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Friday 2 May 2014
Armed Bank Robber Pleads Guilty to October 2013 Robbery in DundalkRead the Press Release
Used Inside Information Provided By His Accomplice
Baltimore, Maryland –Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, pleaded guilty today to an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to Washington=s plea agreement, on October 1, 2013, Washington and an accomplice parked his car in a parking lot near the M&T Bank in Dundalk. Washington’s accomplice had previously been a teller-trainee at the bank and was familiar with the bank layout, bank procedures and the tellers who worked at the bank. Shortly before 7:30 a.m. Washington and his accomplice approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and his accomplice entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by his accomplice, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while his accomplice emptied the cash from the teller drawers. Washington and his accomplice then left the bank, carrying a canvas bag filled with $133,600, stolen from the bank, got into their car and attempted to flee. They were arrested a short time later and officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and blue latex gloves worn by Washington and his accomplice during the robbery.
Washington faces a maximum penalty of 25 years in prison for armed bank robbery. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 1, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who are prosecuting the case.
Andover Man Sentenced to 6 Years for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jason
Littlehale, 42, of Andover, Maine, was sentenced yesterday in U.S. District Court by Judge
Nancy Torresen to 6 years in prison, to be followed by 10 years of supervised release, for
possession of child pornography. Littlehale pled guilty on September 30, 2013.According to court documents and records, in March of 2012, law enforcement obtained
information that Littlehale was sharing images of child pornography over the internet from his
workplace in Mexico, Maine. Agents met with Littlehale at his home in Andover. A forensic
examination of his computers and computer equipment revealed thousands of child pornography
images and videos.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Maine State Police Computer Crimes Unit.Alleged Serial Bank Robber Arrested After Morning Robbery of Colonia, N.J., BankRead the Press Release
NEWARK, N.J. - A man allegedly responsible for a three-county New Jersey bank robbery spree faces a federal charge today following his arrest yesterday, May 1, 2014, after the rush hour robbery of a Rahway Savings Institute in Colonia, U.S. Attorney Paul J. Fishman announced.
May 1, 2014
Jason Novello, 35, of Elizabeth, N.J., is charged by complaint with one count of bank robbery in connection with the Colonia theft. He made his initial appearance today before U.S. Judge James B. Clark, III in Newark federal court and was detained.
According to the complaint filed today and statements made in court:
At approximately 9:05 a.m. on May 1, 2014, Novello entered the Rahway Savings Institute in Colonia, approached a bank teller and held up a note claiming he had a gun and demanding money. The teller gave the cash to Novello, including two “bait bills” from which the serial numbers had been pre-recorded by the bank.
A bank employee followed Novello out of the bank and noted the license plate of the blue Hyundai Elantra in which Novello fled. Law enforcement officers were able to track the car’s registration to an address where they waited for Novello. FBI agents arrested him when he showed up in the Hyundai.
Including the latest Colonia robbery with which he is charged, the complaint alleges Novello committed nine robberies in the nine months from August 2013 to May 2014, hitting two of the banks – in Colonia and Elizabeth – twice each:Rahway Savings Institute, Colonia
PNC Bank, Scotch Plains
March 22, 2014
Rahway Savings Institute, Colonia
March 8, 2014
Capital One Bank, Iselin
March 1, 2014
PNC Bank, Edison
Jan. 25, 2014
Capital One Bank, North Plainfield
Dec. 7, 2013
PNC Bank, Fanwood
Oct. 30, 2013
Investors Savings Bank, Elizabeth
Aug. 30, 2013
Investors Savings Bank, Elizabeth
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and thanked the Middlesex and Somerset County Prosecutors’ Offices, as well as the Woodbridge, Edison, North Plainfield, Fanwood, Scotch Plains and Elizabeth police departments for their work.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.14-151
Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark
Novello, Jason Complaint
Alien Smuggler Sentenced to 15 Years for Bringing in Illegal Aliens Resulting in Two DeathsRead the Press Release
TUCSON, Ariz. – On April 28, 2014, Marcos Soto-Mendoza, 43, of Tonalisco, Nayarit, Mexico, was sentenced to 15 years in federal prison followed by three years of supervised release. The sentence was imposed by District Court Judge Cindy K. Jorgenson. On April 12, 2013, Soto-Mendoza was found guilty by a jury of five counts of bringing in an illegal alien for profit.
On June 29, 2011, Border Patrol agents responded to a citizen’s call in regard to a distressed suspected illegal alien in the Village of Pisinemo, on the Tohono O’odham Nation. Border Patrol agents made contact with Abad Uriostegui-Uriostegui who stated that he had illegally entered the United States with a group of five other individuals who were in distress out in the desert. Agents proceeded to the location in the desert where Uriostegui-Uriostegui had last seen his companions and located five additional individuals. Three living persons, the defendant Marcos Soto-Mendoza, Juan Garcia-Delgado, and Marcos Mojica-Lagunas, were found in a highly distressed and dehydrated state. Two other members of the group already had died from exposure to the extreme summer conditions.
Soto-Mendoza, Garcia-Delgado, and Mojica-Lagunas were all determined to be citizens of Mexico who had illegally entered the United States. Upon questioning, Soto-Mendoza was identified as their guide, to whom they agreed to pay between $2,200 and $2,500 per person.
On several occasions after illegally entering the United States, Soto-Mendoza informed the group that they would be resupplied with water at a ranch. However, he never led them to a water source and had them continue to walk through the desert. One of the deceased asked Soto-Mendoza to use his cell phone to call for help as the group had little to no water and were suffering from dehydration, but he told her no. At the direction of Soto-Mendoza, the group continued to walk until either (1) they no longer could or (2) they broke off on their own to look for water and/or help.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Sells, U.S. Border Patrol, and the Tohono O'odham Police Department. The prosecution was handled by David Savel and Arturo Aguilar, District of Arizona, Tucson.CASE NUMBER: CR-11-2628
RELEASE NUMBER: 2014-026_Soto-MendozaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
510-Count Second Superseding Indictment in Illegal Concealed Carry Weapons Permits CaseRead the Press Release
SAN JUAN, PR – Yesterday, May 1st, a Federal grand jury returned a 510-count second superseding indictment against attorney and notary public Antonio Peluzzo-Perotin, María Del Carmen Rivera-Negrón, Julio Colón-Santiago, the Lawman Gun Shop, José M. Prado-Colón and Julio C. Medina-Mojica for conspiracy to commit several offenses against the United States, unlawful production of documents, forgery of signatures and seals, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
Prado-Colón, an auxiliary Police of Puerto Rico officer, auxiliary national guardsmen, and firearms instructor, and Medina-Mojica, owner of a shooting range in Humacao, PR, are facing twenty counts of unlawful production of documents or authentication features and aggravated identity theft. In coordination with defendants Julio Colón-Santiago and Carmen Rivera-Negron they falsified safety course certificates required under Puerto Rico law for concealed carry weapons permits. This was in turn used to illegally obtain concealed carry weapons permits.
According to the accusation, from in or about the year 2010, continuing through December 2013, Rivera Pagàn & Asociados Inc. doing business as Lawman Gun Shop, conspired to commit offenses against the United States, that is: the forgery of the signature of a judge and counterfeit of the seal of the Superior Court of Puerto Rico and using these forgeries for the purpose of authenticating a document before the Puerto Rico Police Department (PRPD) in an official proceeding to obtain a fraudulent Concealed Carry Weapons Permit. The defendants charged clients and collected money for services and fees that were not rendered. Defendants’ scheme knowingly caused the transfer, possession, and use without lawful authority, a means of identification of another person which contained the name and signature of the PRPD Superintendent and the name of permit cardholders.
The purpose and object of the conspiracy for the defendants was to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits be falsely issued for pecuniary gain. It was part of the manner and means of the conspiracy for defendants to charge between $1,000- $1,150 for an application. Defendant Julio Colón-Santiago, aka “Junior” or María del Carmen Rivera-Negrón, aka “Maricarmen,” as owners of the gun shop, would give approximately $480 of the fees to defendant Peluzzo-Perotín, and the remaining amounts would be kept as proceeds of The Lawman Gun Shop.
