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Monday 5 May 2014
Middleport Woman Sentenced for Wire Fraud and Filing False Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Linda Rakonczay, 58, of Middleport, N.Y., who was convicted of wire fraud and filing false tax returns, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $93,999 in restitution to the Internal Revenue Service and $499,563 in restitution to Orleans Community Health.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, N.Y. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000.
The sentencing is the result of an investigation on the part of Special Agents of Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Men from California and Texas to Serve Lengthy Federal Prison Sentences for Kidnapping Man in El Paso, TexasRead the Press Release
ALBUQUERQUE – Brandon Lawrence Jones, 36, of San Diego, Calif., and Jesus Manuel Gallegos, 42, of El Paso, Texas, were sentenced today for their federal kidnapping convictions. Jones was sentenced to 35 years in prison while Gallegos was sentenced to 30 years in prison. Each man will be on supervised release for five years after completing his prison sentence. Jones and Gallegos jointly were ordered to pay $1,990 in restitution to the victim.
According to court records, on the night of Nov. 5, 2011, Jones and Gallegos carjacked and kidnapped a man as he was leaving a basketball game in El Paso, Texas. Using an air pistol that resembled semi-automatic pistol, Jones forced the victim to get into the passenger seat of his own vehicle. Thereafter, Gallegos joined Jones and the victim in the vehicle. After directing the victim to identify banks at which the victim maintained accounts, Jones took bank cards out of the victim’s wallet; forced the victim to reveal the PINs for his bank accounts; and withdrew cash from the victim’s bank accounts. During this time, Jones and Gallegos repeatedly struck the victim in the face and body with their fists.
Jones and Gallegos drove the vehicle from El Paso to Clines Corner, N.M. During one stop, they duct-taped the victim’s hands and feet, but later released him from the restraints when they realized that it might be hard to explain a restrained passenger as they crossed through the U.S. Border Patrol checkpoint at Hatch, N.M. During a stop in Albuquerque, N.M., Jones and Gallegos continued to use the victim’s bank card to withdraw money from the victim’s bank accounts. When they arrived at Clines Corner in the early morning of Nov. 6, 2011, Jones and Gallegos parked the vehicle at a truck stop and fell asleep. After ensuring that his kidnappers were asleep, the victim escaped from the vehicle and sought help from restaurant employees at the Clines Corner truck stop who called 911 and helped the victim contact family members in El Paso. Shortly thereafter, officers of the New Mexico State Police and Torrance County Sheriff's Office arrested Jones and Gallegos, who were still asleep in the victim’s vehicle.
When they were arrested on state charges, Jones was in possession of a wallet containing the victim’s driver's license, and Gallegos was in possession of one of the victim’s bank cards. In the vehicle, the officers found an air pistol, which looked like a semi-automatic pistol with a laser site, ATM receipts, and wads of used duct tape.
Jones and Gallegos were arrested on federal charges on Nov. 7, 2011, and have been in federal custody since that time. Jones entered his guilty plea to a kidnapping charge on Dec. 28, 2012, and Gallegos entered his guilty plea to a similar charge on Jan. 3, 2013. Both guilty pleas were entered without the benefit of plea agreements.
The case was investigated by the Albuquerque Division of the FBI, the New Mexico State Police and the Torrance County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorneys Charles L. Barth and William J. Pflugrath.
Man Sentenced for Piloting Commerical Ships on Great Lakes with Fraudulent Coast Guard LicenseRead the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Mark Anselm, 37, of Clayton, N.Y., was sentenced to seven years in prison before the U.S. District Judge Glen T. Suddaby after having pled guilty to six felony offenses that charged him with making false statements to officials of the United States Coast Guard, possession and use of an altered merchant marine license, and aggravated identity theft. In addition, Anselm was sentenced to three years of supervised release following his release from prison. While in prison and thereafter Anselm has been directed to submit to mental health counseling and treatment.
In pleading guilty, Anselm admitted that during 2011 and 2012 he held himself out to federal officials, to various marina owners, and to other potential employers as being a licensed commercial ship pilot when he possessed no such license. Anselm admitted to having repeatedly presented fraudulent merchant marine licenses to employers and potential employers that he had altered to substitute his name. With his false licenses, he gained employment and captained various commercial ships on Lake Ontario including operating a tour boat within the 1000 Islands. His criminal conduct was discovered by the Coast Guard after he grounded a tug boat in Canadian waters on June 19, 2012 that he falsely claimed he owned. The ensuring investigation revealed numerous instances of Anselm holding himself out as a licensed commercial merchant marine captain based upon licenses that he had forged.
This case was investigated by Special Agents of the Coast Guard Investigative Service, Buffalo Field Office and Department of Homeland Security, Office of the Inspector General. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0726.
Long Island Doctor Pleads Guilty to Distribution of OxycodoneRead the Press Release
Eric Jacobson, a Great Neck, New York, physician, pled guilty today in United States District Court for the Eastern District of New York, to 19 counts of the illegal distribution of the highly addictive painkiller oxycodone. When sentenced, Jacobson faces up to nine years in prison. The defendant previously relinquished his license to practice medicine.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Field Office, and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York. The plea was entered before the Honorable Joseph F. Bianco at the United States Courthouse in Central Islip.
“Instead of providing needed medical services to his community, Dr. Jacobson directly contributed to the tragedy of prescription drug abuse that has swept across our district and our nation. Today’s conviction reflects our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community, and should serve as a warning to those who would violate their oath as medical professionals to do no harm: if you illegally distribute prescription drugs, you will be held accountable,” stated United States Attorney Lynch. “I want to thank our partners at the DEA and the Internal Revenue Service for their outstanding work in investigating this case.”
Jacobson was arrested on June 6, 2012, as part of the Eastern District of New York’s Prescription Drug Initiative, led by the United States Attorney’s Office and the DEA, working with the Nassau County Police Department, the New York State Police, and numerous other local, state, and federal law enforcement agencies. He has been held in custody since the arrest.
The investigation revealed that, from December 2009 through June 2012, the defendant illegally distributed oxycodone to individuals he knew were either abusing or re-selling oxycodone pills to addicts. According to court filings, the defendant charged these individuals, known in the industry as “doctor-shoppers,” various amounts of money – in cash – for each prescription issued. The doctor-shoppers then either re-sold oxycodone to addicts and other users for profit or abused the pills themselves. During the execution of a federal search warrant at his office on December 1, 2011, Jacobson surrendered his DEA license authorizing him to prescribe controlled substances. Despite that surrender, Jacobson continued to engage in the illegal distribution of oxycodone by personally writing prescriptions following the surrender and then, used other healthcare professionals to continue to distribute drugs illegally. Pursuant to his plea agreement with the government, Jacobson agreed to forfeit $250,000 in money and property representing the illegal narcotics proceeds he earned as a result of his illegal distribution of oxycodone.
The Prescription Drug Initiative is a joint effort led by the United States Attorney’s Office for the Eastern District of New York, the DEA, and the five District Attorneys in Kings, Nassau, Queens, Richmond, and Suffolk Counties, working in conjunction with the New York City Police Department and the Nassau and Suffolk County Police Departments, as well as the Department of Health and Human Services, the Internal Revenue Service, New York/New Jersey HIDTA, the New York State Department of Health, and the New York State Medicaid Inspector General. The Prescription Drug Initiative is a broad and comprehensive approach to the epidemic of prescription drug trafficking and abuse, involving not only criminal investigation and prosecution at the federal, state, and local level, but also the targeted use of civil law enforcement, regulatory action, and community outreach. The Initiative has expanded information-sharing among federal and state enforcement agencies to better identify and target suspected traffickers and ensure greater use of criminal, civil, forfeiture, injunctive, and other tools.
The government’s case is being prosecuted by Assistant United States Attorneys Lara Treinis Gatz, Catherine M. Mirabile, and Kenneth Abell.
The Defendant:
ERIC JACOBSON
Age: 51
Huntington, NY
E.D.N.Y. Docket No. 12-CR-452 (S-2) (JFB)
Las Vegas Man Sentenced for Multi-State Series of ATM TheftsRead the Press Release
Case Resolves Twenty-one ATM Thefts in Six Western States
BOISE — Clarence Edward Lancaster, 57, of Las Vegas, Nevada, was sentenced today in United States District Court for twenty-one ATM thefts, resulting in over $200,000 of loss and damage, U.S. Attorney Wendy J. Olson announced. District Judge Edward J. Lodge imposed a sentence of 63 months of prison, $222,305.77 of restitution, and 3 years of post-sentence supervised release.
In November, Lancaster pled guilty to one count of bank larceny for stealing an ATM from the College of Southern Idaho in Twin Falls, Idaho, on July 22, 2012. In that instance, Lancaster used several tools to force open an ATM owned by First Federal Bank, to steal the cash inside. Lancaster’s plea agreement resolved not only that crime, but also 21 ATM thefts committed in Idaho, Wyoming, Washington, Utah, Oregon, and Arizona.
