Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 June 2014
Former District of Columbia Council Candidate Pleads GuiltyRead the Press Release
To Filing a False Statement on Campaign Finance Report
-Campaign Secretly Received More Than $140,000 From D.C. Businessman-WASHINGTON – Jeff Smith, 40, of Washington, D.C., a former candidate for the Council of the District of Columbia, pled guilty today to a felony charge for filing a false and misleading report with the District of Columbia’s Office of Campaign Finance that concealed campaign contributions in excess of those permitted under D.C. campaign finance laws.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Smith is the second candidate to plead guilty to charges in recent weeks. Kelvin Robinson, 53, pled guilty on June 3, 2014, in the Superior Court of the District of Columbia to a charge of conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance. He is awaiting sentencing.
Smith also entered his plea in the Superior Court of the District of Columbia. The Honorable Anita Josey-Herring scheduled sentencing for Aug. 28, 2014. The charge of making a false statement or report carries a statutory maximum of five years in prison and potential financial penalties. Under the Court’s voluntary sentencing guidelines, the parties have agreed that Smith faces a range of six to 24 months in prison, or, possibly, probation.
The charge involves contributions to Smith’s 2010 campaign for the Ward 1 seat on the Council of the District of Columbia. Smith admitted that more than $140,000 was secretly channeled to his campaign from businessman Jeffrey E. Thompson. Smith lost the election.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. Both companies generated millions of dollars in government contracts.
Thompson and six others earlier pled guilty to charges involving Thompson’s illegal contributions to numerous federal and District of Columbia campaigns. In addition to Robinson, who also admitted receiving excess contributions from Thompson, the others who have pled guilty include Eugenia C. Harris, a business owner in the District of Columbia; Lee A. Calhoun, an executive for TCBA; Stanley Straughter, the owner of a business based in Philadelphia; Vernon Hawkins, who was a volunteer advisor in 2010 for a 2010 mayoral campaign; and Troy White, the owner of a marketing company based in New York.
Another person, former District of Columbia Council member Michael A. Brown, pled guilty to charges in an unrelated bribery investigation. In those proceedings, he publicly admitted that his campaign committees had secretly received money from Thompson.
As part of Thompson’s guilty plea, on March 10, 2014, he agreed to cooperate fully in an ongoing investigation. No date has been set for his sentencing.
**“Three months ago, Jeff Thompson’s guilty plea pulled back the curtain on widespread corruption that tainted election after election, year after year in D.C. politics,” said U.S. Attorney Machen. “Today Jeff Smith became the third candidate to stand before a judge and confess to taking Thompson’s secret campaign cash. We commend Jeff Smith for acknowledging his misconduct and will press forward with our efforts to hold accountable all those who participated in under-the-table deals with Jeff Thompson.”
“Today, Mr. Smith admitted to accepting illegal contributions to his campaign for D.C. Council and to filing a report which concealed these illegal in-kind contributions to the D.C. Office of Campaign Finance,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners, the FBI remains vigilant to abuses of campaign finance laws to protect the citizens of the District of Columbia from schemes within the electoral process.”
According to a statement of offense submitted as part of today’s guilty plea, from at least December 2009 through December 2010, Smith, Thompson and others acted to make and to receive – and to conceal – campaign contributions in excess of those permitted under the District of Columbia Campaign Act.
Smith admitted that Thompson, with his knowledge, provided more than $140,000 of in-kind contributions, contributions which were concealed from the Office of Campaign Finance. Smith provided a budget to Thompson in March 2010, seeking $140,975 for voter registration and get-out-the-vote efforts for his campaign. Then, from March 2010 until September 2010, Thompson used funds, via TCBA and DCHSI, to provide more than $140,000 in coordination with and in support of Smith’s campaign committee. At least part of this money was spent on campaign services and materials.
The District of Columbia Campaign Act imposes limits on the amount of money that can be contributed to a District of Columbia candidate and that candidate’s principal campaign committee. It also prohibits any person or corporation from making a contribution in the name of another, including by reimbursement. Finally, it requires principal campaign committees to file periodic reports of receipts and disbursements.
The law limits the amount that an individual or entity can contribute in the aggregate in the primary and general elections of a candidate seeking election to a Ward seat to $500.
In his plea, Smith admitted that, acting on behalf of his campaign committee, he filed, that is, authorized to be filed, a false and misleading report to the D.C. Office of Campaign Finance in December 2010. The report concealed the excessive and unreported in-kind contributions provided directly and indirectly by Thompson.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly commended the work of those who investigated the case from the FBI’s Washington Field Office and IRS-CI.They also expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson, Jonathan P. Hooks, Ellen Chubin Epstein, Lionel André, and Ephraim “Fry” Wernick, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting cases in the investigation.
Finally, they acknowledged the efforts of others who worked on the case from the U.S. Attorney’s Office, including Deborah Connor, Chief of the Fraud and Public Corruption Section, as well as Criminal Investigators Matthew J. Kutz, Mark Crawford, Melissa Matthews, and Durand Odom; Forensic Accountants Crystal Boodoo and Maria Boodoo; Paralegal Specialists Krishawn Graham, Tasha Harris, and Corrine Kleinman; Former Paralegal Specialists Shanna Hays and Nicole Wattelet; and Legal Assistant Angela Lawrence.
14-147Former District of Columbia Council Candidate Pleads GuiltyRead the Press Release
To Filing a False Statement on Campaign Finance Report
-Campaign Secretly Received More Than $140,000 From D.C. Businessman-WASHINGTON – Jeff Smith, 40, of Washington, D.C., a former candidate for the Council of the District of Columbia, pled guilty today to a felony charge for filing a false and misleading report with the District of Columbia’s Office of Campaign Finance that concealed campaign contributions in excess of those permitted under D.C. campaign finance laws.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Smith is the second candidate to plead guilty to charges in recent weeks. Kelvin Robinson, 53, pled guilty on June 3, 2014, in the Superior Court of the District of Columbia to a charge of conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance. He is awaiting sentencing.
Smith also entered his plea in the Superior Court of the District of Columbia. The Honorable Anita Josey-Herring scheduled sentencing for Aug. 28, 2014. The charge of making a false statement or report carries a statutory maximum of five years in prison and potential financial penalties. Under the Court’s voluntary sentencing guidelines, the parties have agreed that Smith faces a range of six to 24 months in prison, or, possibly, probation.
The charge involves contributions to Smith’s 2010 campaign for the Ward 1 seat on the Council of the District of Columbia. Smith admitted that more than $140,000 was secretly channeled to his campaign from businessman Jeffrey E. Thompson. Smith lost the election.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. Both companies generated millions of dollars in government contracts.
Thompson and six others earlier pled guilty to charges involving Thompson’s illegal contributions to numerous federal and District of Columbia campaigns. In addition to Robinson, who also admitted receiving excess contributions from Thompson, the others who have pled guilty include Eugenia C. Harris, a business owner in the District of Columbia; Lee A. Calhoun, an executive for TCBA; Stanley Straughter, the owner of a business based in Philadelphia; Vernon Hawkins, who was a volunteer advisor in 2010 for a 2010 mayoral campaign; and Troy White, the owner of a marketing company based in New York.
Another person, former District of Columbia Council member Michael A. Brown, pled guilty to charges in an unrelated bribery investigation. In those proceedings, he publicly admitted that his campaign committees had secretly received money from Thompson.
As part of Thompson’s guilty plea, on March 10, 2014, he agreed to cooperate fully in an ongoing investigation. No date has been set for his sentencing.
**“Three months ago, Jeff Thompson’s guilty plea pulled back the curtain on widespread corruption that tainted election after election, year after year in D.C. politics,” said U.S. Attorney Machen. “Today Jeff Smith became the third candidate to stand before a judge and confess to taking Thompson’s secret campaign cash. We commend Jeff Smith for acknowledging his misconduct and will press forward with our efforts to hold accountable all those who participated in under-the-table deals with Jeff Thompson.”
“Today, Mr. Smith admitted to accepting illegal contributions to his campaign for D.C. Council and to filing a report which concealed these illegal in-kind contributions to the D.C. Office of Campaign Finance,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners, the FBI remains vigilant to abuses of campaign finance laws to protect the citizens of the District of Columbia from schemes within the electoral process.”
According to a statement of offense submitted as part of today’s guilty plea, from at least December 2009 through December 2010, Smith, Thompson and others acted to make and to receive – and to conceal – campaign contributions in excess of those permitted under the District of Columbia Campaign Act.
Smith admitted that Thompson, with his knowledge, provided more than $140,000 of in-kind contributions, contributions which were concealed from the Office of Campaign Finance. Smith provided a budget to Thompson in March 2010, seeking $140,975 for voter registration and get-out-the-vote efforts for his campaign. Then, from March 2010 until September 2010, Thompson used funds, via TCBA and DCHSI, to provide more than $140,000 in coordination with and in support of Smith’s campaign committee. At least part of this money was spent on campaign services and materials.
The District of Columbia Campaign Act imposes limits on the amount of money that can be contributed to a District of Columbia candidate and that candidate’s principal campaign committee. It also prohibits any person or corporation from making a contribution in the name of another, including by reimbursement. Finally, it requires principal campaign committees to file periodic reports of receipts and disbursements.
The law limits the amount that an individual or entity can contribute in the aggregate in the primary and general elections of a candidate seeking election to a Ward seat to $500.
In his plea, Smith admitted that, acting on behalf of his campaign committee, he filed, that is, authorized to be filed, a false and misleading report to the D.C. Office of Campaign Finance in December 2010. The report concealed the excessive and unreported in-kind contributions provided directly and indirectly by Thompson.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly commended the work of those who investigated the case from the FBI’s Washington Field Office and IRS-CI.They also expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson, Jonathan P. Hooks, Ellen Chubin Epstein, Lionel André, and Ephraim “Fry” Wernick, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting cases in the investigation.
Finally, they acknowledged the efforts of others who worked on the case from the U.S. Attorney’s Office, including Deborah Connor, Chief of the Fraud and Public Corruption Section, as well as Criminal Investigators Matthew J. Kutz, Mark Crawford, Melissa Matthews, and Durand Odom; Forensic Accountants Crystal Boodoo and Maria Boodoo; Paralegal Specialists Krishawn Graham, Tasha Harris, and Corrine Kleinman; Former Paralegal Specialists Shanna Hays and Nicole Wattelet; and Legal Assistant Angela Lawrence.
14-147Former Columbia Resident Sentenced for Receipt and Possession of Child PornographyRead the Press Release
Follow @SDILNewsA former Columbia, Illinois, resident was sentenced on June 20, 2014, on a two-count Indictment, charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Neil E. Purdy, 30, a member of the Navy Reserves and formerly of Columbia, was sentenced to 108 months in federal prison on both counts, to run concurrently, to be followed by a 10 year term of supervised release on each count, also to run concurrently, ordered to pay a $2,500 fine on each count, for a total fine of $5,000, and ordered to pay a $200 special assessment. In addition, when released from prison, Purdy must register as a sex offender as a condition of his supervised release.
The investigation began on February 7, 2012, when an individual contacted the Columbia, Illinois, Police Department to report that the defendant molested his/her fourteen year old child. He/she also told the Columbia police that he/she saw the defendant “google” the phrase, “where can I find really young porn.” He/she said that, when he/she asked Purdy, “How long have you had this little problem?” Purdy responded “about three years.” Evidence at sentencing revealed that, as a direct result of Purdy’s molestation, the child no longer stayed with the parent because he/she felt that the parent could not protect him/her.
On February 16, 2012, Purdy, a member of the Navy Reserve with Top Secret clearance, provided a voluntary, videotaped statement to Columbia Police Officers in which he admitted the molestation of the fourteen year old (Purdy also served a prison term of 180 days in Monroe County Jail for criminal sexual abuse relating to the molestation of the fourteen year old), stating that he “had a problem.” There was also evidence introduced at sentencing that Purdy, while awaiting sentencing on the state charge, stated that he was trying to get administrative leave from the Navy Reserves before “they f[ou]nd out” about his criminal charges so that he could avoid a dishonorable discharge.