Customers of the gun shop would be provided and invoice detailing services such as: photocopies, affidavits, stamps, Puerto Rico Department of Treasury filing fees, broker services, and a medical certificate, most of which were never rendered. By perpetrating this scheme the defendants entirely bypassed the judicial process, which had been legislatively established to properly adjudicate these Concealed Weapons permit applications.
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass. If convicted, the defendants could face up to 15 years in prison for unlawful production of identity documents, up to five years for falsifying court documents, up to five years for conspiracy and two additional years for each aggravated identity theft count.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
11th Annual Project Sentry Logo Contest WinnersRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Winning Students from Cordova, Conway, Orangeburg, and Summerville
Columbia, South Carolina ----- United States Attorney Bill Nettles announced the winners today of the United States Attorney=s Office 11th Annual Project Sentry Logo Contest. Today, a representative from the United States Attorney=s Office surprised the division winners and overall winner with a visit to their respective schools. U.S. Attorney Bill Nettles presented the award at Kingston Elementary School in Conway, S.C. The winners are:- Grade 1-2 winner: Wesley Hallman; Edisto Primary School, Cordova, S.C.
- Grade 3-5 winner: Kylie Johnson; Kingston Elementary School, Conway, S.C.
- Grade 6-8 winner: Vibriyogn Epuri; William J. Clark Middle School, Orangeburg, S.C.
- Grade 9-12 and OVERALL WINNER: Marcus Epps; Cane Bay High School, Summerville, S.C.
The winners were chosen from 210 entries from 29 schools across South Carolina. Each division winner received a $50.00 award, with the overall winner receiving an additional $50.00 award. Six other students from across the state also received Honorable Mention ribbons.
The statewide contest gives South Carolina students an opportunity to tell the entire state how they prevent gun violence in their school. The theme of the contest was APreventing Gun Violence in Your School.@ The contest was open to students in all South Carolina schools.
The winning entries were selected by AThe Insiders,@ a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The U.S. Attorney's Office coordinated with the South Carolina Law Enforcement Officers= Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district=s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and for pictures of past winning logos, visit http://www.justice.gov/usao/sc/programs/logowinners.html.
Thursday 1 May 2014
Woman Sentenced for Illegally Exporting Electronics Components Used in Military Radar, Electronic Warfare and Missile Systems to ChinaRead the Press Release
BOSTON – The former manager of a Massachusetts electronics company was re-sentenced yesterday for illegally exporting electronics components to China.
Yufeng Wei, a Chinese national residing in Belmont, Mass., was sentenced to 23 months in prison for conspiring, over a 10 year period, to illegally export military and sophisticated electronics used in military phased array radar, electronic warfare, and missile systems to the People’s Republic of China (PRC) and illegally exporting sensitive electronic components to the PRC in violation of the Export Administration Regulations. Several Chinese military entities were among those to whom the defendant and her co-conspirators exported the equipment.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wei’s conviction on export violations charges, for which a jury convicted her in May 2010. The First Circuit vacated two counts of the conviction that charged Weiand her now ex-husband, Zhen Zhou Wu, with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that, from 1996 until 2008, Wu and Wei, shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China, with little regard for whether the parts that they sold were export-controlled. Further, the First Circuit determined that Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so. Because two counts of conviction were vacated, the case was remanded for a re-sentencing hearing. Wu was sentenced to 84 months in prison at his re-sentencing hearing held on Sept. 9, 2013.Wei50, was also sentenced to two years of supervised release. After serving her sentence Wei, who has been residing in the United States as a Lawful Permanent Resident, will be subject to deportation.
On May 17, 2010, WeiWu and Chitron Electronics, Inc. (Chitron-US), were convicted of conspiring from 1997 to 2007 to unlawfully export to the PRC military electronics and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron-US, a company Wu established in Waltham, Mass., as a front company for its parent company, Chitron Electronics Company Limited, based in Shenzhen, PRC. Wei was a “hands-on” manager at Chitron-US who oversaw the procurement of export restricted equipment from U.S. suppliers and shipment of those goods from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy, and Air Force.
The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the Court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items ... that the People’s Liberation Army actively seeks to acquire.”
U.S. Attorney Carmen M. Ortiz; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; John J. McKenna, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office; Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office; and Leigh-Alistair Barzey, Resident Agent in Charge of Defense Criminal Investigative Service in Boston made the announcement today. The case was prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.Woman Guilty of Obstructing Investigation of $1.8 Million Fraud Against Failed La Jolla BankRead the Press Release
United States Attorney Laura E. Duffy announced today that former San Diego resident Laura Ortuondo pleaded guilty before Magistrate Judge William V. Gallo to one count of making false statements to federal agents concerning her role in a nearly five-year cover-up of a scheme to defraud La Jolla Bank in connection with a $1.8 million Small Business Administration (“SBA”) loan that her former boss sought from the bank.
According to court records, in 2008, Ortuondo worked for a local small business owner named Annand Sliuman (who previously pleaded guilty in a separate case). In her role as Sliuman’s assistant, Ortuondo, among other things, helped Sliuman manage loans and loan applications with La Jolla Bank. In May 2008, Ortuondo assisted Sliuman in fraudulently obtaining a $1.8 million loan from La Jolla Bank by knowingly submitting two fraudulent tax forms to the bank on Sliuman’s behalf, which falsely stated that Sliuman had satisfied certain tax liabilities. Sliuman and Ortuondo submitted the fraudulent records to the bank in order to make it appear that he was eligible for the SBA loan from the bank. La Jolla Bank was a San Diego County-based bank and a member of the Federal Home Loan Bank of San Francisco (“FHLB”). La Jolla Bank failed in 2010 and was taken over by the Federal Deposit Insurance Corporation (“FDIC”) after the bank ran up a debt of approximately $1 billion, including approximately $700 million in outstanding advances from the FHLB.
According to court records, after assisting Sliuman in defrauding La Jolla Bank, Ortuondo then undertook a nearly five-year long effort to thwart federal agents’ investigation of the fraud. The cover-up began in October 2008, when Ortuondo lied to investigators and claimed that she was unaware that she had submitted false documents to the bank. Then, shortly after lying about her knowledge of the fraud, Ortuondo assisted Sliuman in destroying Ortuondo’s personal laptop, knowing that it contained incriminating evidence of their fraud against the bank. To make matters worse, Ortuondo also convinced her husband at the time to lie to federal agents and a federal grand jury on her behalf, claiming – falsely – that he had destroyed her laptop.
In November 2011, federal agents interviewed Ortuondo again regarding her role in the fraudulent procurement of Sliuman’s loan from La Jolla Bank. Again, Ortuondo lied about her role in the fraud and the cover-up, falsely denying that she knowingly submitted fraudulent tax forms to the bank and falsely claiming that her ex-husband destroyed her laptop. In today’s guilty plea, Ortuondo admitted to making these false statements to federal agents with the intent to obstruct the federal investigation of the La Jolla Bank fraud.
“My office will not tolerate lies and deceit intended to obstruct our system of justice,” said U.S. Attorney Laura Duffy. “As this case illustrates, no matter how long it takes, we will not rest until the truth sees the light of day. I want to thank our agency partners for their dogged commitment to seeing this investigation through.”
“Lies and deceit will not earn you entry into SBA’s small business lending program,” said SBA Inspector General Peggy E. Gustafson. “Together with our law enforcement partners, the OIG will continue to ensure those who commit fraud are brought to justice. We would like to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism throughout this investigation.”
Treasury Inspector General for Tax Administration Special Agent in Charge Rod Ammari stated, “Individuals that use fraudulently created IRS documents to further their schemes and then actively obstruct the Government’s investigation will be investigated to the fullest extent. This investigation is a great example of collaboration by all agencies involved to hold the perpetrators of this scheme responsible for their actions.”
Daphne Hearn, FBI Special Agent in Charge, San Diego Field Office, commented, “Fraudulent schemes like this undermine our country's economy and ultimately leave American taxpayers on the hook. The FBI will continue to work with our law enforcement partners to protect our precious tax dollars from waste, fraud and abuse.”
Michael P. Stephens, Acting Inspector General of the Federal Housing Finance Agency, said: “All individuals who engage in fraudulent behavior, whether they are the ring leader or an assistant, will be held accountable for their actions. We are proud to have worked with our law enforcement partners on this case and are again pleased to see justice served.”
Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, stated, “The FDIC Office of Inspector General is pleased to have joined the Department of Justice and our law enforcement colleagues in conducting this investigation. We are firmly committed to joint efforts such as this one in the interest of ensuring integrity in the banking system and helping to prevent losses to the Deposit Insurance Fund.”
Ortuondo is scheduled to be sentenced by Judge Anthony J. Battaglia on July 25, 2014 at 9 a.m. Her guilty plea is pending final acceptance by Judge Battaglia. Sliuman previously pleaded guilty in a separate case to bribing an officer of La Jolla Bank in exchange for the officer approving loans on his behalf, and admitted his role in the fraud and obstruction of justice conspiracy with Ortuondo. Sliuman is scheduled to be sentenced by Judge Battaglia in his case on September 26, 2014.
DEFENDANT Case Number: 13CR3879-AJB Laura Ortuondo Age: 33 Cupertino, CA CHARGESFalse Statement to a Federal Agent, in violation of Title 18, United States Code, Section 1001
Maximum penalties: 5 years’ imprisonment, $250,000 fine.
DEFENDANT Case Number: 13CR3879-AJB Annand Sliuman Age: 33 Spring Valley, CA CHARGESBank bribery, in violation of Title 18, United States Code, Section 215(a)(1)
INVESTIGATING AGENCY
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineSmall Business Administration – Office of the Inspector General
Department of Treasury – Inspector General for Tax Administration
Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Federal Deposit Insurance Corporation – Office of Inspector General*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Winner Woman Charged with Distribution of A Controlled Substance and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winner, South Dakota, woman has been indicted by a federal grand jury for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Alice Blacksmith, age 49, was indicted on April 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in February and March of 2014, Blacksmith possessed and knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, on the Rosebud Sioux Reservation in South Dakota.
The charges are merely an accusation and Blacksmith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blacksmith was released on bond pending trial. A trial date has not been set.
Windham Man Pleads Guilty to Passing $18,000 Worth of Counterfeit Traveler’s ChecksRead 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 Keith
A. Coleman, 48, of Windham, Maine, pled guilty today in U.S. District Court to passing $18,000
worth of counterfeit $100 American Express traveler’s checks.According to court records, between December 17, 2013 and January 10, 2014, the
defendant passed 180 counterfeit $100 American Express traveler’s checks at Applebee’s, Best
Buy, CVS Caremark, Denny’s, TGI Fridays, Longhorn Steakhouse, Olive Garden, Radio Shack,
Rite Aid, Ruby Tuesday, Staples, Target and Toys ‘R Us in Maine and elsewhere.Coleman faces up to 10 years in prison, a $250,000 fine, or both. He will be sentenced
after the completion of a presentence investigation report by the U.S. Probation Office.This case was investigated by the United States Secret Service and the Auburn, Augusta,
Biddeford, South Portland and Topsham, Maine and the Everett, Massachusetts Police
Departments.Wanblee Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on April 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shy Bettelyoun, age 30, was sentenced to 30 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bettelyoun was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 20, 2013. She pled guilty on November 8, 2013.
The charge relates to Bettelyoun and others, including Angel Provincial, Robert Provincial, Clinton Provincial, Shawna Provincial, and Diana Bald Eagle, conspiring to distribute methamphetamine in the District of South Dakota between the timeframe of August 2009 and February 2013.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Bettelyoun was immediately turned over to the custody of the U.S. Marshals Service.
Violent Felon Sentenced to over 22 Years in PrisonRead the Press Release
BATON ROUGE, LA –U.S. Attorney Walt Green announced that U.S. District Judge Shelly D. Dick sentenced CHRIS E. WILLIAMS, age 28, of Baton Rouge, Louisiana, yesterday to 270 months imprisonment and 5 years of supervised release following imprisonment for his role in a home invasion conspiracy aimed at stealing 12 kilograms of cocaine and killing anyone that stood in the way.
The defendant’s sentence arises from his guilty pleas in January 2014 for conspiring to possess with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846; possessing firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
Under the federal sentencing guidelines, the defendant’s sentence was enhanced based on his status as a career offender. The defendant was afforded that status based on having 3 prior felony adult convictions for crimes of violence, along with 8 other convictions.
U.S. Attorney Green praised the hard work of the Bureau of Alcohol, Tobacco and Firearms (ATF) and the East Baton Rouge Violent Crimes Unit. He also stated: “The U.S. Attorney’s Office and our federal, state, and local partners will continue to devote whatever resources are necessary to aggressively identify, investigate, and prosecute those violent career offenders who plague our streets, threaten our families, and destroy our neighborhoods.”
This investigation was conducted by the ATF and the East Baton Rouge Violent Crimes Unit which includes the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Office, and Louisiana State Police. The matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter who also serves as a Deputy Chief in the Criminal Division.
Two Business Owners Indicted in Alleged Wire Fraud Conspiracy to Fraudulently Obtain More Than $1.8 Million in Government Contracts Under the SBA’s 8(A) ProgramRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Yogesh K. Patel, age 47, of Gaithersburg, Maryland, and Wesley Burnett, age 54, of Hermosa Beach, California, for conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $1.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.Wesley Burnett owned Total Barrier Works (TBW), a professional services company specializing in the maintenance and installation of anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and all other perimeter security anti-terrorist equipment.
The indictment alleges that Patel and Burnett agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, the indictment alleges that between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. Government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.
Patel and Burnett each face a maximum sentence of 30 years in prison and a $250,000 fine for conspiracy to commit wire fraud. No court appearance has been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Two Beckley Area Men Sentenced for Forging Prescriptions to Obtain OxycodoneRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
BECKLEY, W.Va. – U.S. Attorney Booth Goodwin announced today that Raymond Duncan, age 31, of Bud, West Virginia, and Jeremy Blankenship, age 38, of Crab Orchard, West Virginia, were sentenced today in federal court in Beckley, West Virginia. In January of 2014, Duncan plead guilty to obtaining oxycodone by fraud, and Blankenship plead guilty to attempting to obtain oxycodone by fraud. Both men forged prescriptions for oxycodone on stolen prescription pads and presented them to Beckley area pharmacies to be filled. Duncan was successful in illegally obtaining oxycodone, but Blankenship was arrested during his attempt to get the forged prescription filled. In today’s court hearing, United States District Judge Irene C. Berger sentenced Duncan to ten months’ imprisonment and Blankenship to three years of probation.
The case was investigated by the United States Drug Enforcement Administration.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
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[email protected]Three Fort Thompson Brothers Charged with Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that three Fort Thompson, South Dakota, men have been charged by Information with three counts of Possession of a Controlled Substance.
Lucas Middletent, age 27; Victor Middletent, age 30; and Thomas Middletent, age 32, were charged by Information on April 21, 2014. Lucas and Thomas Middletent appeared before U.S. Magistrate Judge Mark A. Moreno on April 23, 2014, and pled not guilty to the Information. Victor Middletent appeared before Judge Moreno on April 30, 2014, and pled not guilty to the Information.
The maximum penalty upon conviction is 1 year of imprisonment, and/or a mandatory $1,000 fine up to a $100,000 fine, 1 year of supervised release, an additional 1 year of supervised release upon revocation, and a mandatory $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that at various times between July 2013 and November 2013, in Fort Thompson, Lucas, Victor, and Thomas Middletent intentionally and knowingly possessed methamphetamine, a Schedule II controlled substance.
The charges are merely accusations, and all three men are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the cases.
All three men were released on bond pending trial. A trial date has not been set.
Supai Man Sentenced to 96 Months in Prison for Aggravated Sexual AbuseRead the Press Release
PHOENIX – On April 28, 2014, David Wayne Old Mouse, 24, of Supai, Ariz., of the Havasupai Indian Reservation, was sentenced by U.S. District Judge G. Murray Snow to 96 months in prison followed by five months of supervised release. Old Mouse previously pleaded guilty to one count of aggravated sexual abuse.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-08227-PCT-DGC-1
RELEASE NUMBER: 2014-025_Old_MouseFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Stella Man Pleads Guilty to Transporting a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stella, Mo., man pleaded guilty in federal court today to transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Jan. 21, 2014, federal indictment.