Lancaster was apprehended by law enforcement in January 2013 for a burglary on the campus of Eastern Arizona College. In that incident, Lancaster had entered a building in an attempt to steal from an ATM machine, but was observed by a college professor who called campus police. At a subsequent interview conducted by a Boise FBI agent and Eastern Arizona College police officer, Lancaster confessed to a number of similar ATM thefts, including thefts at Idaho State University, in Pocatello, and Boise State University. The FBI identified Lancaster as the perpetrator in other ATM thefts by geographically tracking his banking transactions and matching the dates and locations with ATM theft reports showing similar patterns of conduct. Lancaster also admitted an ATM theft at North Idaho College in Coeur d’Alene.
As part of the plea agreement, Lancaster admitted to 21 separate events of ATM theft from June 2012 through January 2013, in Idaho, Wyoming, Washington, Utah, Oregon and Arizona, for a total loss of $216,178.84 — $124,000 in U.S. currency, $88,366.84 for damages caused to ATM machines, and $3,612 of property damage to the buildings and equipment where the thefts took place. According to the plea agreement, Lancaster admitted to an additional theft of property from the Lied Animal Shelter, in Las Vegas, which he later pawned; unrecovered property loss was $189.
The case was investigated by the Federal Bureau of Investigation, Boise Police Department, Pocatello Police Department, Twin Falls Police Department, Eastern Arizona College Campus Police, and Boise State campus security.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Reginald Cole, 26, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Cole was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 14, 2013, Cole pleaded guilty to being a felon in possession of a firearm. Cole admitted that he was in possession of an Auto Ordinance .45-caliber handgun on Oct. 11, 2012. Cole sold the firearm to an undercover law enforcement officer during an undercover operation by the ATF and the Kansas City, Mo., Police Department.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cole has three prior felony convictions for burglary.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Sues to Stop Miami Tax Return PreparersRead the Press Release
The United States has asked the U.S. District Court for the Southern District of Florida in Miami to stop Lazaro Jesus Toyos, Shirley Ester Almazan, Dilma Toyos Garcia and Daniel Almazan, and their companies L. Toyos Tax Service Inc., Toyos Garcia Tax Service Inc., Toyos Tax Service Inc. and Total Income Tax Services from preparing federal income tax returns for others, the Justice Department announced today.
Lazaro Toyos became a paid tax return preparer in 1979 as an adjunct to his insurance business. In the years that followed, he was joined in the business by his daughters, Dilma Garcia and Shirley Almazan, and Almazan’s husband, Daniel Almazan. Since 2008, these defendants have prepared over 17,000 tax returns for customers. The complaint alleges that the defendants prepare returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits that their clients are not eligible to take. These alleged practices include fabricating business losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not incur education expenses or go to college. Altogether, the complaint alleges that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Settles Lawsuit Against Penske Truck Leasing Co. to Enforce Employment Rights of Air Force Reserve MemberRead the Press Release
The U.S. Justice Department’s Civil Rights Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today that they had reached an agreement with Penske Truck Leasing Co. resolving claims that Penske violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and then terminating U.S. Air Force Reserve Member William Mann following his return from required military training with his reserve unit.
According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia, Mann was honorably discharged as a Staff Sergeant in 2011 from the U.S. Air Force after serving with the 512 Mortuary Affairs Squadron at Dover Air Force Base. During his service, Mann suffered a service-related injury. Immediately upon his discharge, Mann notified Penske of his ability to return to work with some medical limitations. The complaint alleged that Penske refused to reemploy Mann, instead placing him on short term leave. In October 2011, while Mann was on short-term leave, he informed Penske that he would need more time to fully recover from his injuries. Two months later, Penske terminated Mann’s employment.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to accommodate injured servicemembers when they return from military service.
“Congress enacted USERRA to protect our men and women in uniform from experiencing the kind of injustice experienced by Mr. Mann,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers.”
Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Penske has agreed to pay $85,000 in lost wages to Mann.
“Members of the Air Force Reserve sacrifice time away from their jobs to serve their country,” said U.S. Attorney Boente. “When servicemembers are injured in relation to their service, USERRA ensures that they are not discriminated against and that their employment rights are protected.”
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.
Related Materials:
Signed Consent Decree
Justice Department Settles Lawsuit Against Penske Truck Leasing Co. to Enforce Employment Rights of Air Force Reserve MemberRead the Press Release
WASHINGTON – The U.S. Justice Department’s Civil Rights Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today that they had reached an agreement with Penske Truck Leasing Co. resolving claims that Penske violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and then terminating U.S. Air Force Reserve Member William Mann following his return from required military training with his reserve unit.
According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia, Mann was honorably discharged as a Staff Sergeant in 2011 from the U.S. Air Force after serving with the 512 Mortuary Affairs Squadron at Dover Air Force Base. During his service, Mann suffered a service-related injury. Immediately upon his discharge, Mann notified Penske of his ability to return to work with some medical limitations. The complaint alleged that Penske refused to reemploy Mann, instead placing him on short term leave. In October 2011, while Mann was on short-term leave, he informed Penske that he would need more time to fully recover from his injuries. Two months later, Penske terminated Mann’s employment.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to accommodate injured servicemembers when they return from military service.
“Congress enacted USERRA to protect our men and women in uniform from experiencing the kind of injustice experienced by Mr. Mann,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers.”
Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Penske has agreed to pay $85,000 in lost wages to Mann.
“Members of the Air Force Reserve sacrifice time away from their jobs to serve their country,” said U.S. Attorney Boente. “When servicemembers are injured in relation to their service, USERRA ensures that they are not discriminated against and that their employment rights are protected.”
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.Justice Department Files Lawsuit Against the State of Hawaii and the Hawaii Department of Transportation for Sexual Harassment and RetaliationRead the Press Release
The Justice Department announced today the filing of a lawsuit against the state of Hawaii and the state of Hawaii Department of Transportation Airports Division (HDOT-Airports) alleging that the defendants discriminated against former employee Sherry Valmoja by subjecting her to sexual harassment in violation of Title VII of the Civil Rights Act of 1964. According to the complaint, Valmoja complained to the defendants about the harassment and was then subjected to retaliation, also in violation of Title VII. Title VII is a federal statute that prohibits discrimination on the basis of race, color, national origin, sex and religion, and prohibits retaliation against an employee who opposes an unlawful employment practice or against an employee who has made a charge or participated in an investigation, proceeding or hearing under the act.
The complaint, filed in the U.S. District Court for the District of Hawaii, alleges that during Valmoja’s employment as a law enforcement canine handler, she was subjected to sexual harassment in the form of lewd and unwelcome comments. Valmoja also suffered intimidation by a co-worker. The complaint also alleges that the unwelcome conduct and intimidation began as early as 2009, when both Valmoja and her co-worker were employed by a private company contracted to the defendants; after both Valmoja and the co-worker became employed by the state of Hawaii, the harassment and intimidation continued until Valmoja’s ultimate termination in 2012.
The suit further alleges that the co-worker confronted Valmoja about her prior sexual harassment complaints and intimidated her after canine handler services were transferred to Hawaii. Despite timely complaints by Valmoja about her co-worker’s conduct, the defendants failed to take reasonable steps to remedy the harassment. Instead, the defendants implemented an employment schedule that brought Valmoja and her harasser into close contact. When Valmoja objected to the continued harassment and retaliation by other HDOT-Airports employees, including managers, her employment was terminated.
Through this lawsuit, the United States seeks declaratory and injunctive relief requiring the defendants to develop and implement policies preventing their employees from being subjected to sexual harassment sex and retaliation. In addition, the United States seeks monetary damages for Valmoja as compensation for the employers’ discriminatory actions.
“ The Justice Department is committed to the vigorous enforcement of all federal civil rights laws under its jurisdiction, including Title VII’s prohibition against sexual harassment and retaliation in the workplace ,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “This lawsuit should send a clear message that the department will take necessary action to eliminate and remedy the effects of unlawful sexual harassment in our public sector workplaces .”
Valmoja originally filed her sexual harassment and retaliation charges against HDOT-Airports with the Honolulu Field Office of the Equal Employment Opportunity Commission (EEOC), which investigated the matters, determined that there was reasonable cause to believe that discrimination had occurred based upon sex and retaliation and referred the matters to the Department of Justice. This lawsuit is brought by the department as a result of a project designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division.
“ Sex discrimination and retaliation in the workplace continue to be problematic -- they're a factor in 32 and 43 percent, respectively, of all EEOC charges filed in Hawaii,” said Director Timothy Riera for the EEOC’s Honolulu Local Office. “The EEOC is pleased to partner with the Department of Justice to ensure that employers appropriately address sex discrimination and promote work environments where employees are free to complain without fear of retribution.”
More information about Title VII and other federal employment laws is available at the division’s Employment Litigation Section website . The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website
Johnstown Heroin Dealer Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Damian C. Jeffers, Sr., 44, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Aug. 28, 2014, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Jeffers.
John Quinn Imprisoned for Internet Sales of Tools Stolen from Ge AviationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Quinn, 55, of Rutland, was sentenced today in United States District Court in Burlington to five months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge William K. Sessions III also ordered Quinn to serve two years of supervised release. As a condition of supervised release, the court directed that Quinn serve an additional 5-month period of home confinement upon his release from prison. The court ordered Quinn to pay $200,000 in restitution and perform 100 hours of community service. The court permitted Quinn to report to the Bureau of Prisons on June 10 to begin serving his sentence. Immediately after sentencing, Quinn paid $108,000 into the court registry toward his restitution obligation.
