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19 June 2014
Four Ohio Valley Residents Admit to Distribution of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – Four more individuals involved in a large prescription painkiller trafficking ring entered pleas of guilty in Federal court, according to United States Attorney William J. Ihlenfeld, II.
Katherine HUNGERMAN, also known as “Kat” or “Bubs,” age 45 of Shadyside, Ohio, entered a plea of guilty to the distribution of oxycodone. HUNGERMAN, who is free on bond pending sentencing, faces up to 20 years in prison.
Christopher HOWARD, also known as “Fatboy” or “Fatty”, age 39, of Wheeling, entered a plea of guilty to one count of conspiracy to distribute Schedule II & III controlled substances and one count of fraudulently obtaining a controlled substance. HOWARD, who is in custody pending sentencing, faces up to 24 years in prison.
Derick NAMACK, also known as “Dusty,” age 39, of Wheeling, entered a plea of guilty to distribution of oxycodone. NAMACK, who is on bond pending sentencing, faces up to 20 years in prison.
Jill WEST, also known as Jill Namack, age 31, of Wheeling, entered a plea of guilty to conspiracy to engage in interstate travel in aid of a racketeering enterprise. WEST, who remains free pending sentencing, faces up to 5 years in prison.
The above individuals were part of group of fifteen people who were indicted in February at the culmination of a sixteen-month investigation into the redistribution of oxycodone and other prescription drugs that came to the Ohio Valley from northern Ohio and Detroit, Michigan. Over the course of the investigation thousands of pills were recovered by agents via controlled purchases and court-authorized searches.Assistant U.S. Attorney John C. Parr handled the cases on behalf of the government.
These matters were investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police-BCI, and the U.S. Drug Enforcement Administration. The Ohio Valley Drug Task Force is an Appalachia HITDA-funded initiative.Fort Thompson Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Arnold Roy Walking Bull, Jr., a/k/a Junior Charging Hawk, age 38, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 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.
Walking Bull is accused of assaulting his domestic partner on February 26, 2013, and October 1, 2013. At the time of the assaults, Charging Hawk had a final conviction on a least three separate prior occasions in State and Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Walking Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Hall Man Sentenced for AssaultRead the Press Release
POCATELLO – Ivan Dixey, Jr., 43, of Fort Hall, Idaho, was sentenced today by United States District Judge Edward J. Lodge to 30 months in prison, followed by three years of supervised release for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on October 9, 2012, Fort Hall Police officers responded to a reported fight at Dixey’s residence on the Shoshone-Bannock Indian Reservation. The victim, her father and others were at the residence making arrangements to move a mobile home from the property. Dixey told the victim and those with her to leave, telling them they were trespassing. A scuffle ensued between Dixey and the victim and her father. Dixey struck the victim multiple times, causing serious bodily injury to the victim’s eye. The victim suffered impairment of her vision.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Roanoke Woman Indicted on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – The former majority owner of Genesis Mansions has been charged by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Roanoke on a variety of fraud charges associated with an alleged mortgage fraud scheme centered around properties on Smith Mountain Lake.
The grand jury has charged Susanne Helbig, 49, a former resident of Roanoke, Va., currently residing in Georgia, with one count of conspiracy to commit bank fraud, seven counts of bank fraud, six counts of making false statements in connection with a loan and one count of making a false statement on a tax return.
According to the indictment, between March 2006 and December 2007, Helbig, and others, conspired to defraud financial institutions through the submission of false and fraudulent mortgage loan applications and settlement statements in the name of strawbuyers, inducing the financial institutions to finance the purchase and construction of approximately 30 properties located near Smith Mountain Lake. These actions caused losses of approximately $11 million.
It is alleged that Helbig, and others, who were supposed to use the proceeds of the loans for the construction of residential properties, instead kept this money as “profits” or used the money to pay other debts. In order to further the scheme, Helbig, and others, allegedly failed to disclose to lending institutions the true sales price of the properties, misrepresented the strawbuyer’s income or assets, misrepresented the strawbuyer’s employment, misrepresented that the home would be the strawbuyer’s primary residence when in fact the strawbuyer had no intention of living there, misrepresented the true source of “gift funds” provided to the strawbuyer for closing and/or provided false or forged documents.
If convicted, Helbig faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1 million for the conspiracy count and each of the bank fraud and false statements in connection with a loan counts. On the making a false statement on a tax return count, the defendant faces a maximum possible penalty of up to three years in prison and/or a fine of up to $100,000.
The investigation of the case was conducted by Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the United States Postal Inspection Service. Assistant United States Attorney Laura Day Rottenborn will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Owner of Physical Therapy Clinic Sentenced to Prison in Connection with Health Care Fraud Scheme<br />Read the Press Release
A Florida man who was convicted of conspiracy to commit health care fraud was sentenced to serve 27 months in prison today in federal court in Tampa, Florida.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Jose Pascual, 36, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $1,292,375 in restitution, jointly and severally with his co-conspirators.
