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Wednesday 7 May 2014
Chemung County Man Convicted of Receiving, Possessing and Distributing Child PornographyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has convicted Terry M. Dickinson, 55, of Millport, N.Y., of distribution of child pornography, receipt of child pornography and possession of child pornography. The charges carry a mandatory minimum of five years in prison, a maximum of 20 years, a $500,000 fine or both.
Assistant U.S. Attorney Tiffany H. Lee, who handled the prosecution of the case, stated that an undercover agent in Elmira, N.Y., downloaded child pornography from the defendant, through a peer-to-peer software program, in June and July of 2010. Agents executed a search warrant at Dickinson’s residence in August 2010 and seized items of digital media, including computers, thumb drives and memory cards. A forensic analysis determined that the memory cards contained images and videos of child pornography.
The search warrant led to the discovery of a notebook containing handwritten notes that appeared to detail the defendant's sexual encounters with children.
“A study has shown that a significant percentage of people convicted of child pornography crimes have in fact been involved in hands on crimes against children,” said U.S. Attorney Hochul. “Were it not for the investigation into Dickinson’s online activities, none of his real world actions might ever haven been known.”
This case was brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, investigators and troopers of the New York State Police, Troop E, under the direction of Major Scott Crosier; and deputies and Investigators from the Chemung County Sheriff’s Office under the direction of Sheriff Christopher Moss.
Sentencing is scheduled for September 3, 2014, at 10:00 a.m. before U.S. District Judge Elizabeth A. Wolford.Bozeman Woman Sentenced for Impersonating A Federal OfficerRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte on April 25, 2014, before U.S. District Judge Sam Haddon, MARY ANN McCULLEY, 55, of Bozeman, was sentenced to 12 months imprisonment and 1 year supervised release.
McCulley was sentenced in connection with her October 2013 guilty plea to false impersonation of a federal officer or employee. In an offer of proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that on April 24, 2012, McCulley went to the home of a person identified in the pleadings only as "T.C." in Bozeman, Montana. T.C. was a witness in a civil case involving McCulley, US Bank, and American Land and Title Company. McCulley, who appeared to be wearing a disguise, told T.C. that her name was Angela Connell and she was conducting a securities investigation into US Bank. She said T.C.'s name had been mentioned in connection with the investigation, but he was not a suspect. During her meeting with T.C., McCulley represented herself to be both an FBI agent and an agent from the Department of the Interior.
T.C. eventually told McCulley that he needed to contact a lawyer before answering any more questions. McCulley told T.C. that if he refused to talk to her, he would have to speak with an FBI agent from Bozeman. T.C. agreed to meet with the Bozeman FBI and asked McCulley for their phone number. McCulley explained that she had it written down in her car. T.C. accompanied McCulley outside to her vehicle, but she could not find the number. T.C.'s wife photographed the vehicle's license plate before McCulley drove away. The plate was from New Mexico and the number was 114-PYW. Further investigation revealed that McCulley rented the car from Avis Rental Car Company at the Bozeman Airport three days prior to meeting with T.C. and his wife.
Box Elder Man Sentenced to 13 Years in Prison for Assault of an InfantRead the Press Release
The United States Attorney's Office announced that GARRETT KIRBY LaFROMBOISE, 21, of Box Elder, was sentenced to 160 months imprisonment and 4 years supervised release in federal court on April 25, 2014, before U.S. District Judge Brian Morris, LaFromboise was sentenced in connection with his guilty plea to assault resulting in serious bodily injury. Assistant U.S. Attorney Danna Jackson told the Court that on or around October 21, 2013, LaFromboise became frustrated when an eleven month old child would not stop crying. LaFromboise admitted to investigators that he inserted his fingers in the baby's mouth and gagged him to try to make him stop crying. LaFromboise confessed that as he became increasingly anger he punched the baby in the abdomen. He denied any other infliction of injuries to the child.
The child died as a result of significant injuries.
Jackson told the Court, in a written offer of proof, that medical evidence would have shown that the victim suffered numerous injuries including skull fractures, hemorrhages and bruises to the brain, hemorrhages to the spinal nerves, abrasion to the scalp, a broken nose, bruising on the torso, rib fractures, hemorrhages to the retina, bruises on the child's forehead, nose, cheeks, and ears, lacerations and contusions to the mouth, internal injuries, bruises to the lower extremities, and lacerations on the tips of the child's left hand. The medical examiner, who issued the Report of Postmortem Examination, found that because the exact mechanism or mechanisms of death responsible for the complex skull fracture, cerebral contusions,
Bangor Resident Pleads Guilty to Bath Salt Distribution ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Alan
Ketchen, a/k/a “AJ”, 42, of Bangor pleaded guilty today in U.S. District Court in Bangor to
conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound
commonly referred to as “bath salts” or “monkey dust” and to maintaining a drug-involved
premise.According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. Prior to October 21, 2011,
MDPV was classified as a controlled substance analogue. On that date, it was reclassified as a
Schedule I controlled substance. The defendant packaged and distributed MDPV from his
residence on Blackstone Street in Bangor and collected payments for the drug sales. On
November 10, 2011, law enforcement agents searched the residence and seized a large quantity
of MDPV and other controlled substances, cash, drug records, and drug paraphernalia.
On the conspiracy charge, the defendant faces up to 20 years in prison, a $1,000,000 fine,
or both. For maintaining a drug-involved premise, he faces up to 20 years in prison, a $500,000
fine, or both. He will be sentenced after the completion of a presentence investigation report by
the U.S. Probation Office.
Ketchen is one of six defendants charged as part of the conspiracy. Co-defendants Daniel
Hines, of Bangor; Jessica Bryden, of Greenbush, Maine; Matthew Tardiff, of Old Town, Maine;
Adam Hathorn, of Bangor; and Tina Keaton, a/k/a “Fumble”, of Bangor previously pled guilty to
the conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration and the Bangor Police Department.Bangor Man Sentenced to Four Months for Mail TheftRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David
Blaine Fisher, 47, of Bangor, was sentenced today in U.S. District Court by Judge Nancy
Torresen to four months in prison, three months in community confinement and three years of
supervised release for stealing U.S. mail. Fisher was also ordered to pay $3,194 in restitution.According to court records, between October 9 and December 24, 2012, Fisher stole 12
checks that had been set out for pick-up by the U.S. Postal Service at eight residences in Bangor,
Ellsworth and Trenton. Fisher altered the check amounts, forged endorsements and used them to
buy merchandise at local stores, including Home Depot and Hannaford.The investigation was conducted by the U.S. Postal Inspection Service and the Ellsworth
and Bangor Police Departments.Baltimore Cocaine Dealer Exiled to 10 Years in PrisonRead the Press Release
Admitted to Possessing Two Guns, Including One With an Obliterated Serial Number
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gerod Boyd, age 30, of Middle River, Maryland, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.According to Boyd's plea agreement, on June 25, 2013, Baltimore City police officers were executing a search warrant at a home in the 5700 block of Eastbury Avenue in Baltimore. Boyd was arrested prior to the execution of the search warrant and had the key to the residence in his hand when he was taken into custody. Located inside the residence was a loaded .38 Special revolver, which Boyd admitted belonged to him. Boyd advised that a .357 revolver with an obliterated serial number, recovered during another search that day from his residence in Middle River was also his firearm.
Investigation revealed that Boyd ran a cocaine distribution network in the 600 block of North Kenwood Avenue in Baltimore, Maryland. Specifically, Boyd used the residence in the 5700 block of Eastbury Avenue and other locations, including a home in the 600 block of North Kenwood Avenue, to store items related to the drug distribution operation. On June 25, 2013, law enforcement officers also executed a search warrant at the home on North Kenwood Avenue and recovered four ounces of cocaine from inside that residence. Recovered near the cocaine was a black bag containing packaging material for street level distribution of drugs, a digital scale, and a razor blade.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Armed Baltimore Robber Pleads GuiltyRead the Press Release
Robbed Eight 7-Eleven Stores in 18 Days
Baltimore, Maryland – John Robinson, age 34, of Baltimore, pleaded guilty today to robbery and using a gun in furtherance of the robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from December 1 to 18, 2013, Robinson and a co-conspirator robbed eight 7-Eleven Stores, using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Street, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or his co-conspirator, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Robinson would order the store employee to lie on the floor.
Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to 20 years in prison. U.S. District Judge Catherine C. Blake scheduled his sentencing for August 1, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department; Baltimore City State’s Attorney=s Office, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Ardmore Man Pleads Guilty to Destruction of Mail by Postal EmployeeRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JUSTIN SLATE THRONEBERRY, age 32, of Ardmore, Oklahoma, pled guilty to Delay Or Destruction Of Mail By Postal Employee, in violation of Title 18, United States Code, Section 1703.
The charge arose from an investigation by the United States Postal Inspection Service, Office of Inspector General. The defendant was indicted in March, 2014.
The Indictment alleged that on or about December 19, 2013 in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and open a package entrusted to him and which came into his possession to be conveyed by mail while performing his assigned duties as an employee of the United States Postal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Advertising Company Executives Arrested for FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Gary Todd Smith (45), a/k/a Todd, and Gary Truman Smith (69), a/k/a Gary, both of Fayetteville, North Carolina, with wire fraud affecting a financial institution. If convicted, each faces a maximum penalty of 30 years in federal prison.
According to the complaint, Gary and Todd Smith ran Smith Advertising. The pair was allegedly involved in a fraud scheme that involved borrowing money (called bridge loans) for Smith Advertising to purportedly pre-purchase advertising space. They also borrowed money on outstanding invoices (called factoring) for Smith Advertising. Each loan, to the extent that it was repaid, was repaid by new loans. The underlying collateral for the loans was, where produced, fake invoices. Smith Advertising maintained a real and a false set of record books. On the date the company ceased operations, the total assets for the corporation were, according to their real books, valued at -$63,723,391.55, and the total equity was -$103,140,084.68.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Secret Service and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Thomas N. Palermo.
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Tuesday 6 May 2014
Youngstown Man Indicted on Heroin and Firearms ChargesRead the Press Release
A six-count indictment was filed charging a Youngtown man with distributing heroin and being a felon in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Dorian Christian, age 38, distributed heroin on or about March 19; March 20; March 26; April 3; and April 11, 2014, according to the indictment.