According to the information to which he pled guilty, Quinn had been employed for a number of years as a subcontractor for GE Aviation in Rutland. The GE facility manufactures components for jet engines on military and commercial aircraft. Quinn served as an account manager and was involved in the ordering, stocking and delivering of tools and other materials. According to the information, Quinn began stealing tools from GE Aviation's inventory no later than 2009 and resold the stolen tools over the Internet. Most of the stolen hardware consisted of high-speed carbide drill bits. Purchasers paid for the stolen tools by depositing funds into Quinn's personal PayPal account. According to PayPal records, between 2009 and July 2013, Quinn realized more than $108,000 from sales of carbide drill bits. The cost to GE of the stolen tools was at least $200,000.
GE Aviation came to suspect that Quinn might be stealing company property last spring and conducted a sting operation where security personnel made three undercover purchases from Quinn. Quinn typically used the U.S. mails to send the stolen tools to the purchasers.
This case was investigated by the Rutland office of the Federal Bureau of Investigation.
Quinn is represented by Barry Griffith. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Iowa's Senators Welcome New U.S. Attorney Kevin E. Techau at Ceremony in Cedar RapidsRead the Press Release
United States Senators Tom Harkin and Chuck Grassley were on hand today at an investiture ceremony honoring Kevin W. Techau as the new U.S. Attorney for the Northern District of Iowa. The ceremony took place shortly after noon at the federal courthouse in Cedar Rapids.
Senator Harkin recommended Techau for the position to President Barack Obama on March 25, 2013. Techau was nominated by President Obama on November 7, 2013, and was confirmed by the full Senate on February 12, 2014. Techau succeeds Stephanie M. Rose as the District’s presidentially appointed United States Attorney and Sean R. Berry as the District’s court appointed United States Attorney. As U.S. Attorney, Techau serves as the nation’s top lawyer for matters arising in Northern Iowa. Techau is the forty-fourth person to hold the position.
“I am honored and grateful for the opportunity to serve as the United States Attorney for the Northern District of Iowa. I am committed to vigorous enforcement of our laws and maintaining the safety of the citizens of our District. Our goal every day is to do justice in each and every case we handle,” Techau said.
“Throughout his career, Kevin Techau has proven to be a principled and dedicated public servant. It is for that reason that I have supported him at every step of the way -- from recommending him to the White House, to supporting his confirmation in the U.S. Senate,” said Harkin. “I know that as the U.S. Attorney for Iowa’s Northern District, he will continue to be committed to upholding the law and serving our state and country.”
Senator Grassley added, “Kevin’s reputation as a dedicated public servant is well-deserved. I have every confidence that he will continue to serve Iowans faithfully and diligently.”
Techau most recently served as Associate General Counsel at American Equity Investment Life Insurance Company, where he worked since 2007. Prior to that, Techau served as a Commissioner of the Iowa Department of Public Safety from 2002 to 2007 and as Director of the Iowa Department of Inspections and Appeals from 1999 to 2002. He was an Assistant Federal Public Defender with the Iowa Federal Defender’s Office from 1996 to 1999 and worked in private practice at the law firm of Grefe & Sidney from 1992 to 1996.From 1985 to 1992, Techau served as a Judge Advocate with the United States Air Force. After leaving active duty, he served with the Iowa Air National Guard from 1993 to 2011. In 2011, he retired from the Iowa Air National Guard as a Colonel with 27 years of military service. He was awarded the Legion of Merit Medal.
Mr. Techau was born in Iowa City and graduated from Marion High School. He received his law degree in 1984 from the University of Iowa College of Law and his undergraduate degree in 1981 from the University of Iowa.
For a photograph, go to http://www.justice.gov/usao/ian/meetattorney.html.
Huntington Woman Sentenced to 5 Years for Aiding Pill DealerRead the Press Release
Pills, heroin, marijuana, cash, and firearm seized from defendant’s home
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Kristin Michelle Graley was sentenced to five years in federal prison for aiding and abetting the possession with intent to distribute prescription pills and marijuana. Chief United States District Judge Robert C. Chambers handed down the sentence. Graley, 31, of Huntington, allowed her co-defendant, Alvester Thomas, 34, of Detroit, Michigan to store drugs at her home located at 3008 Rear 3rd Avenue in Huntington. During a search of Graley’s home in July of last year, agents with the Huntington Violent Crime and Drug Task Force located a kilogram of heroin inside a safe in a bedroom. Agents also seized 545 oxycodone pills, 73 oxymorphone pills, additional amounts of heroin in the living room, and approximately three pounds of marijuana. Agents also recovered a gun from the kitchen of the home and approximately $17,230 in United States currency. Thomas admitted that the drugs belonged to him and that he intended to sell them.
Thomas faces 10 years to life imprisonment and a $10,000,000 fine. He is scheduled to be sentenced on May 27, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. 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 opiate painkillers in communities across the Southern District.
Homeless Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsMark R. Kelley, a 51-year old, homeless man was sentenced on May 2, 2014, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Kelley was sentenced to 18 months’ in prison, five years of supervised release, and ordered to pay a $100 special assessment.
Kelley moved from Illinois to Missouri, without updating his registration in either state. Kelley was aware that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Missouri. Kelley was convicted on August 15, 2011, in the Twentieth Judicial Circuit Court in St. Clair County, Illinois, of Indecent Solicitation of a Child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Gulfport Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
Gulfport, Miss. – Richard Terrell Jasper, 39, of Gulfport, Mississippi, pled guilty in U.S. District Court today to aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan of IRS Criminal Investigation.
Jasper pled guilty to one count of the indictment in which he was charged with knowingly using, without lawful authority, the means of identification of another person, that is, the name and social security number of another person, during and in relation to the felony of theft of government funds. The theft of government funds involved numerous income tax refund checks that the defendant obtained and deposited into his bank accounts. The refunds were issued based on fraudulent income tax returns filed using unknowing victims’ names and social security numbers.
Jasper is scheduled to be sentenced on July 29, 2014, before United States District Judge Sul Ozerden. He faces a minimum mandatory term of imprisonment of two years, and a $250,000 fine.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Fresno Man Sentenced to More Than 12 Years in Prison for Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — David Thomas Hume, 37, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 28, 2012, and January 24, 2013, Hume distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also depicted prepubescent minors involved in the portrayal of sadistic, masochistic, and other depictions of violence. Hume was taken into custody on February 14, 2013, was indicted two weeks later for distribution of child pornography, and pleaded guilty to this charge on February 24, 2014.
This case was the product of an extensive investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
“Each time an image of child pornography is viewed, that child is victimized again,” said Mike Prado, resident agent in charge of HSI Fresno. “As a result of HSI’s close collaboration with our law enforcement partners here in the Central Valley, this individual will be held accountable for his actions and spend many years behind bars, where he can no longer victimize innocent children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood Marshals, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Fort Myers Couple Sentenced Today for Producing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Alan Robert Johnson (35) to 50 years in federal prison and Jennifer A. Sparks (39) to 30 years in federal prison for production of child pornography. They were both ordered to serve a lifetime of supervision, after their release from prison. The court ordered the couple to forfeit numerous cellular phones, several thumb drives, a Micro SD card, a laptop computer, and a Fuji FinePix camera, which were found to contain child pornography.
Sparks pleaded guilty on January 27, 2014, and Johnson pleaded guilty on January 28, 2014.
According to court documents, on or about May 12, 2012, in Lee County, Florida, Johnson and his girlfriend Sparks knowingly used a 4-year-old girl to engage in sexually explicit conduct for the purpose of producing child pornography. On June 4, 2012, a private citizen turned the cellular telephone that Johnson and Sparks had used to produce the child pornography over to law enforcement. The cellular telephone had been found in a shopping cart at a Walmart in Lee County. Further investigation revealed that Johnson was a registered sex offender. A subsequent search warrant was obtained for his residence, and another cellular phone was located in the couple’s bedroom, containing sexually explicit images of the minor.
This case was investigated by the Federal Bureau of Investigation, FBI Child Exploitation Task Force, which includes the Cape Coral Police Department, and with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Vice President of Masonry Business Pleads Guilty to Embezzling from Employee Benefit PlanRead the Press Release
A man, formerly the Vice President of Bartleson Masonry, Inc. in Forest City, Iowa, who embezzled more than $40,000 from an employee retirement plan, pled guilty today in federal court in Cedar Rapids.
Anthony Bartleson, 42, from Forest City, Iowa, was convicted of one count of embezzlement from an employee benefit plan.
In a plea agreement, Bartleson admitted that, while serving as the Vice President and Treasurer of Bartleson Masonry, Inc., he was responsible for withholding money from employees’ paychecks, which he was then supposed to forward to an investment company for deposit into each employee’s Individual Retirement Account. Bartleson further admitted that in 2006, 2007, and 2008, while he withheld money from employees’ paychecks, he did not forward that money to the investment company, but, instead, he used the money for his own benefit, the benefit of others, and to pay business expenses for Bartleson Masonry, Inc. Bartleson admitted he embezzled over $25,000 from the employee benefit plan by withholding money from paychecks and also admitted he embezzled more than $15,000 from the plan by failing to pay employer matching contributions to the benefit plan over the same time period.
Sentencing before United States District Court Mark Bennett will be set after a presentence report is prepared. Bartleson remains free on conditions of release set by the District Court. Bartleson faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-3022.
