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Friday 2 May 2014
Two Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 23, 2014, Thomas D. Tindall, 21, of Willisville, and Seth D. Conway, 26, of Percy, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. Conway and Tindall made their initial appearances in federal court on April 28, 2014, and April 29, 2014, respectively. At a May 2, 2014, detention hearing, Tindall was ordered held without bond pending a June 30, 2014, jury trial. Conway was released on bond pending a jury trial on the same date.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Alleged Members of the Almighty Imperial Gangsters Nation Indicted for Murder in Aid of RacketeeringRead the Press Release
Two alleged members of the Almighty Imperial Gangsters Nation have been indicted for their alleged roles in a 2007 murder in the Southern District of Florida.
Acting Assistant Attorney David A. O’Neil of the Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The indictment returned by a federal grand jury on May 1, 2014, and unsealed today in the Southern District of Florida charges Jose Herrera, aka “Spyro,” 27, and Leonel Carrera, aka “Leo,” 25, both of Miami, with murder in aid of racketeering activity. Herrera and Carrera were both arrested this morning.
The indictment alleges that Herrera and Carrera participated in the murder of Hockynson Sanchez, aka “Jaxx,” on Nov. 20, 2007, for the purpose of maintaining and increasing their position in the Almighty Imperial Gangsters Nation.
According to the indictment, the Almighty Imperial Gangsters Nation is a nationally known organized street gang that originated in the northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangers Nation allegedly engaged in acts of violence, including murder, attempted murder, aggravated battery and aggravated assault, as well as narcotics distribution and other criminal activities.
This case is being investigated by the FBI field offices in Miami, Chicago and Merrillville, Ind., along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department and the East Chicago Police Department. The United States Attorney’s Office for the Northern District of Indiana, the State Attorney’s Offices of Miami-Dade and Broward Counties, the Florida Department of Correction and the Broward County Sheriff’s Office assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the United States Attorney’s Office for the Southern District of Florida.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Tulalip Tribal Member Sentenced to 54 Months in Prison for Aggravated Sexual Abuse of a MinorRead the Press Release
A 28-year-old member of the Tulalip Tribes was sentenced today to four and a half years in prison for aggravated sexual abuse of a minor, announced U.S. Attorney Jenny A. Durkan.
RYAN DELBERT MOSES, was 27-years-old when he engaged in sexual conduct with a 14-year-old girl. At sentencing U.S. District Judge Richard A. Jones said to MOSES, “You were 27 and this is a young girl who is 14-years-old…. This is criminal. It was illegal and you had no basis to be involved with a person of that age.”According to records in the case, between November 2012 and January 2013, MOSES engaged in sexual acts with the 14-year-old. MOSES gave the child gifts and rides home from middle school to manipulate her into the sexual conduct. Because MOSES is a tribal member and the conduct occurred on tribal land, the case is prosecuted in federal court.
MOSES pleaded guilty January 6, 2014.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Title of the News Release Goes HereRead the Press Release
Montgomery, Alabama - Susie Michelle Strength, a registered nurse from Clanton, Alabama was indicted by a federal grand jury for tampering with a vial of Morphine Sulfate pain medication while working as a registered nurse at Prattville Baptist Hospital, announced U.S. Attorney George L. Beck, Jr..
The one-count indictment filed in U.S. District Court charges Strength, 35 years old, with tampering with a consumer product, in violation of federal law. Specifically, the indictment charges that Strength removed some of the Morphine from a vial, replaced it with saline solution, and returned the vial to the drug administration machine known as a Pyxis machine at the hospital. Moreover, the indictment alleges that Strength acted with reckless disregard or extreme indifference to the risk that her actions might cause bodily injury to another person.
“The nature of the relationship between nurses and their patients is a special one which cannot be allowed to be compromised by horrendous conduct such as diluting pain medications intended for patients,” stated U.S. Attorney Beck. “These patients are often in severe pain and need this pain medication. To dilute the Morphine, puts a patient in more pain and could be life threatening. Anyone who engages in such behavior deserves to be aggressively prosecuted. I also want to thank Prattville Baptist Hospital for bringing this matter to our attention.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The tampering charge carries a maximum punishment of 10 years in prison and a $250,000.00 fine.
This case is being investigated by the Food and Drug Administration’s Office of Criminal Investigations. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Third Man Sentenced in Enticing A Minor InvestigationRead the Press Release
McALLEN, Texas - Jose Luis Garcia-Saldivar, 29, an undocumented alien from Mexico, has been sentenced to 10 years in federal prison for enticing a minor, announced United States Attorney Kenneth Magidson today. Garcia-Saldivar previously pleaded guilty Sept. 4, 2012, admitting he intended to have sex with a minor for money.
Today, Chief U.S. District Judge Ricardo Hinojosa heard additional evidence and ultimately handed Garcia-Saldivar a sentence of 121 months. Part of the evidence included that Garcia-Saldivar had requested the victim send him photographs of herself on her cell phone which constituted sexually explicit conduct. The sentence imposed today was enhanced because the minor victim was only 14 years of age at the time. He will also be required to register as a sex offender.
In April 2012, a Pharr Police Department investigator contacted Homeland Security Investigations (HSI) agents concerning the solicitation of a minor for sexual purposes. Agents recovered a cellular telephone that was being utilized by a 14-year-old minor to receive messages from adult males requesting sexual encounters in exchange for money. Posing as the minor, agents began conversing with the unknown males via text messages over the cell phone.
During this investigation, two others were arrested and subsequently charged in separate cases with enticing a minor. Felipe de Jesus Ponce-Torres, 25, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz and received a sentence of 120 months in prison. Teofanes Salas-Campos, 41, of Mission, entered his plea guilty before U.S. District Court Judge Randy Crane who sentenced him to 135 months in prison.
During their respective guilty pleas, all three men admitted they intended to have sex with an individual whom them believed was a minor and that they were going to pay the minor between $80 and $100.
All three men have been and will remain in custody.
The investigation leading to the charges against these defendants was conducted by HSI and Pharr Police Department. Assistant United States Attorneys Kimberly Ann Leo and Juan Villescas prosecuted the case.Tefft Pleads Guilty to Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Dozens of Child Pornography Files
ALBANY, NEW YORK — TIMOTHY TEFFT, age 65, of Greenwich, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. TEFFT faces at least five years of imprisonment and up to a maximum sentence of twenty years of imprisonment. TEFFT was detained pending his sentencing.
During the plea hearing, TEFFT admitted that between January 1, 2009 and May 3, 2011, he accessed the Internet and downloaded and possessed, from various websites, dozens of files that contained child pornography. TEFFT further admitted that on occasion he would save the child pornography files onto a thumb drive in order to view the files at a later time.
Sentencing is scheduled for September 3, 2014, at 9:00 a.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
Teen Heroin Dealer Gets 7-Year Federal Prison SentenceRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 87 months imprisonment and eight years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brady Hall, 19.
According to information presented to the court, Hall had previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea and sentencing, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett, Sterling Marshall, and their associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett and Marshall have pled guilty. Corbett was sentenced to 10 years in prison, and Marshall was sentenced to 12 years in prison.
The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the “customer phone,” whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin “stash house,” in Homestead. From that stash house, Hall used runners, including juvenile runners as young as 15 years old, to deliver heroin to customers.
Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Brady Hall.
Stockton Methamphetamine Trafficker Sentenced to over Ten YearsRead the Press Release
SACRAMENTO, Calif. — Ruben Barajas, 37, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 11 years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Barajas was selling methamphetamine out of his taco truck. He was found in possession of over 2 kilograms of pure methamphetamine.
This case was the product of an investigation by the San Joaquin County Metropolitan Narcotics Task Force, the Stockton Police Department Community Response Team, and the Drug Enforcement Administration. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Stockton Man Is Sentenced for Conspiring to Rob "Stash House"Read the Press Release
SACRAMENTO, Calif. — Snangehk Peou, 25, of Stockton, was sentenced on May 1, 2014, by United States District Judge Morrison C. England, Jr. to five years and 11 months in prison for conspiring to commit a robbery affecting interstate commerce, United States Attorney Benjamin B. Wagner announced.
According to court documents, Peou agreed to be a participant in the robbery of a “stash house”—a residence in Stockton where he and other members of the conspiracy believed that individuals were holding a large quantity of cocaine.
Peou’s conviction was the result of an investigation by Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Paul Hemesath prosecuted the case.
Peou’s alleged co-conspirators are awaiting further court proceedings. The charges against these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 federal defendants were charged and 19 state prosecutions. The operation also resulted in the seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.
Russell County, Kentucky Man Sentenced to 41 Months in Prison for Embezzling $625,096 from His Former EmployerRead the Press Release
– Ordered to pay full amount in restitution
BOWLING GREEN, Ky. – The former controller of a Russell County, Kentucky manufacturing company was sentenced by Senior District Judge Thomas B. Russell yesterday to 41 months in prison for wire fraud and was ordered to pay restitution in the amount of $625,096, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kyle W. Robertson, age 34, of Russell County, Kentucky, admitted in court to causing 36 illegal wire transfers from his employer’s bank account to his personal bank account during a nearly four-year period, beginning on April 28, 2009 and continuing through January 14, 2013. Robertson pleaded guilty to the 12-count federal indictment on December 3, 2013.
According to the plea agreement, Robertson was employed by Bruss North America, Inc., an auto parts manufacturing company located in Russell Springs, Kentucky as the plant’s controller. Robertson admitted to making false account entries in order to conceal his theft from the German-owned company, with its North America headquarters in Russell Springs. Robertson would fraudulently inflate the value of fixed assets in Bruss accounts and enter the value of assets in Euros rather than dollars to conceal his theft on the balance sheet. Robertson further admitted to causing wire transfers from the company’s bank account at Deutsch Bank in New York, New York to a bank account he maintained with the Monticello Banking Company in Russell Springs, Kentucky. The wire transfers listed in the federal indictment ranged in amount from $12,856.56 to $27,000.00.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI) and the Kentucky State Police.
