Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
25 June 2014
Hogsett Announces Indictment of Felon for Illegal Firearm PossessionRead the Press Release
U. S. Attorney’s Office continues to help reduce violence in
Vanderburgh CountyEvansville – Joseph H. Hogsett, United States Attorney, announced the indictment of Larry Tomlinson, 37, Evansville, today. A grand jury indicted Tomlinson on one count of possession of a firearm by a convicted felon and one count of possession of a sawed off shotgun.
“This office has seen that prior felons with firearms are bad news for the safety of Indiana,” said Hogsett. “My office will continue to do all we can to help make our Southwestern Indiana communities safe.”
On May 29, 2014, law enforcement received a tip that a customer at a local hotel had been allegedly dealing narcotics and may be in possession of a firearm. Officers observed Tomlinson leave the hotel in a car with another person driving. The two were pulled over while driving and Tomlinson allegedly contemplated fleeing before complying with the officers orders. Officers searched the driver and Tomlinson and both consented to a search of the vehicle. When officers were able to handcuff Tomlinson, they found a sawed off shotgun in the bag he was carrying, next to the vehicle.
Under federal law, it is illegal for one with a prior felony conviction to possess a firearm. Tomlinson’s felony record is as follows:
• Burglary, Vanderburgh County, March 1994
• Auto Theft and Resisting Law Enforcement, Vanderburgh County, August 1996
• Possession of Cocaine and Carrying a Handgun without a Permit, Vanderburgh County, August 1996
• Robbery and Carrying a Handgun without a Permit, Vanderburgh County, May 2001
• Possession of a Firearm by a Felon, Vanderburgh County, April 2007Due to Tomlinson’s extensive criminal history, he is subject to the enhanced penalty as an armed career criminal which imposes a mandatory minimum sentence of 15 years.
This investigation is part of the U. S. Attorney’s Violent Crime Initiative, (VCI). Launched in 2011, the VCI produced dramatic increases in the number of gun-related charges brought federally. Since then, nearly 235 defendants have been charged.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, Tomlinson could face 25 years and three years of supervised release, if convicted of both charges.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Haines City Man Pleads Guilty to Smuggling Firearms and Ammunition from the United States to ColombiaRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mauricio Arbelaez (42, Haines City) pleaded guilty today to smuggling goods from the United States, possession of an unregistered silencer, and possession of a firearm with an obliterated serial number. Arbelaez faces a maximum penalty of 25 years in federal prison. Arbelaez was indicted on March 7, 2014.
According to the plea agreement, between November 19, 2012 and November 26, 2012, Arbelaez shipped three packages to Colombia, using a shipping company in Kissimmee, Florida and a third-party shipping company located in Miami, Florida. The packages contained rounds of ammunition and firearms that were concealed in electronic gaming systems. Arbelaez did not declare these firearms and ammunition to the shipping company when he shipped the packages, or at any time thereafter. On November 28, 2012, one of the packages was intercepted by Colombian customs officials at the El Dorado International Airport in Bogota, Colombia. Once Colombian officials discovered that the package contained a starter revolver and rounds of ammunition, they notified the third-party shipper, in Miami, Florida. After speaking to the Colombian officials, the owner of the Miami shipping company inspected the remaining two packages, which were still awaiting final shipment to Colombia, and discovered ammunition and a firearm with an obliterated serial number inside. The two packages, the firearm, and ammunition were eventually turned over to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), which conducted an investigation into Arbelaez. The owner of the Kissimmee shipping company identified Arbelaez as the person who shipped all three packages.
On July 26, 2013, ATF located a safe inside a residence in Orlando, Florida, where Arbelaez stored ammunition, firearms, including a stolen firearm, and a silencer which was not registered to Arbelaez in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Grant County Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Javier J. Reyes, 20, of the Village of Santa Clara in Grant County, N.M., was sentenced today in federal court in Las Cruces, N.M., to 48 months in federal prison followed by three years of supervised release for the unlawful possession of an unregistered short-barreled rifle with an obliterated serial number and for receiving a firearm while under indictment.
Reyes and his co-defendant Gabriel Saiz, 21, of Silver City, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two subsequently were indicted and charged with possession of an unregistered short-barreled rifle, and possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number on Nov. 27, 2012, in Grant County, N.M.
Court filings reflect that Reyes and Saiz were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Reyes and Saiz at approximately 9:00 p.m. that night because the victim of the armed robbery provided the license plate number for the vehicle in which Reyes and Saiz were driving. When the officers arrested the men, they observed a firearm on the floor board under the front passenger seat.
Reyes was released pending trial following his arrest. While on release, Reyes was arrested again on Oct. 25, 2013, on a criminal complaint charging him with receiving a firearm while under indictment. According to the complaint, Reyes was arrested on Oct. 4, 2013, on state charges at a dormitory of the Western New Mexico University campus by officers who responded to reports of a man with a gun. At the time of his arrest, Reyes had a firearm in the front waistband of his pants. Reyes has been in custody since this second arrest.
On Dec. 6, 2013, Reyes pled guilty to the indictment charging him with possession of the unregistered short-barreled rifle with the obliterated serial number. He also pled guilty to a felony information charging him with receiving a firearm while under indictment. The pleas were entered without the benefit of any plea agreement.
Saiz, Reyes’ co-defendant, pleaded guilty in Sept. 2013 to both counts of the indictment. He faces a maximum penalty of ten years in prison for possession of an unregistered firearms and a maximum penalty of five years in prison for possession of a firearm with an obliterated serial number. He remains detained pending his sentencing hearing, which has not been scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Georgia Man Sentenced to More Than 22 Years in Prison for Fraud SchemeRead the Press Release
Peoria, Ill. –Kenneth W. Lewis, 57, of Augusta, Georgia, and Cranford, New Jersey, was sentenced today for wire fraud and money laundering charges, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge James E. Shadid ordered Lewis to serve a total of 271 months (22 years, 7 months) in federal prison. In addition, Lewis was ordered to pay restitution in the amount of $5,565,406 to victims of the offenses and ordered to forfeit that same amount. Approximately $8,000 in assets seized at the time of his arrest will be applied to that amount.
On February 24, 2014, Lewis was convicted by a jury of four counts of wire fraud and 11 counts of money laundering. During five days of trial in February, the government presented evidence that established that beginning in the late 1990s, Lewis offered investors the ability to generate income through highly secretive overseas financial transactions. Evidence further established that Lewis obtained more than $5.5 million from others to cover his living expenses while he was purportedly working on completing the details of non-existent transactions. Further, Lewis told investors that he had been living in Zurich, Switzerland for seven years working on the transaction, when, in fact, he was living in a hotel in New Jersey, where he was arrested in July 2012.
Lewis has remained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorneys Darilynn J. Knauss and Bradley W. Murphy. The charges were investigated by IRS, Criminal Division and the U.S. Postal Inspection Service.
Georgia Man Sentenced on Gun Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Liddon Young, 32, of Stone Mountain, Georgia, who was convicted of conspiracy to unlawfully deal firearms without a federal firearms license and unlawfully dealing in firearms without a license, as well as selling firearms to a convicted felon, was sentenced to 180 months in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to forfeit 12 firearms and over 500 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between August 2012 and February 6, 2013, Young conspired with Paul Davis to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. Young sold multiple firearms and rounds of ammunition to Davis in the Atlanta area which were then transported by Davis and others for illegal resale on the black market in Rochester. Young delivered 11 firearms to Davis on February 6, 2013 in Rochester as part of the conspiracy. Davis and others deposited money into a bank account in Young’s name as payment for the illegal firearms business.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Paul Davis was arrested February 6, 2013 after selling a Georgia pistol to a confidential informant. Multiple federal search warrants executed at Young’s residences in Georgia resulted in the seizure of 10 additional firearms and hundreds of rounds of ammunition. Liddon Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol. Davis was convicted on gun charges in April 2012 and is awaiting sentencing.Four York Men Indicted for Distributing Crack Cocaine, Cociane and HeroinRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment by a federal grand jury in Harrisburg of four men for distribution of crack and powder cocaine and heroin in York, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges a drug trafficking scheme centered in York County between August 2013 and March 2014. Those indicted Rolando Cruz, Jr., age 29, Marc Hernandez, age 28, Douglas Kelly, age 35, and Roscoe Villega, age 39, all from York.
Hernandez, Kelly and Villega were previously charged in a indictment in March 2014. Today’s indictment adds Cruz as a defendant.
The continuing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Four Arrested for Defrauding Mortgage Lending InstitutionsRead the Press Release
BROOKLYN, NY – A six-count indictment was unsealed this morning in federal court in Brooklyn charging mortgage broker Alex Barrett, property manager Barthelemy Adjavehoude, title agent Michelle Baker, property manager and self-described foreclosure specialist James Bayfield, and property managers Samuel Terrell Bell and Dirk Hall with engaging in a bank and wire fraud conspiracy to steal millions of dollars from financial lending institutions.1 Defendants Adjavehoude, Baker, Bayfield, and Bell were arrested and will be arraigned this afternoon before United States Magistrate Judge Lois Bloom at the United States Courthouse in Brooklyn, New York. The defendants face penalties of up to 30 years’ imprisonment if convicted.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Christina Scaringi, Special Agent-in-Charge, Northeast Region, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG); and Derek Evans, Special Agent-in- Charge, Federal Deposit Insurance Corporation-Office of Inspector General, New York Region.
According to the indictments unsealed this morning, the defendants and other participants in the scheme (“the conspirators”) caused mortgage loan applications with false information to be submitted to lending institutions in connection with the purchase of residential properties located within the Eastern District of New York. These applications contained fraudulently inflated purchase prices and appraisals for the properties, as well as false information about the assets and income of the purchasers of the properties, many of whom were being compensated as part of the scheme to act as straw purchasers. The conspirators also falsified HUD forms and provided false down payment checks to make it appear as if the straw purchasers and the other borrowers had made down payments in connection with the purchase of the properties, which was a condition of the lending institutions for issuing the mortgage loans.
To carry out their scheme, the conspirators allegedly often conducted simultaneous purchases and sales of the properties, sometimes called “flips,” in an effort to conceal their criminal involvement and to inflate the value of the properties. For example, a conspirator would purchase a property from a homeowner. That same day, the conspirator would sell the property to a straw purchaser at an inflated value. The conspirators, through the use of backdated and falsified documents, concealed from the lending institutions the fact that the purchase and sale had occurred on the same day and made it appear as if the transaction between the homeowner and the conspirator had occurred over 60 days prior to the sale from the conspirator to the straw purchaser.
As a result of the false applications and appraisals, the lending institutions were fraudulently induced to issue millions of dollars of mortgage loans secured by properties that had inflated appraisal values to individuals who had insufficient income and assets to qualify for the mortgage loan. In many instances, the straw purchasers and the other borrowers failed to make required mortgage payments to the lending institutions, which caused the mortgage loans to be placed into default status.
At approximately the time of the closings of the properties, the conspirators diverted for their own use the portion of the loan proceeds that exceeded the actual value of the properties. The conspirators collectively caused the financial lending institutions to loan out over $5.5 million, of which over $2.7 million was the conspirators’ profit from the scheme. The investigation identified at least 17 properties in the scheme, including locations in Cambria Heights, Far Rockaway, Brooklyn, Laurelton, Jackson Heights, Jamaica, Hempstead, Rosedale, and Hollis, New York.
“Through a web of lies and false documentation, these real estate professionals allegedly stole millions from banks, which they used to line their own pockets,” stated United States Attorney Lynch. “The size and scope of the conspiracy were noteworthy, but the charges announced today are the result of an even more impressive collaboration between all the agencies that worked tirelessly to bring the defendants to account for these crimes. This is a clear message to anyone who contemplates engaging in mortgage fraud: do not even attempt it because you will be caught.”
FBI Assistant Director-in-Charge Venizelos stated, “In an elaborate scheme between brokers, appraisers, straw buyers, and others, it is alleged that these defendants conspired to shake down and defraud banks. The scheme not only victimized those institutions, but millions of consumers who either paid higher rates or could not get a loan.”