Former Navy Nuclear System Administrator Charged with Hacking the United States Navy and National Geospatial-Ingelligence Agency's Computer SystemsRead the Press Release
TULSA, Okla. — Today, the United States charged two men for their participation in a conspiracy to hack into the computer systems of over 30 public and private organizations, including the United States Navy and National Geospatial-Intelligence Agency, announced Northern District of Oklahoma United States Attorney Danny C. Williams Sr.
The single-count Information alleges that Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Salem, Illinois, conspired to hack computers and computer systems as part of a plan to steal identities, obstruct justice, and damage a protected computer.
“The Navy quickly identified the breach and tracked down the alleged culprits through their online activity, revealing an extensive computer hacking scheme committed across the country and even abroad,” said U.S. Attorney Danny C. Williams. “We aggressively pursue individuals who steal personal information, especially when they victimize the men and women who bravely defend our country and our Constitution.”
According to the Information, in June 2012, the Naval Criminal Investigative Service (“NCIS”) detected a breach of the U.S. Navy’s Smart Web Move (“SWM”) database. Prior to this breach, the Navy used SWM to manage transfers for service members of all branches of the military. The SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.
The SWM hackers were initially known only by their online aliases as members of a hacking group called Team Digi7al (pronounced “Digital”). However, the NCIS investigation, later assisted by investigators of the Defense Criminal Investigative Service (“DCIS”), identified Knight and Krueger as the alleged hackers.
The Information alleges that Knight, Krueger, and other Team Digi7al co-conspirators hacked the computer systems of over thirty public and private organizations to steal sensitive information. The victims included the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- AT&T U-verse
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The Information also charges that Knight served as the criminal organization’s self-proclaimed leader and publicist, while Krueger completed the technical hacking work of the SWM database and claimed to do so “out of boredom.” One conspirator stated online that the group was “somewhat politically inclined to release the things [they had],” but also because it was “fun, and we can.” After hacking these organizations, the defendants and other conspirators posted links to the stolen information on Team Digi7al’s Twitter account to make the private information available to the public.At the time of the hacking attacks, Knight was an active duty enlisted Navy member assigned to the nuclear aircraft carrier USS Harry S. Truman as a systems administrator in the nuclear reactor department. Krueger was a student at an Illinois community college where he studied network administration.
The charges contained in the Information are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
If convicted, Knight and Krueger face a maximum penalty of five years of imprisonment and a $250,000 fine, in addition to paying restitution to the victims of the crime. A trial date has not been set.
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant United States Attorney Ryan Souders, the Computer Hacking and Intellectual Property crimes prosecutor for the United States Attorney’s Office.
U.S. v. Nicholas Paul Knight and Daniel Trenton Krueger
Former Miami-Dade Department of Public Works Employee Charged with Accepting $150,000 in Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the filing of a one-count information charging Garfield Perry, 66, of North Miami Beach, with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371. Perry is scheduled to appear in federal court on Friday, May 9, 2014, at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes.
According to the information, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theatre tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.
If convicted, Perry faces a possible maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
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 Hartford Police Detective Admits Stealing Nearly $30k in Gun Permit FeesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that former Hartford police detective TISHAY JOHNSON, 40, of Windsor, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft from a local government receiving federal funds.
According to court documents and statements made in court, Hartford residents seeking a permit to carry a concealed weapon are required to submit an application to the City of Hartford through the Hartford Police Department. The application includes a municipal application processing fee of $70 to Hartford and a background check fee of $66.50 to the State of Connecticut. JOHNSON administered the Hartford Police Department’s concealed weapons permit program and was responsible for processing citizens’ applications, collecting the application fees and depositing the fees into the appropriate city or state accounts. Between October 2009 and January 2014, JOHNSON embezzled $29,426.75 that had been paid in connection with permit applications by altering checks and money orders to make it appear that the checks and money orders were payable to him. He also forged signatures on checks to make it appear that the intended payee had endorsed the check over to him. JOHNSON then deposited the funds into a personal checking account.
JOHNSON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 4, 2014, at which time he faces a maximum term of a maximum term of imprisonment of 10 years and a fine of up to $250,000. JOHNSON also has agreed to make restitution of $17,442.50 to the City of Hartford and $11,984.25 to the State of Connecticut. He is released on a $150,000 bond pending sentencing.
JOHNSON resigned from the Hartford Police Department in January 2014.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department, and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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Tom Carson
(203) 821-3722
[email protected]Former City Clerk Pleads Guilty to Defrauding the City of MasonvilleRead the Press Release
A woman, formerly the city clerk for Masonville, Iowa, who defrauded the city of more than $30,000, pled guilty today in federal court in Cedar Rapids.
Christine Anne King, 42, from Strawberry Point, Iowa, was convicted of one count of mail fraud.
In a plea agreement, King admitted that, from July 2002 through October 2011, while working as the city clerk for the city of Masonville, she routinely issued herself fraudulent payroll and expense reimbursement checks. King further admitted she included fraudulently inflated bank account balances for the city’s bank accounts on reports King provided to the city council and to the Auditor for the State of Iowa in order to prevent anyone from discovering her fraud.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. King remains free on conditions of release previously set pending sentencing. King faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-2009.
Five Monroe County Residents and Two California Men Indicted for Methamphetamine TraffickingRead the Press Release
The United States Attorneys Office for the Middle District of Pennsylvania announced that five Monroe County residents and two California men have been indicted by a federal grand jury in Scranton for conspiring to distribute methamphetamine in the Monroe County area in 2013 and 2014.
According to United States Attorney Peter Smith, the indictment, returned by the grand jury in April of this year and made public today, charges a methamphetamine trafficking conspiracy whereby the defendants obtained high-quality methamphetamine from sources in California which they then distributed for profit in the Monroe County area over a two year period. Charged with conspiracy to distribute methamphetamine are the following individuals:
Reginald Braddy, age 31, San Bernardino, California;
Fontaine Horton, age 35, San Bernardino, California;
Scott Borushak, age 51, Sciota, Pennsylvania;
Emmanuel Tucker, age 38, Stroudsburg, Pennsylvania;
Fred Baumgartner, age 33, Kresgeville, Pennsylvania;
Anthony Ianuale, age 42, Effort, Pennsylvania; and
Jeanine Altemose, age 53, Stroudsburg, Pennsylvania.In addition to the conspiracy charge the indictment also charges Horton, Borushak, Tucker and Ianuale with distributing methamphetamine. Altemose is also charged with the offense of maintaining drug-involved premises, for allowing methamphetamine to be stored and distributed from her residence. Six of the defendants are now in custody. One of them, Altemose, is out on bail.
The investigation was conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Regional Police Department.
Prosecution is assigned to Assistant United States Attorney Robert J. O'Hara.
Indictments and Criminal Informations are only allegations. All person 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 sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, 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.
Final Member “Felony Lane Gang” Sentenced to over Five Years in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the final member of the “Felony Lane Gang” conspiracy was sentenced to 63 months in prison.
According to the United States Attorney, on Monday, May 5, 2014, Judge William Caldwell sentenced Sylvester Joseph for his role in a car break-in and bank fraud crew that stole over a million dollars in the five years it was in operation. Testimony presented at previous sentencing proceedings showed that the crew stole millions of dollars from banks using stolen checks and identification. Although they were only caught in the fall of 2012, the crew was implicated in committing this scheme over five years and victimizing over 250 people in the course of his fraud scheme, dubbed the “Felony Lane Gang”.
The “Felony Lane Gang” is a group of thieves based in Fort Lauderdale, Florida that travels across the United States stealing identities and checkbooks from unattended cars (“smash and grabs”). With the stolen checkbooks and driver’s licenses, the gang cashes checks using the drive through lane of banks. The farthest lane from video cameras and tellers have been dubbed the “felony lane” because of the ease with which false identities can be used to cash checks.
In December 2012, a grand jury returned a four count indictment charging 10 people with conspiracy to commit fraud, bank fraud, wire fraud, and aggravated identity theft. All of those who were charged entered guilty pleas and the majority of them have been sentenced. The following is a summary:
- Travis J. Russ, age 32, of Fort Lauderdale, Florida – identified as the leader and sentenced to 188 months in prison;
- Jarrett Hobbs, age 31, of Fort Lauderdale, Florida – identified as a leader and sentenced to 132 momths in prison;
- Sylvester Joseph, age 26, of Derrfield, Florida – identified as a leader and sentenced to 63 months in prison;
- Khiante Thompson, age 20, Florida – sentenced to 15 months;
- Phillip Etienne, age 31, of Margate, Florida – 46 months in prison;
- Willie L. Ogiste, age 35, of Fort Lauderdale, Florida –sentenced to 41 months;
- Teresa L. Brimhall, age 45, of Oakland Park, Florida – 18 months in prison;
- April Ainsworth, age 26, of Richmond, Texas – 36 months in prison;
- Colleen Shelly, age 49, of Lauderdale Lakes, Florida – 11 months in prison; and
- Wendy Snyder-Lucas, age 31, of Fort Lauderdale, Florida – 11 months in prison.
