it may be used to cause serious financial harm and jeopardize a person’s credit.
“Identity thieves and scammers defrauding the public will be vigorously prosecuted when identified,” U.S. Attorney Daly stated.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Two Paulding, Mississippi Residents Sentenced to Prison for Conspiracy to Launder Drug MoneyRead the Press Release
Jackson, Miss – Lornell Von Moore, 49, and Patrina Bester Hayes, 37, both of Paulding, Mississippi, were sentenced by U.S. District Judge Daniel P. Jordan III today for conspiracy to launder drug money, announced U.S. Attorney Gregory K. Davis and Acting Special Agent in Charge Jerome R. McDuffie of Internal Revenue Service Criminal Investigation.
Moore was sentenced to 178 months in prison followed by three years of supervised release. He is currently serving nine years in federal prison for narcotics distribution. Hayes was sentenced to 100 months in federal prison followed by three years of supervised release.
Moore garnered over $2 million in drug profits in just a two year period beginning in 2008. Moore and Hayes operated LVM Trucking out of Louin, Mississippi, and washed millions of dollars of drug profits through the trucking company’s bank accounts as well as their private bank accounts.
As a result of the investigation into the narcotics trafficking of Moore and the money laundering activities of Moore and Hayes, investigators of the DEA and the IRS, through the office of the United States Attorney, seized a large amount of property associated with the money laundering conspiracy. The property included vehicles, tractors, trailers, houses and firearms.
“Today's sentencing is the direct result of the commitment of IRS Criminal Investigation, Drug Enforcement Administration, and our state and local partners to combat illegal narcotics and narcotics related money laundering violations,” said U.S. Attorney Davis. “These sentences should send a clear message that those who choose to become involved in these types of criminal activities will be identified, investigated and prosecuted to the fullest extent of the law.”
Jerome R. McDuffie, Acting Special Agent in Charge, IRS – Criminal Investigation, stated, “Today’s sentencing of Lornell Von Moore and Patrina Hayes is a victory for law enforcement. I want the narcotics traffickers out there to know that attempting to disguise drug-related financial transactions behind businesses like LVM Trucking will not protect them from being charged with money laundering violations and suffering the stiff penalties those violations carry. I would also like to thank the United States Attorney’s Office and our law enforcement partners for the work done on this very significant OCDETF investigation.”
The Internal Revenue Service Criminal Investigation Division and the Drug Enforcement Administration conducted the criminal investigation of the financial affairs leading to the current guilty plea. Officers from the Ridgeland Police Department, Jackson Police Department, Hinds County Sheriff=s Office, Jasper County Sheriff’s Office, Madison County Sheriff’s Office, and the Mississippi Bureau of Narcotics, participated in the investigation of Moore’s drug trafficking organization. Assistant U.S. Attorney Darren LaMarca prosecuted the case for the government.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:
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Two Men Charged with Defrauding Delta and Northwest Air Lines of $22 MillionRead the Press Release
ATLANTA - Michael Yedor and Paul Anderson have been indicted by a federal grand jury on charges that they participated in a long-running scheme to defraud Delta Air Lines of millions of dollars. Yedor was arrested in San Diego, Calif. on Saturday, June 21, 2014.
“The longevity and scope of the scheme to defraud Delta is simply astonishing,” said United States Attorney Sally Quillian Yates. “The indictment is an important first step in finally bringing these defendants to justice after so many years of engaging in fraud.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI was not only uniquely positioned to investigate and present for prosecution this extensive case of fraud targeting Delta Air Lines, but also to coordinate the arrest of one of those individuals upon his return to the U.S. The FBI would like to thank our many law enforcement partners for their assistance in this matter, particularly those involved with the apprehension of Mr. Yedor at San Diego, California.”
According to United States Attorney Yates, the indictment, and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became an employee of Delta working in its Minneapolis, Minn., office.
The indictment alleges that, from at least 2004 through 2013, Anderson was involved with Yedor in a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact, both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.
The indictment also alleges that Yedor sent the invoices to Anderson to be approved. Anderson approved the fraudulent invoices, which caused the airlines to issue payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The indictment alleges that Yedor and Anderson caused Northwest and Delta to issue approximately $22 million in payments to Airborne on the basis of the false invoices between 2004 and 2013.