Real Estate Investment Partner Indicted for Allegedly Cheating at Least 50 Mostly Chicago Area Investors of $10 MillionRead the Press Release
CHICAGO — A former Chicago area real estate investment partner was indicted on federal charges alleging that he fraudulently obtained more than $10 million from more than 50 investors, many of whom lived in the Chicago area, and misused the funds he obtained from them as well as lenders. The defendant, MATTHEW STOEN, was a founder of Stone Rose, LP, and effectively was its managing general partner.
Stoen, 35, of Wayzata, Minn., and formerly of St. Charles and Chicago, was charged with four counts of mail fraud and two counts of wire fraud in an indictment returned by a federal grand jury on Wednesday and announced today. He will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $10 million in alleged fraud proceeds.
According to the indictment, Stoen falsely represented to investors and lenders his personal background and financial condition, including claiming that he was the beneficiary of a trust fund, which he knew was false. He allegedly carried out a financing fraud scheme to benefit himself by fraudulently raising millions of dollars through the offer and sale of limited partnership interests and through loans. Stoen fraudulently obtained and retained these funds by making false representations regarding the intended use of the funds raised for Stone Rose, the terms of Stone Rose’s real estate transactions, Stone Rose’s financial condition, his personal financial condition, and his interest in Stone Rose real estate transactions. Stoen misappropriated Stone Rose funds for his own benefit, and concealed his scheme by creating and distributing to investors a false and misleading financial review of Stone Rose, the indictment states.
Stoen allegedly represented to investors and lenders that funds invested in Stone Rose would be used for real estate investment projects in the Kansas City area as well as certain Stone Rose fees and expenses, knowing that he intended to misappropriate a portion of the funds for other purposes, including for his own use and benefit.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorney Kenneth Yeadon.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Pittston Man Sentenced for Involvement in Cocaine Distribution ConspiracyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik yesterday sentenced Leroy Trudgen, age 58, of Pittston, Pennsylvania, to 97 months’ imprisonment for his involvement in a conspiracy to distribute more than 5 kilograms of cocaine between 2007 and April 2012.
According to United States Attorney Peter Smith, Trudgen’s role in the conspiracy included obtaining cocaine in New York City and bringing it to Pittston, Pennsylvania, where he and his coconspirators distributed it at his business known as “Roy’s Used Tires” and at various bars in Luzerne County. A federal grand jury sitting in Scranton, Pennsylvania, indicted Trudgen and nine others on the conspiracy charge in May 2012. On November 13, 2013, Trudgen pleaded guilty to the Indictment. In addition to the 97-month term of imprisonment, Judge Kosik ordered that Trudgen be placed on supervised release for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Phoenix, Arizona Man Pleads Guilty to Federal Child Sexual Exploitation Charge in New MexicoRead the Press Release
ALBUQUERQUE – Noah John Carney, 20, of Phoenix, Ariz., entered a guilty plea this morning in Las Cruces federal court to attempting to induce a minor to produce child pornography. Under the terms of the plea agreement, Carney will be sentenced to ten years in federal prison followed by ten years of supervised release. Carney also will be required to register as a sex offender.
Carney was arrested in Oct. 2013, on a criminal complaint charging him with inducing a minor to engage in sexually explicit conduct and attempting to have minor produce child pornography. In March 2014, Carney was indicted and charged with attempting to produce child pornography, attempting to receive child pornography, and attempting to entice a minor to engage in sexual activity.
During today’s proceedings, Carney entered a guilty plea to Count 3 of the indictment charging him with attempting to entice a minor to engage in sexual activity. In his plea agreement, Carney admitted contacting the victim through an Internet game in Aug. 2013, and learning that the victim was 13-years-old. During that “chat” and subsequent telephone, email and text communications, Carney engaged in sexually explicit conversations with the victim. Carney asked the victim to send him nude photographs of her and sent her a nude photograph of him. He also discussed plans to travel to New Mexico to have sex with the victim.
According to court filings, the FBI performed a search of the victim’s cellular telephone and Kindle device, and found Carney’s nude photo and some of the “chats” between Carney and the child victim. In mid-Sept. 2013, the Albuquerque Police Department (APD) joined the FBI’s investigation and an APD officer assumed the victim’s on-line identity and began communicating with Carney. During an Oct. 3, 2013 “chat,” Carney asked the officer who was posing as the child victim for a sexually explicit photo, and on the following day, Carney sent the officer a video of an adult engaged in sexually explicit conduct. Carney was arrested in Phoenix by the FBI on Oct. 24, 2013, and was transferred to New Mexico to face the charges in this case.
Carney has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and APD, with assistance from the New Mexico Regional Computer Forensic Laboratory, and is being prosecuted by Special Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office. The case was filed as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Pakistani Man Sentenced in Counterfeit Viagrar and Cialisr CaseRead the Press Release
HOUSTON - Mohammad Jamal Rashid, 45, has been ordered to prison for conspiracy to illegal importation and traffic in counterfeit and misbranded Viagra® and Cialis,® and receiving and delivering misbranded drugs, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI) and Resident Agent in Charge Tommy R. Hennesy from the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI).Rashid pleaded guilty Friday, Jan. 10, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Rashid a total sentence of 27 months in federal prison for both counts of conviction. A non-U.S. citizen, he is expected to face deportation proceedings following his release from prison.
In arriving at the sentence, Judge Hittner noted the serious risks posed by the illegal importation of counterfeit prescription medications, Rashid’s direct and personal role in having the drugs sent to his home as well as the results of testing done on the drugs Rashid received. Specifically, it was noted that the Viagra® tablets contained less active ingredient than what was printed on the label. In addition, the Cialis® tablets did not contain any of its active ingredient, but rather the active ingredient of Viagra.® Judge Hittner also noted that the counterfeit and misbranded drugs Rashid imported looked like the authentic product. Under the Food, Drug and Cosmetic Act, a drug is considered misbranded when it does not contain the information written on its packaging and labeling. A drug is considered counterfeit when it, or its container or labelling, bears trademarks without the authority of the registered trademark holder.
“This conviction is the culmination of a multi-agency effort to prevent the smuggling and distribution of counterfeit pharmaceuticals into the United States,” said Moskowitz. “Intellectual property (IP) related crimes such as this one help remind us of the potential public safety hazards posed by IP thieves who care more about profits than people.”
Rashid, a legal permanent resident originally from Pakistan and residing in Houston, admitted he conspired to illegally import counterfeit and misbranded Viagra® and Cialis® to his home in Houston under a false name and with a false declaration waybill. A total of 3,200 counterfeit Viagra® and 4,000 counterfeit Cialis® were sent to the defendant’s home from China in open foil blister packs without packaging or labels.
Although the drugs sent to Rashid looked authentic, testing conducted by the FDA, Pfizer and Eli Lilly confirmed the drugs were not authentic and were in fact counterfeit and misbranded. The tablets had inconsistencies in physical appearance and packaging. Additionally, the counterfeit Viagra® had less of Pfizer’s active pharmaceutical ingredient than the 100 mg stated on the foil pack, while the counterfeit Cialis® did not contain any of Eli Lilly’s active pharmaceutical ingredient.
“Distributing counterfeit and misbranded drugs puts the health of the public at risk,” said Hennesy. “The FDA will continue to work with our law enforcement partners to protect unsuspecting consumers from unsafe and illegal products.”
Rashid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation into Rashid was conducted by HSI and FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Pair Sentenced in Child Support Collection Business and Drug ConspiracyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mark C. Simpson, 51, of Lake Park, Georgia, and Stuart C. Cole, age 59, of St. Petersburg Beach, Florida, were sentenced on May 1, 2014 for conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering in one case, and Mr. Simpson was sentenced for conspiracy to possess with intent to distribute cocaine and crack cocaine in a separate case. Mr. Simpson was sentenced to 160 months in federal prison on each of the three counts, to be served concurrently. Mr. Cole received a sentence of 188 months in federal prison. Mr. Cole’s imprisonment was ordered to be served following the completion of a federal sentence he is currently serving for a drug distribution conviction in the Southern District of Texas. The sentences were handed down by U.S. District Court Judge J. Louis Sands in Albany, Georgia. A District Court Judge also ordered that a later hearing will be set within 90 days to address the issue of restitution for the victims of the fraud conspiracy.Mr. Simpson had entered a plea of guilty to the charges on January 22, 2014. Mr. Cole entered a plea of guilty to the fraud and money laundering charges on January 17, 2014 in Valdosta, Georgia. As a part of his plea the pair admitted that from September 2007 through August 2009, they, and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia, and in other locations, known as Child Support Services of Atlanta and Child Support Services. Mr. Simpson, Mr. Cole and their associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with their company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. They would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for “child support” to their business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Simpson, Mr. Cole and their associates to fund their lifestyles including leases of homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. they admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as “love gifts”.
In a separate case, Mr. Simpson admitted to conspiring with a number of other individuals, including Cole, between 2007 and October 21, 2011, to distribute cocaine in Georgia. Simpson was stopped on I-85 in Troup County, Georgia on December 15, 2010, carrying approximately 13 kilograms of cocaine in furtherance of the conspiracy. The drugs were found in a hidden compartment around the transmission of the vehicle he was driving, which had Texas tags and had crossed the border into Mexico as recently as the day before the stop. The Defendant and the Government stipulated that Mr. Simpson possessed with intent to distribute between 15 and 50 kilograms of cocaine hydrochloride as a part of the drug distribution conspiracy.U.S. Attorney Michael Moore said, “Mr. Simpson and Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Simpson and Mr. Cole offered hope to the custodial parents, and then with the other hand, they snatched the money that they were counting on to support their children away from them. While Mr. Simpson was taking money meant for children, he was also involved in putting cocaine on the street. At least while these gentlemen are in federal prison, they won’t be able to prey on their communities.”