By pleading guilty today, Yang admitted that he traveled to Minnesota on Dec. 7, 2013, to pick up a 15-year-old girl and bring her back to Missouri with the intent to engage in illicit sexual activity.
Yang had contacted the minor victim a couple of weeks earlier by sending her a friend request on Facebook. Yang talked to her about coming to live with him in Missouri and told her he owned his own business. The minor victim went to her mother’s house to retrieve some clothing on Dec. 6, 2013, and while there, she asked Yang to come get her. She snuck out and met with Yang in front of her mother’s house the next day, and they drove to a hotel in Neosho, Mo., where they engaged in unprotected sex.
Under federal statutes, Yang is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Staples Convicted of Production of Child PornograpyRead the Press Release
Local Karate Instructor Admits to Producing Child Pornography
PLATTSBURGH, NEW YORK – Ryan Staples, 37, of Chateaguay, pled guilty to three counts of production of child pornography today in United States District Court in Albany, New York, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent in Charge James Spero.
United States Attorney Richard S. Hartunian stated: “We will continue to aggressively pursue anyone and everyone who seeks to traumatize and sexually exploit our children. I commend the Department of Homeland Security and their investigators who worked so hard to bring this defendant to justice.”
“Child pornography creates a permanent record of a child’s sexual exploitation and each time it’s shared online, that child is victimized again," said Spero. "Traumatizing children for sexual purposes is one of the most despicable crimes HSI investigates. HSI will continue to relentlessly pursue child predators to rescue innocent victims and bring their abusers to justice.”
STAPLES faces a statutory mandatory minimum sentence of imprisonment for fifteen years on each count and a maximum sentence of imprisonment for thirty years on each count, a lifetime term of supervised release, a maximum fine of $250,000 on each count, and mandatory registration as a sex offender. STAPLES, who was remanded, will be sentenced in Albany on September 11, 2014 by United States District Judge Thomas J. McAvoy.
Staples pled guilty to three counts of production of child pornography involving three different victims. Staples admitted that he videotaped and took photographs of himself engaged in sexually explicit conduct with the three minor victims.
This prosecution resulted from an investigation conducted by the Department of Homeland Security, Homeland Security Investigations, Rouses Point. The case was prosecuted by Assistant United States Attorney Katherine Kopita.
St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Kahn, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Kahn, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Kahn and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Kahn and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Kahn and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Kahn allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Khan, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Khan, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Khan and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Khan and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Khan and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Khan allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.St. Francis Man Sentenced for Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Attempt to Obtain Controlled Substance by Fraud was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Titus Iron Shield, age 48, was sentenced to 3 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Shield was indicted for Attempt to Obtain Controlled Substance by Fraud by a federal grand jury on January 15, 2014. He pled guilty on February 3, 2014.
On approximately April 30, 2013, Iron Shield fraudulently presented an altered prescription in an attempt to receive 30 Hydrocodone pills from the Rosebud Indian Health Service Pharmacy. A pharmacist examined the prescription, recognized it could be an invalid and fraudulent prescription, and the matter was reported to law enforcement authorities.
This case was investigated by Office of Inspector General – Department of Health and Human Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Iron Shield was immediately turned over to the custody of the U.S. Marshals Service.
St. Croix Man Arrested for Carrying A Loaded Firearm on an AircraftRead the Press Release
St. Thomas, USVI – Jahmal A. Rivera, 28, of St. Croix was arrested on Tuesday and charged in United States District Court with having a loaded firearm on an aircraft announced United States Attorney Ronald W. Sharpe. Rivera appeared yesterday in District Court before U.S. Magistrate Judge Ruth Miller and was ordered held without bail pending trial.
According to the criminal complaint filed in District Court, Rivera was arrested after arriving at the Cyril E. King Airport in St. Thomas on a Seaborne Airlines plane from St. Croix, and a loaded Glock, .45 caliber firearm was found in his carry-on baggage. The firearm was discovered by Virgin Islands Port Authority (VIPA) and United States Customs and Border Protection (CPB) who were conducting screening of all passengers arriving in St. Thomas from St. Croix. Under federal law, it is illegal to carry a loaded firearm on an aircraft either on your person or in luggage unless properly declared.
If convicted of this offense, Rivera faces up to 20 years in prison, a fine of up to $250,000, or both. However, a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
United States Attorney Sharpe praised the work of the VIPA and CPB in stepping up their inspections of flights between St. Thomas and St. Croix. This case is being investigated by the Bureau of Alcohol Tabaco Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Nelson Jones.
Social Security Claims Representative Sentenced to Twelve Months and One Day for Extortion and BriberyRead the Press Release
Memphis, TN – United States Attorney Edward L. Stanton III announced today that Montrell Levelle Arnold, age 42, of Memphis, Tennessee, was sentenced by United States District Judge Samuel H. Mays, Jr., to twelve months and one day in federal prison for bribery and extortion under color of official right. Arnold was also ordered to pay $3,473.54 in restitution to the United States Social Security Administration and to serve two years of supervised release.
According to the Indictment and to information presented in court, on at least five occasions while Arnold was working as a Claims Representative for the United States Social Security Administration (SSA) in Memphis, he offered to “process” purported one-time Supplemental Security Income (SSI) payments for beneficiaries in exchange for a fee. Several SSI beneficiaries agreed to pay Arnold a fee to process this purported one-time benefit payment, and at least one beneficiary paid Arnold $1,500 in cash.
Once the purported benefit payment had been electronically deposited into a beneficiary’s account, Arnold would then contact the beneficiary by telephone and by text message to confirm receipt of payment and to make arrangements to obtain his “processing fee.”
“Because of his brazen criminal scheme, Arnold now faces a prison sentence and must pay back the money he stole. We will continue to work closely with the SSA to pursue, prosecute, and bring to justice those who use their position of authority to steal from honest American taxpayers,” stated United States Attorney Edward L. Stanton III.
“While employee fraud is rare in SSA’s dedicated work force, the Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust. I’m grateful that the U.S. Attorney’s office shares our determination to ensure the integrity of SSA’s programs,” said Wayne Warren, Special Agent in Charge, United States Social Security Administration, Office of the Inspector General.
The case was investigated by the United States Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Leetra Harris represented the government.Six People from Rapid City Sentenced for Immigration Related CrimesRead the Press Release
United States Attorney Brendan V. Johnson announced that six individuals, five of whom are family members, have been sentenced for their roles in a conspiracy to harbor aliens and for harboring aliens between January 2008 and May 2013. The fraud is in connection with contracts entered into with the U.S. Forest Service.
The convictions are a result of a criminal investigative operation conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations, in cooperation with the U.S. Forest Service, the Rapid City Police Department, the Pennington County Sheriff's Office, the South Dakota Division of Criminal Investigation, the Custer County’s Sheriff’s Office, the U.S. Department of Labor, and other federal and state law enforcement agencies.The following individuals were sentenced on April 24 and April 25, 2014:
*Angel Munoz-Escalante, age 60, owner and operator of Munoz Logging and Construction Company, was sentenced for False Statement. He received 12 months and 1 day of imprisonment, 1 year of supervised release, 50 hours of community service, $539,507.92 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 2007 Dodge Ram pickup truck, a 2006 Dodge pickup truck, a Timbco Valmet T445 EXL, a Timbco T425B, and $108,590.08 in currency. The total value of the seized and forfeited items is $260,492.08.Munoz-Escalante intentionally submitted approximately 50 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Munoz-Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates. Munoz-Escalante is scheduled to begin his prison term on May 26, 2014.
*Barbara Munoz, age 55, owner and operator of Munoz Logging and Construction Company, was sentenced for Misprison of a Felony. She received 1 year of probation, 100 hours of community service, and a $100 assessment to the Federal Crime Victims Fund. Munoz was aware that her husband, Angel Munoz-Escalante, was committing federal felony crimes by circumventing U.S. Forest Service contract requirements and did not report those crimes.
*Aurelio Munoz-Escalante, age 51, owner and operator of Black Hills Thinning Company, was sentenced for False Statement. He received 3 months of imprisonment, 1 year of supervised release, $135,276.88 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 518C Skidder, a 2005 CAT 525B Skidder, and $116,724.12 in currency. The total value of the seized and forfeited items is $165,590.12. Aurelio Munoz-Escalante intentionally submitted approximately 32 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Aurelio Munoz-Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates. Aurelio Munoz-Escalante is scheduled to begin his prison term at a later date.