When questioned about searching for or possessing child pornography, Purdy admitted that he possessed videos and images of minors engaged in sexually explicit conduct on his laptop computer. Purdy told the officers that the videos and images of minors engaged in sexually explicit conduct were under his username, and that his username was password protected. Purdy also admitted using a file sharing program and terms commonly associated with child pornography to search for videos and/or images of minors engaged in sexually explicit conduct. Purdy estimated that he had approximately fifteen (15) videos and less than twenty (20) images of minors engaged in sexually explicit conduct on the laptop computer. The videos were mostly of girls, between the ages of 4 and 13, engaged in sexual activity with themselves, another child or an adult, or lasciviously displaying their genitals.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Columbia, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force (SCETF). The case was assigned to Assistant United States Attorney Angela Scott.
Former Bakersfield Resident Sentenced to Prison for Theft of Mail in Bakersfield and WascoRead the Press Release
FRESNO, Calif. — Mayra Alejandra Soria, 30, of Los Angeles, was sentenced today by United States District Judge Morrison C. England Jr. to four years and nine months in prison and $13,735 in restitution for conspiracy to steal mail and one count of possession of stolen access devices, United States Attorney Benjamin B. Wagner announced.
According to court documents, Soria was indicted with four co-defendants in May 2013 as part of Operation Broken Mailbox, the United States Postal Inspection Service’s ongoing effort to work with local law enforcement partners to investigate and prosecute stolen mail offenses. She is the last to be sentenced in the case.
According to court documents, from March 17, 2013 until May 21, 2013, Soria and others conspired to steal mail in Wasco and elsewhere in the Bakersfield area, in order to steal checks and commit identity theft. As part of the conspiracy, they used homemade devices to “fish” mail out of U.S. mail collection boxes at post offices. After stealing the mail, they looked for third party information and financial instruments, including checks and money orders that they could cash. The defendants then altered and negotiated the stolen checks – sometimes by depositing them into accounts they had opened in the names of the identity theft victims. In total, Soria and her co-defendants stole checks and other items valued at more than $120,000.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Kern County Sheriff’s Office. Assistant United States Attorney Megan A. S. Richards prosecuted the case.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “we are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for mail theft to protect postal customer’s mail from theft.”
The other defendants received the following sentences: Eric Alberto Herrera, 27, of Los Angeles: two years in prison; Elisee Torres-Pacheco, 36, of Los Angeles: three years of probation; Brisa Castillo, 33, of Los Angeles: five months in prison; Mateo Manuel Santiago, 25, of Bakersfield: one year in prison.
Federal Len Bias Indictment Shows Heroin's Grip Expanding to Smaller CommunitiesRead the Press Release
PORTLAND, Ore. – Rockie Morse, 40, of Sweet Home, Oregon, was indicted today for distribution of heroin that resulted in death, announced Amanda Marshall, United States Attorney for the District of Oregon. Prosecutors also indicted Tammy Tongate, alleged to be the Portland-area source of supply, who made her initial appearance last week. The federal charges were brought after an investigation led by the Linn County Sheriff’s Office and the Drug Enforcement Administration (DEA) uncovered a major influx of heroin into Sweet Home, Oregon. Investigators worked closely with the Portland Police Bureau Drugs and Vice Division, the Sweet Home Police Department, Lebanon Police Department, and the Linn County District Attorney’s Office.
Ashley Marie Ames, 25, a resident of Lebanon, Oregon, was found dead on October 2, 2013. Investigators found drug paraphernalia and residue quantities of black tar heroin. Prior to her death, Ames was scheduled to enter drug treatment. “Heroin dealers are the grim reapers of the drug trafficking world,” said U.S. Attorney Amanda Marshall. “We are seeing a rise in heroin use in rural communities outside the main distribution hubs of Portland, Salem, and Eugene. I applaud the efforts of the Linn County Sherriff’s Office and the DEA in attempting to get in front of this deadly epidemic.” A total of 15 individuals have been arrested and are facing federal and state charges stemming from this investigation.
The United States Attorney’s Office has made the investigation and prosecution of drug overdose cases a high priority due to the devastating impact drug distribution has in Oregon. Several significant drug dealers who would have otherwise gone undetected, have been arrested, successfully prosecuted, and sentenced to prison in both state and federal court as a result of this combined state and local effort to investigate and prosecute drug overdose deaths.
The federal indictment in this case includes three other defendants in a heroin distribution conspiracy and includes several substantive counts of heroin distribution, including distribution within 1,000 feet of Sweet Home High School. Count 1 charges Morse and Tongate with distribution of heroin resulting in death and was brought under the federal “Len Bias” statute. This count carries a statutory mandatory minimum prison term of twenty (20) years, a maximum of life in prison, and a fine of up to $2 million.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty in court. Trial is set for August 12, 2014, before U.S. District Court Judge Marco Hernandez. The case is being prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
Federal Inmate Pleads Guilty to Possession of A WeaponRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Antonio Quintero, 36, an inmate at the Federal Correctional Institution at McDowell, pled guilty in federal court in Bluefield to possession of a weapon. On March 7, staff members at the prison were escorting Quintero when they saw him throw something into a trash can. When they searched the trash can, they recovered a homemade knife commonly referred to as a “shank.”
Quintero faces up to 33 months’ imprisonment and a $250,000 fine. Senior United States District Judge David A. Faber has scheduled the sentencing for October 27, 2014.
The Federal Bureau of Prisons conducted the investigation, and the prosecution was handled by Assistant United States Attorney John File.
Dominican National Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Dominican national who was extradited from Canada earlier this year today admitted his role in one of the nation’s largest and longest-running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced.
Alejandro Javier, 51, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds.
Javier and others participated in a scheme that caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million. A Dominican national, Javier evaded capture until July 2, 2013, when Canadian law enforcement authorities arrested him as he tried to illegally enter Canada. He had been incarcerated there until he was extradited to New Jersey on Jan. 10, 2014.
According to documents filed in this case and statements made in court: Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks: • SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
• SIRF perpetrators complete Individual Income Tax Return Form 1040s (Form 1040) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
• Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
• Certain SIRF perpetrators sell the tax refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing refund checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration. The New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area engaged in a large-scale, long running SIRF scheme.
Javier and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Javier and others used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds.
The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of tax refund checks that the conspirators obtained, sold, cashed, and spent.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for tax refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. Hundreds of refund checks were mailed to just a few different addresses in a few towns, including Nutley, Somerset and Newark in New Jersey and Shirley, N.Y. After receiving the checks, Javier and others cashed the checks and divided the proceeds.
Members of the New Jersey Task Force identified certain “hot spots” of activity related to the scheme, where conspirators were directing millions of dollars of refunds just a few towns and cities. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of refund checks connected to the scheme. More than $22 million in fraudulently applied for refund checks were interdicted by law enforcement and never delivered.
The conspiracy count to which Javier pleaded guilty carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. Sentencing for Javier is scheduled for Oct. 8, 2014.
U.S. Attorney Fishman praised special agents of the DEA, under the direction of special agent in charge Carl J. Kotowski; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea. He also thanked the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and HSI-ICE, under the direction of Special Agent in Charge Andrew M. McLees, for their roles.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark, and Mala Harker of the Special Prosecutions Division.
14-226
Defense Counsel: David Oakley Esq., Princeton, N.J.Javier, Alejandro Information
Doctor Indicted for Controlled Substance DeliveryRead the Press Release
COEUR D’ALENE - Dr. Rafael Beier, 60, of Kingston, Idaho, pleaded not guilty on June 20, 2014, to a grand jury indictment charging him with unlawful distribution of a controlled substance. Beier was arrested on Thursday, June 19, at his place of business. A trial is set for August 29, 2014. Beier remains in federal custody pending a detention hearing scheduled for June 25, 2014.
The charge of distributing a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anyone with information regarding Dr. Beier is asked to call the Federal Bureau of Investigation (FBI) at 208-664-5128.
District Court Enters Permanent Injunction Against California-Based Firm and Individuals to Prevent Distribution of Adulterated Dietary SupplementsRead the Press Release
The Justice Department announced today that U.S. District Court Judge Otis D. Wright II of the Central District of California entered a consent decree of permanent injunction against GM Manufacturing Inc. (GMM) and Mao L. Yang, Mary Chen and David Yang on Friday, June 20, 2014, to prevent the distribution of adulterated dietary supplements.
“Adulterated dietary supplements may pose a significant risk to the public health,” said Stuart F. Delery, Assistant Attorney General for the Department of Justice’s Civil Division. “The Department of Justice is committed to protecting the public from dietary supplements that are not manufactured in conformity with current good manufacturing practices as required by law.”
According to the complaint filed by the United States on June 2, 2014, GMM manufactured, labeled, prepared, packed, held and distributed dietary supplements from its facility in Gardena, California. As alleged in the complaint, in spections by the Food and Drug Administration (FDA) established that the dietary supplements manufactured and distributed by the defendants were adulterated, in that they were prepared, packed and held under conditions that do not comply with the current good manufacturing practice regulations for dietary supplements. For example, during an inspection in 2013, FDA observed that defendants failed to maintain, clean and sanitize, as necessary, equipment, utensils and other contact surfaces used to manufacture, package, label or hold components or dietary supplements.
As part of the permanent injunction, the defendants agreed to stop manufacturing, preparing and distributing dietary supplements. The defendants agreed to provide 90 days’ notice to FDA before seeking to resume operations. If the defendants seek to resume dietary supplement operations, they are required to comply with a series of remedial measures, including retaining an expert to inspect the company’s facility and provide a certification that all manufacturing deficiencies have been corrected. Also, the defendants must report to FDA all actions they have taken to correct the deviations. The defendants are not allowed to resume operations until FDA has re-inspected their facility and operations, and provided written notice to them.
According to the complaint, the defendants’ facility was inspected by FDA in 2012 and 2013. During the 2013 inspection, the FDA observed significant violations of the Federal Food, Drug, and Cosmetics Act and implementing regulations, including violations that were the same or similar to those observed during the 2012 inspection. Following the 2012 inspection, FDA issued a warning letter to Mao Yang informing him that the significant deviations documented by FDA during the 2012 inspection rendered defendants’ dietary supplements adulterated under the law. The warning letter from FDA cautioned that failure to promptly correct the deviations, and prevent future ones, could lead to additional regulatory action, including an injunction.
Despite the inspections and warning letter from FDA, the defendants continued to manufacture and distribute adulterated dietary supplements in violation of the law.
The permanent injunction entered by the district court requires the defendants to recall all dietary supplements that the defendants manufactured, prepared, processed, packed, labeled, held, and/or distributed at any time since Feb. 13, 2012. Defendants are then required to destroy all dietary supplements in their possession, custody and/or control.
Assistant Attorney General Delery thanked the FDA for referring this matter to the Department of Justice. Trial Attorney Lauren Fascett of the Civil Division’s Consumer Protection Branch, in conjunction with Assistant U.S. Attorney Brian Villarreal in the Central District of California and Associate Chief Counsel Leslie Cohen of the Office of General Counsel, Enforcement of the Food and Drug Division, Department of Health and Human Services, brought this case on behalf of the United States.Del Rio Jury Convicts Two Los Zetas Cartel Members on Federal Drug and Firearm ChargesRead the Press Release
Two senior members of the Los Zetas Cartel operating in Piedras Negras, Mexico, face up to life in federal prison after a jury convicted them of smuggling thousands of kilograms of marijuana and hundreds of assault rifles announced Robert Pitman, United States Attorney; Janice Ayala, Homeland Security Investigations (HSI) Special Agent in Charge of the San Antonio Division; Robert Elder, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of the Houston Division; and, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
On Friday afternoon, jurors convicted 29–year-old Emilio Villalobos-Alcala (aka “La Tripa”), and 27–year-old Jose Eluid Lugo-Lopez (aka “Cochi Loco”) of one count of conspiracy to import marijuana; one count of conspiracy to possess with intent to distribute marijuana; one count of conspiracy to possess firearms in furtherance of a drug trafficking crime; and, two counts of smuggling goods from the United States.