HUD-OIG Special Agent-in-Charge Christina Scaringi stated, “The arrests and charges announced today serve to remind the public that we will continue the important work of investigating mortgage industry professionals who deceive and defraud homeowners, the Federal Housing Administration, and mortgage lending institutions to satisfy their own personal enrichment. As alleged, the conduct of these defendants is particularly troubling as it is yet another reminder of the fraud and difficulties many endured in the aftermath of the recent housing crisis. We wish to thank our law enforcement partners at the FBI, FHFA-OIG, FDIC-OIG, and the U.S. Attorney's Office for their perseverance and steadfast efforts in ensuring these defendants are brought to justice.”
FDIC-OIG Special Agent-in-Charge Derek Evans stated, “The Federal Deposit Insurance Corporation Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. Today’s arrests illustrate that the government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable if ultimately found guilty.”
FHFA Acting Inspector General Michael Stephens stated, “As alleged, the individuals charged in this scheme operated with impunity under the flawed belief that as industry insiders they could better cover their tracks to avoid detection. However, as evidenced by today’s charges, no fraudulent plan is foolproof. We are proud to have worked with our law enforcement partners and will continue our collaborative efforts to bring those who cheat our financial institutions, and ultimately American taxpayers, to justice.”
The government’s case is being prosecuted by Assistant United States Attorney Walter M. Norkin.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Defendants:
ALEX BARRETT
Age: 47
Residence: Farmingville, New York
BARTHELEMY ADJAVEHOUDE
Age: 54
Residence: Baldwin, New York
GEORGE ALDERDICE
Age: 42
Residence: Manhasset, New York
MICHELLE BAKER
Age: 47
Residence: Jamaica, New York
JAMES BAYFIELD
Age: 42
Residence: Jamaica, New York
SAMUEL TERRELL BELL
Age: 33
Residence: North Babylon, New York
DIRK HALL
Age: 39
Residence: Jamaica, New York
SHARIF RASHED
Age: 32
Residence: Jamaica, New York
__________________________________________________________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. Previously, co-conspirators George Alderdice, an attorney, and Sharif Rashed, an appraiser, pled guilty to conspiring to commit bank and wire fraud for their respective participation in the scheme.
Barrett.Alderdice.InformationSIGNED
Barrett Indictment
Barrett.Rashed.InformationSIGNEDFormer Saratoga County Deputy Sheriff Sentenced to Five Years on Drug ChargeRead the Press Release
Transported a Confidential Source Who Claimed to Possess Cocaine in an FBI Sting
ALBANY, NEW YORK —CHARLES E. FULLER, age 46, of Corinth, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe to five years in prison for attempting to aid and abet the possession with intent to distribute a controlled substance, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division.
As Fuller admitted during his August 20, 2014 guilty plea, in February of 2014, while he was employed as a Saratoga County Deputy Sheriff, he accepted a total of $5,000 from a confidential source supervised by the Federal Bureau of Investigation (“FBI”) as payment for transporting the confidential source while the source was carrying what Fuller believed to be cocaine. The source actually had imitation cocaine. The defendant made two trips from Albany to Warren County: one on February 19, 2014 and one on February 27, 2014. During the first trip, the defendant drove the source with what he believed to be 250 grams of cocaine in return for $1,000, and during the second trip, the defendant transported the source with what he believed to be one kilogram of cocaine in return for $4,000.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Daniel Hanlon.
Former Postmaster Charged with EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a criminal charge of misappropriation of postal funds against a Clinton County woman in federal court in Williamsport.
According to United States Attorney Peter Smith, a criminal Information was filed charging Macey Geyer, age 41, of Castanea, with allegedly taking over $9,000 in postal funds from the Castanea Post Office. Geyer, who began her employment with the United States Post Service on June 23, 2007, served as Officer-in-Charge at the Castanea Post Office.
At the same time the criminal Information was filed, the U.S. Attorney’s Office filed a plea agreement which is subject to the approval of the court.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Eric Pfisterer.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former National Fast Food Restaurant Chain Employee and Co-Defendant Sentenced for Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, announce that Tekia Jones, 37, of Hallandale, and Ivory Covington, 29, of Miami, were sentenced before U.S. District Court Judge William P. Dimitrouleas for their roles in an identity theft tax fraud scheme. Jones was sentenced to 42 months in prison, to be followed by three years of supervised release. Covington was sentenced to 36 months in prison, to be followed by three years of supervised release.
Each defendant previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Jones was an employee of a national fast food restaurant chain and had access to employees’ names, social security numbers and dates of birth, but did not have permission to possess the employees’ information outside of her employment. On March 10, 2013, during an inventory search of a car driven by Covington, but shared and controlled by Covington and Jones, 118 names, social security numbers and dates of birth were found that belonged to former and current employees of this national fast food restaurant chain, along with two GreenDot Visa prepaid debit cards with the names of two former national fast food restaurant employees whose PII were found in the car.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Marine Pleads Guilty to Theft of $880,000 in Military Equipment from Department of DefenseRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Vincent P. Vulaj, a resident of Bronx, New York, pleaded guilty to Theft of Government Property. When sentenced on December 16, 2014, Vulaj faces up to 10 years in prison. The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Jeremy Gauthier, Acting Special Agent in Charge of the Northeast Field Office, Naval Criminal Investigative Service (“NCIS”).
According to court filings and facts presented during the plea proceeding, between 2009 and 2013, while working as a Staff Sergeant at the 2nd Battalion, 25th Marine Regiment, Marine Corps Reserves Base in Garden City, New York, Vulaj stole property belonging to the Department of Defense worth more than $880,000, and sold it on eBay.com. The stolen items included tactical helmets, goggles, jackets, vests, sleep systems and backpacks. The Marine Corps Reserves discovered the thefts and reported it to NCIS for investigation. NCIS investigators then purchased some of the stolen equipment online and traced the transactions back to Vulaj. In September 2013, Vulaj was discharged to Individual Ready Reserve (“IRR”) status with the Marine Corps Reserve. Individuals placed on IRR status are subject to recall to active military service.
“As a non-commissioned officer with the Marine Corps Reserves, the defendant was charged with safeguarding the welfare of his fellow soldiers and the American public. Instead, he cast aside his duty and shamelessly stole equipment that was meant to provide safety and comfort to our troops in the field in order to line his own pockets,” stated United States Attorney Lynch. Ms. Lynch thanked the Marine Corps Reserves for their assistance in this investigation.
“Vulaj abused his access and violated the trust placed in him to embezzle from the American people. Not only is there the matter of $800,000 of property he stole and sold, his actions also resulted in the expenditure of a considerable amount of time and effort on his case; resources which should have been put to better use elsewhere, keeping our communities and warfighters safe,” stated Acting Special Agent in Charge Gauthier.
The guilty plea proceeding was held before United States District Judge Sandra J. Feuerstein.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: VINCENT P. VULAJ
Age: 32
Residence: Bronx, NY
Former Jenkens & Gilchrist Attorney Sentenced to 15 Years in Prison for Orchestrating Multibillion Dollar Criminal Tax Fraud SchemeRead the Press Release
Deputy Assistant Attorney General Ronald A. Cimino for the Tax Division of the Department of Justice and U.S. Attorney Preet Bharara for the Southern District of New York announced that Paul M. Daugerdas, 63, a tax attorney and certified public accountant, was sentenced today in Manhattan federal court to serve 15 years in prison for orchestrating a massive fraudulent tax shelter scheme in which he and his co-conspirators designed, marketed and implemented fraudulent tax shelters used by wealthy individuals to evade over $1.6 billion in taxes owed to the Internal Revenue Service (IRS). The 20-year scheme, which Daugerdas hatched while working at the Arthur Andersen accounting firm and then continued while a partner at two law firms – Altheimer & Gray and then Jenkens & Gilchrist (J&G) – generated over $7 billion in fraudulent tax losses and yielded approximately $95 million in fees to Daugerdas personally. In October 2013, Daugerdas was convicted following a seven-week jury trial, presided over by U.S. District Judge William H. Pauley III, who also imposed today’s sentence.
“Paul Daugerdas used his legal and accounting expertise to cheat the system and unlawfully deprive the government of over $1.6 billion of tax revenue,” said U.S. Attorney Bharara. “With today’s sentence, Daugerdas’s giant tax fraud scheme has reached its just conclusion under the law, with a sentence of 15 years in prison.”
“Dishonest professionals who market tax fraud schemes to their clients need to sit up and take note of today’s sentence,” said Deputy Assistant Attorney General Cimino. “The Justice Department and IRS are committed to holding responsible those who would misuse their skills and expertise to help others to evade their lawful tax obligations.”
According to the evidence at trial and other documents filed in the case:
From 1994 through 2004, Daugerdas, who is a lawyer, a certified public accountant, and the former head of the Chicago office of J&G and its tax practice, participated in a scheme to defraud the IRS by designing, marketing, implementing and defending fraudulent tax shelters.
As part of the scheme, Daugerdas and others plotted to defraud the IRS by, among other things, corruptly endeavoring to prevent the IRS from: detecting their clients’ use of these shelters; understanding how the transactions operated to produce the tax results reported by the clients; learning that, rather than serving as legitimate investment transactions, the tax shelters lacked economic substance in that they were designed and marketed as cookie-cutter products intended exclusively to eliminate or reduce large tax liabilities; learning that the clients were not seeking profit-making investment opportunities, but were instead seeking huge tax benefits; and learning that, from the outset, all of the clients intended to complete a pre-planned series of steps that had been designed to lead to the specific tax benefits they sought. Daugerdas and others created and assisted in creating transactional documents and other materials that falsely and fraudulently described their clients’ motivations for entering into the tax shelters and for taking various steps in order to yield the tax benefits.
As part of the scheme, Daugerdas and his co-conspirators also fraudulently backdated some of the tax shelter transactions. In particular, Daugerdas and his co-defendants learned that certain tax shelter transactions had been implemented incorrectly during the year of the transactions in that they failed to produce the amount or type of tax losses requested by the clients. Rather than reporting those tax shelter results as they occurred – as required by the Internal Revenue Code – Daugerdas and others engaged in corrupt “correcting” transactions after the close of the pertinent tax years, and then backdated the tax shelter documents to make it appear that the amount and type of tax losses sought by the clients had in fact been generated during the pertinent tax years. Daugerdas also authored fraudulent tax opinion letters that falsely described when certain aspects of the transactions had actually occurred. As a result of the fraudulent backdating, Daugerdas and others caused tax shelter clients to file tax returns that falsely and fraudulently claimed tens of millions of dollars of tax losses to which the clients were not entitled.
As a result of the scheme, Daugerdas and his co-conspirators made millions of dollars in fees and bonuses. Daugerdas himself made $95 million in profits but used tax shelters to reduce the taxes he paid to less than $8,000; without the shelters, he would have owed over $32 million in taxes.
Daugerdas, of Wilmette, Illinois, was convicted of conspiring to defraud the IRS, to evade taxes, and to commit mail and wire fraud, and of corruptly endeavoring to obstruct and impede the internal revenue laws. He was also convicted of four counts of tax evasion relating to the use of various tax shelters for specified clients, and of mail fraud.
In addition to the prison term, Judge Pauley ordered Daugerdas to forfeit $164,737,500 in proceeds of the offenses, which included certain assets that had been seized and frozen at the time Daugerdas was indicted. The forfeited proceeds include a lakefront home on Lake Geneva in Wisconsin, and over $20 million in various securities and financial accounts. Judge Pauley also ordered Daugerdas to pay $371,006,397 in restitution to the IRS. At sentencing, Judge Pauley said that Daugerdas “was at the apex of tax shelter racketeers who tapped into the greed of the super wealthy who did not want to pay taxes.”
In connection with this scheme, David Parse, a former broker at Deutsche Bank, was convicted of various tax fraud charges in May 2011 after an 11-week jury trial, and was sentenced in March 2013 to serve 46 months in prison. Donna Guerin, a former lawyer at J&G’s Chicago tax practice, pleaded guilty in September 2012 to various tax fraud charges related to her role in the scheme. She was sentenced in March 2013 to serve eight years in prison.