*Rogelio Escalante, age 57, owner and operator of Escalante Logging Company and Escalante Logging and Thinning Company, was sentenced for False Statement. He received 6 months of home confinement, 2 years of probation, $249,155.23 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 2005 ASV Positract RC 100, a Tigercat 610C Skidder, a 1998 Timberjack 460 Skidder, and $38,875.29 in currency. The total value of the seized and forfeited items is $223,875.29. Escalante intentionally submitted approximately 25 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates.
*Miguel Soto, age 31, foreman for Black Hills Thinning Company, was sentenced for Continuing Unlawful Employment of Aliens. He received a $2,500 fine, a $10 special assessment to the Federal Crime Victims Fund, and forfeiture of $3,087 in currency. Soto, while working for Black Hills Thinning Company as a supervisor, knowingly paid illegal alien employees. In addition, while running his own logging crew, he knowingly employed illegal workers.
*Pascual Munoz, age 55, owner and operator of Pine Forest Logging and Thinning, was sentenced for Continuing Unlawful Employment of Aliens. He received a $2,500 fine, a $10 special assessment to the Federal Crime Victims Fund, and forfeiture of his logging equipment. The total value of the seized and forfeited items is $22,500. Munoz hired illegal workers, did not pay insurance or overtime, and did not provide safety equipment, all in violation of his U.S. Forest Service contracts.
Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the cases.
Four additional defendants associated with this case will be sentenced at a later date.
Sentencing for April 25 - May 1, 2014Read the Press Release
John Scott Pinkerton, 58, of Pierce, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on May 1, 2014, for attempted online enticement of a child. Pinkerton was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $1,000.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Ryan Michael Myron, 29, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2014, for being a felon in possession of a firearm. Myron was arrested in Riverton, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Max Brian McDermott, 45, of Daniel, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2014, for possession of child pornography. McDermott was arrested in Daniel, Wyoming. He received 60 months imprisonment, to be followed by a life-time term of supervised release, and was ordered to pay a $2,000.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Chandler Allen Ingersoll, 43, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more methamphetamine and on one count of possessing a firearm in furtherance of a drug trafficking crime. Ingersoll was arrested in Gillette, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Campbell County Sheriff’s Office, the Gillette Police Department, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Benjamin Paredes-Aguirre, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, for illegal re-entry of a previously deported alien into the United States. Paredes-Aguirre was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edgar Valencia-Hernandez, 31, of Mexico, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, for illegal re-entry of a previously deported alien into the United States. Valencia-Hernandez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hugo Cartaya, 58, of Littleton, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on April 25, 2014, for making false statements in a report required to be filed under the Clean Water Act and making false statements to special agents of the United States Bureau of Land Management and the United States Environmental Protection Agency during a criminal investigation of an oil spill in Carbon County, Wyoming. Cartaya self-surrendered to the U.S. Marshals Service. He received three years of supervised probation, was ordered to serve 250 hours of community service, and was ordered to pay a $10,000.00 fine and a $200.00 special assessment. This case was investigated by the U.S. Environmental Protection Agency and the U.S. Bureau of Land Management.
Seller of Shipping Containers Convicted of FraudRead the Press Release
HOUSTON – Steven Patrick Jones, 49, of Kingwood, and Panama City, Panama, has pleaded guilty to mail fraud, announced United States Attorney Kenneth Magidson.
Jones has admitted he and a partner formed a company called Intermodal Wealth to sell shipping containers. Intermodal offered to sell shipping containers to investors, then lease the containers for the investors. Jones promised to pay their investors 16% per year from the proceeds of the leases.
However, the company had few containers and did not lease any of them. Payments were made to investors, but the funds came from subsequent investors rather than from true proceeds.
Intermodal received more than $5.5 million from investors throughout the United States and worldwide. Jones, his family and partners spent the majority of the investment funds they received.
John Patrick Acord, 71, of Magnolia, is named in the indictment as Jones’ partner. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Postal Inspection Service at 713-238-4444. He is considered innocent unless convicted through due process of law.
U.S. District Judge Gray Miller, who accepted the guilty plea today, has set sentencing for Sept. 5, 2014. At that time, Jones faces up to 20 years in federal prison without parole and a fine of up to $250,000. He has been and will remain in custody pending that hearing.
The U.S. Postal Inspection Service investigated the case with the assistance of the Texas State Securities Board. Assistant U.S. Attorney Jay Hileman is prosecuting.
San Diego Man Sentenced to 14 Years in Prison for Receipt of Child PornographyRead the Press Release
Howard Willie Carter, II, a San Diego resident, was sentenced yesterday by U.S. District Judge Barry Ted Moskowitz to 168 months in federal prison, followed by 10 years of supervised release, based on Carter’s conviction for receipt of child pornography.
Carter, who has been in custody since his arrest by the Federal Bureau of Investigation on October 17, 2012, pled guilty on November 14, 2013.
According to court documents, in August 2012, Carter was receiving and viewing images of minors engaged in sexually explicit conduct. After a forensic review of his computer, it was discovered that he possessed well over 600 illegal images and videos, with the majority of the images involving minors under the age of 12. The forensics examination of the computer conducted by the San Diego Regional Computer Forensic laboratory (RCFL) revealed that Carter attempted to upload one of those videos to YouTube to be viewed by others.
At sentencing yesterday, Judge Moskowitz stated that given Carter’s past criminal history and his conduct in the current case, Carter appeared to be a danger to the community and a significant sentence was warranted.
“Unfortunately, child exploitation is an epidemic in this nation,” said U.S. Attorney Laura Duffy. “Howard Carter’s actions highlight the dangerousness of this type of activity in our community. I hope this long sentence will prevent him and others from exploiting a victim in the future.”
FBI Special Agent in Charge Daphne Hearn, commented, “Each image Mr. Carter possessed represented the victimization of a child. We hope today's sentencing sends a clear message to anyone involved in the online sexual exploitation of a child, that the FBI will not tolerate the victimization and destruction of our children's future. We will remain vigilant and committed to removing sexual predators from our children's lives.”
This case stems from an investigation by the Federal Bureau of Investigation.
DEFENDANT Case Number: 12CR4191-BTM Howard Willie Carter Age: 37 San Diego, California CHARGESTitle 18, United States Code, Section 2252(a)(2) – Receipt of Child Pornography
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Rough and Ready Man Found Sentenced to 14 Years Prison for Nevada County Crime SpreeRead the Press Release
SACRAMENTO, Calif. — Today, United States District Judge Troy Nunley sentenced Jasen Lynn Dushane, 38, of Rough and Ready, to 14 years prison for possession of stolen United States mail, possession of stolen credit cards with intent to defraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Dushane was previously convicted after a five-day trial.
In sentencing, Judge Nunley characterized Dushane’s criminal history as extensive and said that Dushane was “a crime spree waiting to happen.”
According to testimony presented at trial, on June 5, 2011, at approximately 2:25 a.m., a Nevada County sheriff’s deputy observed a silver Lexus sedan southwest of Nevada City. He checked the license plate number of the Lexus and confirmed that it was reported stolen. The deputy stopped the vehicle and directed the driver to turn off the engine. Although the driver initially complied, he restarted the engine and drove off. A vehicle chase ensued for nearly 1.5 miles on dark and muddy Black Forest Road. The two occupants of the Lexus fled from the vehicle, but not before the driver threw the Lexus into reverse, sending it backward toward the deputy and ultimately down an embankment. Law enforcement officers were unable to find the male driver, but they found the passenger, Manda Lynn Wentzloff, hiding in some nearby brush. Wentzloff identified the driver as Dushane. Dushane was arrested at a store later that day in Grass Valley while attempting to pick up a police scanner that he had ordered using a stolen credit card.
According to court documents, Wentzloff told officers that she and Dushane had been stealing mail and other items from mailboxes and a residence in and around Nevada County. She said that she and Dushane had stolen a BMW vehicle during the course of their activities, and that it was parked outside her and Dushane’s motel room in Reno. They searched the hotel room, the Lexus, and the BMW and found bags, folders, and other containers full of opened and unopened U.S. mail with recipient addresses in Nevada County and Las Vegas. Officers also found photocopies of credit cards and various official identification documents, credit cards, opened bank and credit card statements, and personal checks. In total, more than a thousand pieces of stolen mail were recovered.
Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, San Francisco Division stated “we work closely with the U.S. Attorney Office and our partners in law enforcement to arrest and prosecute those who steal mail for criminal gain. A primary goal of the Postal Inspection Service is to protect postal customer’s mail and ensure that their mail is safe from theft.”
This case is the product of an investigation by the United States Postal Inspection Service and the Nevada County Sheriff’s Office. Assistant United States Attorneys Jared S. Dolan and Nirav K. Desai prosecuted the case.
Rosebud Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Arnold Eagle Bear, age 31, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 30, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 1, 2013, and December 31, 2013, Eagle Bear had sexual contact with a minor who had not attained the age of 16.
The charge is merely an accusation and Eagle Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Eagle Bear was released on bond pending trial. A trial date has not been set.
Rapid City Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted by a federal jury on charges of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, was sentenced on April 25, 2014, by U.S. District Court Judge Karen E. Schreier.
Richard Bear Runner, age 25, was sentenced to 57 months of imprisonment, 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
In September 2012, at Porcupine, Bear Runner assaulted a woman with a wooden stick that had a sharp hook on it, causing multiple cuts on her legs and back.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Bear Runner was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on April 21, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wilber Sinai Valdovinos-Gil, age 23, was sentenced to 120 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Valdovinos-Gil was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 4, 2012. He pled guilty on December 20, 2013.
From June 2010 until April 4, 2012, Valdovinos-Gil conspired and agreed with Hugo Arechiga-Torres, and other persons, to distribute more than 1.5 kilograms of methamphetamine in South Dakota. Torres is scheduled to be sentenced on June 2, 2014.
This case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, Sioux Falls Area Drug Task Force, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Valdovinos-Gil was immediately turned over to the custody of the U.S. Marshals Service.
Quinton Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Quinton man for threatening an African-American man at a restaurant in the Walker County town, and for threatening another person who ordered Higgins to leave the restaurant because of his behavior, announced U.S. Attorney Joyce White Vance and Acting Assistant Attorney General Jocelyn Samuels, head of the U.S. Department of Justice's Civil Division.
A three-count indictment filed in U.S. District Court charges JEREMY HEATH HIGGINS, 28, with one felony count and two misdemeanor counts of interference with a federally protected activity. The indictment charges Higgins with approaching and threatening an African-American man on June 14, 2013, at the Alabama Rose Steakhouse because the man was at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of his behavior toward the African-American man, after which Higgins shouted a threat to burn down the restaurant. The indictment further charges that Higgins threatened the person who ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
"This case reaffirms our commitment to prosecuting hate crimes and holding people responsible for conduct motivated by racial animus," Vance said.
If convicted of the felony count, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
The FBI is investigating the case and is being prosecuted by Assistant U.S. Attorney Robin Beardsley Mark and Justice Department Civil Rights Division Trial Attorney David Reese.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Quinton Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Quinton man for threatening an African-American man at a restaurant in the Walker County town, and for threatening another person who ordered Higgins to leave the restaurant because of his behavior, announced U.S. Attorney Joyce White Vance and Acting Assistant Attorney General Jocelyn Samuels, head of the U.S. Department of Justice's Civil Division.
A three-count indictment filed in U.S. District Court charges JEREMY HEATH HIGGINS, 28, with one felony count and two misdemeanor counts of interference with a federally protected activity. The indictment charges Higgins with approaching and threatening an African-American man on June 14, 2013, at the Alabama Rose Steakhouse because the man was at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of his behavior toward the African-American man, after which Higgins shouted a threat to burn down the restaurant. The indictment further charges that Higgins threatened the person who ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
"This case reaffirms our commitment to prosecuting hate crimes and holding people responsible for conduct motivated by racial animus," Vance said.
If convicted of the felony count, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
The FBI is investigating the case and is being prosecuted by Assistant U.S. Attorney Robin Beardsley Mark and Justice Department Civil Rights Division Trial Attorney David Reese.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Protection of Voting Rights in the 2014 Election CycleRead the Press Release
United States Attorney Kenyen R. Brown announced today that Assistant United States Attorney (AUSA) Vicki M. Davis will oversee the efforts of the Southern District of Alabama’s voting rights protection for the upcoming June 2014, primary elections and the 2014 general election. AUSA Davis has served as the District Election Officer (DEO) for the Southern District of Alabama for many years. She is responsible for overseeing the District=s handling of complaints of election fraud and voting rights abuses in consultation with the Department of Justice in Washington.
United States Attorney Kenyen Brown stated, Aevery citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department seeks to ensure public confidence in the integrity of the election process by providing local points-of-contact in order that the public may report possible election fraud and voting rights violations while the polls are open.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. The law also provides special protections for the rights of voters in order that they may vote free from acts of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Federal law also protects the right of voters to mark their own ballot or to be assisted in marking their ballot by a person of their choice.
The voting franchise is the cornerstone of American democracy. We must all strive to ensure that those who are entitled to the voting franchise exercise it if they choose, and equally that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses and to ensure that such complaints are directed to the appropriate authorities. AUSA/DEO Davis can be reached by the public at the following telephone number: (251) 441 5845.
The Federal Bureau of Investigations (FBI) has Special Agents available in each field office and resident agency to receive allegations of election fraud and other election abuse. The local FBI field office can be reached at (251) 438-3674.
Complaints concerning ballot access issues or allegations of discrimination can be made directly to the Civil Rights Division=s Voting Section in Washington by calling 1-800-253-3931 or (202) 307-2767.
United States Attorney Brown stated, Aensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.
Pine Ridge Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of sexual abuse was sentenced on April 29, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tobacco was immediately turned over to the custody of the U.S. Marshals Service.
Daniel Tobacco, age 20, was sentenced to 48 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tobacco was indicted for Sexual Abuse by a federal grand jury on June 12, 2012. He was convicted following a federal jury trial in Rapid City in January of 2013.
The conviction stems from Tobacco engaging in a sexual act with an unconscious female at Pine Ridge on February 23, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Supervisory Assistant U.S. Attorney Gregg S. Peterman handled the sentencing.
Pierre Woman Sentenced for Making False Statements to A Federal AgencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, woman convicted of Making False Statements to a Federal Agency was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Kelsey Howe, age 20, was sentenced to 2 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Howe was indicted by a federal grand jury on November 14, 2013. She pled guilty on February 3, 2014.
The conviction stems from an incident on October 31, 2013, when law enforcement received information that Jason Garreau, an individual they were searching for following a shooting with law enforcement, had called family from a telephone number that was associated with Howe’s trailer home in Pierre. The officer spoke with Howe on the telephone and told her there had been an officer involved in a shooting in Fort Thompson and that he needed to locate Garreau to speak with him. The officer asked Howe if she knew Garreau’s location. Howe told the officer that she did not. The officer then asked Howe if she was at her residence, and she said she was at a relative’s home in southeast Pierre.
A few minutes after the call, officers observed Howe exit her residence. She was stopped by law enforcement a few blocks away, and was again asked if anyone was inside her residence. She said no one was inside the home, and said she had not seen Garreau in the past two weeks. Howe was then confronted by an officer with the drug task force about lying to the officers. She finally stated that she knew Garreau, and he was, in fact, inside her residence at the time. Howe told agents that Garreau had arrived at her residence around 12:30 a.m. and that he had a long black gun with him in the house. A lengthy standoff with Garreau ensued and he was eventually taken into custody.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Howe was immediately turned over to the custody of the U.S. Marshals Service.
Parmelee Man Sentenced for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Failure to Appear was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Adam Poor Bear, age 24, was sentenced to 12 months and 1 day in custody, and a $100 special assessment to the Federal Crime Victims Fund.
Poor Bear was indicted for Failure to Appear by a federal grand jury on December 10, 2013. He pled guilty on March 5, 2014.
On December 2, 2013, Poor Bear, having been charged with Assault with a Dangerous Weapon and Supervised Release Revocation, failed to appear for his sentencing hearing as ordered by the court.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Poor Bear was immediately turned over to the custody of the U.S. Marshals Service.