According to courtroom testimony, Villalobos-Alcala, a purported leader of the Los Zetas Cartel activities in Piedras Negras and fellow senior level member Lugo-Lopez were involved in a large-scale marijuana and firearms smuggling scheme from July 2011 until February 2013. Assault weapons, other firearms, magazines and ammunition purchased in San Antonio were transported inside hidden compartments in cars and trucks and smuggled through Eagle Pass, Texas, to Piedras Negras. Bundles of marijuana, smuggled across the river into Quemado, Texas, were transported to stash houses in Eagle Pass. From there, the marijuana was transported to stash houses in San Antonio and ultimately to distributors in Dallas and Houston.
Evidence presented during the trial included multiple threats made by Villalobos-Alcala and Lugo-Lopez that they would kill people involved in the smuggling conspiracy or their family members if they did not pay money for drugs or weapons seized by law enforcement or agree to move drugs or weapons on behalf of the cartel.
In February 2013, Villalobos was arrested at the Port of Entry in Eagle Pass. Lugo-Lopez was arrested in Eagle Pass in November 2012 after crossing into the country illegally. Villalobos-Alcala and Lugo-Lopez remain in federal custody pending sentencing. Sentencing is scheduled for December 15, 2014, in Del Rio.
This case was investigated by special agents with HSI, ATF, FBI and the Drug Enforcement Administration together with the U.S. Border Patrol, Texas Department of Public Safety and the Zavala County Sheriff’s Office.
Defendant Sentenced on Federal Drug ChargesRead the Press Release
United States Attorney Kenyen Brown announces that Kipp Luster was sentenced on June 19th in Federal Court after pleading guilty to possession with intent to distribute cocaine. Luster received a sentence of 70 months imprisonment, with 3 years of supervised release to follow.
The DEA conducted the investigation with the assistance of the Mobile County Sheriff’s Office. Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Covington Man Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
COVINGTON, KY -A Covington, Ky., man admitted in federal court today that he sold heroin that resulted in the death of one of his customers.
Timothy Tingle-Brown, 29, pled guilty today before U.S. District Judge David L. Bunning to distributing heroin that resulted in death.
“This case exemplifies the commitment of our office and our law enforcement partners to the fight against heroin trafficking,” said Kerry B. Harvey, U.S. Attorney in the Eastern District of Kentucky. “Tingle-Brown faces at least twenty years in prison because he chose to sell heroin, a decision with deadly consequences in this case. Others who are tempted to engage in this destructive behavior should take heed of the price to be paid.”
Tingle-Brown admitted to selling heroin to a man at an apartment in Taylor Mill, Ky., on April 20, 2013. The man subsequently died from an overdose from the heroin that Tingle-Brown had sold to him.
A federal grand jury in Covington returned an indictment on September 12, 2013 charging Tingle-Brown with distribution of heroin resulting in death. The trial started on June 20, 2014 and a jury was selected, but Tingle-Brown entered a guilty plea this morning before the trial was scheduled to continue.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly announced the guilty plea.
The investigation was conducted by the Cincinnati Resident Office of the Drug Enforcement Administration, the Taylor Mill Police Department, and the office of the Kenton County Commonwealth Attorney. Assistant U.S. Attorney Tony Bracke represents the federal government in this matter.
Tingle-Brown is scheduled to be sentenced on September 30, 2014. He faces a minimum of 20 years in prison and a maximum of life. He also faces a maximum fine of $1,000,000.00 and at least three years of supervised release. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Corinna Business Pleads Guilty to Trafficking in Counterfeit GoodsRead the Press Release
Contact: Joel B. Casey
F. Todd Lowell
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Berg Enterprises, Inc., d/b/a “Berg Sportswear” of Corinna, Maine pleaded guilty today in
U.S. District Court in Bangor to trafficking in counterfeit goods.The defendant operates a screen printing business that prints, markets and sells apparel items bearing trademarks and other logos and images. A trademark is a symbol, word, or words legally registered in the United States Patent and Trademark Office or established by use as representing a company or product. According to court records, between January 2006 and
January 2011, the defendant counterfeited apparel bearing the trademarks of the Boston Red Sox, Boston Celtics, New England Patriots, New York Yankees, Harley Davidson, John Deere, Jack
Daniels, Orange County Choppers and Playboy. Employees designed counterfeit trademarks, created screens from which the trademarks could be printed on apparel items and printed the counterfeit trademarks on those items.
The defendant faces a fine of up to $5,000,000. It will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.On January 7, 2014, defendant’s owner, Robert Berg, pleaded guilty to being an accessory after the fact to the manufacture of 1,000 or more marijuana plants arising from his involvement in assisting individuals involved in the operation of the Township 37 marijuana grow evade apprehension.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations, with the assistance of the Maine Drug Enforcement Agency and the
Internal Revenue Service -- Criminal Investigation Division.Connecticut Man Sentenced for False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New Fairfield, Conn., man was sentenced in federal court today for making false claims for tax refunds.
Nkosi Gray, 41, of New Fairfield, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. The court also ordered Gray to pay $278,874 in restitution. Gray was taken into federal custody at the conclusion of today’s hearing.
On Jan. 13, 2014, Gray was found guilty at trial of one count of filing false claims for a tax refund.
Gray filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. Gray was convicted of filing a false tax return for which he received a $278,874 refund. According to court documents, Gray filed 11 fraudulent tax returns, seeking over $1.5 million in fraudulent refunds, even after receiving multiple notices by the IRS that the claims were fraudulent.
These claims utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments). In actuality, Gray had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld.
Co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. He was sentenced to 13 years in federal prison without parole. Conspirators filed 284 fraudulent returns that claimed a total of $96 million dollars in refunds. The IRS mistakenly paid out $3.5 million on these fraudulent claims. Conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
After he received a refund of $278,874 on Oct. 17, 2008, Gray paid a $15,000 fee to Poynter a few days later. After the refund was deposited into his account, Gray made 56 withdrawals over the next two months. By withdrawing the cash in increments of less than $10,000, Gray (a former bank employee) avoided the requirement for his bank to report those transactions to the government.
According to court documents, Gray refused to pay the IRS back despite aggressive collection efforts. He continued to live well and used trusts and multiple accounts to hide the money. He sent frivolous correspondence to IRS in an attempt to confuse and frustrate the collection as he continued filing fraudulent tax returns.
Poynter is among 13 defendants who have pleaded guilty. Co-defendant Kimberly Johnson, 43, of Chickamauga, Ga., was also convicted at trial and sentenced to four years in federal prison without parole. The court also ordered Johnson to pay $306,496 in restitution.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Brother of Former Country Club Hills Police Chief sentenced for Money Laundering, Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. –Ricky McCoy, brother of Regina R. Evans, former police chief for Country Club Hills., Ill., was sentenced this afternoon for money laundering and obstructing justice in the federal investigation of a grant fraud scheme involving his sister and her husband. U.S. District Judge Sue E. Myerscough ordered that McCoy serve six months in federal prison, followed by six months of home confinement. McCoy was allowed to remain on bond and self-report to the federal Bureau of Prisons on a date to be determined by BOP. McCoy was also ordered to remain on supervised release for three years following his release from the six-month prison term. McCoy was ordered to pay restitution, joint and severally, with his sister and her husband, Ronald Evans, in the amount of $44,338, to the Illinois Department of Commerce and Economic Opportunity.
McCoy entered pleas of guilty on Aug. 29, 2013, to money laundering and obstruction of justice. Regina Evans previously entered pleas of guilty to charges filed in two cases. On Aug. 19, 2013, Evans pled guilty to obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering. Evans pled guilty on June 17, 2013, to charges of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has pled guilty to the fraud scheme and is scheduled to be sentenced on July 11, 2014.
On May 1, 2014, Regina Evans was sentenced in the two cases. U.S. District Judge Myerscough ordered Evans to serve five years in federal prison and to pay restitution, jointly and severally with her husband, Ronald Evans, in the amount of $917,194, to the Illinois Department of Commerce and Economic Opportunity.
McCoy assisted the Evanses in the management of We Are Our Brother’s Keeper. McCoy pled guilty to money laundering related to the grant funds when he issued a check payable to himself, in the amount of $16,249, on behalf of We Are Our Brother’s Keeper, with the proceeds of the check deposited to an account controlled by the Evanses. Further, McCoy issued two additional checks, totaling $19,888, on behalf of We Are Our Brother’s Keeper, made payable to an associate of the Evanses; $17,888 of the check proceeds were deposited to a bank account controlled by the Evanses.
McCoy pled guilty to participating with his sister and others to have an unidentified person create a false story for law enforcement, the grand jury, and as a witness in a court proceeding, to falsely represent that the individual performed actual work under the grant awarded to We Are Our Brother’s Keeper. In fact, the individual performed no such work and the checks issued to the individual were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Bronx Man Sentenced in Manhattan Federal Court to 25 Years in Prison for the Sexual Exploitation of A Child and Child Pornography-Related ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NARENDRA TULSIRAM was sentenced today in Manhattan federal court to 25 years in prison for sexually exploiting a child, as well as transporting and possessing images of child pornography. TULSIRAM pled guilty in April 2013. He was sentenced today by U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “For five years, Narendra Tulsiram preyed on his minor victim – sexually abusing and extorting her. Today’s sentence ensures Tulsiram will pay for the innocence he stole and be prevented from harming others.”
According to documents filed in this case and statements made in court:
From 2006 through September 2011, TULSIRAM sexually abused a minor (the “Victim”). The abuse began when the Victim was 13 years old. From 2008 through September 2011, TULSIRAM took sexually explicit photographs of his abuse of the Victim. In November 2011, after the Victim resisted TULSIRAM’s requests for additional sexual encounters, he used his e-mail account to send sexually explicit photographs of the Victim to the Victim’s e-mail account. In those e-mails, TULSIRAM threatened to send the sexually explicit photographs of the Victim to others, including her family, in an effort to get her to accede to his demands.
Following TULSIRAM=s arrest, search warrants were executed for TULSIRAM’s cell phone and e-mail account. Forensic analysis of TULSIRAM’s cell phone recovered photographs depicting the Victim, and in some instances, the Victim and TULSIRAM, engaging in sexually explicit conduct. Forensic analysis also recovered from TULSIRAM’s cell phone the threatening e-mails sent from TULSIRAM=s e-mail account to the Victim attaching the sexually explicit photographs of the Victim.
In addition to the prison term, Judge Oetken sentenced TULSIRAM, 50, to a lifetime of supervised release. He must also register as a sex offender.
Mr. Bharara praised the investigative work of Immigration and Customs Enforcement’s Homeland Security Investigations and the New York City Police Department.
This case is being handled by the Office=s General Crimes Unit. Assistant United States Attorneys Kristy J. Greenberg, Rahul Mukhi, and Adam Fee are in charge of the prosecution.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Berwick Resident Sentenced to 22 Years on Armed Bank Robbery and Firearms ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Phillip
G. Gage, 47, of Berwick, Maine, was sentenced to 22 years in prison and five years of supervised release for armed bank robbery, being a felon in possession of a firearm and using a firearm during the commission of a bank robbery. He was also ordered to pay $20,054 in restitution. The charges arise from the August 21, 2013 armed bank robbery of Citizen’s Bank, in Somersworth, New Hampshire; the October 7, 2013 armed bank robbery of Peoples United
Bank, in Exeter, New Hampshire; the October 19, 2013 armed bank robbery of Kennebunk
Savings in Eliot, Maine; and the October 26, 2013 armed bank robbery of the Ocean
Communities Federal Credit Union in Sanford, Maine. Gage pled guilty to the charges on March
4, 2014.According to court records, during the Citizen’s Bank robbery, Gage displayed a demand note that read in part: “I have a bomb and a gun if you say a word you will die” and absconded with $3,132.80. In the People’s United robbery, Gage’s demand note read in part: "There's a bomb in the trash can, keep it quiet" and absconded with $1,451. During the Kennebunk Savings robbery, Gage pointed a Ruger Red Hawk .44 Magnum revolver at tellers while, an associate, Daniel Barry, vaulted over the teller counter and took $7,896 from teller drawers. During the
Ocean Communities Federal Credit Union robbery, Gage pointed a Dan Wesson .22 caliber revolver at tellers and absconded with $8,574.