The indictment also charges that on or about April 14, 2014, Christian possessed a Smith & Wesson, model SW40VE, .40 caliber pistol, and ammunition, despite having been previously convicted of conspiracy to possess with intent to distribute and distribution of crack cocaine in the United States District Court for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown Man Faces Child Pornography ChargesRead the Press Release
Nickie Thomas Gray, Jr., 43, of Youngstown, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about February 14, 2013, through on or about April 1, 2014, Gray knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On April 17, 2014, images of child pornography were also found on his Gateway computer and Western Digital hard drive, according to the indictment.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Youngstown Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wesley White, Sr. Sentenced for Crack Cocaine ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Wesley White, Sr., a/k/a “Westside”, 39, of Valdosta, Georgia, was sentenced on May 5, 2014 to serve 16 years (200 months) for possession with intent to distribute more than 28 grams of “crack cocaine”. The sentence was handed down by Senior U.S. District Court Judge Hugh Lawson in Valdosta, Georgia.Mr. White entered a plea of guilty to the charge on January 13, 2014. As a part of his plea agreement, Mr. White admitted that on June 3, 2013, a search warrant was executed at his residence in Valdosta, Georgia, which yielded drugs intended for distribution. During the search, investigators discovered six (6) cookies of crack cocaine packaged in sandwich bags, seven (7) bags of powder cocaine, a one (1) gallon-sized bag of marijuana and a cocaine press which contained some of the cocaine, in the kitchen of the residence. In the living room, officers found two (2) quart-sized bags of marijuana, digital scales and $1216.00 in currency.
The case is the culmination of many years of investigation by the FBI Southwest Georgia Gang Task Force, Lowndes County Sheriff’s Office Special Operations Division, Valdosta Police Department and the Colquitt County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers prosecuted the case for the Government.
“Every time we are able to get a drug dealer off our streets, it is proof that the cooperation between local and federal law enforcement agencies is working. With this lengthy sentence, we can take some comfort in knowing that at least one source of crack cocaine will be dried up for a very long time,” said U.S. Attorney Michael Moore.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Virginia Couple Pleads Guilty to Immigration Charges for Harboring Domestic Servant in Their HomeRead the Press Release
The Department of Justice announced today that Abdelkader and Hnia Amal pleaded guilty to one count of alien harboring in the U.S. District Court for the Eastern District of Virginia. The guilty plea stemmed from evidence that Abdelkader and Hnia Amal unlawfully brought a woman into the United States from Morocco and then kept the woman in their home as a domestic servant for three years.
According to court records, the defendants, who are husband and wife, concealed, harbored and shielded from detection a Moroccan national, identified in court records as F.H., in their home in Alexandria, Virginia, from December 2007 until December 2010. F.H. served as a domestic servant within the home of the defendants. Hnia Amal also had F.H. work for her commercial cleaning company, cleaning various residential and commercial properties.
The Amals unlawfully brought F.H. into the United States on a visa they procured based on false representations that F.H. would be employed as a domestic servant for a different employer. After the defendants unlawfully smuggled F.H. into the United States in December 2007, they did not pay her a salary. Instead, the defendants made two down payments towards an apartment in Morocco on F.H.’s behalf. The two payments, made in October 2010 and January 2011, were roughly equivalent to $8,500, and represented only about a quarter of the total apartment cost. Moreover, while Hnia Amal’s cleaning company received money for the work that F.H. performed, F.H. did not receive any pay for her work on behalf of Hnia Amal’s cleaning company.
According to the statement of facts entered with Abdelkader Amal’s plea agreement, Amal previously held an A-1 diplomatic visa as a military official in the Moroccan embassy in Washington, D.C. After Amal retired in 2003 as the defense supply attaché, he was no longer eligible to sponsor individuals for domestic employment under an A-3 visa.
The defendants face a statutory maximum sentence of five years in prison and a fine of up to $250,000 when they are sentenced on July 11, 2014. As part of the plea agreement, the defendants also agreed to pay at least $52,700 in restitution to F.H. In determining the actual sentence, the court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The case was jointly investigated by the FBI and the U.S. Department of State’s Diplomatic Security Service. The case was jointly prosecuted by Special Assistant U.S. Attorney C. Alexandria Bogle of the Eastern District of Virginia and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Virginia Couple Pleads Guilty to Immigration Charges for Harboring Domestic Servant in Their HomeRead the Press Release
ALEXANDRIA, Va. – The Department of Justice announced today that Abdelkader and Hnia Amal pleaded guilty to one count of alien harboring in the U.S. District Court for the Eastern District of Virginia. The guilty plea stemmed from evidence that Abdelkader and Hnia Amal unlawfully brought a woman into the United States from Morocco and then kept the woman in their home as a domestic servant for three years.
According to court records, the defendants, who are husband and wife, concealed, harbored and shielded from detection a Moroccan national, identified in court records as F.H., in their home in Alexandria, Virginia, from December 2007 until December 2010. F.H. served as a domestic servant within the home of the defendants. Hnia Amal also had F.H. work for her commercial cleaning company, cleaning various residential and commercial properties.
The Amals unlawfully brought F.H. into the United States on a visa they procured based on false representations that F.H. would be employed as a domestic servant for a different employer. After the defendants unlawfully smuggled F.H. into the United States in December 2007, they did not pay her a salary. Instead, the defendants made two down payments towards an apartment in Morocco on F.H.’s behalf. The two payments, made in October 2010 and January 2011, were roughly equivalent to $8,500, and represented only about a quarter of the total apartment cost. Moreover, while Hnia Amal’s cleaning company received money for the work that F.H. performed, F.H. did not receive any pay for her work on behalf of Hnia Amal’s cleaning company.
According to the statement of facts entered with Abdelkader Amal’s plea agreement, Amal previously held an A-1 diplomatic visa as a military official in the Moroccan embassy in Washington, D.C. After Amal retired in 2003 as the defense supply attaché, he was no longer eligible to sponsor individuals for domestic employment under an A-3 visa.
The defendants face a statutory maximum sentence of five years in prison and a fine of up to $250,000 when they are sentenced on July 11, 2014. As part of the plea agreement, the defendants also agreed to pay at least $52,700 in restitution to F.H. In determining the actual sentence, the court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The case was jointly investigated by the FBI and the U.S. Department of State’s Diplomatic Security Service. The case was jointly prosecuted by Special Assistant U.S. Attorney C. Alexandria Bogle of the Eastern District of Virginia and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Virginia Beach Man Pleaded Guilty to Conspiring to Manufacture, Distribute, and Possess Controlled SubstancesRead the Press Release
NORFOLK, Va. – Shawn H. Spencer, 33, of Virginia Beach, Va., pleaded guilty today to conspiring to manufacture, distribute, and possess controlled substances.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement after the plea was accepted by United States Magistrate Judge Lawrence R. Leonard.
Spencer was indicted on April 9, 2014 by a federal grand jury on charges of conspiracyand maintaining drug-involved premises. Spencer faces a maximum penalty of 40 years when he is sentenced on August 7, 2014.
According to a statement of facts filed with the plea agreement, from approximately June of 2012 to November 2013, Spencer and others manufactured, distributed and possessed heroin, cocaine, fentanyl, marijuana and alprazolam. The drugs that were sold by Spencer resulted in several overdoses among several individuals, including students of Cox and First Colonial High Schools in Virginia Beach.
This case was investigated by the Drug Enforcement Administration and the Virginia Beach Police Department. Assistant United States Attorney Kevin Comstock is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
United States Attorneys Barbara L. McquadeAnd Patrick Miles, Jr. Host the Michigan Reentry SummitRead the Press Release
Lansing, Michigan - Reducing crime through prisoner re-entry was the focus of a summit today in Lansing, organized by Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan, and Patrick A. Miles, Jr., U.S. Attorney for the Western District of Michigan.
More than 200 probation and corrections officers, law enforcement officials, service providers and other stakeholders participated in the summit at the Thomas M. Cooley Law School in Lansing.
Re-entry is a key component of U.S. Attorney General Eric H. Holder, Jr.'s Smart on Crime Initiative.
The summit focused on sharing ideas and best practices for improving the success for citizens returning to the community after serving prison sentences. In contrast to the national recidivism rate of 67 percent, in Michigan, only 29 percent of offenders commit new crimes and return to prison.
The summit addressed breaking through the barriers to successful re-entry, such as employment, education and mental health.
Speakers included Ronald Davis, Director of the Office of Community Oriented Policing Services at the U.S. Department of Justice, and Amy Solomon, Senior Advisor at DOJ's Office of Justice Programs.
"Focusing on prisoner re-entry is a smart investment because it reduces crime and saves money," McQuade said. "When we spend $30,000 a year to imprison each offender, we can instead spend a fraction of that money on helping them succeed in the community."
"Reentry failure carries a high cost -- both economically and on society -- because it means more crime, more victims, more broken families as well as more burdens on law enforcement and on the judicial system," Miles stated. "It is a multi-faceted problem that demands a coordinated solution. That is why we convened this summit."
The event also provided an opportunity for the attendees to become aware of some of the effective re-entry programs already underway such as the federal re-entry courts using intensive supervised release programs for some of the highest-risk offenders returning from prison as well as the Eastern District of Michigan’s Face-To-Face initiative. This particular initiative involves meeting with offenders and informing them of the specific consequences of continued criminal activity in light of their criminal records.
The summit was hosted by the U.S. Attorney’s Office for the Eastern and Western District of Michigan, the Michigan Department of Human Services, the Michigan Department of Community Health, the U.S. Department of Justice, Bureau of Prisons, Michigan Department of Corrections, U.S. Probation for both the Eastern and Western District of Michigan, MAGLOCLEN, Prosecuting Attorneys Association of Michigan, Thomas M. Cooley Law School and the Michigan Sheriff’s Association.United States Attorneys Barbara L. Mcquade and Patrick Miles, Jr. Host the Michigan Reentry SummitRead the Press Release
LANSING, MICHIGAN – Reducing crime through prisoner reentry was the focus of a summit today in Lansing, organized by Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan, and Patrick A. Miles, Jr., U.S. Attorney for the Western District of Michigan.
More than 200 probation and corrections officers, law enforcement officials, service providers and other stakeholders participated in the summit at the Thomas M. Cooley Law School in Lansing.
Reentry is a key component of U.S. Attorney General Eric H. Holder, Jr.'s Smart on Crime Initiative.
The summit focused on sharing ideas and best practices for improving the success for citizens returning to the community after serving prison sentences. In contrast to the national recidivism rate of 67 percent, in Michigan, only 29 percent of offenders commit new crimes and return to prison.The summit addressed breaking through the barriers to successful reentry, such as employment, education and mental health.