Former J&G partner Erwin Mayer, former BDO Seidman vice chairman and board member Charles W. Bee Jr., former BDO principal and former member of BDO Seidman’s TSG and Tax Opinion Committee Michael Kerekes, former BDO Seidman vice chairman and TSG member Adrian Dicker, BDO Seidman partner Robert Greisman, and BDO Seidman partner Mark Bloom have all previously been convicted in connection with this scheme.
This case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Stanley J. Okula Jr. and Niketh Velamoor for the Southern District of New York and Assistant Chief Nanette L. Davis of the Tax Division are in charge of the prosecution.
Former Jenkens & Gilchrist Attorney Sentenced in Manhattan Federal Court to 15 Years in Prison for Orchestrating Multibillion-Dollar Criminal Tax Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald A. Cimino, Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced that PAUL M. DAUGERDAS, a tax attorney and certified public accountant, was sentenced today in Manhattan federal court to 15 years in prison for orchestrating a massive fraudulent tax shelter scheme in which he and his co-conspirators designed, marketed, and implemented fraudulent tax shelters used by wealthy individuals to evade over $1.6 billion in taxes owed to the IRS. The 20-year scheme, which DAUGERDAS hatched while working at the Arthur Andersen accounting firm and then continued while a partner at two law firms - Altheimer & Gray and then Jenkens & Gilchrist - generated over $7 billion of fraudulent tax losses and yielded approximately $95 million in fees to DAUGERDAS personally. DAUGERDAS was convicted in October 2013 following an eight-week jury trial, presided over by U.S. District Judge William H. Pauley III, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Paul Daugerdas used his legal and accounting expertise to cheat the system and unlawfully deprive the government of over $1.6 billion of tax revenue. With today’s sentence, Daugerdas’s giant tax fraud scheme has reached its just conclusion under the law, with a sentence of 15 years in prison.”
Deputy Assistant Attorney General Ronald A. Cimino said: “Dishonest professionals who market tax fraud schemes to their clients need to sit up and take note of today’s sentence. The Justice Department and IRS are committed to holding responsible those who would misuse their skills and expertise to help others to evade their lawful tax obligations.”
According to the evidence at trial and other documents filed in the case:
From 1994 through 2004, DAUGERDAS, a lawyer, certified public accountant, and the former head of the Chicago office of the Jenkens & Gilchrist law firm (“J&G”) and its tax practice, participated in a scheme to defraud the IRS by designing, marketing, implementing, and defending fraudulent tax shelters.
As part of the scheme, DAUGERDAS and others schemed to defraud the IRS by, among other things, corruptly endeavoring to prevent the IRS from: (i) detecting their clients’ use of these shelters; (ii) understanding how the transactions operated to produce the tax results reported by the clients; (iii) learning that, rather than serving as legitimate investment transactions, the tax shelters lacked “economic substance” in that they were designed and marketed as cookie-cutter products intended exclusively to eliminate or reduce large tax liabilities; (iv) learning that the clients were not seeking profit-making investment opportunities, but were instead seeking huge tax benefits; and (v) learning that, from the outset, all the clients intended to complete a pre-planned series of steps that had been designed to lead to the specific tax benefits sought by the clients. DAUGERDAS and others created, and assisted in creating, transactional documents and other materials that falsely and fraudulently described their clients’ motivations for entering into the tax shelters and for taking various steps in order to yield the tax benefits.
As part of the scheme to defraud the IRS, DAUGERDAS and his co-conspirators also fraudulently backdated some of the tax shelter transactions. In particular, DAUGERDAS and his co-defendants learned that certain tax shelter transactions had been implemented incorrectly during the year of the transactions, in that they failed to produce the amount or type of tax losses requested by the clients. Rather than reporting those tax shelter results as they occurred - as required by the Internal Revenue Code - DAUGERDAS and others engaged in corrupt “correcting” transactions after the close of the pertinent tax years, and then backdated the tax shelter documents to make it appear as if the amount and type of tax losses sought by the clients had in fact been generated during the pertinent tax years. DAUGERDAS also authored fraudulent tax opinion letters that falsely described when certain aspects of the transactions had actually occurred. As a result of the fraudulent backdating, DAUGERDAS and others caused tax shelter clients to file tax returns that falsely and fraudulently claimed tens of millions of dollars of tax losses to which the clients were not entitled.
As a result of the scheme, DAUGERDAS and his co-conspirators made millions of dollars in fees and bonuses. Specifically, DAUGERDAS made $95 million in profits, but used tax shelters to reduce the taxes he paid to less than $8,000; without the shelters, he would have owed over $32 million in taxes.
DAUGERDAS, 63, of Wilmette, Illinois, was convicted of conspiring to defraud the IRS, to evade taxes, and to commit mail and wire fraud, and of corruptly endeavoring to obstruct and impede the internal revenue laws. He was also convicted of four counts of tax evasion relating to the use of various tax shelters for specified clients, and of mail fraud.
In addition to the prison term, Judge Pauley ordered DAUGERDAS to forfeit $164,737,500 in proceeds of the offenses, which included certain assets of DAUGERDAS’ that had been seized and frozen at the time DAUGERDAS was indicted. The forfeited proceeds include a lakefront home on Lake Geneva in Wisconsin, and over $20 million in various securities and financial accounts. Judge Pauley also ordered DAUGERDAS to pay restitution to the IRS of $371,006,397. At sentencing, Judge Pauley said that DAUGERDAS “was at the apex of tax shelter racketeers who tapped into the greed of the super-wealthy who did not want to pay taxes.”
In connection with this same scheme, David Parse, a former broker at Deutsche Bank, was convicted of various tax fraud charges in May 2011 after an 11-week jury trial, and was sentenced in March 2013 to 46 months in prison. Donna Guerin, a former lawyer at J&G’s Chicago tax practice, pled guilty for her role in the scheme to various tax fraud charges in September 2012. She was sentenced in March 2013 to eight years in prison.
Former J&G partner Erwin Mayer, former BDO Seidman Vice Chairman and board member Charles W. Bee, Jr., former BDO principal and former member of BDO Seidman’s TSG and Tax Opinion Committee Michael Kerekes, former BDO Seidman Vice Chairman and TSG member Adrian Dicker, BDO Seidman partner Robert Greisman, and BDO Seidman partner Mark Bloom have all previously been convicted in connection with the scheme.
Mr. Bharara thanked the IRS and the Tax Division of the Department of Justice for their work on this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Stanley J. Okula, Jr. and Niketh Velamoor, and DOJ Tax Division Assistant Chief Nanette L. Davis are in charge of the prosecution.
Former Eagle Resident Sentenced to 96 Months in Prison on Child Sexual Exploitation OffensesRead the Press Release
BOISE – Gerald Lee Farrell, Jr., 47, formerly of Eagle, Idaho was sentenced yesterday in federal court in Boise to 96 months in prison on charges of interstate travel with a minor with the intent to engage in criminal sexual activity and possessing sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Farrell to serve 15 years of supervised release.
Farrell was indicted by a federal grand jury in October 2004. He had been a fugitive since January 2004. He was arrested in Spain in July 2013 and extradited to the United States in December 2013. Farrell pleaded guilty to the charges on March 17, 2014.
According to the plea agreement, Farrell and his wife became a host family for a 16-year-old German female exchange student in August 2003. The plea agreement further states that throughout the fall of 2003, the defendant sought various opportunities to observe the girl nude or partially nude and that he engaged her in conversations of a sexual nature. At the sentencing hearing, the United States introduced evidence that the defendant installed hidden cameras in the girl’s bedroom and a bathroom that she used, which captured video of her changing her clothes and going into and coming out of the shower. The plea agreement states that in December 2003, Farrell took the girl to Nevada. One night, she woke up to find the defendant lying across her stomach and trying to remove her panties. The girl was able to push the defendant away. The girl told others about Farrell’s conduct when they returned to Idaho. Ada County Sheriff’s Office deputies executed a search warrant at Farrell’s Eagle home on January 4, 2004, and seized his computers and other items. Farrell and his wife fled Idaho for Switzerland approximately a week later. According to the plea agreement, a forensic computer examiner found video files of children under 18 engaging in sexually explicit conduct on Farrell’s seized computer hard drive. These images were of minors other than the foreign exchange student.
“This defendant preyed upon a vulnerable foreign exchange student, new to this country, who did not speak English as her first language,” said Olson. “The sentence imposed by this Court, some ten years after Mr. Farrell committed his crimes and fled Idaho for Switzerland, should send a clear message that perpetrators of these crimes cannot run and cannot hide. They will be caught, prosecuted and punished. FBI Special Agent Mary Martin and many detectives from the Ada County Sheriff’s Office worked long and hard to bring Mr. Farrell to justice. I commend their work. I also thank the representatives from the foreign exchange student program for their cooperativeness and persistence as well.”
The case was investigated by the Federal Bureau of Investigation and the Ada County Sheriff’s Office.
Felon Who Sold Firearms Out of Hartford Apartment Sentenced to Six Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERNIE NEGRONI, also known as “Omega” and “King Omega,” 33, a former resident of Mansfield, Ohio, and Connecticut, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by three years of supervised release, for trafficking firearms.
According to court documents and statements made in court, on June 13, 2013, NEGRONI sold two firearms for $900 to an individual working with law enforcement. The sale occurred in an apartment on Franklin Avenue in Hartford. During the sale, the individual who purchased the firearms observed a suitcase with numerous other firearms and a backpack containing ammunition. NEGRONI also told the individual that he would be returning to Ohio in the near future to obtain more guns.
In the early morning hours of June 14, 2013, law enforcement officers executed a state search warrant at the apartment and seized nine handguns, a sawed-off shotgun and several hundred rounds of ammunition. NEGRONI was arrested on federal firearm charges at that time.
NEGRONI is believed to have acquired the firearms at gun shows operating in Ohio and surrounding states.
NEGRONI, an admitted member of the Almighty Latin King Nation, has a criminal history that includes multiple felony drug convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
NEGRONI has been detained since his arrest on June 14, 2013. On February 3, 2014, he pleaded guilty to one count of possession of firearms and ammunition by a convicted felon.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Felon Sentenced to 13+ Years in Prison for Illegally Possessing FirearmRead the Press Release
PITTSBURGH - A Pittsburgh resident was sentenced yesterday in federal court to a total term of imprisonment of 163 months (13 years, 7 months) on his conviction of possession of a firearm by convicted felon, and for committing this crime during his federal supervised release for a prior federal drug-trafficking and firearms conviction, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Gregory Earl Nash, 33, of Pittsburgh, PA.
According to information presented to the court, on or about Feb. 9, 2013, Nash, a convicted felon, possessed a Glock 22 .40 caliber handgun. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. Nash had been convicted in federal court in Pittsburgh in 2003 for conspiracy to possess with intent to distribute 500 grams or more of cocaine and possessing and brandishing a firearm during and in relation to that drug-trafficking crime. Nash was sentenced to a lengthy period of incarceration for those prior crimes, and following his release from incarceration, he was serving a period of federal supervised release when he was arrested again with the aforementioned firearm.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Nash.
Federal Jury Convicts Sanford Felon for Possessing A FirearmRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Brandon Lavantis Hughes (28, Sanford) guilty of possession of a firearm by a convicted felon. Hughes faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for September 15, 2014, before U.S. District Judge Roy B. Dalton, Jr. Hughes was indicted on April 2, 2014.
According to testimony and evidence presented at trial, on November 25, 2011, officers from the Sanford Police Department responded to a 911 call indicating that an individual was pointing a firearm at people on a public street in Sanford. After the responding officers arrived at the scene, one of the officers further observed Hughes walk towards a bar that was located on the street. The officers stopped Hughes and recovered a loaded Colt .357 caliber revolver from a nearby garbage can. The firearm was loaded with one round of Remington .357 caliber ammunition. A forensic examination of the firearm revealed that Hughes’ fingerprints were present in two locations on the firearm. Both the firearm and ammunition were manufactured outside the State of Florida and therefore affected interstate commerce.