“The cooperation of state and federal officials in this case resulted in bringing to an end the despicable activities of these defendants, who caused virtually incalculable harm to many of our citizens who could least afford to be victimized. I am especially proud of the work of Investigator Calvin Thomas of the Governor’s Office of Consumer Protection and I congratulate the U.S. Attorney’s Office of the Middle District of Georgia for initiating a successful prosecution and bringing these criminals to justice,” said John D. Sours, Administrator, Georgia Governor’s Office of Consumer Protection.“Mr. Cole and Mr. Simpson exploited unsuspecting individuals and lined their pockets with money gained through deception and lies,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “The sentence today is a vital element in maintaining public confidence that these individuals and others who commit similar crimes will be held accountable.”
“U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated,” said Keith A. Fixel, Inspector in Charge, Charlotte Division.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug traffickers who distribute illegal and dangerous drugs are a true menace to society. These crack distributors have now been removed from the streets, largely because of the true spirit of cooperation that exists between all of the law enforcement agencies involved.”
The money and wire fraud and money laundering conspiracy case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor’s Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling that prosecution for the Government. The drug conspiracy case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation. Assistant United States Attorney Leah E. McEwen is handling that prosecution for the Government.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Opelika Doctor Indicted for Selling Misbranded Intrauterine DevicesRead the Press Release
Montgomery, Alabama - Dr. Yashica Robinson-White, 38 of Opelika, Alabama was indicted by a federal grand jury for health care fraud totaling over $60,000.00 and for introducing misbranded drugs into interstate commerce, announced U.S. Attorney George L. Beck, Jr..
The six-count indictment filed in U.S. District Court charges Yashica Robinson-White, an Opelika doctor, with committing health care fraud through her ob-gyn practice which provided birth control services to patients in the area.
The indictment charges that Robinson-White committed health care fraud by falsely billing claims to Medicaid for birth control devices known as intrauterine devices (“IUDs”). Robinson-White purchased these IUDs from a company in Great Neck, New York. Because the IUDs were made outside the United States and because the IUDs were not labeling in English, they are considered misbranded drugs under the Food, Drug and Cosmetic Act. The IUDs are treated as misbranded drugs under the law because they release the birth control drug, levonorgestrel. Further, because the IUDs were misbranded, Robinson-White obtained them cheaper than a lawful IUD.
Alabama Medicaid pays ob-gyn doctors like Robinson-White for birth control services such as inserting the IUDS. However, Robinson-White submitted false claims to Medicaid by failing to disclose that she was utilizing the cheaper misbranded IUDs she had purchased from a company in Great Neck, New York. The indictment alleges that from November 2010 through April 2012, Robinson-White billed Alabama Medicaid approximately $60,300.00 for these misbranded IUDs.
“The Medicaid Program is designed to help those families and women in need,” Beck said. “But when Medicaid pays for those services, it expects that the patients will receive legitimate, legal drugs and products. When a doctor uses unapproved drugs and products, the doctor interferes with the ability of the Alabama Medicaid Agency to deliver quality health care to the public. This office will continue to investigate and prosecute health care fraud of this kind aggressively and thoroughly.”
Beck pointed out that this case was brought to the attention of his office by the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) following a search of the offices of the company in Great Neck, New York, known as Pharmalogical, Inc., doing business as Medical Device King. “FDA-OCI identified more than 1,000 doctors and clinics across the country who had been receiving these misbranded drugs and products. We appreciate their close monitoring of drugs and medical devices being placed into commerce throughout the nation,” Beck noted.
Each count of the health care fraud scheme carries a maximum punishment of 10 years in prison and a $250,000.00 fine, while the misbranding count carries a maximum punishment of one year in prison and a $100,000.00 fine. Assistant U.S. Attorney Bob Anderson, who serves as Health Care Fraud Coordinator for the District, and Assistant United States Attorney Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Oklahoma Man Sentenced for Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 2, 2014, Jeremy Eades, 28, Oklahoma City, Okla., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials involving the sexual exploitation of minors. Eades pleaded guilty to the charge on
Jan. 13, 2014.Judge Hovland sentenced Eades to serve 11 years and three months in federal prison, to be followed by 20 years of supervised release. Eades was ordered to pay a $100 special assessment to the Crime Victim’s Fund and must register as a sex offender.
On Jan. 12, 2013, Eades was found to be in possession of visual depictions of minors engaging in sexually explicit conduct. At the time, Eades was residing in Minot.
The case was investigated by Homeland Security Investigations, the Minot Police Department and the North Dakota Bureau of Criminal Investigation, with assistance from the Ward County State’s Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Assistant U.S. Attorney Gary Delorme prosecuted the case.
North Miami Man Sentenced to Five Years for Fraud, Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA B Today Ricardo Jean-Louis, 24, of North Miami, Florida, was sentenced to five years in federal prison for theft of government property, access device fraud, and aggravated identity theft. The sentence was announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
In 2012, Jean-Louis was involved in a fraudulent scheme to obtain more than $300,000 in federal income tax refunds derived from tax returns that had been filed using the stolen identity information of multiple taxpayers.
Searches conducted by the North Miami Police Department at the residence of Jean-Louis in August 2013 revealed computer information identifying him as a member of the “Money Avenue” street gang known to be involved with identity theft and other economic crimes. Other information retrieved from his computer included the names, dates of birth, and social security numbers of more than 100 persons and records of attempted searches for the personal information of deceased individuals.
As part of his sentence, Jean-Louis was ordered to pay $71,061 in restitution to the Internal Revenue Service.
U.S. Attorney Marsh extended her grateful appreciation to the Internal Revenue Service, the United States Secret Service, and the North Miami Police Department, whose joint investigation led to the conviction in this case.
The government’s case was prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.
Miami Gardens Resident Charged with Possession of FirearmRead the Press Release
Indictment Stems from USAO’s Miami Gardens Violence Reduction Partnership
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Stephen Johnson, Chief, Miami Gardens Police Department, announce the indictment of Randy Antonio Thomas, 45, of Miami Gardens, for the alleged possession of a firearm by a convicted felon. Thomas is scheduled to make his initial appearance on Monday, May 5, 2014.
The indictment is, in large part, the result of the Miami Gardens Violence Reduction Partnership, launched by the U.S. Attorney’s Office in June 2013. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminals the Miami Gardens neighborhood, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
The indictment, returned on April 22, 2014, charges the defendant with possessing a firearm and ammunition after having previously been convicted of a felony offense, in violation Title 18, United States Code, Sections 922(g) and 924(e)(1). Because of his criminal history, Thomas faces increased penalties under the federal Armed Career Criminal Act. If convicted, Thomas faces a minimum of fifteen years in prison and possible maximum sentence of up to life in prison.
Mr. Ferrer commended the investigative efforts of the ATF and Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.
An indictment 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.
Mannford Woman Guilty of Fraudulently Receiving over $30,000 in Disaster ReliefRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today that a Mannford woman had pleaded guilty in federal court to fraudulently obtaining Federal Emergency Disaster Agency (FEMA) disaster assistance benefits made available to victims of the Mannford wildfires.
Kerry Lynn Rowell, 42, of Mannford, pleaded guilty before United States District Court Chief Judge Gregory K. Frizzell to a charge that she had made false statements to a Federal agency. Rowell faces the maximum statutory penalty of five (5) years imprisonment and a fine of $250,000. A sentencing date has been set for August 12, 2014.
According to court documents, from August 23, 2012 to September 23, 2013, Rowell made false statements and provided false documents to support her application for FEMA disaster assistance. Rowell claimed her primary residence was destroyed, when in fact she did not reside at that residence. The house was actually owned by her mother and was uninhabited, dilapidated, and had no utility service. None of the personal property she listed on the FEMA application was in the abandoned house when it was destroyed by the fire. Rowell fraudulently received $31,400 in FEMA disaster assistance benefits.
“Anyone with information that an individual may have defrauded the government in connection with a disaster may call the toll-free Department of Homeland Security’s Office of Inspector General Hotline at 1-800-323-8603,” said U.S. Attorney Williams. “Complaints may be made anonymously and confidentially via the official website (www.oig.dhs.gov), or by mailing DHS Office of Inspector General/MAIL STOP 0305, Attention: Office of Investigations—Hotline, 245 Murray Lane SW, Washington, DC 20528.”
The case was investigated by the U.S. Department of Homeland Security’s Office of the Inspector General and the United States Secret Service. Assistant United States Attorney Charles M. McLoughlin prosecuted on behalf of the United States.
If someone has any questions about how assistance benefits may be spent, has made a mistake when reporting damage, or has misrepresented losses, he or she may correct the situation immediately by calling the toll-free FEMA Helpline at 1-800-621-FEMA or 1-800-462-7585 (TTY) for the speech or hearing impaired.
Manager of Club Tropicana in Espanola Pleads Guilty to Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Edward Albert Marquez, 68, the manager and operator of Club Tropicana in Espanola, N.M., pleaded guilty this morning to violating the federal tax laws.
Marquez entered a guilty plea to a two-count felony information charging him with making and subscribing a false tax return, and aiding and assisting the presentment of a false tax return. Count 1 of the information charged Marquez with filing a tax return for tax year 2009 in which he reported no income from Club Tropicana when in fact he received income from Club Tropicana resulting in a tax loss to the United States of $32,701. Count 2 charged Marquez with assisting in the preparation of a tax return for Club Tropicana for tax year 2009 which failed to report income and resulted in a tax loss to the United States of $81,040.