Speakers included Ronald Davis, Director of the Office of Community Oriented Policing Services at the U.S. Department of Justice, and Amy Solomon, Senior Advisor at DOJ's Office of Justice Programs.
“Focusing on prisoner reentry is a smart investment because it reduces crime and saves money,” McQuade said. “When we spend $30,000 a year to imprison each offender, we can instead spend a fraction of that money on helping them succeed in the community.”“Reentry failure carries a high cost – both economically and on society – because it means more crime, more victims, more broken families as well as more burdens on law enforcement and on the judicial system,” Miles stated. “It is a multi-faceted problem that demands a coordinated solution. That is why we convened this summit.”
The event also provided an opportunity for the attendees to become aware of some of the effective reentry programs already underway such as the federal reentry courts using intensive supervised release programs for some of the highest-risk offenders returning from prison as well as the Eastern District of Michigan’s Face-To-Face initiative. This particular initiative involves meeting with offenders and informing them of the specific consequences of continued criminal activity in light of their criminal records.
The summit was hosted by the U.S. Attorney’s Office for the Eastern and Western District of Michigan, the Michigan Department of Human Services, the Michigan Department of Community Health, the U.S. Department of Justice, Bureau of Prisons, Michigan Department of Corrections, U.S. Probation for both the Eastern and Western Districts of Michigan, MAGLOCLEN, Prosecuting Attorneys Association of Michigan, Thomas M. Cooley Law School and the Michigan Sheriff’s Association.
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U.S. Coast Guard, Caribbean Border Interagency Group Authorities Seize $37 Million Worth of Cocaine in the Caribbean SeaRead the Press Release
SAN JUAN, Puerto Rico — U.S. Coast Guard, U.S. Customs and Border Protection, the Drug Enforcement Administration and the Puerto Rico Police seized nearly 1,280 kilograms of cocaine, with an estimated whole sale value of $37 million, and apprehended two Dominican Republic nationals during an at-sea interdiction in the Caribbean Sea Wednesday, announced United States Attorney Rosa Emilia Rodríguez-Vélez. U.S. Magistrate Judge Camille L. Vélez-Rivé authorized a complaint charging Santos Lantigua-Nuñez and Efrain Cedano-Díaz with conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States.
The interdiction is the result of the Caribbean Border Interagency Group's Operation Caribbean Guard and the Coast Guard’s Operation Unified Resolve.
During a routine Caribbean patrol, the crew of a Coast Guard HC-144 Ocean Sentry Maritime Patrol Aircraft from Air Station Miami detected a 35-foot go-fast vessel with two outboard engines traveling northbound without any navigation lights, south of Puerto Rico Tuesday night.
Coast Guard Sector San Juan watchstanders diverted the Coast Guard Cutters Drummond and Farallon and launched an armed Coast Guard helicopter from Coast Guard Air Station Borinquen to interdict the suspect vessel. Customs and Border Protection Caribbean Air and Marine Branch and the Puerto Rico Police Joint Forces of Rapid action were also notified and launched marine units to interdict the suspect vessel.
The Coast Guard HC-144 maintained near-constant surveillance of the go-fast vessel as the armed Coast Guard helicopter arrived on scene and fired warning shots in an attempt to get the suspects to stop. When the vessel did not comply, the helicopter crew fired at and disabled one of the vessel’s engines, prompting the suspected smugglers to jettison the contraband overboardA Customs and Border Protection marine unit along with marine units from Puerto Rico Police then intercepted the vessel, and a law enforcement team from the Coast Guard Cutter Drummond embarked the suspects.
Law enforcement personnel including crewmembers onboard the Coast Guard Cutters Drummond and Farallon were able to retrieve 45 bales of contraband jettisoned by the smugglers. Narcotics Identification Field Tests conducted by the law enforcement revealed positive results for the presence of cocaine.
“Our multiagency partnerships in the region along with the continuous augmentation of Coast Guard air and surface assets sent to Puerto Rico to interdict major drug shipments at sea continues to pay off,” said Capt. Drew W. Pearson, Commander, Coast Guard Sector San Juan. “The airborne use of force expertly applied by the Coast Guard helicopter crew to stop this vessel should serve as a serious deterrent to smugglers to know they will be caught and brought to justice.”
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring drug smuggling organizations to justice.”“CBP air and marine assets continuously patrol the coastal borders of Puerto Rico and the US Virgin Islands to leverage the collective efforts of all federal and state law enforcement partners to intercept any smuggling venture,” stated Johnny Morales, Director of CBP Air Operations.
“Once again the combined efforts of DEA, USCG, CPB and PRPD-FURA resulted in the seizure of millions of dollars’ worth of narcotics. Our message continues to be the same: we will detect and interdict drug smugglers attempting to flood our island with their poisonous cargo,” said Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration, Caribbean Division.
During interviews with the suspects, it was discovered the third person jumped overboard to avoid apprehension as law enforcement units approached the disabled vessel. The Coast Guard conducted a large scale search for the missing person that lasted 34 hours and covered 546 square miles before suspending search efforts for the missing smuggler Thursday night. While searching for the missing person Coast Guard active duty and Auxiliary crews located and subsequently recovered 45 bales of contraband from the water, which later tested positive for cocaine.
The two apprehended smugglers, the seized cocaine, and the suspect’s vessel were transferred in Ponce, Puerto Rico, to Customs and Border Protection officers and Drug Enforcement Agency agents for processing and prosecution.
The Coast Guard Cutters Farallon and Drummond are 110-foot patrol boats homeported in San Juan, Puerto Rico.
The case is being prosecuted by Special Assistant United States Attorney Kelley Tiffany.The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The Coast Guard's efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands. Since June 2012, the Coast Guard and its interagency partners supporting Caribbean Guard and Unified Resolve have seized more than $1 billion in illicit narcotics and detained nearly 90 suspected smugglers.
U.S. Attorney Melinda Haag, Alameda County District Attorney Nancy O’Malley, Drug Enforcement Administration, and High Intensity Drug Trafficking Area (HIDTA) to Host Bay Area Prescription Drug Abuse SummitRead the Press Release
When: May 7, 2014.
Where: Futures Without Violence, 100 Montgomery Street, Presidio of San Francisco.
Who: U.S. Attorney Haag, Alameda County District Attorney Nancy O’Malley, DEA, HIDTA, State Superintendent of Public Instruction Tom Torlakson, National HIDTA Director Mike Gottlieb, District Attorneys George Gascon (San Francisco), Ed Berberian (Marin), Mark Peterson (Contra Costa), Steve Wagstaffe (San Mateo), Gary Lieberstein (Napa), Board Presidents of the Medical Board of California, Pharmacy Board of California and Dental Board of California, The Partnership at DrugFree.org, UCSF, pharmaceutical CEOs, educators, pharmacists, medical insurers, coroners, physicians, local, state and federal law enforcement officials, policymakers, families and community members whose lives have been devastated by prescription drug abuse, and community members who have formed coalitions to address awareness, education and prevention efforts.
Agenda: Attached/Included.
Attorney General Eric Holder has recently stated that the rise in overdose deaths from heroin and prescription painkillers in the United States in recent years is an “urgent public health crisis.”
Prescription drug abuse has taken hold in every community and every state in the union. Governors across the country are facing the burgeoning issue of prescription drug abuse and the related resurgence of heroin, and like the Bay Area, are grappling with this public health crisis.
The Centers for Disease Control and Prevention has classified prescription drug abuse as an epidemic in the United States. According to the CDC, one in 20 people 12 years and older used prescription painkillers without a prescription in 2010. And more than 2.1 million people in the U.S. are addicted to prescription opioid painkillers.
Many people who misuse prescription drugs, particularly teens, believe these substances are safer than illicit drugs because they are prescribed by a healthcare professional and dispensed by a pharmacist. The number of unintentional overdose deaths from prescription pain relievers has soared in the United States, more than quadrupling since 1999. In 2010 nearly 60 percent of drug overdoses involved pharmaceutical drugs. Opioids (oxycodone, hydrocodone and methadone) were involved in approximately 3 of every 4 pharmaceutical deaths.
Opioid addiction can lead to heroin addiction. As an addict’s tolerance for opioids increases, the habit becomes increasing and exponentially more expensive. At some point, heroin becomes the drug of choice for many because of its wide availability and far lower cost. A recent study concluded that 81 percent of heroin initiates mis-used prescription pain relievers before turning to heroin.
The Governor of Vermont recently dedicated his state of the union speech to the issue of heroin addiction. In Vermont, last year there were 21 fatal heroin overdoses, twice as many as the year before, and five times the number just five years ago. DEA and HIDTA will talk about the substantial uptick in heroin in the Bay Area and California – much of it driven by a voracious appetite for prescription drugs.
A few more disturbing statistics:
- The number of prescriptions written for opioids has increased 10-fold since 1990.
- There was a five-fold increase in treatment admissions for prescription painkillers between 2000 and 2010.
- Between 2006 and 2010, heroin overdose deaths increased nationally by 45 percent. Heroin treatment numbers are up over 250% since 2000 and over 40% in the past year.
- 69% of those who mis-used pain relievers obtained them from a friend or relative.
- In Ohio, from 1999-2010, drug overdose deaths increased by 372%, and 45% of those involved prescription drugs.
Nationally, drugs overtook traffic accidents as a cause of death in 2009, and this trend continues. In Contra Costa County, accidental drug poisoning has been exceeding traffic accident fatalities in recent years. The majority of those overdoses involved prescription drugs. In 2013, for the first time in Marin County, the same is true.
Drug abuse is not a problem that law enforcement can solve alone. President Obama, through the Office of National Drug Control Policy (ONDCP), released the 2011 Prescription Drug Abuse Prevention Plan, which outlines the need for a multi-pronged approach involving education, tracking and monitoring, proper disposal of medicines, and enforcement. This is the reason for bringing experts in the Bay Area together on May 7th -- educators, doctors, pharmacists, pharmaceutical companies, researchers, policymakers, community activists, elected officials, local, state and federal law enforcement, practitioners in the rehabilitation world, the media, and others, to help tackle this challenging issue and highlight the absolute need for a focused effort in this area including prevention, awareness, treatment, and enforcement.
One significant challenge in the Bay Area is a lack of local statistics. Anecdotally we are all seeing prescription drug abuse in the Bay Area on the rise and our teenagers and young adults are increasingly becoming the new face of heroin addiction. One local rehab director with decades of experience in the field called the influx of prescription drug and heroin addicted young adults in the Bay Area a “tsunami.”