At the time of the incident, Hughes was a convicted felon. As such, he was not permitted to possess a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sanford Police Department, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Federal Jury Convicts Getaway Driver in Barrington Bank RobberyRead the Press Release
PROVIDENCE, R.I. – A federal jury in Providence late Tuesday afternoon convicted David Lasseque, 33, of Providence, for his role as getaway driver during the July 2013 armed robbery of the Barrington branch office of Bank of America, announced United States Attorney Peter F. Neronha, Barrington Police Chief John M. LaCross, East Providence Police Chief Joseph Tavares and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
The jury convicted Lasseque on one count each of conspiracy to commit bank robbery and bank robbery. A co-defendant in this matter, Pierre S. Rheau, 34, of Providence, pleaded guilty in May 2014 to charges of conspiracy to commit armed bank robbery and armed bank robbery.
According to the government’s evidence presented at trial, at approximately 5:00 p.m. on July 12, 2103, members of the Barrington Police Department responded to a report of an armed bank robbery at the County Road branch office of Bank of America. Witnesses told police that an individual armed with a black firearm approached two tellers demanding they give him all the money. The suspect fled the bank with $4,871 in cash. Witnesses were able to provide police with a detailed description of the robber’s physical make-up, his clothing, clothing accessories and the firearm he displayed during the robbery.
According to the government’s evidence, in response to a police dispatch about the bank robbery, a Barrington Police Sergeant positioned himself on Rte. 114. A short time later the sergeant saw a vehicle traveling in a northerly direction away from the bank by an individual who fit the general description of the bank robber. The sergeant began to follow the vehicle, which he then determined was traveling well in excess of the posted speed limit. The sergeant attempted to affect a traffic stop, however after stopping briefly for the officer the vehicle fled the area at a high rate of speed.
According to the government’s evidence, the suspect vehicle was pursued by police as it drove at a high-rate of speed onto I-195 west then off again via an exit into an East Providence residential neighborhood. As the vehicle continued to be operated in a reckless manner, it crashed into an East Providence police cruiser traveling in the opposite direction, with its lights and siren engaged.
According to the government’s evidence, following the collision with the police cruiser, the driver, David Lasseque, fled on foot but was quickly apprehended by Barrington and East Providence officers. A second individual, Pierre Rheau, later identified as the gunman who robbed the bank, was discovered lying on the back seat. From the back seat area, officers recovered a pile of loose money, a black Daisy .177 caliber BB gun, and clothing and accessories described by witnesses as having been worn by the armed bank robber.
Lasseque faces statutory penalties of up to 25 years in federal prison and a fine of up to $500,000 when he is sentenced on September 26, 2014, by U.S. District Court Judge William E. Smith, who presided over the two-day trial. The jury reached its verdict after approximately 90 minutes of deliberations.
Rheau, who pleaded guilty on May 14, 2014, to conspiracy to commit armed bank robbery and armed bank robbery, faces statutory penalties of up to 30 years in federal prison and a fine of up to $500,000 when he is sentenced by U.S. District Court Chief Judge William E. Smith on September 12, 2014.
Lasseque and Rheau have been detained since their arrest.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Warren and Seekonk, Mass., Police and the Rhode Island State Police assisted Barrington and East Providence Police and the FBI in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Edgewood Man Pleads Guilty to Violating Federal Wildlife Laws Prohibiting Sale of Eagle FeathersRead the Press Release
ALBUQUERQUE – Dale N. Smith, 60, of Edgewood, N.M., pleaded guilty this morning to violating the Migratory Bird Treaty Act by selling or offering to sell Bald Eagle feathers.
Smith was arrested on April 10, 2014, on a criminal complaint charging him with violating the Migratory Bird Treaty Act, the Lacey Act and the Bald and Golden Eagle Protection Act in March 2014, in Santa Fe County, N.M. Smith was indicted on May 7, 2014, and charged with three counts of violating the Migratory Bird Treaty Act and one count of violating the Lacey Act.
Smith, a member of the Lakota/Sioux Tribe of the Hunkpapa Band of Lakota, was charged as the result of an undercover investigation by the U.S. Fish and Wildlife Service that began on March 7, 2014, and concluded with Smith’s arrest on April 10, 2014. The investigation was initiated after the U.S. Fish and Wildlife Service received information that Smith had posted on an Internet website photographs of Indian arts and crafts which appeared to include federally protected feathers.
On March 7, 2014, an undercover agent contacted Smith and inquired about the feathers on one particular piece of art. Smith responded that the feathers were Bald Eagle feathers and offered to sell the artwork for $1,000. On March 20, 2014, Smith sold a feather fan containing Bald Eagle feathers and a medicine wheel containing Bald Eagle feathers to the undercover agent for $1,000. On March 20, 2014 and again on March 24, 2014, Smith offered to sell a headdress with bald eagle feathers to the undercover agent for $2,000.
Today, Smith pled guilty to one count of violating the Migratory Bird Treaty Act, and admitted selling a feather fan with Bald Eagle feathers to an undercover agent on March 20, 2014. In his plea agreement, Smith acknowledged that the Bald Eagle qualifies as a migratory bird and that he violated the Migratory Bird Treaty Act when he sold the Bald Eagle feather fan to the undercover agent.
At sentencing, Smith faces a maximum statutory penalty of two years in prison to be followed by a term of supervised release and a $250,000 fine. Smith remains on conditions of release pending his sentencing hearing, which has yet to be scheduled.
Bald Eagles are amongst more than 1000 wild birds protected under the federal wildlife laws, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act, and the Lacey Act. Among other things, these laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
This case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers and was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement with assistance from the New Mexico Game and Fish Department, Homeland Security Investigations, the U. S. Marshals Service, and Santa Fe County Sheriff's Office.The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
Criticizing Wisconsin’s Voter Id Statute, Attorney General Holder Pledges Aggressive Enforcement of Remaining Parts of Voting Rights ActRead the Press Release
WASHINGTON—On the one-year anniversary of the Supreme Court decision that struck down a key part of the Voting Rights Act, Attorney General Eric Holder pledged Wednesday that the Justice Department would remain aggressive in using Section 2 of the law—which was left intact by the Court’s decision—to guard against unjust voting restrictions.
Section 2, which prohibits barriers to voting that disadvantage minority groups, provided the basis for the department’s lawsuits last year against voting laws in North Carolina and Texas. It also formed the basis for a recent challenge to a voter ID statue in Wisconsin. In April, a federal district court sided with the plaintiffs in that case, declaring that the Wisconsin law violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
Holder joined in criticizing the Wisconsin law in his message Wednesday.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest,” Holder said.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts,” he added.
A full copy of the Attorney General’s video message appears below.
“One year ago today, in the case of Shelby County, a narrowly split but deeply divided U.S. Supreme Court struck down a key part of the historic Voting Rights Act of 1965.
“This was a deeply flawed decision – and it effectively invalidated a cornerstone of American civil rights law.
“In the nearly five decades leading up to that ruling, a critical provision of the Voting Rights Act known as Section 5 – which enjoyed consistent support from Members of Congress and presidents of both parties – provided the Justice Department with a rigorous tool to fight unjust attempts to abridge voting rights.
“It required certain jurisdictions with histories of discrimination to seek “preclearance,” from the Department or a federal court, before new voting changes could take effect – so these proposals could be subjected to fair and thorough review.
“This empowered the Justice Department to protect the right of every American to cast a ballot – unencumbered by discriminatory rules, regulations, and procedures that, intentionally or not, discourage and disenfranchise.
“Indeed, not long before the Shelby County decision, a federal judge considering the Department’s objection to South Carolina’s voter ID law noted the ‘continuing utility’ of preclearance ‘in deterring problematic, and hence encouraging non-discriminatory, changes in state and local voting laws.’
“When the Shelby decision effectively denied us this tool, the Department’s Civil Rights Division shifted resources to the enforcement of other protections that remain on the books – including Section 2 of the Voting Rights Act, which prohibits barriers to voting that disadvantage minority groups.
“During the past year, we filed Section 2 challenges to specific laws in North Carolina and Texas that could disproportionately restrict access to the ballot box for minority citizens.
“Section 2 also provides a valuable tool to individual voters who seek to protect their voting rights.“In April, a federal district court in Wisconsin ruled that Wisconsin’s unnecessarily restrictive voter-ID law, which disproportionately impacted the state’s African-American and Latino voters, violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest – because, as the judge found, and I quote, “The defendants could not point to a single instance of known voter impersonation occurring in Wisconsin at any time in the recent past.”
“By restricting access and decreasing voter participation, laws such as those in Wisconsin would shrink – rather than expand – access to the franchise.
“This is inconsistent not only with our history, but with our ideals as a nation – a nation founded on the principle that all citizens are entitled to equal opportunity, equal representation, and equal rights.
“And that’s why, across this country, the Department of Justice will continue to take aggressive steps to stand against disenfranchisement wherever it exists – and in whatever form.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts.
“We will not simply stand by as the voices of many citizens are shut out of the process of self-governance.
“And in the days ahead, we will continue to work with Congressional leaders to fill the void left by the Supreme Court’s ruling – and use every available tool to safeguard the most basic right of American citizenship.”
The video message is viewable online here: http://www.justice.gov/agwa.php
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today announced today that charges in two unrelated cases were brought against the following persons in Harrisburg.
Jose Parada-Rodriguez, age 27, a native and citizen of El Salvador, in the United States illegally was charged in a one-count indictment alleging that Parada-Rodriguez, an alien who has previously been arrested and deported from the United States in May 2011, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Parada-Rodriguez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Omar Hernandez-Garfias, age 29, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Hernandez-Garfias, an alien who has previously been arrested and deported from the United States in July 2007, did knowingly and unlawfully reenter the United States and was apprehended in Adams, Pennsylvania.
If convicted, Hernandez-Garfias faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Colombian Maritime Narcotics Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Arley Fernando Garces (34, Colombia) to 25 years in federal prison for possession with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States, and conspiracy to do the same, in violation of the U.S. Maritime Drug Law Enforcement Act. Garces pleaded guilty on April 14, 2014. Garces is the last of three co-defendants to be sentenced in this case. Judge Bucklew previously sentenced Santos Cerros-Maldonado to 12 years and 4 months’ imprisonment. Gregorio Campo-Rodriguez was sentenced to 7 years and 3 months in federal prison.
According to court documents and testimony, on August 19, 2013, the United States Coast Guard interdicted Garces, Campo-Rodriguez and Cerros-Maldonado onboard a stateless vessel in the Caribbean Sea. During the interdiction, individuals onboard that vessel jettisoned electronics, personal identifying information, and one kilogram of cocaine. Investigators later determined that Garces and his co-conspirators were smuggling hundreds of kilograms of cocaine in a false bottom of that vessel.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force North. 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.
The case was prosecuted by Special Assistant United States Attorney Michael J. Meyer and Assistant United States Attorney Maria Chapa-Lopez.
Clinton, Maryland Man Convicted of Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was convicted yesterday by a federal jury of transportation of a minor across state lines for the purpose of prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne.
Muhammad faces a maximum penalty of life in prison with a mandatory-minimum term of 10 years in prison when he is sentenced on September 11, 2014.Muhammad was indicted on April 15, 2014, by a federal grand jury fortransportation of a minor in interstate commerce for the purpose of prostitution. According to evidence at trial, Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014,
Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. He then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant U.S. Attorney Heather L. Hart is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-055.
Chicago Man Arrested on Federal Charges for Allegedly Impersonating A U.S. Marshal Service Employee Twice in 2013Read the Press Release
CHICAGO — A Chicago man was arrested today on federal charges for allegedly impersonating an employee of the U.S. Marshals Service on two occasions last year. The defendant, ROBERT P. ROZYCKI, was arrested without incident by deputy U.S. Marshals.
Rozycki, 37, was charged with two felony counts of impersonating a U.S. Marshals Service employee in an indictment that was returned by a federal grand jury yesterday and unsealed following his arrest. He is scheduled to be arraigned at 1:30 p.m. today before U.S. Magistrate Judge Michael Mason in Courtroom 2266 in the Dirksen Federal Courthouse.
The indictment charges Rozycki with falsely assuming the identity of and pretending to be a U.S. Marshals Service employee on March 3 and May 18, 2013.
Each count of impersonating a federal law enforcement officer carries a maximum penalty of three years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Darryl McPherson, United States Marshal for the Northern District of Illinois.