In his plea agreement, Marquez admitted filing false tax returns and assisting in the presentation of false tax returns to evade the assessment of federal taxes by the IRS. The plea agreement states that from 2007 to 2009, Marquez “skimmed” money from Club Tropicana, a bar and package liquor store in Espanola which Marquez operated and managed. Marquez knowingly provided information that falsely underreported the gross income generated by Club Tropicana in the club owner’s tax returns for tax years 2007, 2008 and 2009. Marquez also took cash from Club Tropicana’s gross receipts, deposited the cash in his personal bank account, and failed to report this income in his 2007, 2008 and 2009 tax returns. Today, Marquez admitted that the false returns he filed and caused to be filed resulted in an aggregate of $297,842 in tax losses to the United States.
At sentencing, Marquez faces a statutory maximum penalty of three years in federal prison on each of the two charges. Under the terms of his plea agreement, Marquez also will be required to pay $297,842 in restitution to the IRS. Marquez was released on conditions of release and under pretrial supervision pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Stephen R. Kotz.
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Marquez Information
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Marquez Plea Agreement
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Man Who Set Fire to Neighbours Nightclub on New Year's Eve Pleads Guilty to Federal Arson ChargeRead the Press Release
A former Bellevue resident who set fire to a Seattle nightclub just after midnight on New Year’s 2014, pleaded guilty today in U.S. District Court in Seattle to arson, announced U.S. Attorney Jenny A. Durkan. MUSAB MOHAMMED MASMARI, 30, was originally charged in King County Superior Court, but pleaded guilty today to a criminal charge filed yesterday in federal court. Under the terms of the plea agreement, both sides will recommend the mandatory minimum five years in prison when MASMARI is sentenced on July, 31, 2014. U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can sentence MASMARI up to the maximum 20 years allowed by law.
“This defendant violated people’s right to gather safely: he put more than 700 lives at risk when he purposely started a fire at a crowded nightclub on New Year’s Eve,” said U.S. Attorney Durkan. “Thankfully, the staff and patrons at Neighbours moved quickly to evacuate the club and extinguish the flames. Federal prosecution ensures a five year mandatory minimum sentence – one that is more than double the potential sentence faced in state court.”
“The collaboration in this case between the U.S. Attorney’s Office, the King County Prosecutor’s Office and state and federal law enforcement authorities has resulted in swift and serious consequences for the defendant,” noted King County Prosecutor Dan Satterberg. “Although the fire was quickly put out, Mr. Masmari’s actions put hundreds of people at risk. The sentence he faces in federal court reflects the inherent danger of his actions.”According to the facts admitted in the plea agreement, MASMARI carried a one gallon tank of gas into the club in Seattle’s Capitol Hill neighborhood around 11:30 PM on December 31, 2013. He concealed the gas tank in a shopping bag. Just after midnight, MASMARI poured some of the gasoline on a staircase in Neighbours and hid the gas container behind a planter at the top of the stairs. The container was still more than half full of gasoline. At 12:06 AM, MASMARI lit the gas he had poured on the stairs and hastily left the club. MASMARI was identified as a suspect following a review of surveillance videos. He was arrested by the Seattle Police Department and FBI on February 1, 2014 as he was preparing to travel to Sea-Tac Airport for international travel. He has been incarcerated in King County since his arrest and was transferred to federal custody today.
The case was investigated by the Seattle Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg and Senior Deputy King County Prosecuting Attorney Susan Storey.
Lafayette Man Sentenced to 168 Months in Prison for Receiving Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Gary Berry, 23, of Lafayette, was sentenced Thursday by U.S. District Judge Richard T. Haik to 168 months in prison and 15 years of supervised release for receiving child pornography on his computer. He will also be required to register as a sex offender.
According to evidence presented at the guilty plea on September 5, 2013, law enforcement detected Berry using file-sharing software to collect and distribute prepubescent child pornography online in 2012. Law enforcement searched Berry’s home and found hardcore prepubescent child pornography, some involving infants, on his computer.
The FBI and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Those concerned may leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Jury Convicts Former Wichita Man of $2.7 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Wichita, Kan., man was convicted in federal court today of his role in a $2.7 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 48, of Round Rock, Texas, formerly of Wichita, was found guilty of conspiracy to commit wire fraud and five counts of wire fraud.
Evidence presented during the trial indicated that Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in 10 separate loans for five properties, which were obtained by false statements in loan applications and other documents. Brown lied to lenders about his income, his employment, his assets and liabilities, his intent to occupy the properties and other matters. Mortgage loans totaling $2.7 million were approved to purchase properties in Greenwood, Mo., Kansas City, Mo., Overland Park, Kan., and Leawood, Kan., all within a period of three months.
Brown and co-conspirators structured the home purchases in such a way that Brown would receive money from the loan proceeds without the knowledge or consent of the lenders. Brown received more than $200,000 in illegal kickbacks. In order to receive the kickbacks without the lenders finding out, Brown submitted false invoices to the title companies closing the loans. The invoices were in the names of businesses that claimed to be entitled to payment for services supposedly rendered.
All the loans went into default and the properties were foreclosed.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, April 28, 2014.
Under federal statutes, Brown is subject to a sentence of up to 120 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. A sentencing hearing is scheduled for Aug. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI.
Jamestown Nurse Sentenced for Conspiring to Distribute OxycodoneRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Samilyn Olson, 47, of Jamestown, N.Y., who was convicted of conspiracy to distribute oxycodone, was sentenced to one year home detention and three years of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown. The clinic provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner=s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York and then distributed.
The sentencing is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Acting Chief Stephen Colville, and the Jamestown Police Department, under the direction of Chief Harry Snellings.Jamaican Man Sentenced for Role in Greece Triple Murder and for Assaulting Federal Jail GuardsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Andrew Wright, 44, a citizen of Jamaica, was sentenced to four consecutive life terms, plus five years, by U.S. District Judge Charles J. Siragusa for participating in a large, multistate marijuana distribution conspiracy and murdering three men in furtherance of that conspiracy in the Town of Greece in March, 2010.
“Today’s sentencing brings to a successful conclusion a very violent and tragic episode in our community,” said U.S. Attorney Hochul. “These defendants will never again inflict further violence on the residents of Western New York. This case is also a great example of the cooperative efforts of our Office working closely with our law enforcement partners at all levels. We will continue to pursue members of other violent criminal organizations with the same vigor until such gangs are no more.”
In December, 2013, a jury convicted Wright and his two co-defendants, Richard Anderson and Aston Johnson of murdering Robert Moncriffe, Mark Wisdom and Christopher Green in Greece on March 9, 2010. The evidence presented by the Government at trial established that in the days prior to March 9, the defendants traveled to Rochester from Phoenix, Arizona and planned the murders. The evidence also showed that Anderson, Johnson and Wright targeted the victims because they believed Moncriffe, Wisdom and Green were cheating them out of proceeds from the sale of marijuana. The defendants went to the apartment in Greece where the three victims lived. They bound and gagged Christopher Green and waited for Moncriffe and Wisdom to arrive home. Once they arrived, the defendants shot the three men to death at the same time.
In a separate case, Wright was also sentenced for assaulting two federal guards at the Buffalo Federal Detention Facility in Batavia New York. A jury convicted Wright of these assaults in May 2011, but sentencing had been postponed pending the outcome of the triple homicide and marijuana distribution case. Judge Siragusa sentenced Wright to 20 years on each of the two counts of assaulting the federal guards, such sentences to run concurrent to each other, but consecutive to the life terms.
In addition to sentencing the defendant to life in prison, Judge Siragusa also imposed a $1,000,000 forfeiture judgment against defendant Wright as well as the forfeiture of three guns seized at the house in Phoenix, Arizona.
Co-defendants, Richard Anderson and Aston Johnson, had been previously sentenced on March 11, 2014, to life sentences.
The investigation of the assault of the two federal guards in Batavia was handled by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Field Office Director, Michael T. Phillips.
Today’s sentencing is the result of an investigation conducted by the Greece Police Department under the direction of then Chief Todd Baxter and current Chief Patrick Phelan; the Federal Bureau of Investigation; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief Michael Ciminelli; the U.S. Marshal’s Service under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Department, under the direction Sheriff Patrick O’Flynn; the Monroe County Crime Analysis Center; the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff’s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.Intelligence Specialist at Southern Command Charged with Accepting Bribes and Helping Steal Purported Drug ProceedsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a two-count information charging Jose Emmanuel Torres, 37, of Cooper City, in count one, with federal bribery, in violation of 18 U.S.C. §§201(b)(2)(A) and (B); and, in count two, with exceeding authorized access to a government computer, in violation of 18 U.S.C. §§1030(a)(2)(B) and (c)(2)(B)(i) and (ii) and 18 U.S.C. §2.
Jose Emmanuel Torres, who was previously arrested in February 3, 2014, was arraigned today before U.S. Magistrate Judge Alicia Valle in Fort Lauderdale. The criminal information has been assigned to U.S. District Judge Robin S. Rosenbaum.
According to the information, from approximately January 2012 through December 13, 2013, Torres was assigned to the Department of Defense, Defense Intelligence Agency (DIA). As part of his official duties with the DIA, Torres worked with agents from Department of Homeland Security, Immigration and Customs Enforcement, and the Drug Enforcement Agency (DEA) collecting intelligence regarding persons who were allegedly involved in terrorism and drug trafficking. During the course of his duties with DIA, Torres interviewed a cooperating individual (CI) who was attempting to gain legal residence status in the United States and had provided Torres and other agents of the United States with information regarding persons involved in drug trafficking and terrorism. Torres told the CI that he had used his influence to have the CI arrested on immigration charges. In or about September 2013, Torres asked the CI for $10,000. The CI understood that, if he did not give Torres the money, Torres could use his influence to have the CI arrested again. Torres continued to ask for the $10,000 and promised that the CI would not go back to jail even if he [Torres] had to put his “neck on the line.” In November 2013 the CI paid Torres $6,000 in order for Torres to use his influence to assist the CI with the CI’s immigration proceedings.