Gage was convicted of the following felonies: robbery in Florida in 1986, assault in
Maine in 1999, possession of a firearm by a felon in Maine in 1999 and attempting to commit a
Class B crime in Maine in 2002. As a result, Gage received an enhanced sentence as an armed career criminal.This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, county and federal law enforcement agencies across two states worked closely together.”Bakersfield Man Pleads Guilty to Using an Interstate Facility to Aid RacketeeringRead the Press Release
FRESNO, Calif. —Martin Barragan, 38, of Bakersfield, pleaded guilty today to use of an interstate facility to aid racketeering, United States Attorney Benjamin B. Wagner announced.
According to court documents, from June 1, 2012, to November 30, 2012, Barragan conspired with others to manufacture and distribute more than 900 marijuana plants. Barragan used a cellphone to manage his marijuana grow operation and business.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Barragan is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on September 15, 2014. Barragan faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Defense Contractor Pleads Guilty to Fraud ChargesRead the Press Release
FRESNO, Calif. —Alejandro Villarreal, 32, of Bakersfield, pleaded guilty today to two counts of wire fraud for a scheme to defraud the U.S. Department of Defense, United States Attorney Benjamin B. Wagner announced.
According to court documents, Villarreal was the president and manager of Oliver Supplies. From August 2009 until September 2011, Villarreal executed a scheme to defraud the U.S. Department of Defense by substituting “similar” goods that were inferior or were not manufactured by government approved suppliers. He did this in approximately 16 contracts awarded to Oliver Supplies. Villarreal admitted that he billed approximately $251,214 on these contracts, of which approximately $224,496 was actually paid.
This case is the product of an investigation by the Defense Criminal Investigative Service. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Villarreal is scheduled to be sentenced on September 15, 2014. He faces a maximum statutory penalty of 20 years in prison on each count and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General Holder Vows Justice Department Will Continue to Look at Banks That Help Payment Processors Carry out Consumer Scams, Says More Cases to Be Resolved SoonRead the Press Release
Attorney General Eric Holder on Monday said that the Justice Department will continue to investigate financial institutions that knowingly facilitate consumer scams, or that willfully look the other way in processing such fraudulent transactions. He acknowledged that multiple investigations were ongoing in this area, and said he expected several of those cases to be resolved in the coming months.
The department resolved the first such case in April, when Four Oaks of Bank of North Carolina agreed to pay penalties and a forfeiture for knowingly processing fraudulent transactions on behalf of a pyramid scheme. The Attorney General said the department is conducting a series of similar investigations involving allegations of banks enabling third-party payment processors to “siphon billions of dollars from consumers’ bank accounts in exchange for significant fees.”
“In the months ahead, we expect to resolve other investigations involving financial institutions that chose to process transactions even though they knew the transactions were fraudulent, or willfully ignored clear evidence of fraud,” Holder added.
A transcript of the Attorney General’s video message appears below:
“The Justice Department has made it a priority to fight consumer fraud of all kinds, from lottery scams to fake business opportunities to telemarketing fraud targeting Spanish-speaking customers. All too often, scammers and fraudulent vendors attempt to prey on vulnerable consumers by using sophisticated systems to commit crimes. But these fraudsters often can’t act alone. In many cases, they need access to the banking system to pilfer money from their victims. They frequently use third-party payment processers as intermediaries to route payments through financial institutions. And in some cases, these financial institutions – rather than working diligently to protect customers’ hard-earned savings – have knowingly facilitated fraud against their customers or consciously chosen to look the other way.
“We at the Justice Department are determined to stop these illegal and unacceptable practices. While we will not target businesses operating within the bounds of the law, and we have no interest in pursuing or discouraging lawful conduct, our Consumer Protection Branch in the Civil Division is leading a range of investigations into banks that illegally enable businesses to siphon billions of dollars from consumers’ bank accounts in exchange for significant fees.
“In April, for example, the Department of Justice reached a settlement with Four Oaks Bank of North Carolina. This institution permitted a third-party payment processor, which the bank knew was processing transactions reported as fraudulent, to originate $2.4 billion in debit transactions in exchange for over $850,000 in fees paid to the bank. As a result of our investigation, a federal court has entered an order requiring Four Oaks to pay penalties and forfeiture totaling more than a million dollars and to implement reforms that will prevent this kind of rampant fraud in the future.
“In North Carolina and elsewhere, the Justice Department’s efforts are sending a clear message that such activities are irresponsible. And they will not be tolerated. In the months ahead, we expect to resolve other investigations involving financial institutions that chose to process transactions even though they knew the transactions were fraudulent, or willfully ignored clear evidence of fraud.
“The goal of these investigations is quite simple: to protect consumers from scam artists and collaborating institutions – in every circumstance and industry. In the days ahead, the Justice Department will keep moving forward – guided by the facts and the law – to eliminate fraud targeting consumers while mitigating any impact on institutions not under investigation. We must enforce the law against both the fraudsters who prey on consumers and the financial institutions who choose to allow these crimes to occur. When we uncover evidence that financial institutions are knowingly assisting fraudsters, deliberately ignoring evidence of fraud, or intentionally disregarding obligations under federal law – we will not hesitate to act. We will hold them accountable. And we will never waver in our determination to protect honest, hardworking Americans from those who put their financial security in peril.”
The Attorney General’s video message can be viewed here: http://www.justice.gov/agwa.php.
Anderson, S.C. Attorney Sentenced to Five Months in Prison on Obstruction ChargesRead the Press Release
Defendant Pleaded Guilty To Making False Statements To Federal Authorities During Investigation Of Client Indicted On Drug Conspiracy Charges
GREENVILLE, S.C. – Charles Anderson, an attorney in Anderson, S.C. and a former Anderson city council member, was sentenced today by U.S. District Judge Michelle Childs to serve five months in prison on obstruction charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Judge Childs also sentenced Anderson to three years of supervised release with the condition that the first five months of which Anderson will spend in home confinement with location monitoring. Anderson was also ordered to perform 100 hours of community service or to complete a week-long community service project, as a condition of his supervised release. Anderson, 44, pleaded guilty in January 2014, to one count of making materially false statements to a department or agency of the United States.
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Greenville District Office, and Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Tompkins in making today’s announcement.
According to information contained in court documents and today’s sentencing hearing, Anderson represented Lonnie Maddox on federal drug charges in South Carolina in connection with a large-scale cocaine conspiracy. Court records indicate that from February 21 to March 15, 2013, and on five different occasions, Anderson lied to federal agents concerning his knowledge of the whereabouts of two of Maddox’s vehicles. Maddox had purchased the vehicles with the illegal proceeds of his drug dealings. According to court records, Anderson knew where Maddox’s Yukon Denali sport utility vehicle was located, but repeatedly denied this fact when questioned by DEA and HSI agents. Court records also show that Anderson lied to law enforcement about his participation in moving the Denali, which law enforcement ultimately retrieved from Anderson’s law partner’s residence. According to today’s sentencing hearing, when law enforcement agents recovered the Denali, they found one kilo of cocaine hidden in a concealed compartment inside the vehicle.
In addition to the Denali, Anderson also initially lied to federal agents about possessing another one of Maddox’s vehicles, a classic Chevrolet Chevelle, court records indicate. And despite Anderson later admitting to law enforcement that he had in fact possessed the Chevelle, Anderson lied about the location from where he had obtained the vehicle.
Anderson, who remains free on bond, will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated jointly by the DEA and HSI. The prosecution is being handled for the government by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Anderson County Woman Sentenced in Drug Trafficking ConspiracyThat Ended in A HomicideRead the Press Release
KANSAS CITY, KAN. – An Anderson County woman was sentenced today to 162 months in federal prison for taking part in a drug trafficking conspiracy that ended in a killing, U.S. Attorney Barry Grissom said.
Tracy Rockers, 24, Greeley, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted she was present Dec. 17, 2010, at a residence in Eudora, Kan., when traffickers killed Gregory Price for failing to pay drug debts and disposed of his body by hiding it in a refrigerator.
According to court documents, an investigation began in March 2010 when the Gardner Police Department and the Johnson County Sheriff’s Office began investigating traffickers who were selling methamphetamine in Gardner. In August 2011 the Kansas Bureau of Investigation identified Rockers as one of the traffickers. Working undercover, they made the first of several methamphetamine purchases from Rockers at a location in Eudora, Kan., on Aug. 24, 2011. Over a period of months, investigators identified more than a dozen traffickers.
According to court documents, on Dec. 17, 2010, several of the traffickers confronted Gregory Price at a residence in Eudora, Kan., about $800 they said he owed them. When Price refused to pay, the traffickers decided to take him to a rural location outside Desoto, Kan. They grabbed Price and attempted to pull him out the front door, but he resisted. Then they threw him into a door, causing him to collapse and begin “making gurgling noises,” according to court records. Rockers watched Price while the traffickers installed a camper shell on the back of a pickup they would use to transport Price. At some point, while lying on the floor, Price died. The traffickers put Price’s body inside a refrigerator and took it to the rural location near Desoto. More than a year later – April 19, 2012 – law enforcement found the refrigerator with Price’s body inside.
Co-defendants include: Michael C. Redifer, 37, who was sentenced to 30 years.
Steven M. Hohn, 34, Gardner, Kan., who was sentenced to 30 years.
Michael C. Quick, 33, Eudora, Kan., who was sentenced to 20 years.
Ronnie D. Morlean, 30, Olathe, Kan., who was sentenced to 216 months.
Kerry Lee Randall, 43, who was sentenced to 180 months.
Keith Arney, 29, Fulton, Mo., who was sentenced to 173 months.
Robert Baitey, III, 39, Desoto, Kan., who was sentenced to 150 months.
Daniel Reynoso, 25, who was sentenced to 135 months.
Gregory L. Renft, 40, who was sentenced to 10 years.
Rebecca L. Zehring, 39, Desoto, Kan., who was sentenced to 105 months.
Jordan R. Noble, 24, Eudora, Kan., who was sentenced to five years.
Dustin Cook, 39, who was sentenced to 52 months.
Danny Marlin, 42, who was sentenced to four years.Grissom commended the Gardner Police Department, the Johnson County Sheriff’s Office, the Kansas Bureau of Investigation, the Drug Enforcement Administration and Assistant U.S. Attorney Terra Morehead for their work on the case.
Albuquerque Man Pleads Guilty to Participating in Crack Cocaine Trafficking ConspiracyRead the Press Release
ALBUQUERQUE – Sam Eylicio, Jr., 37, of Albuquerque, N.M., pleaded guilty this morning to participating in a cocaine base trafficking conspiracy. Under the terms of his plea agreement, Eylicio will be sentenced to 125 months in federal prison followed by four years of supervised release.
Eylicio was one of five men who were indicted in April 2013, on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Bernalillo and Santa Fe Counties, N.M.
The five-count indictment charged Eylicio, Gabriel Mirabal, 33, and Dominic Anaya, 33, of Albuquerque, and Michael Jaramillo, 24, and Robert Romero, 26, of Santa Fe, with conspiring to distribute crack cocaine in Bernalillo and Santa Fe Counties between May 2012 and April 2013. Jaramillo also was charged with distributing crack cocaine in Santa Fe in March 2012. Romero was charged with possession of crack cocaine with intent to distribute in Santa Fe in July 2012, and with using and carrying a firearm in furtherance of a drug trafficking crime. Mirabal was charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013.