The government is being represented by Assistant U.S. Attorney Kathryn Malizia.
The public is reminded that an indictment complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chapmanville Man Sentenced for Illegal Distribution of Prescription PainkillersRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, West Virginia, man was sentenced to eight months’ home confinement and three years’ probation for distribution of oxymorphone, a powerful painkiller often sold under the brand name Opana, U.S. Attorney Booth Goodwin announced today. Carl Tomblin, 50, previously pleaded guilty to distribution of oxymorphone on March 25, 2014. Today’s sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Tomblin sold oxymorphone to a confidential police informant on five separate occasions in December 2013 and January 2014. Tomblin also admitted that he purchased and distributed oxymorphone for approximately eight months prior to January 2014.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn handled the prosecution.
The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pill and heroin in communities across the Southern District.
California Operators of Myredbook.com Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
Eric Omuro, of Mountain View, California, a.k.a “Red,” was arrested today following his indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, California, was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation made the announcement.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myRedBook.com, which were allegedly operated by Omuro, with Lanoce’s assistance to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myRedbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the websites were used to host advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The websites used acronyms for numerous sex acts, which were defined in graphic detail in the websites’ “Terms and Acronyms” section. Although the websites could be accessed for free, myRedBook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com .
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Elise Becker and Patricia Kenney of the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.California Operators of MYREDBOOK.COM Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
SAN FRANCISCO – Eric Omuro, of Mountain View, Calif., also known as “Red,” was arrested today following his Indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, Calif., was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution, announced U.S. Attorney Melinda Haag of the Northern District of California, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myredbook.com, which were allegedly operated by Omuro, with Lanoce’s assistance, to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myredbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the website hosted advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The website used acronyms for numerous sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. Although the website could be accessed for free, myredbook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Assistant United States Attorneys Elise Becker and Patricia Kenney of the Northern District of California, and Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.(Omuro indictment )
Caldwell Man Pleads Guilty to Social Security FraudRead the Press Release
BOISE – Jose Louis Fernandez, 44, of Caldwell, Idaho, pleaded guilty today in federal court to one count of Social Security Fraud by Concealment of Material Facts, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on September 4, 2014.
According to the plea agreement, Fernandez maintained two separate identities for the purpose of working under a false name while simultaneously collecting Social Security Disability under his true name. In April of 2012, during a Title II benefit review, Fernandez falsely indicated that he had not worked since the date of his last disability decision in 2001. Contrary to this statement, Fernandez had been working at a home-building company since June 2003, and worked until May 2012. As a result of this fraud, Fernandez received SSA Disability benefits to which he was not entitled. He also received Medicare insurance benefits and benefits directed toward his children. The benefits paid as a result of Fernandez’s fraudulent actions were nearly $200,000.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations; Health and Human Services, Office of Inspector General, with assistance from the Caldwell Police Department and United States Marshals Service.
Businessman Indicted for Making over $5 Million in False Asset Statements to Government Insurance RegulatorsRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Jeffrey Cohen, age 39, of Reisterstown, Maryland, on five counts of making false statements to an insurance regulator. The indictment was returned yesterday and unsealed today upon his arrest.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Cohen acted as the president and chairman of the Board of Indemnity Insurance Corporation RRG (IICRRG), located in Sparks, Maryland, and operating in several states including Maryland. Cohen owned RB Entertainment Ventures, which was a majority owner of IICRRG. IICRRG provided general liability, liquor liability and excess liability coverage to policyholders, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours and special events. In 2012, IICRRG insured over 3,000 policyholders and wrote over $25 million in premiums.
IICRRG was a Delaware corporation and regulated by the Delaware Insurance Commissioner, which seeks to protect insurance policyholders and the general public by regulating insurance companies and products to ensure among other things the ability to pay claims.
The indictment alleges that in June 2012, regulators from the Delaware Insurance Commissioner examined IICRRG and learned of serious questions about the financial status of IICRRG. Thereafter, in November 2012 and January 2013, Cohen allegedly caused IICRRG to file an unaudited financial statement with, and sent a letter to, the Commissioner, respectively, which falsely claimed that IICRRG had $5.1 million in cash on deposit, in order to influence the actions of the Commissioner. In April 2013, Cohen caused a fax to be submitted to the Commissioner that falsely claimed that a bank had verified that IICRRG had $5.1 million in cash on deposit at the bank.
Cohen faces a maximum sentence of 15 years in prison and a $250,000 fine for making false statements to an insurance regulator. Cohen had an initial appearance today in U.S. District Court in Baltimore, and is detained pending a detention hearing scheduled for Friday, June 27, 2014 at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Banker in Johnson County Admits Making False Statements on Loan ApplicationRead the Press Release
KANSAS CITY, KAN. – A Johnson County man pleaded guilty Wednesday to conspiring to make false statements on a loan application while he was working as a senior vice president of a bank in Overland Park, U.S. Attorney Barry Grissom said today.
Michael W. Yancey, 55, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.
Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.Sentencing will be set at a later time. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Attorney General Holder Pledges Support for Legislation to Provide E.U. Citizens with Judicial Redress in Cases of Wrongful Disclosure of Their Personal Data Transferred to the U.S. for Law Enforcement PurposesRead the Press Release
Attorney General Eric Holder announced today that the Obama administration, as part of successfully concluding negotiations on the E.U.-U.S. Data Protection and Privacy Agreement (DPPA), would seek to work with Congress to enact legislation that would provide E.U. citizens with the right to seek redress in U.S. courts if personal data shared with U.S. authorities by their home countries for law enforcement purposes under the proposed agreement is subsequently intentionally or willfully disclosed, to the same extent that U.S. citizens could seek judicial redress in U.S. courts for such disclosures of their own law enforcement information under the Privacy Act.
The Attorney General has been co-chairing the E.U./U.S. Justice and Home Affairs Ministerial in Athens, Greece. The agenda of the Ministerial is to advance E.U.-U.S cooperation against transnational crime and terrorism, with particular emphasis on foreign fighters traveling to and from Syria.
As part of that law enforcement cooperation, the Ministerial also discussed the ongoing negotiation of an "umbrella" DPAA, which would cover the exchange of law enforcement information between the E.U. and the U.S. The DPPA is an outgrowth of an initiative begun during the Bush Administration, and carried forward during the Obama Administration, to establish an enhanced commitment to share information transatlantically to fight crime and terrorism, while also protecting privacy.
In order to advance the DPPA negotiations, Attorney General Holder stated at the Ministerial that the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of the proposed DPPA, E.U. citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“In a world of globalized crime and terrorism, we can protect our citizens only if we work together internationally, including through sharing law enforcement information with and by E.U. Member States and other close allies,” Attorney General Holder said. “At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. The step we are announcing today will help advance both goals.”
A copy of Holder’s full statement, as delivered in Athens, appears below:
“At the outset, I would like to thank our Greek hosts -- Minister Athanassiou and Minister Kikilias -- for their superb hospitality. And I would like to congratulate them on the highly successful Greek Presidency of the EU.
“Today, we have had the opportunity to discuss the wide range of justice and home affairs issues that bind together the EU, its Member States and the United States, in a common effort to protect all of our citizens. We have talked today about how we can increase our cooperation on countering violent extremism, and on responding to the critical issue of "Foreign Fighters" -- citizens from our countries, and other countries around the world, who are traveling to Syria to join terrorist groups, and who may return as trained and hardened terrorists. We discussed joint strategies for countering transnational crime, including trafficking in firearms and wildlife; and we talked about protecting victims of crime, as well as persons with disabilities. We dealt with the ever-increasing threat of cybercrime -- and announced that the United States would carry forward the important initiative begun by Commissioner Malmstrom, the Global Alliance Against Child Sexual Abuse Online.
“One consistent theme ran through all our discussions: in a world of globalized crime and terrorism, we can protect our citizens only if we work together, including through sharing law enforcement information. At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. We already have many mechanisms in place to do this, and we have -- on both sides of the Atlantic – an outstanding record of protecting the privacy of law enforcement information. But we can always do more, and for that reason, the EU and the United States have undertaken to negotiate an "umbrella" Data Protection and Privacy Agreement Regarding Police and Judicial Cooperation -- the DPPA.
“Vice President Reding and her Directorate have been our key partners in this endeavor. While I am sorry that other commitments made it impossible for Vice President Reding to be present today, I did want to state publicly my agreement with her view that we are close to concluding the Data Protection and Privacy Agreement.
“Indeed, I believe we should be able to finish this negotiation soon, since the remaining issues -- those regarding the legal framework for the transfer and use of information -- have already been addressed in our existing agreements, including our EU/U.S. Mutual Legal Assistance agreement and our bilateral treaties with all of the Member States thereunder. These prior agreements have been proven, through actual experience, to provide a high level of protection both for the safety of all our citizens and for their privacy, and we should incorporate their principles into the DPPA.
“Moreover, we should move forward quickly here to conclude our negotiations, since our DPPA negotiators have already reached agreement on additional, and comprehensive, administrative privacy protections that will come into effect when the DPPA enters into force. And today, I am happy to announce that, in support of our desire to bring the DPPA negotiations to conclusion, the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of our proposed DPPA Regarding Police and Judicial Cooperation, EU citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“This commitment -- which has long been sought by the EU -- reflects our resolve to move forward not only on the DPPA itself, but on strengthening transatlantic ties.
“The work we do together is vital. Thank you again to our Greek hosts, to the Commission, and to the incoming Italian Presidency.”
Atf-led Law Enforcement Operation Targets Violent Crime in Bridgeport and New HavenRead the Press Release
Follow @USAO_CT
New Haven – Law enforcement officials today announced the results of a four-month joint law enforcement initiative to stem violent crime in Bridgeport and New Haven. The operation, headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulted in the seizure of more than 73 illegal firearms and is expected to result in the prosecution of 154 individuals on federal or state charges. Today’s announcement was made by U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Daniel J. Kumor, Bridgeport Police Chief Joseph L. Gaudett, Jr., New Haven Police Chief Dean Esserman, Commissioner Dora B. Schriro of the Connecticut Department of Emergency Services and Public Protection, Fairfield State’s Attorney John Smriga and New Haven State’s Attorney Michael Dearington.
“There is no higher calling in law enforcement than preventing violent crime,” stated U.S. Attorney Deirdre M. Daly. “Under the powerful leadership of the ATF and with the invaluable collaboration of the Bridgeport and New Haven Police Departments, the Connecticut Department of Emergency Services and Public Protection and other local and federal law enforcement agencies, Operation Samson has successfully stemmed the violence in two of Connecticut’s largest cities. Samson included dangerous undercover operations. We commend the agents and officers who repeatedly risked their lives to remove over 70 illegal guns and a large number of violent offenders from our communities.”
“ATF is always focused on violent crime, as this four-month enhanced enforcement initiative has shown,” stated Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division. “The citizens of New Haven and Bridgeport have been victimized by violent criminals who act with total disregard for public safety and our goal is to take these offenders off the streets, period. The partnership of law enforcement and prosecutors in Connecticut taking a united stand contributed to the operation’s overall success. To this end, we are committed to utilize every resource to keep citizens safe. To those who choose to disregard the rules of our communities by committing violence, be warned, we will not rest until you are off the streets.”
In March 2014, the ATF and the Bridgeport and New Haven Police Departments launched “Operation Samson” a multi-layered initiative targeting violent criminals and illegal firearm possession and firearm trafficking in New Haven and Bridgeport. As part of the initiative, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations. The combined law enforcement team brought a range of expertise to the operation, including tactical, technical, analytical, undercover skills and supervisory experience.
Several other federal, state and local law enforcement agencies supported the initiative as investigations expanded into other cities and towns in Connecticut and across state lines.
The initiative employed intelligence-led policing to determine where to place resources in order to have the greatest impact. During Operation Samson, law enforcement personnel conducted approximately 425 operations, which included undercover meetings, controlled purchases of firearms and narcotics, and the execution of search and arrest warrants. As a result, a total of 80 individuals have been charged, or are expected to be charged, with a variety of federal firearms, narcotics and robbery violations. In addition, 74 defendants have been charged, or expected to be charge, with various state offenses.