The 10 persons charged in this indictment struck Pennsylvania from August to October 2012. During that time, they broke into and/or stole the identities of over 100 people. In addition, the group targeted state parks where victims left purses, wallets, and checkbooks in their cars while using the recreation facilities. The “smash and grabs” occurred at approximately 25 different state parks and recreation centers in and around Central Pennsylvania.
This group used stolen checks and identification to obtain funds from banks and credit unions. According to the indictment, a conspirator, disguised as the account holder, used the drive-through lane at the account holder’s bank, submitted to the teller a forged check with the stolen identification of the victim, on numerous occasions, and received the funds. Through this process, these conspirators successfully compromised numerous accounts and stole tens of thousands of dollars in funds from the victims.
This investigation was conducted by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the United States Secret Service, the Pennsylvania State Police, the Federal Bureau of Investigation, the Pennsylvania Department of Conservation and Natural Resources and other state and local investigative agencies. The prosecutor assigned to the case is Assistant United States Attorney Michael A. Consiglio.
Federal Racketeering and Attempted Murder Charges Brought Against Leaders and Associates of the Nuestra Familia GangRead the Press Release
A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
Gary Anthony Romero, 48, of Stockton, Calif., and Joe Anthony Felix, 34, of Modesto, Calif., were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno, Calif. The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them. A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.
Jesus Felix was arrested today. Romero and Joe Felix have been in federal custody since March 2013. Jesus Felix will make his initial appearance in federal court in Fresno today, and Romero and Joe Felix were arraigned on the charges today in Fresno.
According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing. Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.
Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto. Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.
Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Federal Racketeering and Attempted Murder Charges Brought Against Leaders and Associates of the Nuestra Familia GangRead the Press Release
FRESNO, Calif. — A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.
“This complex case identified the network beyond the gang’s drug distribution channels and revealed a command structure that directs violent acts to gain and maintain control of its members, regardless of whether the members are walking the streets of Modesto or incarcerated,” said Supervisory Special Agent Todd Irinaga of the Modesto FBI office. “Today’s indictments demonstrate the effectiveness of a multi-agency, multi-jurisdictional Organized Crime Drug Enforcement Task Force (OCDETF) approach to dismantling drug trafficking organizations who threaten the safety and quality of life in our communities.”
Gary Anthony Romero, 48, of Stockton, and Joe Anthony Felix, 34, of Modesto, were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno. The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them. A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.
Jesus Felix was arrested today and made his initial appearance in federal court in Fresno today. Romero and Joe Felix were arraigned on the charges today in Fresno. They have been in federal custody since March 2013.
According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing. Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.
Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto. Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.
Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fairbanks Man Convicted of Possession of Cocaine with Intent to DistributeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today, that on Thursday, May 1, 2014, after a short trial, and deliberating for under 3 hours, a jury of 10 women and 2 men, found Etienne Devoe, of Fairbanks, Alaska, guilty of possession of cocaine with the intent to distribute.
Devoe, 41, was tried before United States District Court Chief Judge Ralph R. Beistline in Fairbanks.
Devoe was convicted of one count of possession of cocaine with intent to deliver, a violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). Devoe was charged by indictment in February 2014, regarding an incident that occurred in Fairbanks in February 2012.
Assistant U.S. Attorney Kelly Cavanaugh prosecuted the case.
In Fairbanks, Alaska, on February 1, 2012, at around 6:00 a.m., law enforcement executed a federal search warrant on a residence in connection with a separate federal indictment regarding a Fairbanks drug conspiracy. Though not named as a co-conspirator in that drug conspiracy, Devoe was found in the residence along with two other individuals. Devoe was in possession of six ounces of powder cocaine and a small quantity of crack cocaine that he intended to distribute. The illegal narcotics in Devoe's possession were found inside of a duffle bag in the room where Devoe had been sleeping when law enforcement agents executed the search warrant. Law enforcement also found $2,240 in currency in the pocket of a pair of pants found in the duffle bag, as well as Devoe's wallet and identification. A gym membership form that had been filled out by Devoe was also in the duffle bag. The money was bundled in two $1,000 quantities and one $240 quantity, and wrapped with rubberbands. This is how drug distributors carry their money. In February 2012, six ounces of cocaine had a street value in Fairbanks of roughly $1,700 per ounce or $10,000 total.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Alaska State Troopers, the Fairbanks Police, the University of Fairbanks Police, and the U.S. Marshal Service for the investigation leading to the successful prosecution of Mr. Devoe.
Devoe is currently awaiting trial in a separate matter, a federal drug conspiracy scheduled for trial in Anchorage on August 11, 2014.District Man Sentenced to 28-Month Prison Term for Sexually Assaulting Teenage Relative-Defendant Snuck into Child’s Bedroom as She Slept Next to Her Sister-Read the Press Release
WASHINGTON – A Washington, D.C. man, was sentenced today to a 28-month prison term for sexually assaulting a 13-year-old relative last year at the child’s home in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not identified here to protect the victim’s identity, pled guilty in February 2014, in the Superior Court of the District of Columbia, to a charge of attempted second-degree child sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, the defendant will be placed on three years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on March 23, 2013, at about 1 a.m., the 13-year-old victim was asleep in her bedroom next to her sister. The defendant, who was visiting the residence, snuck up the stairs and into the child’s bedroom, where he molested the victim in her bed. After the victim reported the incident to her mother, a Metropolitan Police Department (MPD) investigation began, leading to the defendant’s arrest on Oct. 29, 2013.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from MPD’s Youth Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Victim/Witness Advocate Veronica Vaughan; and Assistant U.S. Attorneys Danny Nguyen and Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-104Detroit Woman Pleads Guilty to AidingIn the Preparation of False ReturnsRead the Press Release
A Detroit woman pleaded guilty to willfully making false claims to the United States government by aiding in the preparation of false income tax returns, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Carolyn Weber, Internal Revenue Service Criminal Investigation.
Stacey Mendenhall, 39, entered the guilty plea before U.S. District Court Judge Nancy Edmunds.
According to court records, during 2009, Mendenhall assisted Gerald Hawk, Jr., a resident of Detroit, in preparing and filing false income tax returns claiming the 2008 First Time Homebuyer Credit (FTHBC). The FTHBC was a credit for individuals who purchased a home during 2008 to receive up to $8,000 upon filing their income tax returns. Mendenhall provided Hawk with names and social security numbers of individuals in order that Hawk could prepare false income tax returns claiming the 2008 FTHBC. Hawk offered Mendenhall $200 in cash for the names and social security numbers that she provided. Mendenhall and Hawk solicited clients by promising that they could acquire a tax refund of $8,000 to purchase a home by receiving the FTHBC. Mendenhall and Hawk knew the individuals did not purchase a home and had no intention of later purchasing a home after the credit was received. Mendenhall provided Hawk with information to prepare and file a number of tax returns falsely claiming the FTHBC. Mendenhall will be required to pay restitution of $72,673 to the Internal Revenue Service along with Gerald Hawk.
A sentencing hearing was set by Judge Edmunds for August 21at 2 p.m. The maximum penalty for willfully making false claims to the United States government is imprisonment of not more than five years and a $250,000 fine.
The investigation of this case was conducted by the Special Agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Detroit Man Sentenced to 5+ Years in Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man involved in a heroin distribution scheme was sentenced today to 63 months in federal prison, announced U.S. Attorney Booth Goodwin. Bobby Nelson Gulley, 38, previously pleaded guilty to conspiracy to distribute heroin. Gulley admitted that he conspired with others, including Helen Louise Adkins and Alanna Lynn Mattison, to distribute heroin in the Huntington area from at least January 2013 to August 15, 2013.
During the conspiracy, Gulley frequently transported heroin and oxycodone from Detroit to Huntington. Gulley recruited Adkins and Mattison to maintain separate apartments at 522 14th Street West in Huntington where heroin and oxycodone were stored. Gulley also used Adkins and Mattison to make distributions of heroin on his behalf. Beginning in January 2013, agents with the Drug Enforcement Administration used a confidential informant to make several controlled purchases of heroin from Gulley, Adkins and Mattison at various locations in West Huntington. On August 15, 2013, agents executed search warrants at the 14th Street West apartments rented by Adkins and Mattison. During the search, agents seized over 140 grams of heroin, 974 oxycodone tablets and $12,000 in United States currency.
Adkins and Mattison previously pleaded guilty in January 2014 and are both set to be sentenced on June 9, 2014, in Huntington.
The investigation was conducted by the Drug Enforcement Administration with assistance from the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Joseph F. Adams handled the prosecution. Today’s sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. 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 opiate painkillers in communities across the Southern District.
Desert Hot Springs Man Who Planted Pipe Bombs Near Ex-Girlfriend’s Residence in Palm Springs Pleads Guilty to Explosives ChargeRead the Press Release
RIVERSIDE, California – A man who left pipe bombs in a residential neighborhood in Palm Springs near the residence of an ex-girlfriend – and who became a fugitive after escaping from custody in a related case – pleaded guilty today to a federal charge of possession of an unregistered destructive device.
Edward Allen Costa, 49, who resided in Desert Hot Springs but was a fugitive for a time last year, pleaded guilty to the felony charge before United States District Judge Virginia A. Phillips.
Costa pleaded guilty in 2012 to being a felon in possession of a firearm. He was sentenced to a year in prison and was finishing his sentence at a halfway house in Rubidoux when he walked away from the facility in August 2013. The fugitive was taken into custody in November by the Banning Police Department and the FBI.