Torres also caused another person to access a government computer and to obtain information from the NADDIS database operated by the DEA in order to commit a theft of $500,000 of drug proceeds.
If convicted, Torres faces a statutory maximum term of 20 years in prison and a fine of the greater of $250,000 or three times the money received.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the Drug Enforcement Administration and the United States Secret Service for their assistance. 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.
Illegal Sale of Stem Cell Case Lands Engineer to Federal PrisonRead the Press Release
HOUSTON – Lawrence Stowe, 61, has been ordered to prison for his role in a conspiracy to introduce misbranded and unapproved new drugs into interstate commerce, announced United States Attorney Kenneth Magidson along with Tommy Hennesy, resident agent in charge of the Food and Drug Administration (FDA) - Office of Criminal Investigations. Stowe pleaded guilty Sept. 7, 2012.
Today, U.S. District Judge Gray Miller sentenced Lawrence Stowe, 61, a total sentence of 78 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Miller emphasized that Stowe “…took advantage of people dying and offered them hope.” Restitution was also ordered in the amount of $419,358 to be paid jointly and severally with co-defendant Francisco Morales, 54, of Brownsville. Morales was previously sentenced to 60 months in prison.
Stowe, of Moline, Ill., admitted that beginning in January 2006, he utilized several businesses, Stowe BioTherapy Inc. and The Stowe Foundation to advertise and promote a medical treatment protocol for the treatment of amyotrophic lateral sclerosis (ALS) also known as Lou Gehrig’s disease, multiple sclerosis (MS), Parkinson’s and other neurological diseases. This treatment protocol, which was named “Applied Biologics,” consisted of supplements, vaccines, patient specific transfer factors and ultimately stem cell therapy. Stowe falsely represented to patients that this treatment protocol had been reviewed by all levels of the FDA and was effective in the treatment of ALS, MS and Parkinson’s. There is currently no cure for these diseases.
At the hearing, testimony was presented by a sister of a victim in the scheme detailing how she cared for her brother in the last year of his life when he met Stowe and paid him $47,000 with the false hope of a cure. She said her brother did not have much cash so the $47,000 was all his savings. Her brother was preyed upon and never helped medically by Stowe, she said.
“Preying on those who are among our most vulnerable consumers – those who are without hope of a cure for their conditions – is illegal and just plain wrong,” said Hennesy. “The FDA helps protect the public health, and we will move firmly against those who attempt to profit from the sale of false hope and fraudulent health products.”
Stowe entered a plea of guilty to conspiring with Morales and others to introduce supplements, vaccines and stem cells that were not approved by the FDA as well as introducing a misbranded and unapproved new drug called Immune Factor G-40 into interstate commerce, which had not been reviewed or approved by the FDA for human use.
Stowe further admitted that one of the unapproved drug products was a product called patient specific transfer factors. In order to produce this product, he obtained the services of a pathologist in Bryan/College Station. He then directed patients to send samples of their blood to the pathologist for the purpose of growing bacteria that would later be used to create the patient specific transfer factors. Stowe hired a laboratory in South Carolina to receive the bacteria which was then fed to chickens. The eggs produced by these chickens were later freeze dried and the powder from the eggs were placed in capsules and sold to patients. Stowe admitted he knew the manufacturing process and the product itself was not approved by the FDA for that treatment of human diseases.
This case was presented on the CBS News program 60 Minutes in January 2010.
Previously released on bond, Stowe was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The cases were investigated by the FDA and the FBI with assistance from Internal Revenue Service-Criminal Investigation. Former Assistant United States Attorney Samuel Louis and Assistant U.S. Attorney Cedric L. Joubert prosecuted the case with assistance of Carol Wallack with the Department of Justice Civil Division’s Consumer Protection Branch.
HSI Arrests Former Special Education School Bus Driver on Sexual Exploitation ChargesRead the Press Release
SAN JUAN, PR – In the first case since 1945 in the District of Puerto Rico involving the transportation of an adult with the intent to engage in criminal sexual conduct, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents arrested a man in Orocovis today on sexual exploitation charges, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today, US Magistrate Judge Camille Vélez-Rivé authorized the criminal complaint charging Edwin Maldonado-Burgos with violating Title 18, United States Code, Section 2124.
HSI special agents arrested Maldonado-Burgos, 57, of Orocovis, after an investigation that stemmed from a referral from the Puerto Rico Department of Justice revealed that he transported a then 18-year-old mentally-disabled female, identified in the criminal complaint as “Jane Doe,” in order to engage in criminal sexual conduct.
“Today, the US Attorney’s Office is expanding its net of protection over the citizens of Puerto Rico by prosecuting, for the first time in more than 68 years in this District, a section of the White Slave Traffic Act, that protects any individual, not just minors, from criminal sexual exploitation,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “With today’s arrest let it be known that federal authorities will use every resource at their disposal, and every law on the books, to protect all victims of sexual exploitation.”
“Few cases are more heinous and despicable than one involving the sexual exploitation of a minor. In this case, though, we are faced with a case involving the sexual exploitation of a mentally-disabled adult woman, whose cognitive development is akin to that of a sixth grader,” said Angel M. Melendez, special agent in charge of HSI San Juan. “Have no doubt, HSI will not tolerate this aberrant behavior against a very vulnerable sector of our society whether the victim is a minor or, as in this case, an adult with the mental capacity of a minor.”
According to the criminal complaint, in or about October 2012, Maldonado-Burgos, a school bus driver, picked up Jane Doe at her Orocovis school and transported her to a deserted area in order to engage in criminal sexual conduct. Jane Doe, who is currently 19 years old, was a student in a specialized school for the mentally handicapped. The charging document further alleges that Jane Doe asked Maldonado-Burgos to stop the school bus so she could use the bathroom. When she walked back towards the bus, Maldonado forcibly grabbed her and sexually assaulted her.
The criminal complaint also alleges that when Jane Doe asked Maldonado-Burgos what would happen if they had baby, he said that he would “kill himself.” The investigation revealed that approximately one month after the incident, Jane Doe began to feel sick. As a result, her mother took her to the doctor thinking the she might be ill. When all tests came up negative, the doctor suggested doing a pregnancy test, which ultimately came up positive. After finding out that Jane Doe was pregnant, Maldonado-Burgos threatened to kill her and the baby if she did not have an abortion. A subsequent DNA test conducted as part of the Puerto Rico Department of Justice’s investigation revealed, with an accuracy of 99.9%, that Maldonado-Burgos was in fact the father of Jane Doe’s child.
Maldonado-Burgos will be brought before U.S. Magistrate Judge Camille Vélez-Rivé later today for his initial appearance. He is expected to be transferred to the Metropolitan Detention Center in Guaynabo to await the outcome of his case.
The case is being prosecuted by Assistant U.S. Attorney Marshal Morgan. If convicted, the defendant could face up to ten years in prison. A criminal complaint is an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Granite Bay Man Arrested for $6.8 Million Bank FraudRead the Press Release
SACRAMENTO, Calif. — Michael T. Sahlbach, 60, of Granite Bay, was arrested today for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the sealed indictment yesterday; it was unsealed after his arrest today.
According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.
According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.
The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.
Sahlbach is scheduled to make his initial appearance today at 2:00 p.m. before a United States Magistrate Judge.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Georgia Man Pleads Guilty to Wire FraudRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Rodney Walker, 44, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to wire fraud. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant created an investment loan scheme which resulted in $175,000 dollars in financial losses to an investment company located in the Western District of New York. Walker represented to the victim investment company that he and a co-conspirator could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the investment company that he could monetize the stand by letter of credit which would provide the investment company with $100 million dollars in loans. As part of the scheme, Walker required the investment company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The investment company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirator, used the funds for their own purposes.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 19, 2014 at 12:00 p.m. before Judge Arcara.Former Washington University Manager Indicted on Federal Computer Fraud ChargesRead the Press Release
St. Louis, MO – DAVID SHEN was indicted on charges involving unauthorized access to protected financial information. The indictment was returned April 23, but remained sealed until Mr. Shen surrendered to authorities earlier today.
According to the indictment, Shen had been employed with the Washington University Investment Management Company. In October 2011, Shen resigned from his employment in lieu of termination. The indictment alleges that after he left Washington University, Shen downloaded protected and sensitive financial information without authorization, and he attempted to gain access to additional sources of information.
Shen, St. Louis, Missouri, was indicted by a federal grand jury on two felony counts of computer fraud and one felony count of wire fraud.
If convicted, each count of computer fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; wire fraud carries a maximum of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Liberty Man Indicted for $6.2 Million Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Liberty, Mo., man has been indicted by a federal grand jury for a $6.2 million series of investment fraud schemes.
Henry Thomas Hammond, 57, of Ponte Vedra Beach, Fla., formerly of Liberty, was charged in a 12-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 30, 2014. The indictment was unsealed and made public today upon Hammond’s arrest and initial court appearance in Florida.
Hammond owned, operated or was involved in several businesses, including Longhorn Construction, Inc.; Longhorn Properties, LLC; Longhorn Development Group, Inc.; Longhorn Construction, North American Investment Group, Inc., and others.