Yedor, 62, of Los Angeles, Calif., and Anderson, 57, of Apple Valley, Minn., were indicted on June 10, 2014, and have each been charged with conspiracy to commit mail fraud and ninety-six counts of mail fraud. The indictment was unsealed after Yedor’s arrest on Saturday, June 21, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Delta Air Lines is fully cooperating with the investigation.
This case is being investigated by the Federal Bureau of Investigation. The arrest of Michael Yedor involved the assistance of and the FBI’s coordination with several federal and local authorities in locating and interdicting Yedor’s motor yacht, including: U.S. Customs and Border Protection Office of Air and Marine; U.S. Coast Guard; U.S. Border Patrol; San Diego Regional Coordinating Mechanism (ReCoM); San Diego Harbor Police; and San Diego Joint Harbor Operations Center.
Assistant United States Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two KC Men Indicted for Robbing Raytown BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for robbing First Federal Bank in Raytown, Mo.
Robert T. Morris, 31, and Anthony Beeks, 52, both of Kansas City, were charged in an indictment returned by a federal grand jury in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Morris on May 22, 2014, and adds Beeks as a co-defendant.
Today’s indictment alleges that Morris and Beeks, aiding and abetting each other, stole $2,025 from First Federal Bank, 9330 E. Gregory, Raytown, on April 24, 2014.
According to an affidavit filed in support of the original criminal complaint, Morris entered the bank, approached the teller counter and provided the teller with a demand note, which was similar in verbiage to the following, “YOU KNOW WHAT THIS IS, HURRY UP, PUT THE MONEY IN THE BAG, NO FUNNY BUSINESS, HURRY UP.” The teller did not have access to any money, but walked over to another teller and showed her the demand note. The second teller then provided Morris with $2,025, the indictment says. Morris allegedly put the stolen money in a manila envelope and fled the bank. The demand note was left behind.
On May 13, 2014, a witness told law enforcement officers that he recognized Morris from bank surveillance photos that were posted on a media Web site. A few minutes, Kansas City police officers located Morris and Beeks, who were driving through the Westport area, and began surveillance.
On May 22, 2014, a federal search warrant was executed on the vehicle Beeks had been driving, which was at his residence. Morris was arrested the same day. Beeks was arrested today.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Leena V. Ramana. It was investigated by the FBI and the Kansas City, Mo., Police Department.Three Individuals Indicted for Theft of Government PropertyRead the Press Release
SAN JUAN, P.R. – Yesterday, June 26, a Federal grand jury returned an 86-count indictment charging three individuals for theft of government property, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The case involves schemes to defraud the United States by fraudulently obtaining and converting to cash United States Treasury Checks issued by the Internal Revenue Service, in connection fraudulent tax returns filed with the agency.
The defendants charged in the indictment cashed or attempted to cash or deposit a Treasury Check issued by the IRS in connection with a false and fraudulent tax return. The check amounts range from $5,460 to $9,851. Defendant Alfredo Rojas-Reynoso is facing 43 charges of theft of government property and 43 charges of aggravated identity theft. Alexander Aguasvivas-Troncoso is facing 17 charges of theft of government property and 17 charges of aggravated identity theft. Miguel A. Berríos-Velàzquez is facing 10 charges of theft of government property and 10 charges of aggravated identity theft.
The tax returns were filed using the personal identifying information of individuals, when in reality, said individuals never filed such tax returns with the IRS. The investigation has revealed that said false and fraudulent tax returns were filed without the consent of the taxpayers who appear in the returns. The majority of the defendants would attempt to negotiate the Treasury checks by depositing them in their accounts at financial institutions, that is, banks and credit unions.
“The Department of Justice is strongly committed to promoting compliance with federal tax laws, and we will continue to aggressively prosecute these offenses” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
“Stealing identities, filing false tax returns, and negotiating U.S. Treasury checks resulting from this criminal activity are violations of the law that IRS Criminal Investigation takes very seriously. This indictment shows that IRS Criminal Investigation and the U.S. Attorney's Office will continue to identify, investigate, and bring to justice those who attempt to benefit from the use of stolen identities,” said José A. Gonzàlez, Special Agent in Charge, IRS Criminal Investigation.
If convicted, the defendants face a maximum possible sentence of ten years on the theft of government property, and two consecutive years for each count of aggravated identity theft.
The case is being investigated by IRS – Criminal Investigation Division. Indictments are only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.