While a fugitive last year, Costa was indicted for possessing six pipes bombs that were left in a Palm Springs neighborhood from May 8 through May 12 of 2012. Prior to being indicted for the pipe bombs, Costa was charged with being a convicted felon in possession of a .357-magnum revolver, as well as 106 rounds of ammunition.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case involving the pipe bombs. The Palm Springs Police Department and the Riverside County Sheriff’s Department provided substantial assistance.
As a result of today’s guilty plea, Costa faces a statutory maximum penalty of 10 years in federal prison. Judge Phillips is scheduled to sentence Costa on July 14.
Release No. 14-053a
Creal Springs Man Indicted and Arraigned on Charges of Illegal Possession and Transfer of Short Barreled Rifles, Short Barreled Shotgun and Firearm SilencerRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Robert Ira Longworth, 27, of Creal Springs, Williamson County, Illinois, was arraigned on federal firearm charges on May 2, 2014. On April 8, 2014, authorities arrested Longworth. He was first charged by criminal complaint and then by indictment. He is detained.
Counts one through three of the indictment charge Longworth with the illegal transfers of a firearm silencer; a short barreled rifle; and a short barreled shotgun, respectively. Count four charges Longworth with the illegal possession of a short barreled rifle. Each of the four counts carries a maximum penalty of ten years in prison, a $250,000 fine, and up to three years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Illinois State Police, the Williamson County Sheriff’s Department, the Creal Springs Police Department, the Johnson County Sheriff’s Office, the Vienna Police Department, the Williamson County State’s Attorney, and the Johnson County State’s Attorney. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Convicted Ponzi Schemer Eliyahu Weinstein Arraigned on New Charges; Two Conspirators Admit Defrauding Investors with HimRead the Press Release
TRENTON, N.J. - Convicted Ponzi schemer Eliyahu Weinstein, 38, of Lakewood, N.J., was arraigned today in federal court in Trenton on new charges relating to an alleged scheme to defraud victims regarding purported investments in Facebook stock and Florida real estate, U.S. Attorney Paul J. Fishman announced.
Two co-defendants, Alex Schleider, 48, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, N.Y., also appeared in court today and admitted participating in the fraudulent scheme with Weinstein.
Weinstein was arraigned before U.S. District Judge Joel A. Pisano, in Trenton federal court on an indictment returned April 17, 2014, by a federal grand jury sitting in Newark and entered a plea of not guilty. That indictment charges Weinstein with defrauding victims through three investment schemes: (1) pre-IPO shares of Facebook stock; (2) the purchase of an apartment complex in Florida; and (3) the purchase of the mortgage notes on seven Florida condominiums. Weinstein, Schleider, and a third defendant, Aaron Muschel, 64, were originally charged by criminal complaint with the Facebook fraud in May 2013.Schleider pleaded guilty today before Judge Pisano to an information charging him with one count of wire fraud. He admitted to participating with Weinstein in a scheme in which victims referred to as “Victim G.C.” and “Victim J.C.” lost more than $2.8 million that the victims had invested to purchase the Florida apartment complex. Schleider also agreed to restitution and forfeiture of $612,300. The charge to which Schleider pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. His sentencing is scheduled for Sept. 18, 2014.
Glucksman pleaded guilty today before Judge Pisano to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds. He admitted during his plea hearing that, together with Weinstein and others, he defrauded victim-investors referred to as “the Florida condominium victims” out of $1.5 million. Glucksman admitted that, in concert with Weinstein, he duped these victims by using fraudulent e-mails to pretend to be an attorney named “Arthur Golden,” who purportedly was handling the closing of the transaction, and to pose as the supposed property manager of the condominiums. Glucksman also admitted to helping Weinstein conduct financial transactions with the proceeds of the fraud.
The charges to which Glucksman pleaded guilty carry maximum penalties of 20 years in prison and a $250,000 fine (conspiracy) and 10 years in prison and a $250,000 fine (transacting in criminal proceeds).
Judge Pisano sentenced Glucksman today to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed on Glucksman by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case. Glucksman remains on release pending his designation to a federal institution by the U.S. Department of Justice, Bureau of Prisons.
According to the charging documents in these cases and statements made in court:
In February of 2012, Weinstein and his fellow conspirators allegedly offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get, and they were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on alleged misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator convinced the Facebook victims to send the money by, among other things, providing them with false documents showing companies owned by various conspirators held assets which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use and benefit by moving it through various accounts. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in a number of different businesses unrelated to Facebook, and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They falsely told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. In reliance on these representations, the Facebook victims wired approximately $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators, however, did not use the money to purchase Belle Glades Gardens. Instead, they allegedly redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein allegedly approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them that he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000, and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The Florida condominium victims transferred approximately $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use and benefit.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before U.S. District Judge Joel A. Pisano in Trenton, N.J., to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.The conspiracy count with which Weinstein is charged carries a maximum potential penalty of 20 years in prison; the wire fraud counts carry a maximum potential penalty of 30 years in prison (20 years on the wire fraud plus 10 years for commission while on pretrial release); and the transacting in criminal proceeds counts carry a maximum potential penalty of 10 years in prison. All the counts are also punishable by a $250,000 fine.
Charges against Muschel, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for their investigation of this case. He also credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their important contributions.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
The charges and allegations against defendants Weinstein and Muschel are merely accusations, and they are considered innocent unless and until proven guilty.
Today’s proceedings are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel:
Weinstein: Eric Creizman Esq., New York
Glucksman: Alexei Schacht Esq., New York
Schleider: Marc Agnifilo Esq., New YorkWeinstein, Eliyahu Indictment II
Glucksman, Aaron Information
Schleider, Alex InformationChicago Federal Court Shuts Down Tax PreparerRead the Press Release
A federal court in Chicago permanently barred Barbara L. Garrett from preparing tax returns for others or working for any business that prepares tax returns for others, the Justice Department announced today. The court’s injunction, filed in the U.S. District Court for the Northern District of Illinois, also requires Garrett to contact and provide a copy of the injunction order to every customer for whom she prepared a tax return since 2011. Garrett agreed to the permanent injunction, which was entered against her by the court on April 30, 2014.
The complaint alleged that Garrett, while working at multiple Chicago-area tax preparation businesses, including Instant Tax Service, Preferred Financial and Income Tax Solutions, claimed fraudulent deductions and credits on her customers’ federal tax returns. Examples cited in the complaint include returns prepared by Garrett for customers that falsely claimed thousands of dollars in bogus deductions from entirely fake businesses.
Return preparer fraud is one of the IRS' Internal Revenue Service's Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Barbara L. Garrett
Complaint for Permanent Injunction and Other Relief
Order
Amended Final Judgment of Permanent InjunctionCharleston Man Pleads Guilty to Distributing HeroinRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
CHARLESTON, W.Va. – Kennele Groom, 36, pleaded guilty today in federal court to distributing heroin in Charleston, West Virginia, where he resides. In February 2014, Groom was indicted by a grand jury on three counts of distributing heroin and one count of possession with intent to distribute oxycodone and oxymorphone. In connection with his guilty plea, Groom agreed to forfeit to the United States all proceeds from his drug trafficking, including over $40,000 cash seized from his residence on January 14, 2014. Groom faces up to 20 years’ imprisonment when he is sentenced on August 11, 2014.
This case was investigated by the Charleston Police Department. United States District Judge Thomas E. Johnston conducted today’s guilty plea hearing.
This case is being prosecuted as part of an ongoing effort led 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 and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Carson City Man Sentenced for Child Pornography CrimesRead the Press Release
RENO, Nev. – A man who used a tiny, hidden video recorder to make over 200 sexually explicit video tape recordings of two female victims who were taking showers and using the restroom at his home in Carson City, Nev., was sentenced today to 19 years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marcus Gabriel Henderson, 34, who pleaded guilty in January to one count attempted production of child pornography and one count of transportation of child pornography, was sentenced by U.S. District Judge Larry R. Hicks. Henderson was also placed on lifetime supervised release and must register as a convicted sex offender.“The sharing of child pornography over the internet results in repeated re-victimization and can negatively affect a victim for the rest of his or her life,” said U.S. Attorney Bogden. “The persons who produce these images and trade them with other persons deserve significant sentences of imprisonment.”
According to the court records, on July 31, 2013, a federal search warrant was executed at Henderson’s residence after he was identified as a target in an undercover child pornography investigation. During the execution of the warrant, one of the investigators located a device in a bathroom which appeared to be an AC adaptor. The adaptor was actually a covert video recording device containing a pinhole camera and media card. A forensic examination of the media card revealed that it contained approximately 277 video clips, each about one minute in length, which appeared to have been taken in the toilet and shower areas of one or more bathrooms. The camera had been positioned to capture nude images of two different female victims, one of whom was 13 years old at the time. Henderson admitted that he created the videos to elicit a sexual response from the viewer of the videos and that he intended to distribute them to internet users in exchange for something of value. After recording some of the video clips, Henderson traveled from Nevada to South Dakota and distributed or sent via email some of the videos he produced. In addition to the hidden camera, investigators recovered during the search, an additional 1200 images and 10 videos of child pornography from computers and digital devices that Henderson used. Some of the files depicted prepubescent children and sadistic and masochistic conduct.