The federal indictment alleges that between July 16, 2008, and Nov. 24, 2010, Hammond engaged in several schemes to defraud individuals and entities by soliciting investments to support a Ponzi scheme. Hammond allegedly promised investors an exorbitant rate of return on their investments, when in fact he used those investments for his own personal expenses or to pay other investors as part of the Ponzi scheme. Hammond allegedly deposited investors’ funds into his personal bank account to make vacation home payments for a residence at Table Rock Lake, for example, and for elaborate hunting excursions.
Blackberry Development Scheme
Among the fraud schemes cited in the indictment, one example involves the Blackberry commercial development in Liberty, which Hammond never completed.
On Oct. 16, 2007, Patriots Bank approved a loan to Duffey Land Development, LLC, for construction financing for two commercial retail/office buildings in the Blackberry development. Duffey contracted with Longhorn Construction to build two buildings, with Hammond as the general contractor. Hammond was responsible for paying the sub-contractors for work performed. Hammond submitted invoices received from the sub-contractors to Duffey. Duffey submitted a draw request to Patriots Bank. The funds were disbursed from the bank to Duffey, then from Duffey to Hammond. It was Hammond’s responsibility to pay the sub-contractors.
The indictment alleges that Hammond received approximately $1,203,331 from January 2008 through December 2008, but that he fraudulently used funds for personal expenses, such as a trip to Las Vegas, hunting, a lake house, and money to his wife. During this year, Hammond spent approximately $48,314 for hunting expenses. Hammond sent approximately $45,500 to Hogan Land Title to purchase a large lake home. A total of $298,814 was diverted for personal use from the construction draw process instead of paying subcontractors.
In October 2009, International Finance and Trust (IFT) entered into a contract with Hammond involving investing $3 million to purchase land for development of the Blackberry project. Another investor provided $1 million for a 25 percent ownership stake in Blackberry. After receiving $2 million in funding, the indictment says, Hammond transferred it to an account held in the United Arab Emirates to be utilized in an overseas investment platform. Investors were not told the funds were being utilized for the investment platform. Hammond allegedly received approximately $499,950 from IFT’s investment and deposited the funds into one of his companies’ bank accounts.
Wire Fraud Scheme
During a 27- month period from Aug. 26, 2008, to Nov. 22, 2010, Hammond allegedly used his various wire fraud schemes to pay for his personal expenses, including:
(a) $1,303,632 in personal withdrawals made by Hammond;
(b) $961,707 for Hammond’s lake house, valued at $2.25 million;
(c) $777,742 for purported business expenses for Hammond’s companies;
(d) $442,962 for Hammond entertainment/retail;
(e) $325,696 for Hammond hunting excursions/taxidermy; and
(f) $279,628 for personal vehicle purchases.Bankruptcy Fraud
According to the indictment, Hammond filed a Chapter 13 Bankruptcy on May 17, 2012,
to stop foreclosure on his Liberty residence. In his bankruptcy filings, Hammond failed to disclose personal guarantees provided to several investors. Hammond was dismissed from the Chapter 13 Bankruptcy on Sept. 17, 2012, because he failed to make payments as agreed to in his bankruptcy plan. The bankruptcy case was closed on March 13, 2013.False Seal Scheme
In connection with his scheme to defraud, Hammond fraudulently used the Department of Justice emblem and “U.S. Department of Justice, Office of Legislative Affairs” letterhead on a Sept. 30, 2009, letter. The fraudulent letter was purportedly written on behalf of the U.S. Assistant Attorney General to U.S. Senator Lindsey Graham. Hammond used the letter with the letterhead and seal to divert attention from his involvement in investment fraud and to convince investors or other unindicted conspirators to turn over controls of some investments.
The federal indictment charges Hammond with two counts of bank fraud, four counts of wire fraud, one count of bankruptcy fraud, four counts of money laundering and one count of using the seal of the Department of Justice on a fraudulent letter.
The indictment also contains a forfeiture allegation, which would require Hammond to forfeit to the government any property obtained as a result of the alleged violations, including $6,250,289.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.Former Head of Timeshare Resale Scam Earns 8 Year Federal Prison SentenceRead the Press Release
Follow @SDILNewsJose Manuel Goyos, Jr., 27, of Jupiter, Florida, was sentenced today to 96 months in federal prison for his role in a fraudulent telemarketing scheme that stole $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Goyos pled guilty on December 30, 2013, to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. He has been in federal custody since his arrest in early September of last year and will begin serving his sentence immediately.
Goyos was the registered agent and co-owner of C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners, falsely representing or implying that the company had found someone who wanted to buy the person’s timeshare. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. Once the victims had paid the advance fee, however (usually by giving the telemarketer their credit card information), the fraudulent company simply pocketed the money. There were no interested buyers, the closings did not occur, and the timeshares were not resold.
United States Attorney Wigginton summarized the scam: “To discourage and defeat subsequent chargeback attempts, PTS sent victims written contracts to sign and return – contracts that made no mention of the promised sale and obligated the company merely to provide marketing and advertising services. Because the original sales calls were not recorded, PTS could later claim that marketing and advertising was all that had ever been promised, and that any contrary impression the victim may have formed – for instance, that there was a concrete offer for the customer’s unit or some genuine interest by a qualified buyer – was simply a misunderstanding. In fact, all of this was simply an act of thievery. I urge all consumers to follow this tried and true advice: if you get a call from someone you do not know and trust, promising something that sounds too good to be true, it is a scam. Hang up. Then, please report the call to the proper authorities.”
Victims who called PTS to check on the status of their transactions were directed to customer service representatives, managed by Goyos, whose goal was to perpetuate the fraud by delaying and discouraging chargebacks and complaints. To accomplish that goal, representatives would lie to victims, assuring them that despite some phony, unexpected delay, their timeshare unit was still going to be sold. Repeat callers were given a series of bogus excuses, none of which had any basis in fact. By instilling a false sense of hope, PTS aimed to delay the chargeback process beyond the time that most credit card issuers allow for disputes.
In pronouncing the sentence, the Honorable David R. Herndon, Chief Judge of the United States District Court for the Southern District of Illinois, called timeshare resale fraud – an industry that recruits recovering drug addicts to steal from the financially vulnerable – “the most despicable scam in the world.” Judge Herndon also observed that Goyos was a bright young man who, had he not committed the crime, “probably would have had his picture on the cover of a business journal.” “Instead,” he remarked, “his picture’s being taken with numbers under his chin.”
As part of his sentence, Goyos was ordered to pay a $1,000 fine. Due to the large number of victims and the lack of records showing which customers received refunds, restitution in the case was waived. When his prison sentence has been served, Goyos will spend three years on supervised release, during which time he will be prohibited from engaging in any employment that involves securities investment or otherwise places him in a fiduciary role. He will also not be allowed to do any telemarketing work without the express consent of the United States Probation Office.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant United States Attorney Nathan D. Stump.
Former CEO of Paramount Management Charged in Manhattan Federal Court with FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ALEX V. EKDESHMAN, 41, of Holmdel, New Jersey, was arrested this morning on commodities fraud, wire fraud, and mail fraud charges. EKDESHMAN is expected to be presented today in Manhattan federal court before United States Magistrate Judge Michael H. Dolinger.
U.S. Attorney Preet Bharara said: “As alleged, Alex Ekdeshman took over a million dollars from more than a hundred investors under false pretenses, using money meant for foreign exchange transactions for other purposes, including to buy personal items and pay family members. When an investment manager lies about what he’s doing with your money, that is not just dishonest, it is a federal crime.”
Assistant Director in Charge George Venizelos said: "While risk is inherent in the investment world, that risk should not include reliance on a greedy investment professional who takes his client's money through misrepresentations, putting his own financial interests above those he promised to serve. As alleged, Ekdeshman broke the law when he traded on his client's trust and lied to investors for personal gain. The FBI is committed to protecting innocent investors and maintaining the integrity of the American financial markets."
According to the three-count Complaint unsealed in Manhattan federal court:
From at least in or about May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.58 million from approximately 115 investors.
Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management.
EKDESHMAN is charged with one count of commodities fraud, one count of wire fraud, and one count of mail fraud. The commodities fraud count carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The wire and mail fraud counts each carry a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica A. Masella and Benjamin Naftalis are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
Florida Man Involved in $80 Million Drug Theft from Eli Lilly Warehouse in Enfield Pleads GuiltyRead the Press Release
Follow @USAO_CT
The United States Attorney for the District of Connecticut today announced that AMAURY VILLA, 39, a citizen of Cuba last residing in Miami, Florida, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to federal conspiracy and theft charges stemming from his participation in the March 2010 theft of approximately $80 million in pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Connecticut.
According to court documents and statements made in court, between January and March 2010, AMAURY VILLA, his brother Amed Villa and others conspired to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. In early 2010, AMAURY VILLA and others traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. In the evening of March 13, 2010, a tractor trailer was driven to the parking lot of the Eli Lilly warehouse facility. Later that evening, AMAURY VILLA and Amed Villa checked for security in the front area, climbed onto the roof, used tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Thereafter, AMAURY VILLA and his co-conspirators loaded approximately 49 pallets of pharmaceuticals into the tractor trailer, which they had backed up to the loading dock of the warehouse. The tractor trailer then traveled to Florida.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $80 million.
AMAURY VILLA, who has been in federal custody since May 2012, pleaded guilty to one count of conspiracy, which carries a maximum term of imprisonment of five years, four counts of theft from an interstate shipment, each of which carries a maximum term of imprisonment of 10 years, and one count of interstate transportation of stolen property, which carries a maximum term of imprisonment of 10 years.
Judge Arterton scheduled sentencing for July 24, 2014.