This gathering is intended to be the start of a movement to get in front of this issue in Northern California – to collect information, share best practices, develop ways to track and measure this growing phenomenon, and devise ways to contain this growing epidemic – before we are years down the road and more lives are lost or destroyed.
(Summit Agenda )
Two Men Enter Guilty Pleas in Federal Court to Charges Related to Child Sex TraffickingRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced guilty pleas in Federal court by two men on charges related to sex trafficking stemming from investigations by the Tulsa Police Department’s Vice Unit.
Damian Dashane Wardell, 39, of Tulsa, pleaded guilty before United States District Court Judge Claire V. Eagan to Sex Trafficking of a Child. Wardell admitted he maintained and prostituted a 16-year-old female at a local Tulsa area motel. Tulsa Police Department officers found and arrested Wardell at the motel after the victim’s mother provided information. Police discovered the victim and two other juvenile females in the motel room. Wardell faces a minimum sentence of ten (10) years and up to life imprisonment. Sentencing is set for August 6, 2014.
Wardell’s plea follows a guilty plea on April 25, 2014 by Terrance Cortez Whitfield, 36, of Muskogee, to a single-count Information charging Coercion and Enticement of a Minor. Whitfield also faces a minimum sentence of ten (10) years and up to life imprisonment and his sentencing is set for August 4, 2014, before United States District Judge Claire V. Eagan. Whitfield was arrested following a routine traffic stop, after which police officers discovered a juvenile female in Whitfield’s vehicle. An ensuing investigation led to evidence that Whitfield used his cell phone and the Backpage.com website to entice and induce the juvenile female to engage in prostitution.
United States Attorney Williams commended the excellent work by the Tulsa Police Department’s Vice Unit. Assistant United States Attorneys Trent Shores and Clint Johnson prosecuted the matters on behalf of the United States of America.
Two Individuals Indicted for Mortgage FraudRead the Press Release
Allegations Relate to Marshall Reed Apartments in Carbondale
Follow @SDILNewsEarlier today, two individuals from New York were indicted by a federal grand jury sitting in Benton, Illinois, for mortgage fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Maximus A. Yaney, 37, and Jamie L. Bray, 36, were each indicted for one count of bank fraud and one count of wire fraud.
According to the Indictment filed on May 6, 2014, Yaney owned and operated various companies which purchased rental properties in college towns, including Carbondale, Illinois. Bray was the Vice President of Operations for Titan Student Communities, LLC, one of the companies owned by Yaney. The name of Titan Student Communities was later changed to Campus Habitat, LLC.
In June of 2007, Yaney used a company he had recently formed, known as H.G. Capital, LLC, to purchase the Marshall Reed Apartments in Carbondale for $2,710,000. The Indictment further alleges that in November of 2007, Yaney caused H.G. Capital, LLC, to sell the Marshall Reed Apartments to another company that he owned, Titan, LLC, for $9,780,000. It is alleged that in obtaining both the short-term and long-term financing for this transaction, Yaney concealed from the lenders the fact that he had an ownership interest in both the selling and buying companies.
In order to persuade the lenders to finance the purported $9,780,000 sale, the Indictment charges that Yaney and Bray made several misrepresentations and engaged in numerous fraudulent acts, including, (1) submitting fraudulent Rent Rolls for the Marshall Reed Apartments; (2) creating false leases to support the fraudulent Rent Rolls; (3) submitting a fraudulent Operating Statement for the Marshall Reed Apartments; (4) submitting false information regarding the percentage of apartments that were rented; (5) staging empty apartments with items to make them appear to be occupied; (6) paying employees of one of Yaney’s companies to sit in unoccupied apartments and pretend to be renters while appraisals and bank inspections were being performed; and (7) providing false information about the number of apartments that had been renovated.
The Indictment also charges that during the appraisal process, Bray concealed her true identity and claimed to be a person named “Jamie Lewis.” Bray allegedly did this in order to prevent the appraiser from learning that she worked for one of Yaney’s companies.
The Indictment states that on November 14, 2007, $6,123,342.81 in loan proceeds from the purported sale of the Marshall Reed Apartments were wire transferred to a bank account in the name of H.G. Capital. On the very next day, it is alleged that $6,123,300.06 of those funds were wire transferred to the account of Campus Habitat, one of other companies Yaney owned. The Indictment charges that Yaney then used those funds for operating expenses and to purchase other rental properties.
Each count of bank fraud and wire fraud is punishable by not more than 30 years in federal prison, and/or a $1,000,000 fine, and not more than five years of supervised release following the prison time. The Indictment also seeks forfeiture of the $6,123,342.81 in proceeds that Yaney received from the scheme.
The investigation is being conducted by agents from the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Trotwood Man Charged in Connection with Shooting at VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON, OHIO – A two-count criminal complaint charging Neil Richard Moore, 59, of Trotwood, Ohio with one count of assault with a dangerous weapon and one count of use of a deadly weapon during the commission of a crime of violence has been filed in U.S. District Court in Dayton. The complaint alleges that Moore shot an individual at the Veterans Affairs Medical Center in Dayton on May 5, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Glenn Costie, Director of the Dayton VA Medical Center (VAMC) announced the complaint today.
According to an affidavit supporting the complaint, Moore allegedly shot an employee of the VAMC with a .38 caliber revolver after confronting him in the basement of a building at the medical center. During a struggle with employees, the handgun discharged multiple times with one shot striking the victim in the leg. Moore then allegedly fled the scene in an elevator where he encountered another individual and pointed the handgun at this person.
Each count carries a maximum sentence of ten years in prison and a possible fine of up to $250,000.
Moore appeared before Chief U.S. Magistrate Judge Sharon Ovington today for an initial appearance on the complaint. Moore is being held without bond. Magistrate Judge Ovington scheduled a detention hearing for May 9 at 1:30 and a preliminary hearing for May 20.
U.S. Attorney Stewart commended the prompt response to the reports of the active shooter to the FBI, Dayton Police and other law enforcement agencies including the VA Police Services, Montgomery County Sheriff Philip Plummer’s Office, the VA Office of Inspector General, the Ohio State Highway Patrol, the Ohio Department of Natural Resources Law Enforcement Division, the Five Rivers Metro Parks Police Department, the Good Samaritan Hospital Police, and the Kettering Police Department. Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi are prosecuting the case on behalf of the United States.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tijeras Man Sentenced to Ten Years in Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Glenn Isaac Garcia, 25, of Tijeras, N.M., was sentenced yesterday to 10 years in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Garcia was convicted of this offense based on a guilty plea entered on Dec. 3, 2013
Garcia was arrested in Oct. 2013, on a criminal complaint alleging that he unlawfully possessed a handgun and ammunition in Bernalillo County, N.M., on March 9, 2013. According to the complaint, on that day, officers of the Albuquerque Police Department were engaged in a law enforcement operation to execute an arrest warrant for a suspect with a criminal history of violence. During the operation, the officers located the suspect driving a vehicle in which Garcia was a passenger. As the officers slowly drove by the suspect’s vehicle, Garcia fired several shots at the officers’ unmarked police vehicle. Shortly thereafter, Garcia again pointed his firearm outside of the vehicle in which he was a passenger and fired several shots at a second unmarked police vehicle occupied by officers. A high speed chase ensued during which Garcia fired multiple shots at two more police vehicles, disabling one of the vehicles. The chase ended and Garcia and the suspect were arrested after the suspect crashed his vehicle.
Court records reflect that Garcia was prohibited from possessing firearms or ammunition in March 2013 because previously he had been convicted of several methamphetamine trafficking offenses in 2008 and the unlawful taking of a motor vehicle in 2009 in the 2nd Judicial District Court for the State of New Mexico.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Garcia was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Swiss Offshore Tax Evasion Enabler Pleads GuiltyRead the Press Release
WASHINGTON – Josef Dörig, 72, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as the owner of a trust company in Switzerland. Deputy Attorney General James Cole, Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Dörig was charged in a one count superseding indictment on July 21, 2011. Sentencing is set for Aug. 8, 2014, and Dörig faces a statutory maximum sentence of five years in prison.
“Today’s plea further pulls back the curtain on efforts by Swiss banks to help U.S. taxpayers evade taxes through the use of sham trusts and foundations,” said Deputy Attorney General Cole. “Rest assured, the days of bank secrecy for U.S. tax cheats in Switzerland – and around the world – are numbered.”
“This plea sends a strong message to those who use or help others use offshore bank accounts to evade U.S. taxes,” said Assistant Attorney General Keneally. “We are receiving information from a variety of sources and are committed to investigating and prosecuting this wrongdoing.”
“We will continue to investigate and prosecute banks and individuals who assist U.S. citizens in the evasion of income taxes with overseas accounts,” said U.S. Attorney Boente. “The doors are quickly closing on this illegal activity.”
“Assisting American taxpayers to evade their tax obligations with the use of secret bank accounts held in sham entities violates the law, and we will find those who are doing it,” said Chief of IRS-Criminal Investigation Richard Weber. “IRS-CI will pursue those who use anonymous offshore accounts to avoid paying their fair share. IRS Criminal Investigation is proud to have shared our hallmark expertise in following the money trail in this and other increasingly sophisticated criminal schemes.” .
In a statement of facts filed with the plea agreement, Dörig admitted that between 1997 and 2011, while owning and operating a trust company, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret bank accounts held in the names of sham entities at a financial institution referred to in the superseding indictment as International Bank (IB), one of the biggest banks in Switzerland and one of the largest wealth managers in the world.
According to the statement of facts, from 1972 to 1996, Dörig worked for a subsidiary of IB. The subsidiary formed, managed and maintained nominee tax haven entities. Individuals concealed their assets by holding their accounts at IB in the names of these tax haven entities. During this time, the subsidiary managed and maintained over 100 sham entities for U.S. taxpayers committing tax evasion.
Also included in the statement of facts, in 1997, executives at the subsidiary devised a plan to spin off all of these sham entities into a new trust company, Dörig Partner AG, to be owned and operated by Dörig, who was then an employee of the subsidiary. Dörig was required to make his best efforts to keep the existing accounts at IB open and to ensure that any clients referred to him by IB would open new accounts at that institution.
According to the statement of facts, IB promoted Dörig Partner as a provider of various entity structures. The phone list used in IB’s New York representative office identified Dörig Partner as an external trust expert. Dörig Partner also sublet space from IB in an office tower where a private bank owned by IB was the major tenant.