The operation resulted in the confiscation of 73 firearms, including sawed-off shotguns, sawed-off rifles and a silencer. Law enforcement also recovered more than one kilogram of crack cocaine, approximately 750 grams of powder cocaine, more than 200 grams of heroin, more than seven kilograms of marijuana, and approximately 400 prescription narcotic pills.
During Operation Samson, investigators uncovered an alleged firearms trafficking ring that used out-of-state straw purchasers who accepted narcotics in exchange for firearms. This ring was identified as having trafficked approximately 100 firearms into Connecticut. A second alleged firearms trafficking ring that used straw-purchasers within Connecticut is estimated to be responsible for delivering 30 illegal firearms into New Haven and Bridgeport. Both of these cases are still being actively investigated.
Investigators also identified and arrested alleged members of robbery crews, some of whom also trafficked in firearms and narcotics.
“I am deeply grateful to the ATF and also the state crime lab,” stated Bridgeport Police Chief Joseph L. Gaudett, Jr. “For the last few months, ATF agents and our officers have worked together seamlessly every day and night. There was a common goal to take guns and dangerous criminals off the street. The technicians at the crime lab worked behind the scenes but they were equal partners in helping us build these cases. Any time law enforcement sent evidence for analysis, the response unfailingly was ‘We’ll get right on it. When do you need the results?’ Because of those efforts, the streets of Bridgeport are safer today.”
“Cooperation between police departments, law enforcement agencies and the community are what’s required to achieve progress,” stated New Haven Police Chief Dean Esserman. “This collaboration, led by the ATF, is an impressive example of cooperation. We are particularly grateful to them, the U.S. Attorney’s Office and the Connecticut State Crime Laboratory. This precedent-setting mission has targeted local gun violence and shown great results. We’re proud of those who’ve put in the long hours to see this operation through. New Haven and the State of Connecticut are safer for it.”
“The results of this initiative clearly demonstrate the effectiveness of cooperation between federal and state law enforcement,” stated Fairfield State’s Attorney John Smriga.
“This initiative has brought together all branches of law enforcement to strengthen partnerships, provide a sense of security and make our greater New Haven communities safer,” stated New Haven State’s Attorney Michael Dearington.
An instrumental component of Operation Samson has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence. NIBIN is an ATF-administered digital ballistics imaging system that aids law enforcement agencies in their investigations by capturing images of shell casings to link violent crimes involving firearms, and subsequently identify firearms users or “trigger pullers.” NIBIN-users are able to acquire digital images of the unique markings made on fired ammunition recovered from a crime scene or test-fired from a crime gun recovered by law enforcement, and then quickly compare those images against earlier NIBIN entries. If a potential match emerges, firearm examiners compare the original evidence with a microscope to confirm the match, or a “hit.”
Within recent months, the Connecticut State Crime Laboratory has entered ballistics evidence recovered from crimes committed within the state into NIBIN and identified a substantial number of NIBIN “hits.” To date, 42 such hits have linked 104 crimes involving the unlawful discharge of firearms that have occurred in Bridgeport, New Haven and surrounding areas. NIBIN has linked these unlawful discharges to robberies, aggravated assaults, and homicides. Importantly, these links have provided law enforcement with timely, actionable leads to assist in identifying serial shooters and violent criminal organizations. NIBIN has also been instrumental in the investigation of four separate homicides. One firearm recovered during Operation Samson has been linked to a previously unsolved homicide and five additional shooting investigations.
“I would like to thank the Bureau of Alcohol, Tobacco and Firearms and Explosives for its commitment of resources to the state of Connecticut and to Operation Samson,” stated Dr. Dora B. Schriro, Commissioner of the Department of Emergency Services and Public Protection. “Bridgeport and New Haven are to be commended as well for their leadership in making their communities safer places to live and work. The additional financial support provided by the Statewide Firearms Trafficking Task Force and the participation by the Connecticut State Police and the State Crime Laboratory were also critical to the success of the Operation. In just a matter of months, this partnership has helped to reduce gun violence and strengthen our communities.”
Operation Samson is the ninth Enhanced Enforcement Initiative (EEI) conducted by ATF since 2012. The cities of New Haven and Bridgeport were chosen for this EEI based on Uniform Crime Reports that ranked both cities as having high amounts of violent crime, and due to existing partnerships between ATF and the New Haven and Bridgeport Police Departments. Previous ATF EEI’s were deployed in New Orleans; Philadelphia; Oakland, Calif.; Flint, Mich.; Chicago; Stockton, Calif.; St. Louis, and Camden, N.J.
U.S. Attorney Daly and ATF Special Agent in Charge Kumor acknowledged and commended the investigative support and assistance of several additional law enforcement agencies including the U.S. Marshals Service, Homeland Security Investigations, the Statewide Firearms Trafficking Task Force, the Connecticut State Police, the Connecticut Department of Correction and the Milford, Norwalk, Stamford, Waterbury and West Haven Police Departments.The federal cases are being prosecuted by the U.S. Attorney’s Office’s Violent Crime and Narcotics Unit under the leadership of Assistant U.S. Attorneys Dave Vatti, Robert Spector and Tracy Dayton.
U.S. Attorney Daly stressed that charges contained in indictments and complaints are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Assistant Bank Branch Manager Charged with Bank FraudRead the Press Release
Erlanda Naranjo, 39, of Nashville, Tennessee, was charged by Information, filed yesterday, with bank fraud, announced United States Attorney Zane David Memeger. According to the Information, while employed at a bank, the defendant submitted a false application for a business line of credit in the name of a relative. That relative neither owned a business nor authorized Naranjo to apply for credit in her name. The bank ultimately approved the application, and sustained a loss of more than $95,000, when the line of credit was charged up and not repaid.
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a five-year period of supervised release, a $1,000,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ambulance Company Co Owner Sentenced to 13 1/2 Years for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Vadim Fleshler, 33, of Philadelphia, PA, was sentenced today to 162 months in prison for a healthcare fraud scheme involving Superior EMS Ambulance Co., located in Huntingdon Valley, PA. Fleshler was a founder of Superior EMS Ambulance and managed its day-to-day operations. In December 2013, Fleshler pleaded guilty to all counts against him in the indictment including health care fraud, false statements in connection with health care matters, and conspiracy to commit health care fraud.
The defendant’s company, Superior EMS Ambulance, transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendant billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.4 million for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Michael M. Baylson ordered restitution to Medicare in the amount of $1,931,015.52, a special assessment of $900, and a three-year term of supervised release.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-85257 Former Bank Officers Sentenced in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: 7 former officers of First National Bank of Savannah were sentenced during three days of hearings last week before United States District Court Chief Judge Lisa Godbey Wood. Each of the defendants had earlier pled guilty to their role in a massive loan-fraud scheme against First National Bank and other federally insured banks.
The 7 convicted former officers of First National Bank received the following sentences:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, was sentenced to serve 42 months in prison, to pay $9,749,264.83 in restitution, and to serve 3 years of supervised release after his release from prison;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, was sentenced to serve 20 months in prison, to pay $72,571.25 in restitution, to pay a fine of $100,000, and to serve 3 years of supervised release after his release from prison;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, was sentenced to serve 38 months in prison, to pay $158,518.13 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, was sentenced to serve 2 years of probation and to pay $14,800 in restitution.
- Isaac Jefferson Mulling, 55, a former Senior Vice President and commercial loan officer of First National Bank, was sentenced to serve 22 months in prison, to pay $157,543.60 in restitution, and to serve 3 years of supervised release after his release from prison.
- Alan Robert Fleming, 38, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, was sentenced to serve 38 months in prison, to pay $3,891,870.28 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, was sentenced to serve 10 months in prison, to pay $57,771.25 in restitution, and to serve 3 years of supervised release after his release from prison.
United States Attorney Edward J. Tarver said, “These Defendants handed out millions of dollars in fraudulent loans, falsified countless bank records, and lied to federal bank regulators, all in an effort to gamble with other people’s money and to hide the failing condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of enormous losses by the Federal Deposit Insurance Corporation (FDIC). No matter the complexity of the scheme, this United States Attorney’s Office will bring those bank officers who place FDIC-funds at risk through fraud and other criminal conduct to justice.”Fred Gibson, Jr., Principal Deputy Inspector General of the FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentencings resulting from our investigation of the fraud that contributed to the failure of the First National Bank of Savannah and a loss to the Deposit Insurance Fund of more than $90 million. We are particularly concerned when financial institution insiders abuse their positions of trust to commit crimes and seek to undermine the integrity of the financial services industry. We are committed to continuing our efforts throughout the country to bring guilty parties to justice, help maintain public trust and confidence in the banking system, and protect the FDIC’s Deposit Insurance Fund from further losses.”
“The sentences of the seven bank officers involved in this complex scheme make it clear that criminals who undermine banks or bank-holding companies regulated by the Federal Reserve Board will be vigorously prosecuted,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend all those involved in this complex investigation for their hard work and dedication, which led to this outcome.”“This investigation conducted with our law enforcement counterparts demonstrated that bank officials and persons in positions of trust who violate the law will be thoroughly investigated and held accountable for their actions,” said AIGI John L. Phillips of the Department of Treasury.
According to evidence presented during the guilty plea and sentencing hearings, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors, and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished their scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; by enticing others to take over non-performing loans with hidden promises, side deals and other terms unfavorable to First National Bank; and by recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records. First National Bank failed and was taken over by the FDIC on June 25, 2010. The FDIC estimates that First National’s failure will cost the Deposit Insurance Fund over $90 million.
This case was the result of a joint investigation conducted by Special Agent Amy Whitcomb of the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Special Agent Lance Endy of the FDIC Office of Inspector General; Assistant Special Agent In Charge Anthony Scott of the U.S. Department of Treasury Office of Inspector General; and, Forensic Auditor Karen Hartley of the United States Attorney’s Office. First Assistant United States Attorney James Durham and Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States.
24 June 2014
“Cookie Stuffing" Internet Fraud Schemer Pleads GuiltyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jefferson Bruce McKittrick, a resident of Mobile, Alabama, entered a guilty plea today before United States District Court Judge Kristi DuBose to a one-count Information charging conspiracy to commit wire fraud.
McKittrickadmitted that he andothers operated a fraud scheme, commonly known as “cookie stuffing,” using affiliate marketing programs. He created “forced clicks” by unsuspecting web shoppers, which allowed McKittrick and members of the conspiracy to receive commissions for sales they did not generate, thus defrauding legitimate advertisers and the company paying for the advertising. This was done primarily through Linkshare Corporation and Google, to victimize Fareportal, Inc. During the course of the conspiracy McKittrick received approximately $1,830,000.
McKittrick was operating several online accounts listed in his own name as well as several other accounts listed in other names. The placement of the “cookies” generated “forced clicks” from users who visited their sites without the user having visited their affiliated sites with the ads. The tracking cookie was “forcefully” loaded onto the users’ computers from the site with the ad which then created a fraudulent, “forced click” credit to McKittrick and others.
During the time the conspiracy operated, McKittrick emailed a member of the conspiracy as follows:
"Please dont tell anyone though and keep this venture between us, to keep footprints away and keep this method on the down low ..lol . . . ALso, wanted to let you know..That I have been perfecting another method I am doing..and I am banking MAJOR money with it.. The problem is, I cant bank that much in 1 account, I have to spread the earnings,..So if you want in on it.. I If you have a linkshare account..I can do it with you, and I will put starting out only 3K a month in it, because I have to start it slow, but then the next month go up to 4K then 5k and so on..etc..etc.. . . . . The linkshare will 100% be the number I say, because I could LITERALLY make 25K a day if I wanted too, but ..lol. It would get banned."
The majority of the e-mail correspondence between McKittrick and members of the conspiracy involved discussions about opening different accounts and methods of exploiting those accounts to receive the highest levels of revenue, all while avoiding detection and being shut down.
“Internet fraud has a devastating impact on our consumers, as advertising expenses are added to the cost of items the consumer buys ” U.S. Attorney Brown said. “We are committed to working with our law enforcement partners to stop internet fraud.”