On October 14, 2011, a search of a storage facility in Florida recovered pharmaceuticals that had been stolen from the Enfield warehouse. AMAURY VILLA subsequently pleaded guilty in the Southern District of Florida to conspiracy and possession of stolen goods charges and, on November 26, 2012, he was sentenced to 140 months of imprisonment.
Amed Villa has pleaded guilty in the District of Connecticut to conspiracy and theft charges related to the Enfield theft and multimillion dollar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Florence Couple Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM -- A federal grand jury this week indicted a Florence couple on multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 107-count indictment filed in U.S. District Court charges PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, in connection with 53 pornographic images of the child produced between the summer of 2010 and January 2013. The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
"I am committed to protecting children from exploitation and sexual abuse, and in no case more so than cases like this, where children are hurt by those closest to them," Vance said.
"This case emphasizes the need for anyone with information about the potential sexual exploitation of children to report it immediately," Schwein said. "The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information call the tip line at 1-800-THE-LOST."
The indictment charges 106 counts of producing child pornography and one count of possessing child pornography. For each photograph involving sexual exploitation of the child, the defendant involved faces two charges:
• enticing or coercing a minor to engage in sexually explicit conduct for the purpose of creating an image of the conduct, and
• as the parent, legal guardian or person having control of a minor, permitting that child to engage in sexually explicit conduct for the purpose of producing an image of it.Patricia Ayers faces all 106 production counts and one count of possession of child pornography. Matthew Ayers faces 50 counts of producing child pornography and one count of possessing child pornography.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt.
Florence Couple Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM -- A federal grand jury this week indicted a Florence couple on multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 107-count indictment filed in U.S. District Court charges PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, in connection with 53 pornographic images of the child produced between the summer of 2010 and January 2013. The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
"I am committed to protecting children from exploitation and sexual abuse, and in no case more so than cases like this, where children are hurt by those closest to them," Vance said.
"This case emphasizes the need for anyone with information about the potential sexual exploitation of children to report it immediately," Schwein said. "The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information call the tip line at 1-800-THE-LOST."
The indictment charges 106 counts of producing child pornography and one count of possessing child pornography. For each photograph involving sexual exploitation of the child, the defendant involved faces two charges:
• enticing or coercing a minor to engage in sexually explicit conduct for the purpose of creating an image of the conduct, and
• as the parent, legal guardian or person having control of a minor, permitting that child to engage in sexually explicit conduct for the purpose of producing an image of it.Patricia Ayers faces all 106 production counts and one count of possession of child pornography. Matthew Ayers faces 50 counts of producing child pornography and one count of possessing child pornography.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt.
Federal Jury Finds Pharmacy Owner and Manager Guilty of Conspiracy to Distribute Controlled SubstancesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Jeffrey R. Green (50, Cape Coral), the owner of Gulf Coast Medical Pharmacy, and Karen S. Hebble (44, Cape Coral), the manager of this pharmacy, guilty of conspiracy to possess with intent to distribute and distribution of Oxycodone and Alprazolam, and conspiracy to commit money laundering. In addition, Green was convicted of six counts of money laundering. The jury found Hebble guilty of two counts of money laundering. Each faces a maximum penalty of 20 years in federal prison for conspiracy to possess with intent to distribute and distribution of the controlled substances. Both face a maximum penalty of 10 years’ imprisonment for conspiracy to commit money laundering and each count of money laundering. The sentencing hearing is scheduled for July 28, 2014.
A federal grand jury returned a superseding indictment against Green and Hebble on July 24, 2013.
According to testimony and evidence presented at trial, from 2009 through October 6, 2011, Green and Hebble conspired with each other, and with others, to possess with intent to distribute and to distribute Oxycodone and Alprazolam. Green and Hebble filled prescriptions that were not issued for legitimate medical purposes and distributed controlled substances without the supervision and control of a licensed pharmacist at Gulf Coast Medical Pharmacy, which Green owned.
This case was investigated by the Drug Enforcement Administration Task Force, which includes the Naples Police Department, Charlotte County Sheriff’s Office, and other local law enforcement agencies. It is being prosecuted by Assistant United States Attorneys Yolande G. Viacava and Robert P. Barclift.
Federal Criminal Complaint Charges North Smithfield Resident with Allegedly Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Derek Felicio, 41, of North Smithfield, R.I., was ordered detained in federal custody on Thursday pending a detention hearing later today on charges of allegedly possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) in New England.
Felicio was arrested on Thursday following an investigation by HSI agents into Felicio’s alleged possession and distribution of child pornography.
According to information presented to the court, in March 2013, Felicio allegedly contacted an undercover HSI agent in Salt Lake City, UT, on a website which is purported to contain and share images of child pornography. During an exchange of emails, Felicio allegedly sent HSI agents 9 photographs depicting the lascivious display of prepubescent girls. Further investigation by HSI agents revealed that the images were allegedly sent from an IP address in North Smithfield, R.I.
In October 2013, Felicio provided oral and written consent to HSI agents in Rhode Island for the seizure and search of two computers at Felicio’s residence. A forensic examination of the computers conducted by the Rhode Island State Police Internet Crimes Against Children task force resulted in the identification of approximately 90,000 images and 555 videos depicting child pornography.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Distribution of child pornography is punishable by a statutory penalty of a minimum of 5 years and up to 20 years imprisonment and a fine of up to $250,000. Possession of child pornography is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Facebook Predator Faces Child Pornography ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Melvin Barber Bridgers, III (34, Tarpon Springs) has been charged in a criminal complaint with production, receipt, distribution, and possession of child pornography. If convicted, he faces a mandatory minimum sentence of 15 years, up to 30 years’ imprisonment on the production charge and a mandatory minimum sentence of 5 years, up to 20 years in prison on each of the receipt and distribution charges. For the possession of child pornography charge, he faces up to 10 years in federal prison.
Bridgers was arrested on May 1, 2014, and made his initial appearance before U.S. Magistrate Judge Elizabeth A. Jenkins, in Tampa. He was detained pending further proceedings.
According to the criminal complaint, between about November 30, 2013, and May 1, 2014, Bridgers used multiple Facebook accounts to pose as a teenage female and befriend other minor females between the ages of 11 and 16. After befriending the minor females, Bridgers would coerce them into sending sexually graphic photographs to him on Facebook. Bridgers would then threaten the minor females with exposing the sexually graphic photos to their parents or to other Internet users, to extort the minor females into sending him additional sexually graphic photographs and videos. He would also instruct the minor females on how to pose sexually in the photographs. Bridgers, who moved to Tarpon Springs from North Carolina in the fall of 2013, came to the attention of law enforcement when a 12-year-old victim in the Houston, Texas area reported the Facebook activity to her mother, who then contacted the authorities.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
According to investigators, a "disturbing trend" is emerging in which child predators are increasingly using the Internet and social media sites such as Facebook to entice children to produce and share sexually explicit material online. During recent operations, HSI and ICAC investigators encountered various child predators chatting online with minors about sexual topics, sending them obscene images, encouraging them to produce nude or sexual photos and videos, and attempting to meet them in person to engage in sexual activity. In some cases, child predators are also sexually extorting, or "sextorting," the minors into producing additional and increasingly graphic images and videos. HSI is asking that anyone with additional information about potential victims this case come forward by contacting ICE-HSI tip line at 1-866-347-2423.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case 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.
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Detroit Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Detroit tax preparer pleaded guilty to willfully making false claims to the United States government by preparing 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.Gerald Leslie Hawk, Jr., 29, entered the guilty plea before U.S. District Court Judge Nancy Edmunds.
According to court records, during 2009, Hawk prepared 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. Hawk solicited clients by promising that he could acquire a tax refund of $8,000 to purchase a home by receiving the FTHBC. Hawk knew the individuals did not purchase a home and had no intention of later purchasing a home after the credit was received. Hawk prepared or assisted in the preparation of approximately 21 false FTHBC tax returns claiming over $147,000 in refunds.
A sentencing hearing was set by Judge Edmunds for Thursday, Aug. 7. at 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 per each count.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.
Coopersville Businessman Convicted of Defrauding Victims of More Than One Million DollarsRead the Press Release
Roger Andrews Created Fake and Forged Documents and Promised Victims He Would Use Their Money for an Investment in Indiana; Instead, He Gambled It Away in the Stock Market
GRAND RAPIDS, MICHIGAN – Roger Lee Andrews, 54, of Coopersville, was convicted by a jury yesterday of wire fraud in connection with a bogus land deal in Indiana. Between 2006 and 2008, Andrews, who owned R. Andrews Pallet Company in Marne, Michigan, solicited more than one million dollars from long-time friends, business acquaintances, and a bank for use in connection with an investment property in Indiana. He told some of the victims that he already owned the property and needed additional capital to fund improvements to the property so he could sell it at a profit. Andrews told others he needed funds to purchase the property. To further his scheme to defraud, Andrews create fake documents with forged signatures to make it appear as though he owned the property and had a contract to sell the property to the State of Indiana for more than $900,000.
In truth, Andrews never owned any property in Indiana, was never even involved in any deals in Indiana, and later admitted forging the documents. Instead of using his victims’ money as promised, Andrews wired almost all of the funds to his stock trading account, where he lost it by engaging in risky margin trading.
“The truly sad part of this case is that Andrews preyed on long-time friends and business acquaintances. He used those relationships and his victims’ misplaced trust as a means to commit his scheme, and they have suffered tremendously as a result. Unfortunately, this type of fraud is all too common in our district, and we remain committed to prosecuting those who engage in it,” said U.S. Attorney Patrick Miles, Jr.
The Honorable Robert J. Jonker, U.S. District Judge, presided over the trial. After the jury returned its verdict, the Court immediately revoked Andrews’ bond and ordered him to remain in the custody of the U.S. Marshal’s Office pending his sentencing.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Christopher O’Connor and Clay Stiffler.