As part of the conspiracy, Dörig traveled to the United States to introduce himself to new clients he had obtained as part of the spin-off. In the following years, he traveled to the United States with bankers from IB, including his co-defendants Markus Walder, Marco Parenti-Adami and Michele Bergantino, to meet with existing and prospective clients who already had undeclared accounts at IB but had been identified by the IB’s bankers as potential candidates for the use of a structure.
According to the statement of facts, although Dörig ostensibly controlled both the structure and the account at IB, in practice, many of the U.S. taxpayers with undeclared accounts controlled the assets in those accounts by dealing directly with IB bankers, often without either the knowledge or consent of Dörig.
According to the statement of facts, in 2008, IB ordered Dörig Partner to close accounts for the structures they managed. Dörig turned to an asset manager at a financial services firm in Zurich for assistance. The financial services firm maintained a master account in its own name at a private bank in Gibraltar, and then opened sub-accounts for Dörig’s clients at that bank to which Dörig transferred the funds from the clients’ undeclared accounts at IB. The financial services firm provided the Gibraltar bank only with the number associated with each sub-account and did not inform the bank of any information regarding the owners of the assets in the sub-accounts.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Trial Attorneys Mark F. Daly and Nanette L. Davis of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.Sussex County, N.J., Man Sentenced to Two Years in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Sussex County, N.J., man was sentenced today to 24 months in prison for using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Albert Rose, 55, of Lafayette, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of distribution of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Rose admitted distributing images of child pornography via email using a computer located in his residence in February 2010. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence in February 2012. Rose acknowledged that among the images he possessed and distributed were images which depicted minors posing in a sexually explicit manner.
In addition to the prison term, Judge Pisano sentenced Rose to serve five years of supervised release and ordered him to pay restitution of $500.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: S. Emile Lisboa Esq., Hackensack, N.J.St. Albans Man Sentenced for Selling Heroin and Oxycodone PillsRead the Press Release
Tristram J. Coffin, the United States Attorney for the District of Vermont, stated that Kermit
Flanders,44, of St. Albans, Vermont, was sentenced on May 5, 2014 by U.S. District Court Judge William K. Sessions, III, to 12 months plus 1 day in prison for conspiring to distribute heroin and oxycodone. The Court also sentenced Flanders to 3 years of supervised release after the completion of his prison term.According to Court records, during December of 2013 through February of 2014, Flanders sold both heroin and oxycodone 30 mg. pills to an individual cooperating with the police on 5 separate occasions. The sales of controlled substances by Flanders all occurred in St. Albans.
Flanders was indicted by a federal grand jury on September 12, 2013. He was arrested on September 17, 2013 and appeared that day in federal court. He pled guilty on February 24, 2014 and has been detained in prison since his arrest.
This case was investigated by the Vermont State Northwest Drug Task Force. The U.S. Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant U.S. Attorney, Nancy J. Creswell. Flanders was represented by Richard C. Bothfeld, Bothfeld and Volk, P.C.
Spearfish Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography Transported to the United States, Travel with Intent to Engage in Sexual Activity, and Possession of Child Pornography.
Richard William Melanson, age 51, was indicted on April 8, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 1, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is not less than 15 years and up to 30 years’ imprisonment and/or a $250,000 fine, up to life of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between January 2008 and June 2011, Melanson knowingly possessed computer files that contained child pornography images, induced a minor outside of the United States to produce a pornographic image, and traveled to Guatemala to engage in sexual acts with minors.
The charges are merely accusations and Melanson is presumed innocent until and unless proven guilty.The investigation is being conducted by the South Dakota Internet Crimes Against Children Task Force and the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Melanson was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Shiprock Man Sentenced for Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Lancelot Lapahie, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today for his statutory rape conviction. As required by the terms of his plea agreement, Lapahie was sentenced to 24 months in prison followed by ten years of supervised release. He also was ordered to register as a sex offender. The 24-month prison sentence will be served concurrently with a 50-month prison sentence Lapahie already is serving for his conviction on assault and firearms charges.
Lapahie was arrested in Nov. 2013 on an indictment charging him with statutory rape. According to the indictment, between Aug. 2010 and Dec. 2011, Lapahie engaged in a sexual act with a minor under the age of 16 years. In Feb. 2014, Lapahie entered a guilty plea to the indictment.
The 50-month prison sentence was imposed on Lapahie in May 2013, following his guilty plea to two assault charges and a possession of an unregistered firearm charge. In entering his guilty plea to those charges, Lapahie admitted that in March 2012, he struck a man with a baseball bat and repeatedly struck another man about the head, arms and body with a machete. The victim of the machete attack suffered multiple stab wounds and cuts to his head, face, forearm, leg and back.
This case was prosecuted by Assistant U.S. Attorney Novaline D. Wilson, and was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Navajo Nation Division of Social Services.
Seventh Person Pleads Guilty in Marijuana Smuggling ConspiracyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Amber Dorius (31, St. George, Utah) today pleaded guilty to conspiring with others to distribute marijuana. She faces a maximum penalty of 20 years in federal prison. A sentencing hearing has not yet been scheduled.
According to court documents, from 2011 to January 2013, Chad Sunyich arranged for quantities of marijuana to be driven and flown to the Middle District of Florida, from California and Utah, for further distribution. In 2011, Dorius worked as a courier in Sunyich’s organization. She worked with others to transport marijuana from California to Hillsborough County, Florida, by car, generally every forty-five to sixty days. On many of these trips, Dorius’ associate would drive a car carrying the marijuana. Dorius would drive ahead in a separate car, acting as a lookout. Once the marijuana arrived in Hillsborough County, it was distributed.
Dorius is the seventh individual in this investigation to plead guilty. Others pleaded guilty to a marijuana distribution conspiracy charge as follows:
- Chad Sunyich pleaded guilty on June 4, 2013. He was sentenced on August 22, 2013, to five years in federal prison.
- Timothy O’Neal Long pleaded guilty on June 26, 2013. He was sentenced on September 13, 2013, to three years and one month in federal prison.
- Jason Vowell pleaded guilty on June 3, 2013. He was sentenced on August 19, 2013, to twelve months in federal prison and ordered to forfeit a Piper Aerostar fixed wing aircraft which had been used to smuggle marijuana from St. George, Utah to Tampa, and $166,228 in drug proceeds.
- Jeff Laflamboy pleaded guilty on January 7, 2014. His sentencing hearing is scheduled for July 23, 2014.
- Miryana Calderon Long pleaded guilty on December 3, 2013. Her sentencing hearing is scheduled for July 10, 2014.
- Lucas Dahlberg pleaded guilty on April 17, 2014. His sentencing hearing has not yet been scheduled.
This case was investigated by the Drug Enforcement Administration as part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Rochester Man Pleads Guilty to Drug ChargeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ronald Cleveland, a/k/a Pretty Tony, a/k/a P.T., a/k/a Success, a/k/a Cess, 44 of Rochester, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine before U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $8,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Cleveland was a member of a Rochester-based drug conspiracy led by James Webb, a/k/a Butch, in which large quantities of powder cocaine were distributed, and also processed into crack cocaine, packaged and resold in various quantities in the City of Rochester. The defendant, who has prior felony drug and weapons convictions, and was still on parole after serving a 10 year prison sentence for a 1995 shooting, served primarily as the “muscle” or protection for the organization.
On June 14, 2011, Webb and others were arrested when law enforcement raided the epicenter of the drug operation at 392 and 401 Norton Street in Rochester. During the raids, officer seized over 40 grams of crack cocaine packaged for sale, a loaded 9mm handgun, $9,172 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine. Cleveland was arrested on May 24, 2012 at his residence at 9 Parkside Avenue in Rochester by NYS Parole and Rochester Police.
Webb was convicted in March 2012 of conspiracy to possess with intent to distribute 280 grams or more of cocaine base and is awaiting sentencing.
The plea is the culmination of an investigation on the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent in Charge Thomas J. Cannon, and the New York State Division of Parole, under the direction of Acting Commissioner Anthony J. Annucci.
Sentencing is scheduled for August 6 at 3:00 pm before Judge Geraci.Rapid City Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on April 29, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rodney Volker, age 67, was sentenced to 108 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Volker was indicted for Possession of Child Pornography and Receipt of Child Pornography by a federal grand jury on October 22, 2013. He pled guilty to the Receipt of Child Pornography charge on January 2, 2014.
The charge related to Volker taking his computer to a computer repair company in Rapid City on September 19, 2013, and asking them to wipe it clean of all data because it wasn’t working properly. While the computer company employee was doing this, he viewed what he believed to be child pornography on the computer and reported it to law enforcement. After a forensic analysis was done on the computer, 122 images of child pornography were found, many involving sexual acts by children with adult males and many involving girls under the age of 10.
This case was investigated by the Rapid City Police Department and the South Dakota Internet Crimes against Children Taskforce. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Volker was immediately turned over to the custody of the U.S. Marshals Service.
Pill Mill Owner Sentenced to 69 Years in PrisonRead the Press Release
KNOXVILLE, Tenn. -- Randy Kincaid, 58, of Maryville, Tenn., was sentenced to serve 830 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. The sentence was the result of a conviction at trial in October 2013 to a federal indictment charging him with drug, firearm, money laundering and structuring offenses in conjunction with Breakthrough Pain Therapy Center in Maryville. Kincaid’s wife and co-owner of Breakthrough, Sandee Kincaid, along with family members Wendi Henry and Dustin Morgan were also convicted and are presently in custody and awaiting sentencing.
The indictment and subsequent conviction of Kincaid and his co-defendants resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010. On that same date, agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
U.S. Attorney William C. Killian said, “The cooperation and diligence of these local, state and federal agencies resulted in a severe sentence for this individual who was distributing huge amounts of addictive pills. This sentence is a deterrent for those considering the illegal distribution of prescription pills.”
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Philadelphia Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
Maria Falu, 37, of Philadelphia, PA, was charged today by Information with preparing and filing materially false tax returns, announced United States Attorney Zane David Memeger. The Information alleges that Falu owned Casa de Taxes and Genesis Tax Services, LLC, at 2934 North 5th Street, in Philadelphia, and prepared tax returns. The Information alleges that from 2011 to 2013, Falu prepared false tax returns for the tax years 2010, 2011, and 2012, for a number of individuals, by reporting false income, false expenses, and false tax credits, resulting in tax losses of approximately $117,171.
If convicted, the defendant faces a maximum possible sentence of 18 years of imprisonment.