Newport News Man Sentenced to 10 Years for Sex Trafficking of A Minor and Passing Counterfeit MoneyRead the Press Release
NORFOLK, Va. – Todd Jackson, 25, of Newport News, Va., was sentenced today to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of a minor and conspiracy to pass counterfeit money.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office; and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement after sentencing by Senior United States District Judge Henry Coke Morgan, Jr.
Jackson pleaded guilty on January 28, 2014. According to court documents, Jackson was stopped by Virginia Beach Police Department in July 2013. Jackson was with a 17 year old girl who was listed as a runaway. The girl stated that she had been working as a prostitute for Jackson for the past 10 days in the Hampton Roads area. She stated that Jackson bought her new clothes to make her look older and told her to tell everyone she was actually 19 or 20 years old. Jackson took all of the money she made and he advertised her services on backpage.com.
In addition, Jackson was also indicted and pleaded guilty to conspiracy to pass counterfeit currency. Todd Jackson, along with Alicia McDuffie and Curtis Crumity who were also convicted, passed thousands of dollars of counterfeit currency to various Target stores in the Hampton Roads areas. The defendants would purchase high-dollar gift cards or toys, and then return the toys to the same or different Target stores in exchange for genuine currency.
The sex trafficking case was investigated by the Federal Bureau of Investigation and Virginia Beach Police Department. The counterfeit case was investigated by the United States Secret Service. Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Man Pleads Guilty to Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New Jersey resident pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to possessing heroin with the intent to distribute it in January 2014.
According to United States Attorney Peter Smith, the defendant, George Wormley, age 37, of Montclair, New Jersey, admitted that he possessed approximately 300 bags of heroin and intended to sell it to others on January 3, 2014, in Kingston, Pennsylvania.
Wormley was indicted by a federal grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, and the Luzerne County District Attorney’s Office.
Wormley faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Mannion ordered a pre-sentence report to be completed. No date was set for sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mobridge Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 28, 2014, by U.S. District Judge Charles B. Kornmann.
Brandon Noisy Hawk, age 32, was sentenced to 21 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Noisy Hawk was indicted by a federal grand jury on July 17, 2013. He pled guilty on December 2, 2013.
The conviction stems from Noisy Hawk failing to register as a sex offender between April 13, 2013, and June 30, 2013. Noisy Hawk was previously convicted of a sex offense in federal court and is required by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Noisy Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Convicted of Trafficking MarijuanaRead the Press Release
CORPUS CHRISTI, Texas - Roberto Veliz, 34, a U.S. citizen from Mission, has been convicted of one count of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Veliz this morning following a two-day trial and less than three hours of deliberation.
During trial, the government presented testimony that from Feb. 15, 2013, until Oct. 5, 2013, Veliz hired women to transport marijuana for him from Mission to places such as Houston and San Antonio. During that time, law enforcement agents seized more than 160 kilograms of marijuana from the women transporting the marijuana on his behalf. In addition to those amounts seized, trial evidence proved Veliz was transporting marijuana from Mission to Houston or San Antonio at least once a month, sometimes more. The marijuana was wrapped in plastic bundles and concealed inside suitcases.
U.S. District Judge Nelva Gonzales Ramos, who presided over trial, has set sentencing for Aug. 5, 2014, at which time he faces a mandatory minimum of five and up to 40 years imprisonment as well as $5 million fine.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Chad W. Cowan.
Mission Man Charged with Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Burglary and Larceny.
Eugene Watts, Jr., age 19, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 24, 2013, in Mission, Watts and others entered an unoccupied structure and took several items valued at more than $1,000.
The charge is merely an accusation and Watts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Watts was released to a third party custodian pending trial. A trial date has not been set.
Mission Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Logan Lafferty, age 27, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 8, 2014, Lafferty did use a dangerous weapon, a vehicle, to assault law enforcement officers.
The charge is merely an accusation and Lafferty is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lafferty was released to a third party custodian pending trial. A trial date has not been set.
Mine Operator Sentenced to Prison for Obstructing MSHA InvestigationRead the Press Release
ABINGDON, VIRGINIA – Elmer Fuller, of Bristol, Virginia, was sentenced in United States District Court in Abingdon, Virginia, for obstructing a Mine Safety and Health Administration investigation.
United States District Judge James P. Jones sentenced Fuller, 58, of Bristol, Virginia, to imprisonment for a term of three months. In addition, Fuller was ordered to pay a fine of $3,000 and serve a two year term of supervised release upon his release from prison. His company, A B & J Coal, was placed on probation for a term of one year and ordered to pay a fine of $25,000.
On June 8, 2009, MSHA inspectors determined that someone at A B & J Coal had illegally wired the electrical connections to a belt feeder without any ground fault protection. This situation created a risk of serious injury or death to any minor who came in contact with the feeder. During the investigation, Fuller, one of the owners of A B & J Coal, lied to the investigators about who had illegally wired the feeder. His false statements substantially interfered with the investigation.
“The safety of coal miners is of the utmost importance,” United States Attorney Timothy J. Heaphy said today. “Interfering with an MSHA investigation is a serious matter. We will continue to aggressively pursue those whose actions create unnecessary dangers to the lives of coal miners.”
Fuller also was sentenced to imprisonment for three months, to be served concurrently, for tax evasion. As part of the plea agreement, he paid all back taxes owed prior to the sentencing hearing. Fuller received a lower sentence than he would otherwise have received because he provided substantial assistance in the investigation of other criminal activity.
Assistant United States Attorney Randy Ramseyer prosecuted the case on behalf of the United States. The case was investigated by the Norton, Virginia, Office of the Mine Safety and Health Administration and the Bristol, Virginia, Office of the Internal Revenue Service – Criminal Investigation.Mereaux Man, Glen Mcinerney, Sentenced to 41 Months in Prison After Pleading Guilty to Bank Fraud, Money Laundering and Wire FraudRead the Press Release
GLEN MCINERNEY, age 42, a resident of Meraux, Louisiana, was sentenced today by U.S. District Judge Jane Triche Milazzo to 41 months in prison, followed by 3 years of supervised release, announced U.S. Attorney Kenneth Polite. MCINERNEY previously plead guilty to a four-count Superseding Bill of Information charging him with two counts of bank fraud, one count of money laundering, and one count of wire fraud. MCINERNEY was also ordered to make restitution to the three victims of his crimes in the amount of $845,083.18.
According to court documents, MCINERNEY owned and operated GM Motors and Used Cars (“GM Motors”). MCINERNEY maintained a bank account for GM Motors at Regions Bank. Between May 2, 2009, and June 20, 2009, MCINERNEY wrote checks to straw payees to cash the checks and return the cash to him so that he could deposit portions of the proceeds back into the Regions account. MCINERNEY timed the cash deposits to occur prior to account debits, which lead to the straw payees cashing checks that he knew would ultimately bounce. In total, MCINERNEY wrote 288 such checks, resulting in a loss to Regions Bank of approximately $17,000.
Separately, between December 29, 2008, and January 7, 2009, MCINERNEY also defrauded Gulf Coast Bank & Trust by negotiating six checks purportedly drawn on funds from a bank account at Twin City Federal National Bank in Minneapolis, Minnesota. MCINERNEY knew that the Twin City Federal National Bank account had been closed since July 30, 2007, that the account belonged to someone other than MCINERNEY, and which MCINERNEY did not have authority or control. These actions caused a loss to Gulf Coast Bank & Trust of approximately $28,083.18.
Finally, between January 3, 2007, and December 15, 2008, MCINERNEY defrauded an individual who had provided him with collateral for a short-term business loan by falsely representing that he had purchased used trailers from the Federal Emergency Management Agency (“FEMA”) that he intended to resell, when, in fact, he did not purchase such trailers in the first place. MCINERNEY’S fraudulent misrepresentations caused the individual who loaned him the money to suffer losses of approximately $800,000.
"Glen McInerney was sentenced today after pleading guilty to using "straw" payees to cash checks, committing bank fraud and laundering money to hide his part in illegal financial transactions," stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation, New Orleans Field Office. "Money laundering is not a victimless crime. Not only are innocent people ‘duped’ by such schemes, but the underground, untaxed economy harms the entire nation's economic strength. Special Agents of IRS Criminal Investigation are committed to lending their expertise as the world's premiere financial investigators to all crimes of greed."
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Daniel P. Friel and Jordan Ginsberg.