McKittrick faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Monies and two boats seized from McKittrick have been administratively forfeited.
The matter was investigated by the Mobile Field Office of the U.S. Secret Service and was prosecuted by AUSA Deborah Griffin.
Affiliate marketing is internet performance-based marketing which, by using an individual’s websites or advertisements, directs traffic to another website in the “network” and receives credit for either pay per click (PPC) or pay per action (PPA) if the user travels to the website.
Youngstown Men Face Federal Firearms ChargeRead the Press Release
A federal grand jury returned a one-count indictment charging Clifford Cross, age 23, and Khaleb Bonner, age 24, both of Youngstown, Ohio, with being felons in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 4, 2014, Cross and Bonner were in possession of a Sig Sauer, model P228, 9mm pistol and ammunition. Cross had been previously convicted of possession of cocaine in the Mahoning County, Ohio, Court of Common Pleas. Bonner had been previously convicted of trafficking cocaine in the Trumbull County, Ohio, Court of Common Pleas.
If convicted, the defendants’ sentences 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Youngstown Police Department. 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.
Wichita Gang Member Indicted on Federal Firearms ChargeRead the Press Release
WICHITA, KAN. – A Wichita gang member was indicted Tuesday on a federal firearms charge that resulted from an investigation into a shooting incident, U.S. Attorney Barry Grissom said.
Jermall Campbell, 32, Wichita, Kan., is charged with one count of unlawful possession of ammunition following a felony conviction. The crime is alleged to have occurred June 14, 2014, in Wichita, Kan.
Campbell initially was charged in a criminal complaint filed June 27 in U.S. District Court in Wichita. It is alleged Wichita police were called June 14 to a report of a shooting at 7007 E. Harry in Wichita. They found shell casings in the parking lot. Witnesses reported seeing Campbell, who is a documented member of the Neighborhood Crips street gang, carrying a gun when he tried to enter the club before the shooting and wrestled with a security guard. Police served a search warrant at Campbell’s residence.Campbell was convicted in a federal racketeering case filed in 2007 and sentenced to 64 months. Federal law prohibits a convicted felon from possessing a firearm.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTSSteven J. Meisel, 47, Wellington, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in May and June 2014 in Sumner County, Kan.
Meisel initially was charged in a criminal complaint filed June 19 in U.S. District Court in Wichita. It is alleged that a Wichita police detective working with the Exploited and Missing Child Unit and the Internet Crimes Against Children Task Force identified child pornography on Meisel’s computer. It was being shared over a peer-to-peer network.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge.
The Wichita Police Department, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force and the Wellington Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Clint W. Cook, 30, Augusta, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 13, 2011, in Butler County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Steven Lee Fritts, 39, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Angel Ivan Venegas, 20, Newton, Kan., and Lisa Ann Vela, 29, Newton, Kan., are charged with one count of possession with intent to distribute methamphetamine and one count of distributing methamphetamine. In addition, Venegas in charged with one count of carrying a firearm in furtherance of drug trafficking, one count of distributing methamphetamine, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in April and June of 2014 in Harvey County, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $1 million on each of the possession and distribution charges, and he faces a penalty of not less than five years on the charge of possessing a firearm in furtherance of drug trafficking. The Newton Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In a superseding indictment, Ernesto Romo, 48, Wichita, Kan., Christian Lopez, 26, Phoenix, Ariz., Baldomero Villa, 25, Laveen, Ariz., Andrew Crane, 34, Wichita, Kan., Shawn Keevan, 34, Cassville, Mo., and Michael Carter, 53, Kansas City, Kan., are charged with one count of conspiracy to distribute methamphetamine. In addition, they face other counts including distribution of methamphetamine, interstate travel in furtherance of drug trafficking, unlawful use of a telephone in furtherance of drug trafficking and possession with intent to distribute methamphetamine. The crimes are alleged to have occurred at various times from Feb 2013 to May 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million.
Distribution, possession with intent to distribute methamphetamine: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million on each count.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000 on each count.
Unlawful use of a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.The Drug Enforcement Administration and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Ernesto Ortiz, 22, San Elizario, Texas, is charged with one count of possession with intent to distribute cocaine. The crime is alleged to have occurred Feb. 14, 2014, in Lyon County, Kan.
If convicted, he faces a penalty of not less than five and not more than 40 years and a fine up to $5 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
William McManaman, 33, Wichita, Kan., and William McGreevy, 30, Wichita, Kan., are charged with one count of conspiracy to commit money laundering. In addition, McManaman is charged with conspiracy to distribute 50 pounds of marijuana. The crimes are alleged to have occurred beginning prior to 2011 in Sedgwick County, Kan.
Upon conviction, the conspiracy to commit money laundering charge carries a maximum penalty of 20 years and a fine up to $500,000. The other charge carries a maximum penalty of five years and a fine up to $250,000. The Sedgwick County Sheriff’s Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Gerardo Guerrero-Arizmendi, 51, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 29, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Arturo Garcia-Olivas, 24, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 18, 2014, in Pratt County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Rene Urena-Cerrillo, 41, a citizen of Mexico, is charged with one count of unlawful possession of identification documents, two counts of aggravated identity theft, and one count of misusing a Social Security number. The crimes are alleged to have occurred in March and June 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the charge of unlawful possession of identification documents, a mandatory two-year consecutive sentence on each count of aggravated identity theft, and a maximum penalty of five years and a fine up to $250,000 on the charge of misusing a Social Security card. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jackson G. Nyambane, 31, who is not a citizen of the United States, is charged with one count of unlawful possession of identification documents, one count of making a false statement to Homeland Security and one count of counterfeiting a Social Security card. The crimes are alleged to have occurred in October 2011 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the unlawful possession of an identification charge, and a maximum penalty of five years and a fine up to $250,000 on each of the other counts. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Tomas Serrato-Jaimes, 31, Las Vegas, Nev., is charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The crime is alleged to have occurred June 20, 2014, in Hays, Kan.If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine, and a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the cocaine charge. The Kansas Highway Patrol investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Waynesboro Chiropractor Sentenced to Prison for False Personal Injury ClaimRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a Waynesboro, PA chiropractor was sentenced today to 5 months in prison followed by 5 months of home detention for submitting a bogus personal injury claim to an insurance carrier.
In December 2013 Lawrence S. Herman, age 47, a resident of Frederick, Maryland and the owner/operator of “Herman Chiropractic” in Waynesboro, PA, pleaded guilty to a one-count Information charging him with False Statements in Health Care Matters. The plea was entered by Herman pursuant to an agreement with the government.
Herman was sentenced to the 5 months in prison followed by 5 months of home detention term by Senior United States District Court Judge Sylvia H. Rambo in Harrisburg. Judge Rambo also ordered Herman to serve 1 year on supervised release following his prison term and to pay a $600 fine and $100 special assessment.
The charges stemmed from a claim Herman submitted to the USAA insurance company in May of 2012 for injuries allegedly suffered in an August 16, 2011 automobile accident in Maryland. In May of 2012 Herman supported his claim with records that represented he had been treated by a chiropractor for neck and back injuries between August of 2011 and January of 2012. When USAA did not honor the claim, Herman hired a Baltimore area law firm and demanded $60,000 from USAA - $17,527 for reimbursement of his chiropractic treatment expenses and the remainder for pain and suffering.
During his guilty plea hearing Herman admitted the chiropractic treatment records were phony and were created, at his direction, by a chiropractor who worked for him in his Waynesboro office. To conceal the fact the chiropractor was his employee, Herman submitted the phony treatment records to USAA under a fictitious business letterhead he created. Herman was not seriously injured in the minor, fender-bender type accident; he participated in several 5K, 10K, Half-Marathon and Marathon foot races during the time period when he was supposedly being treated for his back and neck injuries between September and November of 2011.
The case was investigated by the Harrisburg Office of the FBI and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Washington County Man Pleads Guilty to Firearms OffensesRead the Press Release
PITTSBURGH - A Washington County man pled guilty on Monday to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Michael Howard, 29, of Venetia, Pa., was convicted of possessing firearms while he was using and/or addicted to a controlled substance. He was also convicted of providing false information on multiple occasions to a federal firearms licensee about his use of, or addiction to, a controlled substance. That is, during the process of making firearms purchases, Mr. Howard falsely represented that he was not a user of, or addicted to, a controlled substance. As Mr. Howard later admitted during an investigation into his many firearms purchases, he had been using heroin for years when he purchased the firearms.
Sentencing is scheduled to occur on Sept. 26, 2014, at 3 p.m., in the courtroom of United States District Judge Joy Flowers Conti.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
U.S. Attorney Machen to Host Fourth Annual Youth SummitRead the Press Release
At Friendship Collegiate Academy in Northeast Washington
- Free Program Includes Musical Performances, Workshops, Information -WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the Columbia Heights/Shaw Family Support Collaborative, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Friday, June 27, 2014, at Friendship Collegiate Academy.
This year’s event will engage youth on the consequences and harms of marijuana, encourage young people to make responsible decisions to avert criminal behavior, and help them understand the consequences of violence. The event will be filled with dynamic speakers, entertainment, and invaluable resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM). Performers scheduled to appear include Young Motive, KRU3H, and Main Girl.
Youths from the District of Columbia are invited to the program, which runs from 10 a.m. to 4 p.m., and is free of charge. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s fourth annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way. This year’s topics also include discussion about child safety, cyberbullying, and Internet safety.
Several collaborative partners will be coming together to present the day’s programs, including the Ward 3 and 4 D.C. Prevention Center; the Metropolitan Police Department; the Street Wize Foundation; Black Women for Positive Change; Friendship Collegiate Academy; the National Institute on Drug Abuse; the Street Wize Foundation; and the National Center for Missing and Exploited Children. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Melanie Howard at the U.S. Attorney’s Office at (202)-252-6930 or [email protected].
14-150
U.S. Attorney Machen to Host Fourth Annual Youth SummitRead the Press Release
At Friendship Collegiate Academy in Northeast Washington
- Free Program Includes Musical Performances, Workshops, Information -WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the Columbia Heights/Shaw Family Support Collaborative, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Friday, June 27, 2014, at Friendship Collegiate Academy.
This year’s event will engage youth on the consequences and harms of marijuana, encourage young people to make responsible decisions to avert criminal behavior, and help them understand the consequences of violence. The event will be filled with dynamic speakers, entertainment, and invaluable resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM). Performers scheduled to appear include Young Motive, KRU3H, and Main Girl.
Youths from the District of Columbia are invited to the program, which runs from 10 a.m. to 4 p.m., and is free of charge. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s fourth annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way. This year’s topics also include discussion about child safety, cyberbullying, and Internet safety.
Several collaborative partners will be coming together to present the day’s programs, including the Ward 3 and 4 D.C. Prevention Center; the Metropolitan Police Department; the Street Wize Foundation; Black Women for Positive Change; Friendship Collegiate Academy; the National Institute on Drug Abuse; the Street Wize Foundation; and the National Center for Missing and Exploited Children. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Melanie Howard at the U.S. Attorney’s Office at (202)-252-6930 or [email protected].
14-150
Two Robbers Plead Guilty to Armed Robbery of Seven Convenience Stores During an Eight Day SpreeRead the Press Release
Used a Gun to Rob Seven Baltimore 7-Eleven Stores
Baltimore, Maryland – Monte Glascoe, age 23, of Baltimore, pleaded guilty today to robbery and brandishing a gun in furtherance of robbery. Yesterday, co-defendant Gary Cordell Howard, age 37, also of Baltimore, pleaded guilty to the same offenses.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to their plea agreements, Glascoe and Howard robbed at least seven Baltimore 7-Eleven stores from July 18 to 26, 2013, located at: 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers and two of the employees, cigarettes and other merchandise, and a cell phone and folding knife belonging to two of the employees.
The defendants face a maximum sentence of 20 years in prison for robbery; and a mandatory minimum of seven years in prison consecutive to any other term imposed, and a maximum of life in prison, for using a gun in furtherance of robbery. U.S. District Judge William D. Quarles, Jr., scheduled Howard’s sentencing for August 26, 2014 at 1:00 p.m. and scheduled Glascoe’s sentencing for September 25, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who is prosecuting the case.