The case was investigated by Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Painesville Man Indicted for Robbing Bank in Warrensville HeightsRead the Press Release
A grand jury returned a one-count indictment charging Edward Robert Hudson, 51, of Painesville, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Hudson robbed the First Merit Bank, 4834 Richmond Road, Warrensville Heights, Ohio, a federally insured financial institution, on April 21, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation, the Warrensville Heights Police Department, and other local law enforcement agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owners of Los Angeles Ambulance Company Sentenced for <br /> Medicare Fraud SchemeRead the Press Release
The owners of Alpha Ambulance Inc. (Alpha), a now-defunct Los Angeles-area ambulance transportation company, have been sentenced in connection with a Medicare fraud scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Aleksey Muratov, aka Russ Muratov, 32, and Alex Kapri, aka Alex Kapriyelov or Alexander Kapriyelov, 56, were sentenced by U.S. District Court Judge Audrey B. Collins in the Central District of California to serve 108 months and 75 months in prison, respectively. Both Kapri and Muratov pleaded guilty on Oct. 28, 2013, to conspiracy to commit health care fraud.
Muratov and Kapri were owners and operators of Alpha, which specialized in the provision of non-emergency ambulance transportation services to Medicare-eligible beneficiaries, primarily dialysis patients.
According to court documents, Muratov and Kapri knowingly provided non-emergency ambulance transportation to Medicare beneficiaries whose medical condition at that time did not require ambulance transportation. With Kapri’s knowledge, Muratov and others at Alpha instructed certain Alpha employees to conceal the Medicare beneficiaries’ medical conditions by altering required documents for Medicare reimbursement and creating fraudulent justifications for the transportation. The defendants caused Alpha to submit claims to Medicare that were fraudulent because the transportation was not medically necessary.
Additionally, as the defendants were submitting these false claims, Medicare notified Alpha that the company would be subject to a Medicare audit. In response, Muratov instructed Alpha employees – with Kapri’s knowledge – to alter specific documents that would be submitted to Medicare in response to the audit and create false justifications for transportation of the beneficiaries identified.
From at least June 2008 through at least July 2012, Alpha submitted more than $49 million in claims for ambulance transportation. As a result, Medicare paid Alpha more than $13 million for these claims, many of which were fraudulent.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter and Assistant Chief O. Benton Curtis III of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Oshkosh Attorney Sentenced to Prison for Failure to Pay Federal Income TaxesRead the Press Release
United States Attorney James L. Santelle announced that George W. Curtis (77 years old) of Pickett, Wisconsin was sentenced in federal court in Green Bay yesterday for failing to pay federal income taxes he owed for the years 2007 - 2009. Chief United States District Judge William C. Griesbach sentenced Curtis to six months in prison and ordered him to pay the IRS approximately $380,000 in taxes he failed to pay. Judge Griesbach also placed Curtis on supervised release for one year and ordered him to pay the costs of prosecution, in the amount of $3,878.28.
Curtis who is a lawyer practicing in Oshkosh, Wisconsin, was convicted after a jury trial of three counts of willfully failing to pay the taxes he owed for those years. While Curtis filed tax returns for these years reporting his income and taxes, he paid none of the taxes. In addition, Curtis has yet to pay taxes he owed for the years 2003 and 2004.
At trial, the government introduced evidence that during the years 2007 – 2009, Curtis’ law practice generated a profit of approximately $1.1 million and that he used those funds to make personal expenditures totaling more than $1 million. Nonetheless, Curtis paid none of the federal income taxes he owed for those years.
Orthopedic Surgeon Charged with Unlawful Distribution of OxycodoneRead the Press Release
ALBANY, NEW YORK – JEFFREY GUNDEL, M.D., of Gansevoort, New York, was arrested today and charged with unlawful distribution of oxycodone, announced United States Attorney Richard S. Hartunian and James J. Hunt, Acting Special Agent-in-Charge of the Drug Enforcement Administration, New York Division. Following an initial appearance before United States Magistrate Judge Christian F. Hummel, GUNDEL was released on conditions. If convicted, GUNDEL faces up to twenty years in prison, a fine of up to $1,000,000.00, and a term of supervised release.
The investigation is being conducted by the Drug Enforcement Administration.
The charges are merely accusations, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in court.
O.C. Man Whose Company Provided Military Support Services in Iraq Pleads Guilty to Tax Offenses for Failing to Report Millions in IncomeRead the Press Release
SANTA ANA, California – The owner of a Huntington Beach-based military contractor has pleaded guilty to federal tax charges for failing to report to the Internal Revenue Service millions of dollars his company received for providing services to the military at Baghdad International Airport.
Nadim “Nick” Saifan Jr., 48, who resides in Huntington Beach, pleaded guilty late yesterday to two counts of attempted tax evasion. Saifan pleaded guilty to two of the five counts contained in an indictment returned by a federal grand jury in 2011.
Saifan specifically pleaded guilty to substantially underreporting income on his company’s 2005 corporate tax return and his personal tax return for 2006.
Saifan was the owner and operator of Defense Logistical Support & Services Corporation (DLSS), which provided services to the military and some civilian companies in Iraq. From August 2004 through October 2007, DLSS received nearly $16 million from the United States military alone for services in Iraq, according to court documents that state Saifan reported only a small fraction of this income on DLSS’s corporate tax returns filed with the IRS.
In addition to failing to report millions of dollars of corporate income, Saifan also used DLSS funds to pay for personal expenses without reporting this money as personal income. Federal prosecutors alleged in court papers that defendant used corporate money to make approximately $880,000 in down payments on real estate and approximately $292,000 in payments towards vehicles that included a Ferrari and a Rolls-Royce.
Prosecutors preparing for trial wrote that Saifan owes at least $4.5 million in unpaid corporate and personal taxes for the several years charged in the indictment, and that he caused a total tax loss to the government of at least $7 million.
Saifan pleaded guilty before United States District Judge Cormac J. Carney, who is scheduled to sentence the defendant on August 18. At sentencing, Saifan will face a statutory maximum sentence of 10 years in federal prison.
After Saifan pleaded guilty yesterday, Judge Carney revoked Saifan’s bond and remanded him into federal custody pending his sentencing.
The case against Saifan was investigated by the Defense Criminal Investigative Service and IRS – Criminal Investigation.
Release No. 14-054
New York Man Admits to Participating in Five Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
NEWARK, N.J. – A Brooklyn, N.Y., man admitted today to participating in five armed robberies of electronics stores, including an armed robbery in Linden, N.J., U.S. Attorney Paul J. Fishman announced.
Kajuan Crawley, 26, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding indictment charging him with conspiracy to commit Hobbs Act robberies.
Crawley was arrested Oct. 17, 2013, and charged in a superseding indictment — along with Carl Williams, 30, Eric Williams, 33, and Unique Randolph, 27 — in connection with five armed robberies of electronic stores in New Jersey and New York. Crawley has been in custody since his arrest.
According to documents filed in this case and statements made in court:
Between June 11, 2012, and Sept. 20, 2012, Crawley conspired with others to commit a series of armed robberies of electronic store in New Jersey and New York, during which he and accomplices robbed merchandise for illegal resale.
Following the June 21, 2012, armed robbery of an electronic store in Rockville Center, N.Y., Crawley was apprehended by the officers with Nassau County Police Department. While released on bail, Crawley participated in the Sept. 20, 2012, armed robbery of an electronics store in Linden.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 18, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s plea. He also thanked the Linden and Woodbridge police departments in New Jersey, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Eric Williams: Aaron M. Goldsmith Esq., New York
Kajuan Crawley: Maria D. Noto Esq., Matawan, N.J.
Unique Randolph: Damian P. Conforti, Esq., NewarkCrawley, Kajuan Superseding Indictment
Nevada Woman Pleads Guilty to Transporting an Undocumented Mexican ToddlerRead the Press Release
ALBUQUERQUE – Serafina Madrid, 35, of Las Vegas, Nev., pleaded guilty this morning in federal court in Albuquerque, N.M., to a felony information charging her with transporting an illegal alien. Under the terms of her plea agreement, Madrid will be sentenced to a term of probation to be determined by the court.
Madrid was arrested on Aug. 1, 2013, based on a criminal complaint charging her with unlawfully transporting of an illegal alien. According to the criminal complaint, on that day, law enforcement officers encountered Madrid at the Greyhound bus station in Albuquerque. At the time of the encounter, Madrid was transporting a 16-month old toddler from San Diego, Cal. to Atlanta, Ga. The toddler was a Mexican national unlawfully in the United States.
In entering her guilty plea, Madrid admitted that she was transporting the child, who was an illegal alien from Mexico, when she was arrested on Aug. 1, 2013. Madrid further admitted that she had been paid $1200.00 to transport the 16-month old toddler from San Diego, Calif., to Atlanta, Ga., and that she expected additional payment when she delivered the toddler to her mother in Georgia.
Madrid remains on conditions of release and under pretrial supervision pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of U.S. Customs and Border Protection, with assistance from the Albuquerque office of the DEA and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Charles L. Barth.
Montana Man Sentenced for Coercion & Enticement of a MinorRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 6, 2014, Clayton L. Lakey, 34, Billings, Mont., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of coercion and enticement of a minor.
Defendant Lakey is the first defendant to be convicted and sentenced as a result of Operation Vigilant Guardian, a joint anti-Human Trafficking investigation by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations aimed at “johns” trying to arrange sex with underage human trafficking victims online. The investigation resulted in the arrest on federal charges of 14 defendants in Williston and Dickinson, N.D., in October and November of 2013.
In Bismarck, United States Attorney Timothy Purdon said, “When I learned that 14 people had been arrested in western North Dakota on charges of using the Internet to try and arrange sexual encounters with underage girls, I was deeply troubled. Human trafficking is, sadly, a growing concern in North Dakota. The Operation Vigilant Guardian prosecutions show that the United States Attorney’s
Office, with our state and federal law enforcement partners, will move swiftly and powerfully to attack the demand that fuels this horrible crime.”Judge Hovland sentenced Lakey to serve five years in federal prison, to be followed by 10 years of supervised release. Lakey was ordered to pay a $100 special assessment to the Crime Victim’s Fund. Lakey must register as a sex offender.
Between Nov. 21 and Nov. 23, 2013, Lakey communicated by computer and text with an undercover law enforcement officer. Lakey arranged to meet at a hotel room in Dickinson, N.D., to engage in sexual activity with a person he thought would be a juvenile in exchange for money. When Lakey arrived at the hotel room, he was placed under arrest.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations.