END
Construction Firms to Pay to Settle Alleged False Claims in Connection with Colleton County Road ProjectRead the Press Release
Contact Person: James Leventis (803) 929-3000
Columbia, South Carolina ----- The Lane Construction Corporation and McAfee Design and Distributing Co., Inc. have agreed to pay the United States a total of $400,000 to resolve allegations that these companies submitted false claims under the Department of Transportation’s Disadvantaged Business Enterprise (DBE) program, the United States Attorney Bill Nettles announced today.
Lane Construction is the successor in interest to Rea Contracting LLC, a former Charlotte-based civil construction contractor, and is a national civil construction contractor that, amongst other things, contracts with federal and state governments to construct and improve highways in the eastern and southern United States. McAfee Design is a Georgia-based highway heavy contracting company that is qualified as a DBE subcontractor.
The settlement resolves allegations that Rea Contracting falsely claimed that McAfee Design, a certified DBE, had performed demolition and concrete work that was to be performed by a DBE when it knew or should have known that McAfee Design actually subcontracted the work to non-DBE contractors. These allegations involved a federally-funded highway construction project in Colleton County, South Carolina. All qualifying bids were required to designate a percentage of work that would be performed by a DBE. The Disadvantaged Business Enterprise program was designed to provide women and minority contractors, who have faced historical barriers to entry in the construction industry, with fair opportunities to compete for federally-funded work.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act, and this settlement is yet another in a long string of successes,” said U.S. Attorney for the District of South Carolina William Nettles.
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The relator’s share in this case is $80,000. The qui tam lawsuit was filed in the District of South Carolina and is captioned United States ex rel. Michael S. Johnson and Greg Smith v. Rea Contracting LLC a/k/a Lane Carolinas Corporation, McAfee Design and Distributing Co., Inc., et al., Case Number 3:12-cv-3651. The claims resolved by this settlement are allegations only and there has been no determination of liability.
The settlement with Lane Construction and McAfee Design was the result of a coordinated effort among the United States Attorney’s Office for the District of South Carolina, the U.S. Department of Transportation Office of Inspector General, and the South Carolina Department of Transportation.Chicago Man Sentenced to More Than 15 Years in Federal Prison for 20 Armed Robberies of Stores in Chicago and Suburbs in 2010Read the Press Release
CHICAGO ― A Chicago man who committed 20 armed robberies of stores and businesses during a five-month period in 2010, was sentenced today to more than 15 years in federal prison. The defendant, CARLOS OCHOA, had admitted committing 15 robberies in Chicago, three in Berwyn, and one each in Aurora and Indian Head Park, sometimes for as little as $25, between July and November 2010.
Ochoa, 50, pleaded guilty last September to three counts of interstate robbery and one count of using a firearm during a violent crime. In pleading guilty, he admitted committing 17 additional armed robberies. U.S. District Judge Charles Norgle sentenced Ochoa to 130 months in prison for the robberies, consecutive to 60 months for using a gun, for a total of 190 months in prison. Ochoa was also ordered to pay restitution totaling $21,847 representing the net proceeds from all 20 robberies.
Three victims of Ochoa’s robberies testified about the lasting impact of the trauma they experienced before Judge Norgle imposed the sentence.
“For five months, [Ochoa] and his co-defendant went on a crime spree terrorizing individuals at their places of employment by pointing a gun, racking the slide of the gun, and making it clear to the victims that they would shoot them if they did not comply with their demands,” Assistant United States Attorneys Maribel Fernandez-Harvath, argued at sentencing.
Ochoa’s co-defendant, Juan Sanchez, who briefly escaped from state custody in late 2011, died of natural causes in January 2012 after he was indicted in the case.
Ochoa admitted that he and Sanchez conspired to rob various retail stores and businesses in Chicago and its suburbs. They identified stores to rob with a firearm, wore sunglasses and hats, and conducted surveillance inside the stores and businesses before the robberies.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago, Aurora, Berwyn, and Indian Head Park police departments, as well as the Cook County State’s Attorney’s Office, also participated in the investigation.
Business Owners Sentenced to Prison for Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Jorge Montemayor and Leticia Reyna have been ordered to prison for their convictions of failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson. Montemayor and Reyna pleaded guilty Jan. 24, 2014, and Nov. 18, 2013, respectively.
Today, U.S. District Judge Andrew Hanen handed Montemayor a sentence of 30 months in federal prison, while Reyna will serve a 15-month term. Montemayor was ordered to pay restitution in the amount of $368,025.84 while Reyna was ordered to pay $48,562.44. Both must serve a period of supervised release following their release from prison and must perform community service.
Montemayor was the chief financial officer (CFO) of GDM Home Health Inc. and Reyna was the president of Professional Skilled Services Inc., both home health care business that provided basic skilled care in Laredo. In their roles, both had authority to conduct financial transactions and exercised signatory authority on the company's bank accounts.
As part of the plea, Montemayor admitted he knowingly and willfully failed to pay approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable employee wages from the year 2008 while Reyna admitted she failed to pay over to the IRS approximately $48,562.44 for the fourth quarter of 2008.
Both admitted that had different business expenses and personal choices been made, funds would have been available to pay these taxes. In his plea agreement, Montemayor admitted that corporate funds were used for lavish trips to Europe and Las Vegas, sporting events, restaurants, jewelry and real estate. Specifically, Montemayor agreed that between August and November 2008, GDM Home Health spent $46,548.75 on basketball tickets for the San Antonio Spurs and purchased season tickets for the Laredo Bucks hockey team. He also stated he provided local politicians and doctors tickets to attend these professional sporting events. In her agreement, Reyna admitted that corporate funds were used for shopping, restaurants and private school expenses.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.
Burke Co. Man Sentenced to More Than Seven Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – A Burke County man was sentenced on Thursday, April 24, 2014, to serve 90 months in a federal prison for possession, receipt, and distribution of child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered the defendant to register as a sex offender and serve the rest of his life under court supervision after he is released from prison.
Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI) and Sheriff Steve E. Whisenant of the Burke County Sheriff’s Office join U.S. Attorney Tompkins in making today’s announcement.
In November 2012, a federal criminal indictment charged Eddie Wayne Lane, Jr, 27, of Connelly Springs, N.C. with one count of possession of visual depictions of minors engaging in sexually explicit conduct, one count of receiving such images, and one count of distributing them. Lane pleaded guilty to the charges in April 2013. According to court filings and proceedings, during the investigation, detectives discovered an extensive collection of child pornography including a computer hard drive and multiple email accounts. Lane’s investigation led to the prosecution of Michael John Jones who was sentenced to 25 years in prison for producing child pornography. The U.S. Attorney’s Office for the Northern District of West Virginia handled Jones’ prosecution. For information on that case is available at: http://www.justice.gov/usao/wvn/news/2012/august/jones.html and http://www.justice.gov/usao/wvn/news/2012/august/jones.html.
Lane is in local federal custody and will be transferred into custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation into Lane was handled by the SBI and the Burke County Sheriff’s Office. Both agencies are members of the North Carolina Internet Crimes Against Children Task Force (ICAC). Assistant U.S. Attorneys David A. Thorneloe and Cortney S. Randall of the U.S. Attorney’s Office for the Western District of North Carolina prosecuted the case.
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 U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Atlantic Beach Resident Pleads Guilty to Making False Distress Calls to the U.S. Coast GuardRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, HOMER LEWIS BLACKBURN , 27, of Atlantic Beach, North Carolina, entered a guilty plea to making false distress calls to the United States Coast Guard.
According to information in the public record, on October 8, 2013, Coast Guard Sector North Carolina received a “MayDay” call in which the caller claimed he was sinking and abandoning his boat in the vicinity of Cape Lookout and Shackleford Banks, North Carolina. Upon receipt of the distress call, the U.S. Coast Guard, assisted by the U.S. Marine Corps, the National Park Service and a local salvage company commenced search and rescue operations using helicopters and boats to search the area. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $288,390.80 worth of resources were expended.
Shortly thereafter, Coast Guard Investigative Service (“CGIS”) began an investigation and received information from a witness who identified the caller as HOMER LEWIS BLACKBURN and confirmed it was a hoax. The witness stated that BLACKBURN used a CB radio he mounted to the balcony of his apartment in Atlantic Beach, North Carolina to make the call. She heard him saying,“Mayday, Mayday” and that he was sinking in the vicinity of Cape Lookout, NC. She then told officers that BLACKBURN went out to the balcony to watch the helicopters search Cape Lookout. When the press reported that the call was a hoax, BLACKBURN sent the witness a text message on her phone asking her not to tell anyone about the call.
During the investigation, another witness came forward and claimed that BLACKBURN bragged about making the hoax calls, BLACKBURN admitted he reported that he was sinking off Cape Lookout, and that he, BLACKBURN, thought the calls were funny.
BLACKBURN subsequently confessed to making the hoax calls.
"False distress calls limit the Coast Guard's ability to respond to actual emergencies," said Captain Sean Murtagh, commander of Sector North Carolina. "Ultimately, they penalize the local communities and mariners the Coast Guard is charged to protect by unnecessarily endangering the lives of responders and wasting hundreds of thousands of tax payer dollars. Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
The maximum penalty that BLACKBURN faces at sentencing is six years imprisonment, a $250,000.00 fine and restitution of all costs incurred by the Coast Guard.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty this week to racketeering charges related to their membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Kelley Ray Elley, of Seguin, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.
According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Aryan Brotherhood Members Plead Guilty <br /> to Federal Racketeering ChargesRead the Press Release
Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty this week to racketeering charges related to their membership in the ABT’s criminal enterprise, 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.
Kelley Ray Elley, of Austin, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.
According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force (OCDETF) case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.