According to documents filed in the case, in February 2007, Pascual purchased R&R Outpatient LLC, an outpatient physical therapy provider with locations in Fort Myers and Ocala, Florida. Pascual and his co-conspirators then caused reimbursement claims to be submitted on behalf of R&R Outpatient to Medicare fraudulently representing that physical and occupational therapy services had been legitimately prescribed by physicians and provided to Medicare beneficiaries. Pascual and his co-conspirators fabricated medical records to support the fraudulent claims. As a result of the fraudulent claims, Medicare paid approximately $1,124,826 to R&R Outpatient. Pascual and his co-conspirators also recycled Medicare beneficiary information from R&R Outpatient in order to submit fraudulent reimbursement claims to Medicare through other clinics.
This case was investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. The case was prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon Gaugush.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Former New York City Police Officer Convicted of Armed Robbery and Drug Trafficking ChargesRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against former New York City Police Officer Jose Tejada on charges of armed robbery conspiracy and narcotics distribution conspiracy. Tejada was a 17-year veteran of the New York City Police Department (NYPD) who, at the time of the robberies, was assigned to the 28th Precinct in Harlem. These charges arose out of the defendant’s commission of multiple robberies and attempted robberies in Queens, Manhattan, and the Bronx in 2006 and 2007, some of which he committed while on duty and in uniform. When sentenced by United States District Judge John Gleeson, the defendant faces a maximum sentence of 80 years’ imprisonment.
The defendant was previously convicted in November 2013, following a jury trial, of two counts of obstruction of justice for his role in helping other members of his robbery crew avoid arrest.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and William J. Bratton, Commissioner of the New York City Police Department.
“Tejada dishonored his badge and his uniform when he crossed the line from cop to robber. Tejada and his crew targeted drug dealers, not to bring them to justice, but to steal their narcotics for their own profit. In the process, innocent citizens were terrorized and threatened,” stated United States Attorney Lynch. “We will continue to prosecute aggressively law enforcement officers who abuse their authority and violate the law.” Ms. Lynch expressed her thanks to the New York Drug Enforcement Task Force – comprising DEA special agents, NYPD officers, and New York State Police investigators – and the NYPD’s Internal Affairs Division, Police Impersonation Investigation Unit, which jointly led the investigation.
The evidence presented at trial showed that Tejada participated in multiple armed robberies and attempted robberies, which netted thousands of dollars in cash and multiple kilograms of cocaine.
During an attempted robbery on Schley Avenue in the Bronx, Tejada, while on duty and in uniform, used his status as a police officer to demand and gain access to a private residence. The robbery crew mistakenly believed the residents to be drug dealers. In fact, the residents were a family of three, including a teenager, who had no involvement in drug dealing. Tejada and two others unsuccessfully searched the premises for drugs, while Tejada brandished his service weapon to intimidate the innocent family and attempted to handcuff a victim.
In a robbery on Broadway in Upper Manhattan, Tejada, NYPD officer Jorge Arbaje-Diaz, and NYPD Auxiliary officer Yvan Tineo pulled over a car, handcuffed the driver, and stole five kilograms of cocaine hidden inside the car. In another robbery on Seaman Avenue in Upper Manhattan, Tejada and Tineo robbed a drug supplier of three kilograms of cocaine at gunpoint.
In an incident at John F. Kennedy International Airport in Queens, Tejada, Arbaje-Diaz, and Tineo staged the arrest of a corrupt airline employee who was part of a scheme to smuggle narcotics into the United States through incoming commercial flights. The corrupt airline employee wanted Tejada and others to pretend to arrest him at the arrivals terminal while he delivered a drug shipment to his confederates. This staged arrest yielded Tejada, Arbagje-Diaz, and Tineo at least five kilograms of cocaine.
The evidence at trial also showed that Tejada supplied members of the robbery crew with police equipment and paraphernalia to enable them to impersonate police officers.
In the November 2013 trial, the evidence showed that Tejada searched law enforcement databases to determine whether there were outstanding warrants for his own arrest, as well as for the arrest of other members of the robbery crew. Tejada then shared that information with his confederates in an effort to assist them in evading arrest.
Tejada’s conviction is the most recent of dozens of convictions in a set of interlocking cases brought in the Eastern District of New York against the members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real officers. Tejada is the third NYPD officer to be convicted in these cases; two NYPD Auxiliary officers have been convicted as well. In total, 52 defendants have been convicted.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Kenji M. Price.
The Defendant:
JOSE FELIX TEJADA
Age: 46
Mahopac, New York
E.D.N.Y. Docket No. 08-CR-242 (JG)
___________________________________________________________________________
1 Arbaje-Diaz was previously convicted of robbery conspiracy and narcotics distribution conspiracy, and was sentenced to 20 years’ imprisonment. Tineo was previously convicted of robbery conspiracy, narcotics distribution conspiracy, and unlawful use of a firearm, and is awaiting sentencing.
Former Insurance Salesperson Sentenced for Defrauding Insurance CompaniesRead the Press Release
A woman who defrauded two insurance companies out of more than $170,000 in sales commissions was sentenced today to more than three years in federal prison.