Two Jackson Residents Arrested for Sex Trafficking of ChildrenRead the Press Release
Jackson, Miss - Justin D. Hurst, 25, and Audrey Lashay Tillman, 27, both of Jackson, were arrested and appeared in federal court today pursuant to criminal complaints charging them with recruiting, enticing, transporting, providing and maintaining female children under the age of 18 to engage in commercial sex acts, announced U.S. Attorney Gregory K. Davis. Both Hurst and Tillman were held without bond pending a detention hearing which will be held on Thursday, June 26 at 2:00 p.m. before U.S. Magistrate Judge Linda R. Anderson.
On June 19, 2014, the FBI Child Exploitation Task Force conducted an undercover operation in support of a nationwide enforcement initiative called “Operation Cross Country VIII” aimed at deterring child exploitation throughout the United States. As a part of the operation, undercover officers responded to an internet ad on a site known to law enforcement to be used for prostitution. As a result, a 15 year old girl and a 17 year old girl, both victims of child sex trafficking, were rescued by law enforcement when they were brought to a Ridgeland, Mississippi hotel.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Tulsa Man Sentenced to 20 Years in Federal Prison for Money Laundering Conspiracy and Agrees to $117,000 Criminal Forfeiture JudgmentRead the Press Release
TULSA, Okla. — Moises Alberto Yanez, 40, of Tulsa, was sentenced by U.S. District Judge Claire V. Eagan on Friday, to serve 240 months in prison for conspiracy to commit money laundering, announced United States Attorney Danny C. Williams Sr. and R. Damon Rowe, Special Agent in Charge of Internal Revenue Service, Criminal Investigation.
According to court documents, from June 2011 through November 2012, Yanez admitted to making rental payments on two properties in Tulsa that were rented for the purpose of storing and distributing marijuana and methamphetamine. Yanez also admitted to making the rental payments using money he received from selling marijuana and methamphetamine, which he and other conspirators received from California, Texas, and elsewhere.
Other defendants who have pleaded guilty and have been sentenced in this investigation on various drug-related offenses are: • Oscar Fuentes-Diaz
• Terry Leon King
• Maicol Nunez-Guardado
• Jose Robles Arechiga
• Orlando Keane Jordan
• Jennifer Madison Ramirez
• Luis Sigala
• John Mark McGinley will be sentenced on July 29, 2014United States District Court Judge Claire V. Eagan also entered a joint and several criminal forfeiture money judgment in the amount of $117,000 against Yanez, Fuentes-Diaz, Nunez-Guardado, and Arechiga.
The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, and the Tulsa Police Department. Assistant United States Attorney Janet S. Reincke prosecuted the case on behalf of the United States.Triple Bank Robber Pleads GuiltyRead the Press Release
CORPUS CHRISTI, Texas - Robert Perez Jr., 35, of Corpus Christi, has pleaded guilty to charges stemming from the robbery of three local banks, announced United States Attorney Kenneth Magidson.
At the hearing today, the court heard about a series of robberies Perez committed over a five-month period. The first robbery occurred on Jan. 8, 2014, at the Kleberg Bank located in Corpus Christi, during which he brandished a can of mace and threatened employees by claiming to have a gun. He fled on a bicycle which was later recovered by officers who learned it had been purchased at a local pawn shop with a credit card belonging to Perez. Surveillance also showed Perez purchasing the bicycle.
The next robbery occurred on April 14, 2014, at the IBC Bank in Corpus Christi. There, Perez pointed a can of mace at employees and again claimed he had a gun. After this robbery, a witness was able to provide information about the license plate of the vehicle in which he fled, which was also later linked to Perez.
During the third robbery, at another IBC Bank location in Corpus Christi, Perez also claimed to have a gun. Perez was arrested May 9, 2014, following a search at his residence. In his attic, agents discovered cash which included money traced to the May 5, 2014, robbery.
Perez pleaded guilty before U.S. Magistrate Judge B. Janice Ellington today and will later be sentenced by U.S. District Judge Nelva Gonzales Ramos. At that time, Perez faces up to 20 years in federal prison as well as a possible $250,000 fine. He will remain in custody pending that hearing.
The charges stem from an investigation by Corpus Christi Police Department and the FBI. This case is being prosecuted by Assistant U.S. Attorney Hugo R. Martinez.
Third Former State Corrections Official Pleads Guilty to Civil Rights ViolationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green and Acting Assistant United States Attorney General Jocelyn Samuels announced today that a third former state corrections official has pled guilty to civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
MARK SHARP, age 33, of Amite, Louisiana, has pled guilty to one count of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and one count of making a false statement to the FBI, in violation of Title 18, United States Code, Section 1001.
SHARP’s charges were based on his conduct while employed as a captain at the Louisiana State Penitentiary in Angola. According to the factual basis filed in connection with his guilty plea, on January 24, 2010, SHARP joined in a search to apprehend an inmate who had escaped from his assigned location. After the inmate was captured, SHARP and two other officers – Kevin Groom and C.B. -- were ordered to escort the inmate, who was handcuffed behind his back, to the prison’s medical unit. The three officers got into the bed of a truck with the inmate. SHARP admitted that, during the drive to the medical unit, he repeatedly struck the inmate with an asp baton. SHARP also saw C.B. kick the inmate in his head and shoulder area. SHARP then lied to the Federal Bureau of Investigation during the federal civil rights investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giroir have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
SHARP faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Civil Rights Division of the U.S. Department of Justice, and the Federal Bureau of Investigation. It is being prosecuted by Trial Attorney AeJean (Angie) Cha of the Civil Rights Division and Assistant United States Attorney Robert W. Piedrahita.
Texas Man Pleads Guilty to Rhino and Ivory Smuggling ConspiracyRead the Press Release
Ning Qiu, a resident of Frisco, Texas, and an appraiser of Asian art, pleaded guilty today in federal court to participating in an illegal wildlife smuggling conspiracy in which rhinoceros horns and objects made from rhino horn and elephant ivory worth nearly $1 million were smuggled from the United States to China.
The guilty plea was announced by Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, John Malcolm Bales, U.S. Attorney for the Eastern District of Texas, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Qiu, 43, who has worked as an Asian antique appraiser for seven years, pleaded guilty today before U.S. Magistrate Judge Don D. Bush in Plano, Texas, to a one count information charging him with conspiracy to smuggle and violate the Lacey Act.
Qiu was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
According to documents filed in federal court, Qiu admitted to acting as one of the three antique dealers in the United States paid by Zhifei Li, the admitted “boss” of the conspiracy, to help obtain wildlife items and smuggle them to Li via Hong Kong. Li was sentenced on May 27, 2014, in federal district court in Newark, New Jersey, to serve 70 months in prison for his leadership role in the smuggling conspiracy. Li arranged financing, negotiated the price and paid for rhino horn and elephant ivory. He also gave instructions on how to smuggle the items out of the United States and obtained the assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
“This is yet another step toward dismantling a sophisticated and global network of criminals whose greed is driving endangered animals to extinction,” said Acting Assistant Attorney General Hirsch. “We will continue to investigate and bring to justice those involved in the illicit trade of the world’s wildlife and will work with our international partners to battle the poaching, corruption, and transnational crime that goes along with it.”
“I am pleased that the Eastern District of Texas could be a part of the ‘Operation Crash’ investigation as well as the guilty plea today, and I congratulate the investigative team for a job well done,” said U.S. Attorney Bales. “The criminal activity undertaken by the defendant in this case is a stark reminder that this matter is not about serving Asian cultural and medicinal practices; it’s about greed, organized crime and the depletion of a species that – without our focused efforts to fight this trade – may not be around for our children to see.”
“This guilty plea by another participant in one of the largest criminal trafficking rings we’ve ever investigated – as well as the unprecedented jail time given to the rings’ leader last month – serves notice to other poachers and smugglers that we are clamping down hard on those who break international wildlife laws,” said U.S. Fish and Wildlife Service Director Ashe. “Working with the Department of Justice and other federal and international law enforcement agencies, we will continue to relentlessly pursue criminals whose greed and indifference to life are fueling the continued slaughter of rhinos and other vulnerable species in the wild.”
The rhinoceros is an herbivorous species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by more than 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Qiu admitted that he worked at an auction house in Dallas as an appraiser of Asian artwork and antiques, specializing in carvings made from rhinoceros horn and elephant ivory. Qiu admitted to meeting Li in 2009 through his work at the auction house, and then entering into a conspiracy with Li whereby Qiu traveled throughout the U.S. to purchase raw and carved rhinoceros horns and elephant ivory for Li, often receiving specific instructions from Li on which items to buy and how much to pay. Upon purchasing the items, Li transferred funds directly into Qiu’s bank accounts in the U.S. and China. After acquiring the items for Li, Qiu arranged for them to be smuggled to a location in Hong Kong, which was provided by Li.
As part of his plea, Li admitted that he sold raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where the horns are carved into fake antiques known as zuo jiu (which means “to make it as old” in Mandarin). In China, there is a centuries-old tradition of drinking from intricately carved “libation cups” made from rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques. The leftover pieces from the carving process were sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material in human hair and nails and has no proven medical value.
Between 2009 and 2013, Qiu purchased and smuggled to Hong Kong at least five raw rhinoceros horns weighing at least 20 pounds. Qiu smuggled the raw rhino horns by first wrapping them in duct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vases or handicrafts.
As part of the plea agreement, having considered Qiu’s cooperation and assistance in securing a conviction for Li, the government agrees to recommend to the sentencing judge that Qiu serve a 25-month prison sentence and pay a $150,000 fine. Sentencing will be before District Court Judge Richard Schell on a date to be determined by the court.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the Eastern District of Texas and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble of the Eastern District of Texas and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.Tax Preparer Sentenced for Defrauding the IRSRead the Press Release
MINNEAPOLIS— Today in federal court, United States District Court Judge Ann D. Montgomery sentenced Ieisha Smith to 24 months in federal prison for devising and executing a scheme to defraud the Internal Revenue Service (“IRS”) by filing fraudulent tax returns for clients. Smith, who was indicted on December 3, 2012, pleaded guilty on May 29, 2014 to one count of False Claims.
In her plea agreement, Smith admitted that she began the scheme in February 2009, when individuals came to her home for assistance in filing their income taxes. Specifically, she filed false tax returns on their behalf and in those returns falsely claimed that taxes had been withheld and refunds were due, all of which she knew to be false. In the scheme, Smith attempted to steal $765,137 from the IRS. The IRS incurred an actual loss of $362,246.
This case was the result of an investigation by the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return- Preparer.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). The DCFS has cooperated fully and provided valuable assistance with the investigation.
COREY S. POLK, age 33, of Baton Rouge, Louisiana, pled guilty today before Judge James J. Brady to a Bill of Information charging him with theft from a federally funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and POLK admitted to the forfeiture allegation. He faces up to 10 years imprisonment, up to three years of supervised release following imprisonment, a fine up to $250,000, restitution to the victim, and forfeiture of the proceeds of his criminal activity. His sentencing date has not yet been set.
POLK was employed with DCFS’s Bureau of Auditing and Compliance Services, which was responsible for safeguarding assets against theft and unauthorized use, for ensuring that transactions were properly authorized and recorded, and for ensuring compliance with management policies and federal and state laws and regulations. During the period he was employed with this department, DCFS received over a billion dollars annually in federal funds.
At today’s hearing, POLK admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts that were submitted were signed both by POLK and by DCFS Audit Director, Delrice Augustus, who pled guilty to his involvement in the scheme on May 28, 2014. When the requested amount of reimbursement would be received, POLK and Augustus would split the fraudulent payments. POLK also admitted to using state purchase cards to pay for hotel suites in New Orleans for personal use and not for official state business. A third DCFS state auditor involved in this scheme, Kaneasha L. Goston, pled guilty June 19, 2014.
U.S. Attorney Green stated: “The United States Attorney’s Office, along with our state and federal partners, are committed to safeguarding all types of programs that are taken advantage of by fraudsters. This case is a great example of federal and state agencies working together effectively.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the First Assistant and Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.