This case was brought as a 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Missouri Man Pleads GuiltyTo Robbing Bank in Shawnee, Kan.Read the Press Release
KANSAS CITY, KAN. - A Missouri man pleaded guilty Monday to a robbery in December at a bank in Shawnee, Kan., U.S. Attorney Barry Grissom said.
Scott Thario, 22, Lee’s Summit, Mo., pleaded guilty to one count of bank robbery and one count of unlawful possession of a firearm in furtherance of a crime of violence.
A grand jury indictment filed in December 2013 alleged that on Dec. 16, 2013, Thario robbed Intrust Bank at 19501 West 65th Terrace in Shawnee, Kan. The indictment alleged he was carrying a short-barreled shotgun during the robbery.
Sentencing is set for Aug. 5. He faces a penalty of not less than 10 years in federal prison and a fine up to $250,000 on each count. Grissom commended the Shawnee Police Department, the FBI and Assistant U.S. Attorney David Zabel for their work on the case.
Milford Man Charged with Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging RYAN RUSSOW, 29, of Milford, with heroin distribution offenses.
According to statements made in court, on March 12, 2014, a 26-year-old male died at a residence in Milford. In the decedent’s room, law enforcement officers located two empty bags of heroin stamped “Much Better,” and two full bags bearing the same stamp. Drug Enforcement Administration analysis confirmed that the full bags contained heroin with a purity level of approximately 76 percent, and the Connecticut Office of the Chief Medical Examiner has concluded that the decedent died of heroin toxicity.
It is alleged that, on the morning of March 12, RUSSOW and the decedent exchanged a series of text messages in which the decedent sought to purchase heroin from RUSSOW. Video surveillance confirms that the decedent then arrived at RUSSOW’s residence and departed after approximately 15 minutes.
On March 19, 2014, the DEA executed a search warrant at RUSSOW’s residence and seized more than $19,000 in cash, a digital scale and drug packaging materials.
On April 23, 2014, the grand jury returned an indictment charging RUSSOW with one count of conspiracy to distribute, and to possess with intent to distribute, heroin, and one count of possession with intent to distribute, and distribution of, heroin. RUSSOW was arrested the next day.
RUSSOW has been detained since his arrest. He appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained pending trial.
If convicted, RUSSOW faces a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The Task Force is composed of members of the Milford, Stamford, Norwalk and Stratford Police Departments and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]McLaughlin Man Charged with AssaultRead 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 Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Justin Walking Elk, age 31, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on May 1, 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 October 10, 2013, Walking Elk unlawfully assaulted two victims, with one of the assaults resulting in serious bodily injury.
The charge is merely an accusation and Walking Elk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Walking Elk was released on bond pending trial. A trial date has not been set.
Manhattan U.S. Attorney Announces Federal Workers’ Compensation Benefits Fraud Charges Against 11 Federal EmployeesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Rafael A. Medina, the Special Agent-in-Charge of United States Postal Service, Office of Inspector General (“USPS-OIG”), and Cheryl Garcia, Acting Special Agent-in-Charge of the United States Department of Labor, Office of Inspector General (“DOL-OIG”), Office of Labor Racketeering and Fraud Investigations, today announced charges against 11 defendants for defrauding the Department of Labor’s federal workers’ compensation benefits program by claiming to be injured or disabled so that they could claim benefits to which they were not entitled. In addition, certain of the defendants failed to report income that they earned from other businesses they were running while allegedly too disabled to return to their federal employment. The 11 defendants include 10 United States Postal Service employees and one employee of the U.S. Navy, all but one of whom were arrested and presented today in Manhattan federal court before Magistrate Judge James C. Francis IV. One defendant was arrested on April 17, 2014, as part of the same operation.
Manhattan U.S. Attorney Preet Bharara said: “A federal employee is entitled to workers’ compensation benefits if he is in fact disabled by a workplace injury. As alleged, these defendants all showed remarkable strength and vigor for people claiming to have sustained debilitating injuries. They also showed a lack of integrity in exploiting a program meant to provide assistance to the truly disabled, not a source of easy money for the unscrupulous.”
Rafael A. Medina, Special Agent-in-Charge of the USPS-OIG, said: “Today’s arrests should send a clear message to every Postal Service employee that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
According to the allegations in the Complaints unsealed today in Manhattan federal court:
The Regulatory Scheme
Postal Service and other federal employees are covered by the Federal Employees’ Compensation Act (“FECA”), which provides tax-free benefits to civilian federal employees who sustain injuries or an occupational disease as a result of their employment. Postal employees can receive up to 75 percent of the gross salary to which the employee is entitled if the employee has at least one dependent. The Postal Service is the largest participant in FECA, paying more than $1 billion in benefits and $60 million in administrative fees annually.
Pursuant to the DOL’s Office of Workers’ Compensation Programs (“OWCP”) guidelines, a claimant must prove that he or she is injured by submitting a claim, including medical documentation and other evidence, which attests to the severity of the claimant’s injury or disability. The employee’s claim and supporting medical evidence is evaluated by the OWCP to determine the claimant’s medical impairment and the effect of the impairment on the claimant’s ability to work on a sustained basis. Once approved, in order to receive FECA benefits on an ongoing basis, the claimant is required to update the OWCP periodically on, among other things, the status of his or her physical condition. In addition, the claimant is required to certify periodically whether he or she has had any other sources of income within the past 15 months. Claimants are advised that fraudulent concealment of income or other information which would have an effect on benefits may result in criminal prosecution.
The Defendants
The 11 defendants charged as part of this operation are JUANITA TOLBERT, SAMUEL MUNOZ, SHONTA HOLMES, ALICE BACA, FAITH PINKNEY, ANGEL CORUJO, PEDRO NUNEZ, RONALD WERNER, LASHONNE TUGGLES, CHARLES WALWYN and JEANNIE WIGFALL. The defendants defrauded the DOL’s OWCP in a variety of ways. For example:
SHONTA HOLMES, who had been employed by the Postal Service since 1989, submitted a federal workers’ compensation claim indicating that she sustained an occupational injury, Carpal Tunnel Syndrome, on or about April 17, 2002. Since May 2004, HOLMES has drawn federal benefits and has not reported to work. In January 2012, HOLMES was examined by a doctor to evaluate her capacity to work. The doctor’s report stated that HOLMES could not resume any type of work and that HOLMES was unable to handle even “10 pounds of weight up to one-third at a time even in a sedentary position.” In July 2012, another doctor submitted a report which concluded that HOLMES was “permanently and totally disabled.” In September 2013, HOLMES stated that her condition limits many of her daily activities including bathing, bike riding, doing her hair, driving, laundry, going to the store, and sexual activities. HOLMES indicated that she considered herself “totally disabled” and “unable to perform any assignment for the Postal Service.” Nevertheless, in the course of the investigation from October 2011 through September 2013, HOLMES has been observed in and around public places, such as stores and gyms, engaged in strenuous physical activity. For example, HOLMES has been observed in a gym using dumbbell free weights, each weighing approximately 10 to 20 pounds, and performing repetitive strengthening exercises such as bicep curls and chest presses; using a “Smith Machine,” which is a free standing piece of equipment used in weight training, to perform shoulder press exercises with the machine loaded with approximately 50 to 100 pounds of weights; participating in an “Ultimate Abs” class, which involved the use of weight training exercises with a barbell; exercising on a treadmill and a Stairmaster; and working out with a personal trainer, including punching a punching bag while wearing boxing gloves. In addition, HOLMES has been observed driving, shopping, and running errands. As of May 3, 2014, HOLMES has received FECA compensation totaling approximately $426,114.35.
ANGEL CORUJO, who had been employed by the Postal Service since 1987, submitted a federal workers’ compensation claim indicating he sustained a back injury on or about July 15, 2003. Since he began to draw federal benefits in or about August 2003, CORUJO has not reported for work. In October 2013, CORUJO certified that he had not worked for any employer during the past 15 months. In January 2014, CORUJO submitted a report by a doctor in which CORUJO reported pain as a “7/10 severity all the time” and represented that he used a motorized wheelchair while at home and a cane for ambulatory assistance in the community. Nevertheless, in the course of the investigation, CORUJO was observed in 2013 hanging holiday decorations at his home, including balancing on a stepstool; pushing a loaded shopping cart at a home improvement store without the aid of a wheelchair or cane; and, in 2014, using a snow blower to clear his driveway of snow. In addition, the investigation uncovered that CORUJO was employed periodically in 2013 and 2014 by another employer other than the Postal Service, something he did not report as required. As of April 5, 2014, CORUJO has received FECA compensation totaling $402,651.
RONALD JAMES WERNER, who had been employed as a civilian firefighter by the U.S. Navy prior to September 2005, submitted a federal workers’ compensation claim indicating he sustained a knee injury in September 2005. Since at least April 2008, WERNER has drawn federal benefits and has not reported for work. In January 2013, WERNER certified that he had not worked for any employer during the past 15 months and that he had not earned any income from other employment in that time period. In January 2012, WERNER submitted a report by a doctor which stated that he could not perform his usual job or another type of work even with restrictions. In May 2013, WERNER submitted a report by another doctor which stated that WERNER was “permanently unable to work” due to a “[t]otal knee replacement” and that he would be unable to, among other activities, sit, walk, stand, reach, twist, bend or operate a motor vehicle to work. Nevertheless, in the course of the investigation in 2013, WERNER was observed in the vicinity of a truck bearing the logo “Werner’s Home Improvements” at various worksites where residential construction was taking place; entering and shopping in various home improvement stores, including purchasing 2x4s and other construction supplies; loading and unloading building construction materials into and out of a pickup truck; and arriving at a recycling center and unloading various appliances from his vehicle. WERNER’s credit card records reflect over $180,000 in purchases from a home improvement store from 2010 to 2013. In addition, an employee of a home improvement store where WERNER shopped praised WERNER to law enforcement agents who asked for a recommendation for a contractor, saying that WERNER was highly recommended and had been known at the store for years. Between April 2008 and March 2014, WERNER has received FECA compensation totaling $340,812.
Ten of the defendants were taken into custody this morning and are expected to be presented in Manhattan federal court later this afternoon. ANGEL CORUJO was arrested on April 17, 2014, as part of the same operation. All 11 defendants are charged with theft of government funds, which carries a maximum sentence of 10 years in prison, and federal workers’ compensation benefits fraud, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Attached is a chart reflecting the age and place of residence for each of the charged defendants.
Manhattan U.S. Attorney Bharara praised the USPS-OIG, the DOL-OIG’s Office of Labor Racketeering and Fraud Investigations, the Social Security Administration – Office of Inspector General, and the Naval Criminal Investigative Service for their outstanding work in the investigation, which he noted is ongoing.