Media AdvisoryRead the Press Release
There will be an Investiture Ceremony for United States Attorney Kevin W. Techau on Friday, May 2, 2014, at 12:30 p.m., at the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa. U.S. Senators Tom Harkin and Chuck Grassley are scheduled to attend along with other honored guests.
Credentialed members of the press are invited to use camera equipment during the ceremony. Use of camera equipment is otherwise prohibited in the federal courthouse.
McLaughlin Woman Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman convicted of Distribution of a Controlled Substance was sentenced on April 28, 2014, by U.S. District Judge Charles B. Kornmann.
Adjoni Jones, a/k/a Adjoni Archambault, age 33, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jones was indicted for Distribution of a Controlled Substance to a Person under the Age of 21, Distribution of a Controlled Substance, and Child Abuse and Neglect by a federal grand jury on June 12, 2013. She pled guilty to Distribution of a Controlled Substance on December 2, 2013.
The conviction arose from incidents that occurred between July 1, 2009, and July 30, 2012, when Jones distributed and possessed with intent to distribute methylphenidate, a Schedule II controlled substance, at McLaughlin.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Kathryn Rich and Jay Miller prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service to begin serving her sentence.
McHugh Construction to Pay $12 Million to Settle Contract Fraud Claims by U.S. and Illinois on Seven Area Public Works ProjectsRead the Press Release
CHICAGO — A Chicago-based construction company will pay the United States and the State of Illinois $12 million to resolve allegations of fraud on government programs designed to benefit women- and minority-owned sub-contractors under the terms of a civil settlement agreement announced today. The contractor, James McHugh Construction Co., Inc., allegedly failed to abide by federal and state requirements for the participation of disadvantaged businesses in contracts to perform seven public construction projects. The work on area roads, highways, and transit lines was funded by the federal and state governments between 2004 and 2011.
The federal and state governments claimed that McHugh violated the federal and Illinois False Claims Acts by making false statements and claims for payment to government agencies regarding McHugh’s compliance with federal and state requirements to include disadvantaged businesses in the construction projects.
As a result of the $12 million settlement, the federal government will receive $7.2 million and the state government will receive $4.8 million. In a separate administrative settlement and compliance agreement, McHugh agreed to implement a corporate compliance program, appoint a compliance officer, and be subject to an independent monitor for three years, in exchange for the federal, state, and City of Chicago transportation agencies and contracting authorities’ agreement not to bar McHugh from future government contracts. This allows McHugh to continue pursuing and performing public works projects while ensuring that it remains compliant with disadvantaged business regulations.
“It was more costly in the long run for McHugh to avoid its obligations to hire womenand minority-owned businesses than it would have been simply to comply with the requirements and retain disadvantaged businesses to actually participate in these public construction projects,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “It’s important that McHugh and other companies realize that compliance with these requirements is both a good business decision and the right thing to do,” he added.
“Our investigation revealed that McHugh Construction falsely used subcontractors to help secure bids for major construction projects funded by and for Illinois taxpayers,” Illinois Attorney General Lisa Madigan said. “The company used women-owned businesses to submit false claims to the state and federal governments for millions of dollars when in fact, those businesses never completed the level of work required by law.”
Mr. Fardon and Attorney General Madigan announced the settlement with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Michelle McVicker, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The settlement arose from a lawsuit that was filed under seal in 2008 by Ryan Keiser, who was a project manager for Perdel Contracting Corp. and Accurate Steel Installers, Inc. (ASI), at three of the McHugh construction sites. The lawsuit, which was unsealed today, was filed under the qui tam or whistleblower provisions of the federal and state False Claims Acts. United States, et al., ex rel. James McHugh Construction Co., et al., No. 08 C 2443 (N.D. Ill.).
The similar federal and state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. Mr. Keiser will receive 17 percent of the $12 million settlement or $2,040,000 ― $1,224,000 from the United States share, and $816,000 from Illinois’ portion of the settlement.
The settlement covers McHugh’s contracts on the following projects: the Washington/Monroe Viaducts over Interstate 90/94 for the Chicago Department of Transportation (CDOT) in 2005; the Red Line Howard Station for the Chicago Transit Authority in 2006; the North Avenue Bridge for CDOT in 2006; the Brown Line for the CTA in 2006; the Eastbound Interstate 88/Fox River Bridge for the Illinois State Toll Highway Authority in 2007; the Westbound Interstate 88/Fox River Bridge for the toll highway authority in 2008; and the Wacker Drive Viaduct Reconstruction from Randolph to Monroe streets for CDOT in 2010.
The federal and state governments contended that in bids for these contacts, in the final contracts, and in claims for payment, McHugh falsely stated that Perdel and ASI, which were both certified as “disadvantaged business enterprises” (DBE) owned by Elizabeth Perino, would perform or had performed work on the projects in satisfaction of federal and state DBE participation requirements in the contracts. The governments contended that contrary to McHugh’s statements, Perdel and ASI often functioned merely as “pass-throughs,” performing little, if any, work that would qualify for participation credit under federal and state DBE requirements. Perino, who owned Perdel and ASI in Lockport, was charged with federal mail fraud in 2011, and the case remains pending.
According to the settlement agreement, the governments also contended that Perdel and ASI’s contracted work for McHugh often exceeded the companies’ capacity and experience. Although their projects with McHugh were substantially greater in size and scope than they had previously performed, Perdel and ASI’s expertise to perform larger and more complex projects did not change correspondingly. Rather than Perdel and ASI performing, managing, or supervising the work that McHugh represented they would, McHugh frequently managed union workers they each hired. In some cases, McHugh directed Perdel and ASI as to which union crews to hire.
McHugh, not Perdel or ASI, also selected certain suppliers on each of the contracts, determined the quantity and quality of those materials, negotiated the price, and often drafted a purchase order for Perdel or ASI to put on their letterhead, the governments contended. That kind of conduct violates federal and state provisions that are designed to give a share of the actual work of government-funded construction projects to minority- and women-owned businesses.
The settlement is neither an admission of liability by McHugh nor a concession by the state and federal governments that their contentions are not well founded, and McHugh expressly denies the claims.
The settlement was reached on behalf of the U.S. Department of Transportation, the Illinois Department of Transportation, the Illinois State Toll Highway Authority, and the Regional Transportation Authority.
The separate three-year administrative monitoring settlement and compliance agreement was reached between McHugh and the Federal Transit Administration, the Federal Highway Administration, the U.S. and Illinois Transportation Departments and their procurement officers, and the City of Chicago. In exchange for the government entities’ agreement not to pursue any suspension or debarment action against McHugh for the covered conduct, McHugh agreed to implement a corporate compliance program and appoint a compliance officer who is knowledgeable about DBE programs. The company also agreed to retain an independent monitor to evaluate McHugh’s performance and submit periodic reports to the government agencies and officials, and to make six presentations to those agencies and officials to discuss and promote compliant policies and procedures for working with DBE firms.
Assistant U.S. Attorney Donald Lorenzen represented the U.S. Attorney’s Office in the case. Assistant Illinois Attorney General Kate Pomper Costello represented the Illinois Attorney General’s office.
Settlement Agreement
Settlement and Compliance AgreementLocal Man Charged with Trafficking in Counterfeit Louis Vuitton, Coach and Other MerchandiseRead the Press Release
HOUSTON – Han Woon Liew, 45, of Sugarland, has been arrested for conspiracy to traffic in counterfeit goods, announced United States Attorney Kenneth Magidson.
The indictment, returned under seal April 16, 2014, was unsealed today upon Liew’s arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow at 10:00 a.m.
The one-count indictment alleges that from January 2012 and continuing through the date of the indictment, Liew intentionally trafficked in goods, specifically counterfeit Louis Vuitton, Michael Kors, Coach and Gucci purses and wallets. Liew knowingly used counterfeit marks, which were registered trademarks, in an attempt to make the items appear legitimate, according to the allegations.
The maximum penalty, upon conviction, for conspiring to traffic in counterfeit goods is 10 years imprisonment and a maximum fine of $2 million. The indictment also includes an order of forfeiture of $3 million.
The investigation leading to the charges was conducted by Homeland Security Investigations. Assistant United States Attorney (AUSA) Celia Moyer and Special AUSA Mark Evans are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.