“For most people, criminal acts against children are impossible to comprehend,” said Kyle Burns, resident agent in charge of HSI Reno. “For a child who has been tricked and sexually exploited by someone they trusted, the physical and emotional scars will be with them forever. As this sentence makes unmistakably clear, child sex predators will be caught, prosecuted, and meted the justice they deserve for their despicable actions.”
The case was investigated by HSI and the Northern Nevada Internet Crimes Against Children Task Force, and prosecuted by Assistant United States Attorney Carla B. Higginbotham.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal,
state, and local resources to locate, apprehend, and prosecute individuals who sexually
exploit children, and to identify and rescue victims. For more information about Project
Safe Childhood, please visit www.usdoj.gov/psc. For more information about internetCampaign Worker Pleads Guilty to Buying Votes<br /> in a Donna, Texas, School Board ElectionRead the Press Release
A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa in the Southern District of Texas. Sentencing has been scheduled for July 25, 2014.
According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board. Balderas assisted in the campaign to elect four candidates to the Donna School Board. In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election. In addition, at least two campaign managers paid voters in her presence.
Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane in the Southern District of Texas on Feb. 14, 2014. She is scheduled for sentencing on Sept. 16, 2014.
This case was investigated by the FBI. Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas are prosecuting the case.Campaign Worker Pleads Guilty to Buying Votes in Donna School Board ElectionRead the Press Release
McALLEN, Texas – A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa. Sentencing is scheduled for July 25, 2014, at 9:30 a.m.
According to a factual statement read during the plea hearing, a general election was held on or about Nov. 6, 2012, in Donna that included candidates for the presidential election, as well as various state, county and local offices, including the members of the Donna School Board. Balderas assisted in the campaign to elect four candidates to the Donna School Board. In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two campaign managers also paid voters in her presence.
Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane on Feb. 14, 2014. She is scheduled for sentencing on Sept. 16, 2014.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo and Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.
Bakersfield Man Pleads Guilty to Memphis Marijuana Trafficking SchemeRead the Press Release
FRESNO, Calif. — Leopoldo “Polo” Rodriguez, 42, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute, marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rodriguez and his fellow conspirators planned to send large quantities of marijuana from Bakersfield to Memphis, Tennessee. On August 26, 2013, Rodriguez and co-defendant Jesus Quintero were arrested while they were transporting approximately 300 pounds of marijuana intended to be sent to Memphis. Later that same day, a search warrant executed at a ranch in Bakersfield led to the seizure of 80 pounds of marijuana and the arrest of co-defendant Jose Torres Quintero.
This case was the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Co-defendants Jesus Quintero and Jose Torres Quintero have pled not guilty and should be presumed innocent unless and until they are found guilty. They are scheduled for a status conference on June 9, 2014.
Rodriguez is scheduled to be sentenced by Judge Anthony W. Ishii on July 14, 2014. Rodriguez faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Arvin Man Pleads Guilty to Conspiracy to Distribute 17 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Jorge Guevera, 35, of Arvin, pleaded guilty today to conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Guevera attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s deputy. On June 26, 2013, Guevera met with the undercover deputy in a parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon his arrest, officers found 17 pounds of methamphetamine was found hidden in the vehicle.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Guevera is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on July 28, 2014. Guevera faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Alleged Operators of “Big Blue” Cock Fighting Pit in McDowell, Kentucky, ArrestedRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy and Virginia Attorney General Mark R. Herring announced that five individuals appeared in federal court today who had been arrested on warrants executed during a joint federal/state multi-agency operation in Virginia and Kentucky on Saturday morning. The following individuals appeared in federal court today:
• Walter Dale Stumbo, 51, of Floyd County, Kentucky
• Sonya Stumbo, 51, of Floyd County, Kentucky
• Joshua Stumbo, 25, of Floyd County, Kentucky
• Wesley Dean Robinson, 57, of Wise County, Virginia
• Jonathan Robinson, 33, of Wise County, VirginiaThe defendants are charged with conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights.
The following defendants were charged in state court:
• Phillip Albert Meade, 54 of Pound, Virginia: nine felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; one count of knowingly or intentionally possessing marijuana not obtained from, or pursuant to valid prescription; four counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages.
• Tammy Carol Meade, 47, of Pound, Virginia: two felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; two counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages.
• Jeffery A. Meade, 40, of Pound, Virginia: five felony counts of unlawful manufacturing, transporting, or selling of an alcoholic beverage while being armed; seven counts of possessing, keeping, shipping, or transporting untaxed alcoholic beverages; one count of selling alcoholic beverages without a license.
• Russell Peaks, 38, of Pound, Virginia: one felony count of selling, giving, or distributing a controlled substance classified as a Schedule III.A federal criminal complaint unsealed today in United States District Court in Abingdon alleges the Stumbos, Robinsons and others conspired to have cock fights at the Big Blue Sportsmen’s Club (“Big Blue”) in McDowell, Kentucky. The complaint further alleges the defendants, and others, organized a comprehensive cock fighting derby at Big Blue, which included collecting “parking” fees from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, slot machines and fighting gaffes for fighting cocks.
It is alleged that on fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland and Georgia. The complaint further alleges that entrance fees at Big Blue were $250 per entry with approximately 100 total entries per derby.
The defendants were incarcerated after their arrests. The Robinsons appeared in federal district court in Abingdon, today, and were released on bond. The Stumbos appeared in federal district court in Pikeville, Kentucky, today, and were released on bond. The Stumbos were directed to appear in federal district court in Abingdon tomorrow (Tuesday, May 6). These are only charges and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney Virginia and Assistant Attorney General Michelle Welch are prosecuting the federal case on behalf of the United States. Ms. Welch will be prosecuting the state charges on behalf of the Wise Commonwealth’s Attorney. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Alabama Man Sentenced to 14 Years in Prison for Traveling to Have Sex with Two BoysRead the Press Release
ROME, Ga. - Joseph Franklin Ellis has been sentenced to 14 years in prison for traveling from Alabama to Georgia to meet an undercover agent who said that he had 12-year-old and 5-year-old boys available for sex.
“Ellis made a decision to prey on innocent and vulnerable children when he traveled to have sex with them,” said United States Attorney Sally Quillian Yates. “Because he was making the arrangements through an undercover officer, Ellis was stopped and his quest to molest children was ended. These types of crimes are unimaginable and those who believe they can evade the law while carrying on this type of crime will learn as he did, you will be caught and you will go to jail.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case demonstrates the need to remain vigilant with regard to the protection of our children. The FBI is committed to identifying, investigating, and presenting for prosecution individuals who have demonstrated the desire to exploit and harm children.”
According to United States Attorney Yates, the charges and other information presented in court: In February 2011, an undercover FBI task force officer placed a notice on a website designed for people to meet others for sexual purposes, saying that he had access to two minor boys. Joseph Ellis began communicating with the undercover officer and believed that the officer had a 12-year-old boy and a 5-year-old boy that he would make available for sex. Ellis wrote that he wanted to meet the undercover officer for the express purpose of having sex with the boys. The two eventually made arrangements to meet on May 30, 2011, at a Hampton Inn in Ringgold, Ga., where Ellis would have sex with the two children. When Ellis showed up at the arranged location, FBI agents attempted to arrest him. Ellis fled and led the police on a high-speed chase that only ended when he crashed his car.
Joseph Franklin Ellis, 33, of Attalla, Ala., has been sentenced to 14 years in federal prison to be followed by 20 years of supervised release. Ellis was convicted of these charges on February 25, 2014, after he pleaded guilty to attempting to have sex with minors.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
48 Individuals Indicted for Drug Trafficking in the Municipality of MayaguezRead the Press Release
SAN JUAN, PR – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 48 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. The Drug Enforcement Administration (DEA) the Puerto Rico Police Department (PRPD) are the agencies in charge of the investigation.
The indictment, returned on April 23, 2014, by a federal grand jury and unsealed in federal court today, charges 48 individuals with conspiracy to knowingly and intentionally possess with intent to distribute heroin, cocaine, cocaine base (crack), and marihuana, all within 1,000 feet of the real property comprising the Rafael Hernàndez (El Kennedy), Manuel Hernàndez-Rosa (El Candelaria), and El Carmen Public Housing Projects, all for significant financial gain and profit.
The indictment alleges that beginning in 2010, the organization established drug distribution points among the housing projects. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs.As part of the manner and means of the conspiracy, high level members of the drug trafficking organization or leaders would use monies derived from the sales of controlled substances to purchase firearms, ammunition and bulletproof vests.
The 48 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: four leaders; four suppliers; eight enforcers; three runners; 40 sellers; and one facilitator. Twenty-seven of the defendants are facing one count of using and carrying firearms during and in relation to a drug trafficking crime.
“This investigation and six-count indictment represent a top-to-bottom dismantling of a violent criminal organization intent on polluting our neighborhoods with drugs,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to work tirelessly to target and eliminate the most significant threats to our communities.”
“This investigation is another example of DEA joint efforts with the Police of Puerto Rico to rid the west part of the Island of violent drug trafficking criminal organizations. Today we impact Mayagüez. Our efforts don’t stop here; they will continue,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division.