The Office’s General Crimes Unit is handling the case. Assistant U.S. Attorneys Richard Cooper, Andrew DeFilippis, Patrick Egan, Samson Enzer, Margaret Graham, Andrea Griswold, Jared Lenow, and Special Assistant U.S. Attorney Daniel Tracer are in charge of the prosecution.
The charges contained in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
Man Sentenced for Cedartown CarjackingRead the Press Release
ROME, Ga. - Rodney Scott Blankenship has been sentenced for carjacking a Cedartown woman at gun point on August 31, 2012.
“This Defendant showed no regard for who he might have injured or killed during his crime spree,” said United States Attorney Sally Quillian Yates. “The violent carjacking and police chase started in northwest Georgia, and the significant sentence appropriately reflects the serious danger he caused to both citizens and police.”
“This sentence is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Special Agent in Charge Christopher Shaefer. “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”
According to United States Attorney Yates, the charges and other information presented in court: Rodney Scott Blankenship took a Cedartown woman's car at gunpoint on the evening of August 31, 2012. During the course of the carjacking, he twice pointed his gun at the woman's boyfriend and pulled the trigger. Fortunately for all, on both occasions, the gun failed to discharge. The woman's boyfriend called 911, and when law enforcement arrived on the scene Blankenship fled in the woman's car, ramming a Cedartown patrol car in the process. Blankenship then led police on a high speed chase until he crashed the vehicle. After crashing the vehicle he attempted to flee the police on foot, but was apprehended.
Blankenship, 31, of Cedartown, Ga., has been sentenced by United States District Judge Harold L. Murphy, to 17 years, four months in prison to be followed by three years of supervised release. Blankenship was convicted on these charges on December 6, 2013, after he pleaded guilty.
This case was being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Matthew S. Carrico 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 Rome Division is http://www.justice.gov/usao/gan/.
Long Island Mortgage Banker and Five Others Indicted on $30 Million Bank Fraud ConspiracyRead the Press Release
Earlier today an indictment was unsealed charging six men with carrying out a $30 million bank fraud conspiracy by fraudulently inflating the prices of homes for sale and then obtaining mortgages that far exceeded the true collateral value of properties in Nassau and Suffolk Counties. Through his mortgage banking company, defendant Aaron Wider and his co-conspirators allegedly then re-sold these “toxic” mortgages to banks and other investors in the secondary mortgage market, causing millions in losses when the loans went into foreclosure. Four of the defendants were arrested this morning and will be presented for arraignment later today at the United States Courthouse in Central Islip, New York, before United State Magistrate Judge Gary R. Brown. Of the remaining two defendants, one was taken into custody in Florida, while another is scheduled to surrender to federal agents tomorrow in Central Islip.
The indictment and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“The conduct charged in the indictment is a prime example of the type of corrupt mortgage-lending practices that preceded the bursting of the real estate bubble, the loss of faith in securitized mortgage obligations, and the financial collapse of 2007 and 2008,” stated United States Attorney Lynch. “Instead of using their skills in banking, the law, and investing to assist individuals pursuing the American Dream, the defendants cooked up a sophisticated scheme that defrauded lenders and then fed toxic debt to the investigating public at large in the secondary mortgage market. I would like to thank the investigators at the Nassau County District Attorney’s Office and New York State Department of Financial Services for their invaluable assistance in this investigation.”
FBI Assistant Director-in-Charge Venizelos said, “As alleged in the indictment, during the height of the real estate boom, these defendants devised a scheme to turn a profit at the expense of unsuspecting lenders, investors and members of the public. Mortgage fraud poses a threat to our financial systems and to our economy. This case should send a clear message to all individuals who try to game our financial market: you will be identified and held accountable for your criminal acts. The FBI, along with our law enforcement partners, will continue to investigate those who orchestrate and participate in various mortgage fraud schemes in order to protect the public against those who seek to damage our economy.”
According to the indictment and other court filings, between 2003 and 2008, defendant Aaron Wider operated a New York State licensed mortgage bank in Garden City, New York, called HTFC Corp., which issued residential mortgages to borrowers. HTFC did not possess assets to fund these loans, but relied on funding from other banks and financial institutions, commonly known as “warehouse lenders.” The warehouse lenders relied on Wider and HTFC to ensure that home buyers were able to pay the mortgages and that the market value of the homes fully collateralized the loans.
Instead, Wider and the co-defendants allegedly engineered a complex series of same-day sham transactions, or “flips,” to artificially-inflate the prices of homes. Then they lied to the warehouse lenders to obtain mortgage funding that was 80-percent more than the actual value of the homes. Wider and co-defendants Manjeet Bawa, John Petiton, and Joseph Ferrara contracted to buy homes in Nassau and Suffolk counties from innocent sellers at market prices. The defendants then submitted fraudulent loan applications to the warehouse lenders that nearly doubled the true sales prices of the homes. The defendants also inflated their personal assets and concealed significant liabilities to get loan approval.
At each closing, Petiton, an attorney admitted to practice in New York State, oversaw the actual sales to innocent sellers, and simultaneously created sham trusts into which title to the properties was transferred for no money. He and the coconspirators then immediately transferred title back to the co-defendants at nearly double the price to create a false paper trail documenting the artificially-inflated prices. Meanwhile, real estate appraiser Joseph Mirando prepared false appraisal reports to justify the inflated prices, while HTFC closing attorney Eric Finger concealed the far lower, true sales price for properties by lying on federal-mandated settlement forms. Finger received wire transfers of funds from the warehouse lenders, and after paying the innocent third-party sellers, disbursed the surplus money fraudulently obtained in the mortgages to his fellow co-conspirators.
HTFC sold each of its mortgages in the secondary market. On paper, the loans appeared to be attractive investments because HTFC’s mortgages carried high rates of return that were supposedly fully collateralized by the market value of homes and the assets and incomes of the borrowers, or mortgagors. Upon buying mortgages from HTFC, the secondary market bank paid off the warehouse lenders, and then either collected the principal and interest, or bundled them into mortgage-backed securities that were sold to pension funds, hedge funds, and other investors seeking relatively secure, high-yield investments. When HTFCs mortgages went into foreclosure beginning in 2007 and 2008, the secondary market investors discovered that the actual value of the collateral was 80-percent less than the amount borrowed for each home.
The charges in the indictment are merely allegations, and the defendants presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment. The indictment unsealed today also seeks to forfeit 19 residential properties traced to the bank fraud or up to $30 million in a money judgment.
The case is being prosecuted by Assistant U.S. Attorney James Miskiewicz.
The Defendants:
MANJEET BAWA
Age 46
Dix Hills, New York
JOSEPH FERRARA,
Age 70
Long Beach, New York
ERIC FINGER,
Age 48
Miami, Florida
JOSEPH MIRANDO,
Age 54
Centereach, NY
JOHN PETITON
Age 68
Garden City, New York
AARON WIDER
Age 50
Copiague, New York
Local Owner of Gravois Discount Smokes Pleads Guilty to Food Stamp FraudRead the Press Release
St. Louis, MO – EBRAHEEM MAKI NAIF, St. Louis, Missouri, pled guilty Monday to food stamp fraud.
According to court documents, from January 2008 through May 2012, Naif, doing business as Abes Gravois Discount, also known as Gravois Discount Smokes, redeemed approximately $1,903,402 in food stamp benefits and received the same in federal appropriated money as reimbursement for the food stamp sales. In 2011, Naif redeemed $690,198 in food stamp transactions. During that same time period, Naif reported to the City of St. Louis the cost of the goods he sold in 2011 was $25,750 and that he received $80,800 in gross receipts for the sale of those goods. In his plea, Naif admitted that he conducted illegal food stamp transactions and allowed customers to purchase merchandise such as cigarettes, cologne, calling cards, as well as receiving cash back for food stamp sales. Naif admitted that due to his illegal food stamp sales he caused losses of at least $609,398 in 2011. Naif also agreed to forfeit $30,765 and a vehicle seized from him during the investigation.
Naif pled guilty to one felony count of food stamp fraud before United States District Judge Rodney Sippel. Sentencing has been set for August 11, 2014.Food stamp fraud carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Agriculture, the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Matthew Drake is handling the case for the U.S. Attorney's Office.
Lisbon Man Sentenced to Ten-Year Maximum on Firearms ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Kelly Carter, 50, of Lisbon, Maine, (formerly of Madison, Indiana) was sentenced today in U.S.
District Court by Judge Nancy Torresen to ten years in prison and three years of supervised
release for possession of a firearm by a felon. Carter pleaded guilty to the charge on December
12, 2013.Court records reveal that on September 18, 2013, Carter, who was on probation for a
2007 sexual abuse in the first degree conviction in Kentucky, was found in possession of a
loaded .38 special revolver and a pistol when his supervising Maine probation officer searched
his Lisbon residence. Carter also had felony convictions in Indiana in 2001 and 2004.Judge Torresen said she imposed the maximum statutory sentence of ten years because
she believed Carter was a danger to the community, particularly to the women with whom he
shares personal relationships.The investigation was conducted by the Maine Department of Corrections (Probation and
Parole), the Lewiston and Lisbon Police Departments, the Central Maine Violent Crime Task
Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Lakewood, N.J., Man Admits Conspiracy to Kidnap Jewish Husband to Force Him to Give Wife A Religious DivorceRead the Press Release
TRENTON, N.J. - A Lakewood, N.J., man today admitted conspiring to kidnap a Jewish man to force him to give his wife a religious divorce, known as a “get,” U.S. Attorney Paul J. Fishman announced.
David Wax, 51, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit kidnapping.
According to documents filed in this case and statements made in court:
In October 2010, Wax and his conspirators agreed to force a Jewish man (Victim One) to give his wife a “get,” a document which, according to Jewish law, must be presented by a husband to his wife to effect their divorce. Wax then lured Victim One from Brooklyn, N.Y., to Wax’s home in Lakewood on Oct. 17, 2010, under the pretense that Victim One would work on Talmudic books that Wax was publishing. When the victim arrived, he was brought upstairs, blindfolded, handcuffed, and bound. Victim One was then assaulted by Wax and his conspirators until he provided the get.
Victim One’s wife’s family paid Wax approximately $100,000 to obtain the forced get. Wax’s conspirators received approximately $50,000.
The conspiracy to commit kidnapping charge carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
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Defense counsel: Mitchell J. Ansell Esq., Ocean, N.J., and Edward Dauber Esq., Newark
Wax, David Information