Today Eylicio pled guilty to the conspiracy count of the indictment and admitted purchasing ounce quantities of crack cocaine and cocaine from a co-conspirator and then selling the drugs to others for profit. As an example, Eylicio acknowledged negotiating the purchase of three ounces of crack cocaine and eleven ounces of cocaine from the co-conspirator on June 27, 2012. Eylicio remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Jaramillo entered a guilty plea on March 21, 2014, to the conspiracy count and admitted purchasing crack cocaine from two of his co-defendants and then reselling it to others. Under the terms of his plea agreement, Jaramillo will be sentenced to 78 months in federal prison followed by four years of supervised release. He remains in custody pending his sentencing hearing which is scheduled for June 30, 2014.
Romero pled guilty to two drug trafficking charges and a firearms charge on May 13, 2014, under a plea agreement that requires him to be sentenced to ten years in federal prison followed by four years of supervised release. Romero admitted that on July 2012, he was stopped by law enforcement officers who searched Romero’s vehicle and found 11.1 grams of crack cocaine, which was packaged for resale, and a handgun Romero used for protection while distributing drugs. Romero remains in federal custody pending his sentencing hearing which is scheduled for Aug. 13, 2014.
Mirabal and Anaya have entered not guilty pleas to the indictment. If convicted of the drug trafficking charges against them, each faces a maximum penalty of not less than five years or more than 40 years in prison. They remain in custody pending trial. An indictment is merely an accusation, and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office for the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
The investigation leading to the indictment, has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Air Force NCO Sentenced to 120 years in Prison for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Earlier today, William S. Gazafi, age 44, of Lusby, Maryland, was sentenced to 120 years in prison, for six counts of sexually exploiting a minor to produce child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI and Brigadier General Kevin J. Jacobsen, Commander of Air Force Office of Special Investigations. The sentence was imposed by U.S. District Judge Roger W. Titus of the District of Maryland.
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat with an undercover officer on a website dedicated to incest discussions. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography Gazafi stated he produced after drugging the child. Gazafi was subsequently identified and arrested.
At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items, and others seized from his residence, revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. In addition to producing hundreds of images of five children, ranging in age from five months to seven years, Gazafi distributed the images he produced to others on the Internet. Gazafi was communicating with other child pornography producers, some of whom sent him images of children they were abusing. Thus far, three children have been identified as a result. Gazafi possessed over 15,000 images and videos of children being sexually abused, many of toddler and infant age. At the time of his arrest, Gazafi was a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by the FBI, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office. The case was prosecuted by Trial Attorney LisaMarie Freitas of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan of the District of Maryland.Air Force NCO Sentenced to 120 Years in Prison for Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Drugged and Bound at least Five Children to Produce Child Pornography
Which Gazafi Then Distributed
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced William S. Gazafi, age 44, of Lusby, Maryland, today to 120 years in prison for six counts of sexually exploiting a minor to produce child pornography.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“We investigate cases every day that make us shake our heads, but for someone to sexually abuse a five-month-old baby defies comprehension. Cases such as this serve as a reminder that in this day and age, a person’s status and position doesn’t immediately make him trustworthy,” said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division. “Today, our children and our community are safer because of the dedication the agents and detectives who worked this case showed in tracking down this man and making sure he spends the rest of his life in prison.”
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography he stated he produced after drugging the child. Gazafi was subsequently identified and arrested.
At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items and others seized from his residence revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. In addition to producing hundreds of images of five children, ranging in age of five months to seven years, Gazafi distributed the images he produced to others on the Internet. Gazafi was communicating with other child pornography producers, some of whom sent him images of children they were abusing. Thus far, three children have been identified as a result. Gazafi possessed over 15,000 images and videos of children being sexually abused, many toddler and infant age. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base. Gazafi remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI’s Maryland Child Exploitation Task Force, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their work in the investigation. U.S. Attorney Rosenstein recognized the Calvert County Sheriff’s Office and the Metropolitan Police Department, for their assistance in the execution of the search warrant. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Additional Charges Filed as a Result of Federal Investigation into Drug Trafficking in Lea CountyRead the Press Release
ALBUQUERQUE – In May 2014, a federal grand jury returned an indictment charging six individuals with narcotics trafficking offenses as the result of a multi-agency federal investigation primarily targeting drug traffickers in Lea County, N.M. Three more indictments have been filed as a result of that investigation, announced U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and Commander Byron Wester of the Lea County Drug Task Force (LCDTF).
The three indictments were filed on June 18, 2014. The first indictment charges the following six individuals with trafficking methamphetamine in Lea County: Leroy Castillo, 32, Joe Padilla, 33, and Roland Cantu, 38, of Hobbs, N.M., Mario Enrique Flores, 28, of Artesia, N.M., and Anthony Joe Pisana, 28, of Roswell, N.M. The second indictment charges Ruben Cantu, 41, of Hobbs, with violating the federal firearms laws. The third indictment charges Antonio Acosta, 30, also of Hobbs with trafficking methamphetamine in Lea County and being a felon in possession of a firearm.
Pisana was arrested Friday morning (June 20, 2014) during a law enforcement operation and made his initial appearances in federal court in Roswell today. During Friday’s law enforcement operation, officers also executed two search warrants at a residence in Roswell where they recovered approximately 2.25 pounds of methamphetamine and more than $9,000.00 in cash.
Roland Cantu, Ruben Cantu and Acosta are in state custody and will be transferred to federal custody to face the charges in the indictments. Castillo, Padilla and Flores have yet to be arrested and are considered fugitives. Individuals with information regarding the whereabouts of Castillo, Padilla or Flores are asked to call the FBI at 505-622-6001.
The six-defendant indictment includes a conspiracy count against all six defendants; two counts of possession of methamphetamine with intent to distribute; and four counts of using communication devices to facilitate drug trafficking crimes. If convicted on the charges in the indictment, each defendant faces a mandatory minimum of five years to a maximum of 40 years in prison.
Ruben Cantu faces two counts of being a felon in possession of firearms and ammunition for unlawfully possessing a firearm and ammunition in March 2014. At the time, Cantu was prohibited from possessing firearms or ammunition because he previously had been convicted of a marijuana trafficking charge. If convicted, Cantu faces a maximum penalty of ten years in prison.
Acosta is charged with two counts of possession of methamphetamine with intent to distribute and one count of being a felon in possession of a firearm and ammunition in March 2014. At the time, Acosta was prohibited from possessing firearms or ammunition because he previously had been convicted of forgery, possession of a controlled substance, and possession of methamphetamine. If convicted, Acosta faces a maximum of 20 years in prison on the narcotics charges and ten years on the firearms charge.
These cases are being prosecuted by the U.S. Attorney’s Las Cruces Branch Office. The investigation of these cases, which was led by the Las Cruces and Roswell offices of the FBI and LCDTF with assistance from the Las Cruces office of the DEA and New Mexico State Police, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
168 Juveniles Recovered in Nationwide Operation Targeting Commercial Child Sex TraffickingRead the Press Release
During the past week, the FBI, its local, state, and federal law enforcement partners, and the National Center for Missing and Exploited Children (NCMEC) conducted Operation Cross Country VIII, a week-long enforcement action to address commercial child sex trafficking throughout the United States. This operation included enforcement actions in 106 cities across 54 FBI field divisions nationwide and resulted in 168 recoveries of children who were being victimized through prostitution. Additionally, 281 pimps were arrested on state and federal charges.
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences.” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, President and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors and social service providers from across the country.
The FBI thanks its local, state, and federal law enforcement partners representing 392 separate agencies for their ongoing enforcement efforts, and participation in Operation Cross Country VIII.
The following list denotes FBI divisions, not necessarily actual cities, where juveniles were recovered and pimps were arrested.FBI Division
Juveniles Recovered
Pimps Arrested
Albany
0
0
Albuquerque
0
0
Anchorage
0
3
Atlanta
11
15
Baltimore
2
5
Birmingham
1
3
Boston
0
0
Buffalo
2
0
Charlotte
0
3
Chicago
13
4
Cincinnati
0
1
Cleveland
16
12
Columbia
1
2
Dallas
2
2
Denver
18
11
Detroit
5
6
El Paso
0
1
Houston
4
4
Indianapolis
4
3
Jackson
2
19
Jacksonville
0
1
Kansas City
2
7
Knoxville
0
1
Las Vegas
7
2
Little Rock
2
5
Los Angeles
10
12
Louisville
0
4
Memphis
2
5
Miami
3
4
Milwaukee
6
12
Minneapolis
1
9
Mobile
0
0
Newark
1
8
New Haven
1
1
New Orleans
3
17
New York
3
3
Norfolk
0
1
Oklahoma City
2
14
Omaha
1
2
Philadelphia
0
2
Phoenix
5
21
Pittsburgh
0
3
Portland
1
2
Richmond
0
2
Sacramento
9
7
Salt Lake City
0
0
San Antonio
6
3
San Diego
2
6
San Francisco
6
13
Seattle
4
13
Springfield
2
1
St. Louis
0
1
Tampa
8
3
WFO
0
2
Total
168
281
20 June 2014
Winnebago Man Sentenced for Child Abuse Resulting in DeathRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Mark Anthony Grant, age 22, of Winnebago, Nebraska to eight years of imprisonment for his conviction for child abuse resulting in death. Grant was further ordered to serve three years of supervised release following his release from imprisonment.
Grant, an enrolled member of the Omaha Tribe of Nebraska, resided on the Winnebago Indian Reservation with Julie Paulson and her children, including Paulson’s 14 month old son. On the morning of September 10, 2013, Paulson’s son was still sleeping when she was ready to leave for work, so she left him with Grant to take to the babysitter later that morning. Approximately 90 minutes later, Grant took the child to the emergency room at the Indian Health Services Hospital in Winnebago. The child’s eyes were fixed and dilated upon arrival. The doctors indicated those conditions were consistent with head trauma. The child was later life-flighted to Children’s Hospital where he eventually died.
Doctors at Children’s Hospital determined that the child had significant cerebral edema, severe bilateral retinal hemorrhages and bilateral subdural hematomas. No other medical conditions were found which would have accounted for his condition and no further traumatic injuries were discovered during his hospitalization. The doctors determined the child’s injuries had to have been caused by a violent rotational injury which caused the child’s head to whip back and forth or side to side. Thus, his injuries were classified as abusive head trauma.
There were no witnesses to the event as only Grant and the child were in the home at the time of the injury.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Wilkinsburg Man Stole Credit Card Numbers to Purchase Gift Cards and GoodsRead the Press Release
PITTSBURGH - A Wilkinsburg man pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Richard Gerald Davenport, Jr., 26, pleaded guilty yesterday to one count before United States District Judge Terrence F. McVerry.
According to the information presented to the court, Davenport conspired with another individual to steal credit card numbers, which he and others used to buy gift cards and merchandise at Rite-Aid stores and others.
Judge McVerry scheduled the sentencing for Sept. 26, 2014, at 10:30 a.m. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation led to the prosecution of Richard Gerald Davenport.
West Seneca Woman Charged with Threatening a WitnessRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Haley Connor, 19, of West Seneca, N.Y., with retaliating against a witness, and witness tampering. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that, according to the indictment, from early 2014 to March 8, 2014, the defendant threatened to cause bodily injury to a witness for information given by the witness to a law enforcement officer. The information related to Michael Mitchell’s involvement in bank robberies and bank larcenies. Mitchell is currently charged with committing three bank robberies.
“As has been said before, law enforcement takes a zero tolerance when it comes to threatening a witness,” said U.S. Attorney Hochul. “This defendant – while not accused of committing the underlying crime – now stands to serve as much time in prison of those who did, solely because of her attempt to subvert the criminal justice system.”