Assistant U.S. Attorney José Contreras is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Friday 2 May 2014
Zuni Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Bobby Concho, 53, pleaded guilty this morning to federal assault and domestic assault by a habitual offender charges. Under the terms of his plea agreement, Concho will be sentenced to 40 months in federal prison followed by a term of supervised release to be determined by the court.
Concho, a member and resident of Zuni Pueblo, N.M., was arrested on Feb. 25, 2014, on a two-count indictment charging him with assault with a dangerous weapon and domestic assault by a habitual offender. According to the indictment, Concho assaulted his intimate partner with a metal folding chair on June 23, 2013, in Indian Country in McKinley County, N.M. Concho was charged as a habitual offender because he previously had been convicted on domestic assault charges in the Zuni Tribal Court in 2006 and in the McKinley County Magistrate Court in 2004.
Today, Concho entered a guilty plea to both counts of the indictment. In entering his guilty plea, Concho admitted assaulting his intimate partner on June 23, 2013, by striking her in the face multiple times with a closed fist and hitting her with a metal folding chair with the intention of causing bodily harm. Concho acknowledged committing the assault within Zuni Pueblo.
Concho has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Zuni Tribal Police Department and is being prosecuted by Tribal Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION (before District Judge Jon E. DeGuilio:)
Tyrone Franklin, 35, of Michigan City, Indiana was sentenced to 100 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, on July 24, 2013, Franklin possessed a Rock Island semi-automatic handgun. Franklin had been previously convicted of a felony in Porter County Superior Court in 2004. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION (before District Judge Theresa L. Springmann:)
Natalie Catalan, 26, of Warsaw, Indiana was sentenced to time served for imprisonment and to serve 2 years supervised release after pleading guilty to the felony offense of conspiracy to distribute a controlled substance.According to documents filed in this case, in 2010, Catalan assisted convicted drug dealer Jonathan Aramburo with arranging for and delivering marijuana from Mexico into the United States. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Whitley County Sheriff's Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Week in Review - HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Linda Rosenberg, 60, of Chicago, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of participating in a conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other services providers, dispensing a controlled substance outside the scope of professional practice and legitimate medical purpose and misbranding.Sentencing has been set for 9/10/14.These charges were filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Rene Patterson, 32, of Griffith, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Gary Lindsey, 35, of Markham, Illinois, was sentenced by Chief Judge Philip Simon to 27 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of passing counterfeit obligations.Lindsey was also ordered to pay $4,550 in restitution. In a separate matter, Lindsey was also sentenced to 30 months imprisonment and 2 years of supervised release after pleading guilty to possession of a stolen firearm.These sentences will run concurrently. This case was a result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Jermel Washington, 38, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 8 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a non-registered firearm (sawed off shotgun).According to documents filed in this case, Washington not only possessed a sawed off shotgun, for which he failed to obtain a license, but according to his own statement, fired it in a residential neighborhood after his was assaulted by another individual. When police initially attempted to question him about the shooting, Washington ran into an apartment which caused a short pursuit before he finally voluntarily surrendered. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Brandon Reign Jackson, 40, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to 63 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Jackson has prior convictions for domestic violence and dealing in a lookalike controlled substance.This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Warren County, Kentucky, Construction Company Owner Sentenced to 24 Months for Income Tax EvasionRead the Press Release
– Concealed $1,045,327 in income from the IRS
– Failed to disclose his ownership in Tri-State Construction and income receivedBOWLING GREEN, Ky. – The owner of a Warren County, Kentucky construction company was sentenced in U.S. District Court yesterday by Senior Judge Thomas B. Russell to 24 months in prison and was ordered to pay $571,000 in restitution for tax evasion, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Darrell Mathis, age 48, owner of Tri-State Construction, pleaded guilty before United States Magistrate Judge James Moyer on April 22, 2013 to five counts of income tax evasion due for the tax years 1999 through 2001 and 2005 through 2009. The returns were filed with the Internal Revenue Service (IRS).
According to the plea agreement, from June 2004 until December 2011, Mathis evaded payment of $177,634 in federal income taxes due for the tax years 1999 through 2001. During this time period, among other things, he falsely submitted an IRS Offer-in-Compromise Form 656 in which he concealed his ownership and control of his personal assets, including vehicles and boats, and his business, Tri-State Construction and the company’s bank accounts. Throughout this period he owned and operated Tri-State construction but concealed his ownership and income from the IRS by placing it in the name of a nominee and directing IRS W-2 Forms not be filed in his name. For the tax years 2005 through 2008 Mathis received approximately $1,045,327 in income from Tri-State construction that he concealed from the IRS by not reporting the income on his federal income tax returns. The resulting additional tax due and owing for 2005 through 2009, is $383,558. Mathis knowingly signed his 2005 through 2008 federal income tax returns under the penalty of perjury.
The tax evasion counts to which Mathis pleaded guilty also charged that in December 2007 Mathis purchased a piece of real estate at Cooper Dearing Road for $144,900 in the name of a nominee to conceal the purchase from the IRS. In January 2008, he sold this piece of real estate for $235,000 and purchased property located at 121 Timber Ridge Court, Alvaton, Kentucky, again in the name of a nominee. Further, in 2009 and 2010, Mathis caused the owner of Southside Auto Sales to file liens on his vehicles to conceal his equity in them from the IRS. Lastly, in January 2007, Mathis purchased a Keystone camper, titling the camper in a nominee name to conceal his ownership.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and Joshua Judd and was investigated by the IRS, Division of Criminal Investigation.
U.S. Attorney Finley Delivered Keynote Address at the Shreveport Bar Association's Law Day LuncheonRead the Press Release
THEME: AMERICAN DEMOCRACY AND THE RULE OF LAW: WHY EVERY VOTE MATTERS
SHREVEPORT, La. –United States Attorney Stephanie A. Finley delivered the keynote address at the Shreveport Bar Association’s Law Day luncheon held on Wednesday, April 30th, at the Petroleum Club of Shreveport.
In honor of the upcoming 50th anniversaries of the Civil Rights Act of 1964 and the Voting Rights Act of 1965, Finley focused on the national theme for Law Day 2014, “American Democracy and the Rule of Law: Why Every Vote Matters,” as she outlined the history of both Acts and focused on the legal challenges which existed in the country and the State of Louisiana.
“I am honored that the Shreveport Bar Association asked me to speak at their annual Law Day luncheon,” Finley said. “The rule of law and the right to vote are vital to our great democracy. Every American’s vote must count. President Johnson said it best when he commented on voting in 1965. He stated, ‘There can and should be no argument. Every American citizen must have an equal right to vote. There is no reason which can excuse the denial of that right. There is no duty which weighs more heavily on us than the duty we have to ensure that right.’”
The Shreveport Bar Association hosts the Law Day luncheon annually as part of a week of activities celebrating the American tradition of respect for the rule of law. They also sponsor a student event, with juniors and seniors from local high schools who participate in a day of interactive exposure to the legal profession, as well as a community event and a day of fun for lawyers and their families. This year’s community event was a voter registration drive, in accord with the Law Day theme. The Shreveport Bar Association is a voluntary community-oriented Bar Association with over 600 members. It was formed in the early 1950s to promote interests in the legal field, dignity and character of the Bar of the City of Shreveport and Bossier. Their goal is to provide an organization where members of the legal community can serve the public under the highest ethical and professional expectations and also to provide a variety of activities so each member has an opportunity to become involved civically, socially and through ongoing education.
Every year since 1965, the Shreveport Bar Association has presented the Liberty Bell Award to a fellow citizen who has demonstrated a commitment to this community and has advanced the rule of law. This year’s Liberty Bell Award recipients were The Gingerbread House and the Cara Center. Both organizations provide fact finding, diagnosis and continuing care to victims of child abuse.
The purpose of the Liberty Bell Award is to recognize community service, particularly among non-lawyers, which strengthens the effectiveness of the American system of freedom under law. Among other service activities, the recipient’s activities should promote: (1) A better understanding of our form of government, particularly the Bill of Rights; (2) A greater respect for law and the courts; (3) A deeper sense of individual responsibility in recognition of the duties as well as rights of citizens; (4) Effective functioning of our institutions of government; and (5) A better understanding and appreciation of the Rule of Law.
The Bar also welcomed this year’s Mock Trial Competition winners to the luncheon, along with local mayors, and state and federal judges. The Mock Trial Competition winners were high school students from Loyola College Prep and Caddo Magnet High School.
“I was surprised by U.S. Attorney Finley joining the Shreveport Bar Association in front of a packed Shreveport Bar Law Day luncheon prior to giving her talk on this year’s Law Day theme, “Why Every Vote Matters,” said Shreveport Bar Association President, Lawrence W. Pettiette, Jr. “She encouraged lawyers to join the Shreveport Bar Association, and delivered a scholarly, well researched and interesting speech on the history of the voting rights movement in the south, culminating in the passage of the Voting Rights Act of 1965. Not only was I impressed with the content of her talk, but enjoyed listening to what I felt was almost a lyrical delivery. She captivated the group. We hope to have her back soon.”
The Shreveport Bar Association holds monthly luncheon membership meetings featuring dynamic speakers and program topics. For more information about the Shreveport Bar Association, please visit their website at www.shreveportbar.com, or if you are interested in becoming a member, you can download a membership form at www.shreveportbar.com/register/.