The indictment is the culmination of an investigation by the Federal bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Africa Gunn, 36, of South Bend, Indiana pled guilty to the felony offense of conspiracy to defraud the government with respect to tax claims. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for 9/18/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Oscar Martinez, 34, of Logansport, IN pled guilty to the felony offense of conspiracy to distribute cocaine over 500 grams. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/25/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- David Carranza, 32, of Goshen, IN pled guilty to the felony offense of knowingly using a communication facility in causing or facilitating another felony. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- John O. Williams, 43, of Osceola, IN was sentenced to time served, 2 years supervised release, $36,962.50 restitution and a $100 special assessment fee after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, John O. Williams from in or around June 2010 through December 2010, applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development. He submitted weekly vouchers to IDWD and intentionally answered “No” to the question as to whether he was working when in truth and in fact he was employed at Company A in Elkhart, Indiana during the specified week. He also failed to disclose that he received wages during that time period. He spent the unemployment benefit payments he received on personal expenses. He does not dispute that the money for these unemployment insurance benefits came from the federal government, extended unemployment insurance benefits and ARRA funds and was in excess of $9,000. This case was the result of an investigation by Department of Labor and Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Joseph D. McLaren, 31, Howe, IN was sentenced to 2 years supervised probation, Restitution of $44,002.25 and $100 special assessment after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, Joseph D. McLaren from in or around June 2009 through October 2010, applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development. He submitted weekly vouchers to IDWD and intentionally answered “No” to the question as to whether he was working when in truth and in fact he was employed at Company A and/or Company B, in Elkhart, Indiana during the specified week. He also failed to disclose that he received wages during that time period. He spent the unemployment benefit payments he received on personal expenses because he needed the money. He does not dispute that the money for these unemployment insurance benefits came from the federal government, extended unemployment insurance benefits and ARRA funds and was in excess of $20,000. This case was the result of an investigation by the Department of Labor and Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court: PLEA
- Melissa Yates, 37, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Michael McClellan, 40, of Richton Park, Illinois was sentenced to 51 months, supervised release of 2 years and to pay $212,675.68 in restitution of which $203,844.77 shall be joint and several with co-defendant Tina McClellan after being found guilty of the felony offenses of bringing in and harboring aliens, mail fraud and monetary transactions in criminally derived property. According to documents filed in this case, McClellan and his wife submitted false bills to the State of Illinois and Healthy Start for child care services. They used more than $10,000 of fraud proceeds to buy the Paragon Restaurant in Schererville. At the restaurant, Michael filed false reports with Indiana Work Force Development not reporting the illegal aliens he paid in cash. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE) and the Department of Labor. This case was prosecuted by Assistant United States Attorney Gary Bell.
- Tina McClellan, 38, of Richton Park, Illinois was sentenced to 1 day time served, 24 months of supervised release with home detention of 12 months and to jointly pay $203,844.77 to the State of Illinois in restitution after being found guilty of the felony offenses of bringing in and harboring aliens, mail fraud and monetary transactions in criminally derived property. According to documents filed in this case, McClellan and her husband submitted false bills to the State of Illinois and Healthy Start for child care services. They used more than $10,000 of fraud proceeds to buy the Paragon Restaurant in Schererville. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE) and the Department of Labor. This case was prosecuted by Assistant United States Attorney Gary Bell.
- Robert Ross, 28, of Gary, Indiana was sentenced to 63 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, an employee of the Gary Sanitation District testified that Ross had pointed a firearm at him and another Gary city worker, prompting them to call 911. Police responded to the scene and arrested Ross. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Melissa Yates, 37, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Troy Ditiway, 27, of Fort Wayne, Indiana, was sentenced to 60 months imprisonment, 5 years supervised release, $100 special assessment and $2,000 restitution, after pleading guilty to the felony offense of possessing visual depictions which were shipped and transported using any means and facility of interstate and foreign commerce, the production of which involved the use of an actual minor engaged in sexually explicit conduct. According to documents filed in this case, in February 2012 a Federal Search Warrant was executed at a residence in Fort Myers, Florida after an online undercover investigation led members of the Fort Myers, Florida FBI to identify a child pornography distributor. A confession was obtained by the individual who indicated that he routinely “chatted” with individuals via an instant messenger service. When receiving child pornography during “photoshare” sessions during these chats, the individual would save the received images within a folder. A review of the consensual takeover account was performed and task force officers observed messenger conversations with Ditiway. These conversations contained verbiage indicative of child pornography distribution between both parties. A forensic preview on a laptop was conducted and observed were images depicting child pornography. This investigation led officers to the Fort Wayne, Indiana area wherein a Federal Search Warrant was executed in September 2012, and graphic images of child pornography were recovered. This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Waterloo Internent "Molly" Dealer to Federal Prison for Drug ConspiracyRead the Press Release
A Waterloo man who imported MDMA (also known as “ecstasy” or “Molly”) he ordered through the internet was sentenced yesterday to more than 12 years in federal prison.
Adam Brian Lawin, age 23, from Waterloo, Iowa, received the prison term after a February 10, 2014, guilty plea to conspiracy to distribute MDMA.
In a plea agreement, Lawin admitted that he obtained the MDMA by utilizing the highly encrypted drug trafficking marketplace website, Silk Road. Lawin also admitted he insulated himself from detection by law enforcement by having the packages delivered to friends or acquaintances, and paying those individuals a nominal fee (either a small amount of MDMA or cash) for delivering the packages to him. During a search of Lawin’s Waterloo residence on April 26, 2013, law enforcement seized over 1.3 kilograms of MDMA, printed materials describing how to manufacture various drugs, and a draft of a book being authored by Lawin regarding the use of Bitcoin to purchase drugs through Silk Road. During searches of other locations on the same date, officers seized over 250 grams of MDMA destined for Lawin.
Lawin was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lawin was sentenced to 147 months’ imprisonment. A special assessment of $100 was imposed, and Lawin was ordered to forfeit $100,000 in drug proceeds. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lawin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Department of Homeland Security, Homeland Securities Investigations, and the Tri-County Drug Enforcement Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is No. CR13-2040-1-LRR.
U.S. Attorney Announces Selection of Plano Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – U.S. Attorney John M. Bales announced the appointment of J. Kevin McClendon as the Attorney in Charge of the Plano office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney (AUSA) J. Kevin McClendon will oversee the daily operations of the Plano office which includes a staff of 31 federal prosecutors, support, and administrative personnel.
Born and raised in Texas, McClendon graduated from Texas Tech University in 1986 and Texas Tech University School of Law in 1989. He has been an AUSA for the U.S. Attorney’s Office for the Eastern District of Texas since September 2004, serving as the Affirmative Civil Enforcement (ACE) Coordinator, the Professional Responsibility Officer (PRO) for the Criminal Division, Civil Health Care Fraud Coordinator, and the Plano Office Intern Co-coordinator. Prior to joining the U.S. Attorney’s Office, McClendon was an Assistant Attorney General in the Medicaid Fraud Control Unit of the Texas Attorney General for nearly 10 years, working criminal health care fraud cases. He was also a Special Assistant U.S. Attorney for the Western District of Texas, an Assistant Criminal District Attorney in Lubbock County, and worked as an associate at a small law firm.
“I am very pleased to announce that Kevin McClendon has been selected to lead our busy Plano office,” said U.S. Attorney Bales. “He is the epitome of quiet strength which he couples with a wisdom that will serve not only our office well but also our law enforcement partners. Kevin is absolutely the right person to lead us to the next level of achievement.”
The Eastern District of Texas includes 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 51 federal prosecutors.Two Tipton County Men Indicted for Manufacturing and Distributing "Spice"Read the Press Release
Memphis, TN – Travis Fox, age 36, and Jason Forbess, age 36, both of Atoka, TN, have been charged in a two count indictment with manufacturing and distributing synthetic drugs and employing minors to distribute synthetic drugs, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
The indictment alleges that beginning in April of 2009, Fox and Forbess manufactured and distributed synthetic drugs often known by the street names “Spice” or “K2.” These drugs mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Fox and Forbess marketed and sold their products across the United States on their various internet websites. Beginning in 2013, the Fox and Forbess employed minors to help distribute the synthetic drugs.
“This indictment sends a clear message to those who would shamelessly peddle these dangerous substances that were never intended for human use: this behavior will not be tolerated and you will face stiff and serious consequences,” said U.S. Attorney Stanton.
“Synthetic drugs and other designer drugs are devastating communities across the United States. Synthetic drugs have been especially harmful to high school kids because the products are marketed as ‘legal’ marijuana, when, in fact, these substances are extremely dangerous and illegal,” said District Attorney General Dunavant. “We will continue working to protect these young adults, and to shut down and hold accountable individuals who manufacture and distribute synthetic drugs without regard for the law or public safety.”
Fox and Forbess have been charged with one count of conspiracy to possess and distribute and one count of conspiring to employ a person under the age of 18 years of age to possess and distribute. If convicted they face up to 25 years in prison and a fine of up to $1 million.
This investigation was conducted by the DEA and Tipton County Sheriff’s Office. This case is being prosecuted for the government by Special Assistant United States Attorney Samuel R. Stringfellow.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Two Men Dubbed the ‘Cowboy Gun Bandits’ Arrested by FBI and LAPD on Federal Indictment That Outlines Series of Armed RobberiesRead the Press Release
LOS ANGELES – Two men who earned the moniker the “Cowboy Gun Bandits” for brandishing a large-caliber revolver during a series of robberies have been arrested and are due to be arraigned this afternoon in United States District Court.
Dominic Dorsey, 46, of Hollywood, and Reginald Bailey, 69, of the Jefferson Park district of Los Angeles, were named in a federal grand jury indictment returned on June 3. The two men were taken into custody Thursday by special agents with the FBI and officers with the Los Angeles Police Department.
The indictment alleges a conspiracy to interfere with commerce in violation of the Hobbs Act. The indictment also charges them with five specific Hobbs Act robberies and five counts of using a firearm during the robberies.
The conspiracy count in the indictment alleges that Dorsey and Bailey participated in eight robberies, specifically:
a September 30, 2013, robbery at a Papa John’s pizza restaurant in Canyon Country;
an October 6, 2013, robbery at an ARCO gas station in Newhall;
an October 18, 2013, robbery at a Chevron gas station in Woodland Hills;
an October 25, 2013, robbery at an ARCO gas station in Encino;
an October 26, 2013, robbery at a Mobil gas station in Thousand Oaks;
an October 27, 2013, robbery at a USA Gas station in Earlimart (in California’s Central Valley);
an October 28, 2013, robbery at a Valero gas station in Atwater Village;
a November 5, 2013, robbery of a Citibank branch in Glendale that netted more than $55,000.
Many of the robberies were captured by video surveillance, which allowed investigators to determine that one of the robbers was missing part of his ring finger on his left hand. The video surveillance evidence helped lead authorities to Bailey, whose left hand is missing a portion of his ring finger.
Each of the Hobbs Act violations – a total of six – carries a statutory maximum penalty of 20 years in federal prison. The gun violations carry potential life sentences, but also would bring mandatory minimum sentences of seven years for the first count and 25 years for each of the four additional counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into the string of robberies was conducted by Los Angeles Metropolitan Task Force on Violent Crime, which is made up of investigators with the Federal Bureau of Investigation, the Los Angeles Police Department and the Los Angeles Sheriff’s Department. The Glendale Police Department provided substantial assistance during the investigation.
Release No. 14-077
Two Men Charged with Operating a Methamphetamine Laboratory in LancasterRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that John Ruth, 39, of and Michael Jachimiak, 37, both of Lancaster, N.Y., were arrested and charged by criminal complaint with possession with intent to distribute a mixture and substance containing methamphetamine, conspiracy to manufacture, with intent to possess, a mixture and substance containing methamphetamine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the complaint, on June 19, 2014, the Lancaster Police Department made certain investigative discoveries regarding 97 Field St. after receiving information regarding a possible methamphetamine laboratory. In the trash for this address, investigators recovered packaging for pseudoephedrine, the precursor of methamphetamine, empty bottles of drain cleaner, lighter fluid, used rubber tubing, plastic “one pot” methamphetamine laboratory bottles and an empty cold pack.
A search warrant was then applied for and executed at the 97 Field St. residence. During the execution of the search warrant, officers and agents discovered four individuals including defendants John Ruth and Michael Jachimiak. They also discovered quantities of fuel, light fluid, brake fluid, sulfuric acid, sodium chloride, sodium hydroxide, ammonium nitrate, pliers, wire cutters, plastic bottles, rubber tubing, and a plastic funnel. The items were assembled into a “pne pot” methamphetamine laboratory and a hydrochloric acid gas generator. Also located during the search were two hypodermic needles containing quantities of a liquid.
“Methamphetamine poses more than a danger to the users,” said U.S. Attorney Hochul. “Because of the use of volatile and dangerous chemicals, the production of this toxic substance also creates a danger for any homes nearby. Thankfully, the actions of the community here averted a possible disaster.”The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy.
The criminal complaint was the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division and the Lancaster Police Department, under the direction of Chief Gerald Gill.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Face Federal Hobbs Act Conspiracy, Robbery and Firearm Charges in Alleged West Warwick Home InvasionRead the Press Release
PROVIDENCE, R.I. – Criminal complaints unsealed in federal court in Providence today allege that two Providence men, Kiplagatt Stewart, 43, and Allen D. Prout, 42, conspired to and participated in an armed Hobbs Act robbery home invasion in West Warwick in September 2012, during which approximately $14,000 in cash was stolen and one of the alleged intruders was shot.
Stewart was arrested earlier today at his Providence residence by agents and officers from the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), including members of an ATF Special Response Team, Providence and West Warwick Police Departments, and the Rhode Island State Police.
Prout has been detained in federal custody since June 6, 2014, on a criminal complaint charging him with allegedly participating in a Hobbs Act conspiracy to commit an armed home invasion in Providence, where he was expecting to find two kilos of cocaine. He was arrested by ATF agents and the Providence Police Department SWAT team moments after he and a co-defendant, Emmett Blyden, 43, allegedly took possession of firearms allegedly to be used in the planned home invasion.
The criminal complaint unsealed in U.S. District Court today is announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof ATF; Rhode Island Attorney General Peter F. Kilmartin; West Warwick Police Chief Colonel Richard G. Silva; Providence Police Chief Colonel Hugh T. Clements, Jr.; and, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to an affidavit filed with the court in support of criminal complaints and arrest warrants for Stewart and Prout, it is alleged that on September 3, 2012, West Warwick Police responded to reports of shots fired in the Providence Street area. Upon investigation, officers learned of an alleged home invasion during which it is alleged that two armed men robbed an individual of approximately $14,000 in cash, money the victim told police was to have been used for the purchase of oxycodone.
According to the affidavit, the victim told police he was assaulted and that a gun was held to his head during the incident. According to the victim, as the intruders fled his residence he retrieved a firearm and fired, striking Stewart in the buttocks as he entered a vehicle. Two women and several children in the residence at the time of the incident were not injured.
During the course of the investigation, West Warwick Police identified Kiplagatt Stewart as one of the alleged intruders and arrested him on state charges on September 7, 2012. At the time of his arrest it was determined that a bullet was lodged in Stewart. He was presented in state court by the Attorney General’s office as a probation violator on a previous conviction for armed robbery. He was sentenced to serve 18 months in state prison as a probation violator.
As the investigation progressed, West Warwick Police identified Allen Prout as the second individual who allegedly participated in the home invasion. He was arrested on state charges on October 16, 2012, while at the Cranston residence of his girlfriend.
The criminal complaint unsealed today charges Stewart and Prout with one count each of Hobbs Act conspiracy, Hobbs Act robbery, and use of a firearm in furtherance of a crime of violence. If convicted of these charges, the defendants face statutory sentences of up to life in federal prison.
Stewart was ordered detained in federal custody following his initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan. Prout has been detained in federal custody since his arrest on June 6.
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.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Rhode Island State Police assisted with the processing of evidence collected in this matter.
This case was brought as part of the Rhode Island Urban Violent Crime Initiative. The Rhode Island Urban Violent Crime Initiative is a local, state and federal law enforcement collaboration to proactively identify, investigate and prosecute individuals responsible for crimes of violence in urban neighborhoods.###
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]Two Danbury Residents Charged with Operating U.S. Postal Money Order Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY STERLIN CANTAVE, 34, and VENUS VERGES, 33, both of Danbury, were arrested today on an indictment charging them with participating in a conspiracy involving the theft of monies from the U.S. Postal Service. The indictment was returned by a federal grand jury in New Haven on June 18 and the defendants were arrested today.
According to the indictment, between August and October 2013, CANTAVE and VERGES purchased U.S. Postal Service money orders in amounts ranging from $400 to $1000 at post offices in Fairfield County. After the money orders were purchased, the defendants used a mobile banking application to deposit the funds into bank accounts they controlled. Shortly after depositing the funds, the defendants returned to the post offices from which the respective money orders had been purchased, failed to disclose that they had deposited the funds, returned the money orders and were refunded their money.
CANTAVE and VERGES are charged with one count of conspiracy to convert public money, and offense that carries a maximum term of imprisonment of five years. In addition, CANTAVE is charged with 11 counts and VERGES is charged with five counts of conversion of public money, an offense that carries a maximum term of imprisonment of 10 years.
CANTAVE and VERGES appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered pleas of not guilty. They are currently detained.
The case has been assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney John H. Durham.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Buffalo Men Charged with Setting a Buffalo Business on FireRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ryan Smolinski, 26, and Lowell Carey, 53, both of Buffalo N.Y., were arrested and charged by criminal complaint with maliciously damaging or destroying, or attempting to damage or destroy, by means of fire or an explosive, any building used in interstate commerce, unlawful possession of an unregistered firearm, and conspiracy to commit any offense against the United States. The charges carry a mandatory minimum of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 13, 2014, the Buffalo Fire Department responded to a call at 349 Ontario St., occupied by WNY Property Contractors. A fire occurred during the night and caused $5000.00 in damage. Investigators determined that the fire had been caused by two Molotov cocktails.
The complaint further stated that surveillance video shows one individual lighting and placing a bottle underneath a garage door on the side of the building and another individual throwing another lit bottle on top of the roof of the building. Those individuals were identified as Ryan Smolinski and Lowell Carey.
The defendants made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy. Smolinski was released on conditions. Carey is being held pending a detention hearing on June 24, 2014 at 10:30 a.m.The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Buffalo Fire Department, under the direction of Commissioner Garnell Whitfield.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Tampa Man Sentenced for Bank Fraud ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Guerryson Torres (50, Tampa) to 33 months in federal prison for conspiracy to commit bank fraud. The court also ordered a money judgment in the amount of $993,828.75, and restitution to the victims totaling $973,486.69.
Torres pleaded guilty on March 28, 2014.
According to court documents, from June 2008 to August 2009, Torres conspired with others to defraud GTE Federal Credit Union and Grow Financial Credit Union. Torres owned and operated a company named Tampa Bay Auto Remarketing (TBAR) that contracted to sell cars and boats that had been repossessed by the credit unions. Under TBAR’s agreements with the victim credit unions, after selling the vehicles, TBAR was supposed to send the money from the sale of the vehicle, less an agreed-upon fee, to the financial institutions. However, for about 40% of the sales, Torres and his co-conspirators prepared and sent the credit unions false invoices that underreported the sales price of each vehicle, thereby stealing the difference between the underreported sales price and the actual sales price. In addition, with respect 77 of the cars sold for GTE, Torres and TBAR simply pocketed the entire sales amount of the vehicles, and never paid GTE at all.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark E. Bini.
Tampa Man Pleads Guilty to Production of Child Pornography on MacDill Air Force BaseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Erich Clifford Mandell Ramos (27, Tampa) today pleaded guilty to production of child pornography. Mandell Ramos faces a minimum mandatory term of 15 years, up to a maximum penalty of 30 years in federal prison.
According to the plea agreement, Mandell Ramos sexually abused a minor while visiting a home at MacDill Air Force Base. Mandell Ramos took sexually explicit photographs of the minor victim and instructed her not to tell her mother. He paid the minor approximately $20.00.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
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.
Sumter Man Sentenced to Fifteen Years in Drug Trafficking and Firearm CaseRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Alvis Damon Williams, age 27, of Sumter, was sentenced today in federal court in Columbia, South Carolina, to a term of imprisonment of 180 months in federal prison. The defendant was convicted by a federal jury on February 18, 2014. Williams was sentenced for dealing in crack cocaine and cocaine (21 U.S.C. §841), possessing a firearm in furtherance of narcotics trafficking (18 U.S.C. §924(c)), and illegally possessing a firearm as a convicted felon (18 U.S.C. §922(g)). Williams had multiple prior felony drug convictions and was sentenced by The Honorable Joseph F. Anderson, United States District Judge.
A Federal Grand Jury returned a four-count indictment on August 20, 2013, based on Williams’ actions in June of 2013, when Williams possessed a firearm while distributing cocaine in Sumter. Officers with the Sumter County Sheriff’s Office observed Williams distributing cocaine and stopped Williams’s Chevrolet Impala finding a .40 caliber Colt pistol. In addition to the pistol, Williams had $1,600 in cash, crack and powder cocaine secreted inside a false-bottom canister, marijuana, a scale, three cell phones, plastic baggies, and creatine, which is used to cut or dilute cocaine.
The case was the result of a collaborative effort between the Sumter County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives. “The cooperation of local and federal law enforcement ensures that dangerous criminals are caught and prosecuted,” said United States Attorney Bill Nettles. “The Sumter County Sheriff’s Office deputies were integral in the investigation of Williams. This case demonstrates the United States Attorney’s Office’s dedication in joining with local law enforcement agencies to remove violent drug offenders from the streets.”
The case was prosecuted by Assistant United States Attorney Jay N. Richardson.# # #
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation and provided valuable assistance.
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, pled guilty yesterday afternoon before U.S. District Judge James J. Brady to theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). She faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. A sentencing date has not yet been set.
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
At yesterday’s hearing, GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson and Special Assistant United States Attorney J. Brad Casey.
Sisters Sentenced in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jerese Blue, 27, and Chellsie Blue, 24, both of Rochester, N.Y., who were convicted of conspiracy to commit sex trafficking of minors, were sentenced by U.S. District Judge Frank P. Geraci, Jr. Chellsie Blue was sentenced to 72 months in prison and five years supervised release. Jerese Blue was sentenced to 108 months in prison and five years supervised release.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the sisters recruited two child victims to engage in commercial sex acts. In April 2012, the defendants posted ads on Backpage.com to advertise the victims as “escorts.” Chellsie and Jerese Blue then transported the victims to meet with customers and engage in commercial sex acts. The defendants also used their residences on Arnett Boulevard in Rochester for the minors to engage in commercial sex acts.
“It has been often said that sex trafficking is a form of modern day slavery,” said U.S. Attorney Hochul. “The fact that the defendants here compelled two children into this dark world only adds to the egregiousness of the crime.”
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, under the direction of Chief Michael Ciminelli.Self-Described New York Money Manager Pleads Guilty in $5 Million Fraud SchemeRead the Press Release
Thomas Bannon, the president of Overseas Investors LLC and Overseas Investors International, Ltd. (collectively, “Overseas Investors”), pleaded guilty today in federal court in Brooklyn, New York, to one count of wire fraud for defrauding an individual entrepreneur of $5 million through, among other things, false representations about his access to hedge funds and wealthy investors. When sentenced on October 3, 2014, Bannon faces up to 20 years in prison and the payment of $5,001,949 in restitution to the defrauded entrepreneur. Co-defendant Theodore Sweeten pleaded guilty on June 19, 2013, to one count of wire fraud and was sentenced to 48 months in prison on January 7, 2014.1
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“Thomas Bannon claimed to be a money manager who had access to millions of dollars. In reality, Bannon was a con man and the only access he had was to the phony bank documents that he used to perpetrate this bold fraud,” stated United States Attorney Lynch. “This Office is unrelenting in its commitment to bring to justice those who seek to defraud unsuspecting investors through lies and deceit.” Ms. Lynch expressed her appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
Bannon falsely represented to the victim entrepreneur that Overseas Investors collaborated with hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in its clients’ names that contained the leased funds. Based on this and other misrepresentations, Bannon and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bannon and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bannon and his co-conspirators simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into the attorney escrow account. In response, Bannon and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bannon concealed from the victim the fact that he had requested and received $600,000 of the escrowed funds prior to the issuance of the fabricated HSBC documents.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.
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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
THOMAS BANNON
Age: 82
Residence: New York, New York
E.D.N.Y. Docket No. 12-CR-471
_________________________________________________________________________
1 The case against co-defendant Robert Bardey is pending and scheduled for trial. The charges against Bardey are merely allegations, and he is presumed innocent unless and until proven guilty.
Sanford Man Sentenced to 15 Years for Bank RobberyRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michel
D’Angelo, 35, of Sanford, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 15 years in prison and three years of supervised release for bank robbery. D’Angelo pleaded guilty on February 13, 2014.Court records reveal that on September 21, 2012, D’Angelo stole about $1,300 from
Kennebunk Savings Bank in Berwick. D’Angelo robbed the bank disguised as a woman and wearing a sweat suit, wig, sunglasses and a purse. He also used white surgical tape to cover a
“Real Deal” tattoo on his fingers and a pink scarf to conceal a large “Karma” tattoo on his neck.
He approached the teller counter, verbally demanded cash and said that he had a bomb in his bag and would set it off if the teller pushed any buttons.
D’Angelo was subject to an enhanced sentence as a career offender for prior violent crime convictions.The investigation was conducted by the Berwick and Kittery Police Departments and the
Federal Bureau of Investigation.San Juan Island Man who Falsely Tried to Collect Disability Benefits Sentenced to Prison for Conspiracy, Mail Fraud & False StatementsRead the Press Release
The former owner of a San Juan Island coffee shop named “Criminal Coffee,” was sentenced today in U.S. District Court in Seattle to15 months in prison for conspiracy, mail fraud and making false statements, announced U.S. Attorney Jenny A. Durkan. The defendant was also ordered to pay full restitution of $42,088 and to pay a $10,000 fine. CORY MICHAEL EGLASH, 52, was found guilty of a scheme to defraud the Social Security Disability program following a four-day jury trial in January 2014. EGLASH’s long-time girlfriend Ramona Hayes, 41, was also charged in the case. She pleaded guilty prior to trial and was sentenced to one year in prison in February 2014. At sentencing U.S. District Judge Ricardo S. Martinez noted that EGLASH had resources –money, family and education – but demonstrated “nothing but the utmost selfish type of behavior… stealing from the destitute… those unable to work.”
According to filings in the case and testimony at trial, both EGLASH and Hayes filed claims with the Social Security Administration stating they were disabled and unable to work. In addition to his own application, EGLASH made statements as verification for Hayes’s disability claim. Hayes’s application, filed in early 2011, claimed she was unable to deal with the public and could not venture outside. EGLASH’s application, filed in November 2011, stated that he was so disabled that he was “almost home-bound,” and could not work or play sports. The investigation by the Social Security Administration Office of Inspector General revealed that both EGLASH and Hayes worked at the coffee shop they owned, and that EGLASH also earned $17 an hour working at a public aquarium on San Juan Island. In fact, in the same week that he submitted his application saying he could not be physically active, he participated in two full-court pick-up basketball games at the community center. At trial, prosecutors showed videos of EGLASH and Hayes working at the ‘Criminal Coffee’ shop. The videos were drawn from video surveillance conducted by undercover agents.
EGLASH’s application was identified as fraudulent by a caseworker before his benefits were approved. Hayes wrongfully collected more than $42,000 before the fraud was detected.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) Cooperative Disability Investigation Unit and was prosecuted by Special Assistant United States Attorney Seth Wilkinson and Assistant United States Attorney Thomas Woods. Mr. Wilkinson prosecutes Social Security fraud cases in federal court as part of a partnership between the United States Attorney’s Office and the Social Security Administration Office of the General Counsel.San Antonio Man and Woman Sentenced to Federal Prison for Aiding in the Exportation of Firearms from the United StatesRead the Press Release
In Del Rio this afternoon, United States District Judge Alia Moses sentenced 41-year-old CARLO LEE REYES (aka “El Raton”) to 240 months in federal prison, and 39-year-old ALICIA CASTANEDA (aka “Alicia Palomo”) to 33 months in federal prison announced Robert Pitman, United States Attorney for the Western District of Texas, Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent Robert Elder, Houston Division.
A jury in Del Rio convicted Reyes on October 3, 2013, of aiding the attempted exportation of firearms from the United States and being a felon in possession of an assault rifle-style firearm. In addition to the prison term, Judge Moses ordered that Carlo Lee Reyes pay a $5,000 fine and be placed under supervised release for a period of three years after completing his prison term. Castaneda pled guilty to aiding the attempted exportation of firearms from the U.S. Judge Moses imposed a supervised release period of three years on Castaneda.
Reyes, who was found guilty for his role in acquiring, paying for, storing, and transporting weapons, is the last defendant to be sentenced as part of Operation Iron Justice, a wide-ranging investigation led by HSI into the exportation of firearms from the United States into Mexico. Reyes would enlist others to locate firearms in San Antonio, and then coordinate through intermediaries to pick up the firearms and move them to a stash house. From there, others would arrange to pick up the firearms and transport them to Eagle Pass, for ultimate export to the traffickers in Mexico.
Operation Iron Justice, initiated by HSI Eagle Pass in early 2011, targeted several weapons trafficking organizations believed to be acquiring firearms for the “Los Zetas” drug trafficking organization. The firearms, including weapons, ammunition, and assault rifle magazines, were to be smuggled to the Zetas operating in the Piedras Negras, Mexico, area, for protection against rival cartels, the Mexican military, and law enforcement.
The investigation identified several smuggling cells operating in the U.S. Using a number of investigative techniques, agents obtained evidence of the firearm trafficking, including the identification of various individuals involved in the trafficking, the interdiction and seizure of large numbers of firearms, rounds of ammunition, and currency, as well as quantities of cocaine and marijuana. The investigation included the seizure of 15 assault rifles and 518 rifle magazines in September 2011; the seizure of 11 assault rifles and 15 magazines in October 2011; the seizure of $109,545.00 in U.S. currency near Falfurrias, Texas, in October 2011; and the arrest of Richard Hesles, Jr., and his brother, Damian Hesles, owners of Hesles Gun and Knife Store in Eagle Pass, who were responsible for aiding and abetting or attempting the exportation of .50 caliber firearms, ammunition, magazines, and firearm sights to Mexico. All told, Operation Iron Justice resulted in over 50 arrests from indictments brought in the Western District of Texas, the seizure of 63,742 rounds of ammunition, 4,031 magazines, 220 assault rifles, $1,079,834.95 U.S. currency, 35 pounds of cocaine, 173 pounds of marijuana, and 18 vehicles.
The defendants convicted and sentenced in connection with Operation Iron Justice are as follows:DEFENDANT
PLEA or FOUND GUILTY at TRIAL DATE
SENTENCING DATE/
SENTENCE1. Evelyn GUJARDO‐Campos
10/07/2010
07/3/2012: 26 months
12/02/2010
02/7/2010: 63 months
3. Michael Jonathan ROGERS
03/23/2011
11/28/2011: 30 months
4. Robert Lee PEREZ
08/25/2011
05/16/2012: 30 months
5. Armando LOPEZ
08/25/2011
02/15/2012: 63 months
6. Luis Alfredo SALINAS
12/21/2011
06/26/2012: 72 months
7. Rogelio Velarde MARTINEZ III
11/16/2011
11/05/2012: 48 months
8. Alfredo SALAZAR
12/21/2011
01/09/2013: 36 months
9. Shane Vernon STULL
09/22/2011
02/17/2012: 13 months
10. Janie LUNA
11/22/2011
04/23/2012: 24 months
11. Shiloh Nathaniel MORENO
11/03/2011
04/09/2012: 18 months
12. Mayra GARCIA‐Gonzalez
03/07/2012
06/04/2012: 46 months
13. Guadalupe Catalina VASQUEZ
03/28/2012
11/06/2012: 63 months
14. Enrique DELARA
03/08/2012
08/28/2012: 100 months
15. Vanessa MEDINA‐Velasco
04/24/2012
08/27/2012: 70 months
16. Victor CASTRO
01/19/2012
06/11/2012: 48 months
17. Jimena Prisilla GUERRERO
04/19/2012
02/04/2013: 37 months
18. Luis Bernardo ALBA
02/08/2012
06/26/2012: 37 months
19. Lisa Marie OLIVAREZ‐Vasquez
09/27/2012
02/04/2014: 52 months
20. Jose Angel MARTINEZ
06/28/2012
02/05/2013: 51 months
21. Roberto Frederico ESQUIVEL
03/28/2012
10/19/2012: 84 months
22. William TORRES‐Cordoba
04/19/2012
10/10/2012: 84 months
23. Sergio GUTIERREZ‐Vasquez
06/28/2012
02/06/2014: 48 months
24. Jose Roberto HERNANDEZ
03/08/2012
04/09/2014: 30 months
25. Salvador MONTENEGRO
09/27/2012
08/07/2013: 71 months
26. Jose NEGRETE‐Rodriguez
06/07/2012
10/25/2012: 46 months
27. Raul MONTENEGRO
05/03/2012
12/12/2012: 24 months
28. Favian RAMIREZ
03/28/2012
08/27/2012: 24 months
29. Francisco Chavarria TAMAYO
07/05/2012
07/25/2013: 12 months
30. Santiago Aurelio MARTINEZ
07/12/2012
12/17/2012: 46 months
31. Arturo CASTILLO‐Martinez
05/24/2012
10/25/2012: 36 months
32. Raul VASQUEZ‐Hinojosa
05/22/2012
10/15/2012: 33 months
33. Ramona ORTIZ
05/22/2012
10/15/2012: 30 months
34. Henris Osmar MERCADO
06/28/2012
11/26/2012: 63 months
35. Rene LARA
05/24/2012
09/26/2012: 96 months
36. Juan LOPEZ Jr.
09/06/2012
02/12/2014: 46 months
37. Hugo RAMIREZ‐Zapata
07/19/2012
07/29/2013: 57 months
38. Johnnie SANTOS
10/17/2012
04/09/2014: 33 months
39. Araceli TREVINO‐Rodriguez
07/05/2012
02/14/2013: 60 months
40. Damien HESLES
10/25/2012
01/28/2014: 110 months
41. Richard HESLES Jr.
10/25/2012
01/28/2014: 120 months
42. Carlo Lee REYES
10/03/2013
06/30/2014: 240 months
43. Alicia CASTANEDA
09/17/2012
06/30/2014: 33 months
44. Ismael HERNANDEZ‐Reyes
10/17/2012
04/24/2013: 37 months
45. Rolando TAMAYO
At‐Large, Failed To Appear
Fugitive
46. Erik Alan GARZA
04/25/2013
01/17/2014: 44 months
“HSI is committed to working with our state and federal law enforcement partners to dismantle and disrupt any illicit scheme involving the illegal exportation of firearms,” said Janice Ayala, Special Agent-in-Charge, HSI San Antonio. “Keeping these items out of the hands of violent cartels is a top priority for HSI.”
This case was investigated by agents with Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Customs and Border Protection, Texas Department of Public Safety, Bexar County Sheriff’s Department, Maverick County Sheriff’s Department, and the San Antonio Police Department.
Assistant United States Attorneys Michael Galdo and Bryan N. Reeves prosecuted this case on behalf of the Government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.