Melissa Ilene Williams, age 46, from Dike, Iowa, received the prison term after a March 3, 2014, guilty plea to one count of mail fraud.
In a plea agreement, Williams admitted that, between about July 2011 and January 2012, while working as an insurance policy salesperson, she fraudulently obtained advanced sales commissions from two insurance companies. Williams admitted she obtained the commissions by submitting fabricated life insurance applications to the companies in the names of persons who had not authorized and were unaware of the applications. Williams admitted she secretly paid the initial premiums on the policies so that the insurance companies would not discover the applications were fraudulent.
Williams was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Williams was sentenced to 41 months’ imprisonment to be followed by three years of supervised release. Williams was ordered to make a total of $175,147.32 in restitution to the two victim insurance companies. There is no parole in the federal system.
Williams was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and investigated by the Insurance Fraud Bureau of the Iowa Department of Commerce, Division of Insurance, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-25-LRR.
Former Employee at the Wayne County Clerk’s Office Pleads Guilty to BriberyRead the Press Release
A former clerk in the Vital Records Division of the Wayne County Clerk’s Office pleaded guilty to bribery charges, U.S. Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Marlon Miller, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations.
Lorris Upshaw, III, 30, of Detroit, a clerk in the Wayne County Clerk’s Office during 2009 and 2010, pleaded guilty before U.S. District Judge Robert H. Cleland to accepting bribes in exchange for issuing Concealed Pistol Licenses to individuals who were not otherwise eligible to receive such licenses. Upshaw accepted money from convicted felons and performed acts within his official duties as a clerk with the Wayne County Clerk’s Office in exchange for issuing Concealed Pistol Licenses to felons who were not eligible to obtain such licenses lawfully.
A sentencing date has been set for October 23, 2014.
United States Attorney McQuade said, “This defendant breached his duties and risked public safety for his own profit. Government employees who violate the public trust will be held accountable.”
The case was investigated by agents of the FBI and the DHS. This case is being prosecuted by Assistant United States Attorney Hala Jarbou.Former Credit Union Teller Sentenced to Prison for Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Louren Velez to three years in federal prison for conspiring to defraud the Internal Revenue Service and to steal government funds, and for aggravated identity theft. The court also ordered Velez to forfeit $351,431.44, as well as a 2010 Honda automobile, which was traceable to proceeds of the offense.
Velez was found guilty on February 28, 2014.
According to court documents Velez, a Suncoast Schools Federal Credit Union teller, conspired with account holders Beverly McFadden and Larry Walker to cash forty-seven fraudulently-obtained federal income tax refund checks, totaling more than $350,000. McFadden and Walker each pleaded guilty to their respective roles in the conspiracy, for which McFadden was sentenced to six years and seven months in prison. Walker was sentenced to time served, followed by three years of supervised release.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Former Chief Technology Officer Sentenced to Two Years in Prison for Embezzling More Than $150,000 from Non-ProfitUsed Money for Laptop, Jewelry, Cable Bills, and Other Personal ExpensesRead the Press Release
WASHINGTON – Paul F. Kaufman, 55, of Stafford, Va., was sentenced today to two years in prison for embezzling more than $150,000 from his former employer, a non-profit based in Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Kaufman pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to a charge of theft concerning a program receiving federal funds. He was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Kaufman will be placed on three years of supervised release; during that time, he must perform 150 hours of community service, which is to include the teaching of computer science to high-risk students.
Also, as part of his plea agreement, Kaufman has agreed to pay $157,516 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Kaufman oversaw and managed the technology department for a non-profit identified in court documents as “Non-Profit A,” an organization that received federal money. Kaufman was authorized to solicit and approve work from outside vendors and he had the authority to direct the accounting department to pay them. He also had the authority to make business-related charges on certain corporate credit cards.
Without the knowledge of “Non-Profit A,” Kaufman formed two companies. He then submitted invoices from these companies to the non-profit and authorized payments. All told, Kaufman generated $110,925 from this scheme between January 2004 and March 2012.
In addition, the government’s evidence showed, Kaufman embezzled at least $46,590 from the non-profit by using its corporate credit cards and accounting department to pay a variety of personal expenses. Among other things, the unauthorized personal charges included expenses for Kaufman’s home cable and Internet service, food, coffee, gas, parking, music downloads, and a personal laptop computer. At one point, in April 2012, a non-profit employee discovered that Kaufman had used a corporate credit card to charge about $288 at a jewelry store. When asked about the charge, Kaufman produced an altered receipt and falsely claimed that the invoice was for repairs to an employee’s iPhone.
Kaufman was terminated by the non-profit on May 4, 2012. Two days later, he sent an e-mail to the non-profit’s president and chief executive officer, apologizing for his actions and asking that he be allowed to reimburse the organization for the money that he embezzled.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues. Finally, he commended Assistant U.S. Attorney Ephraim (Fry) Wernick, who prosecuted the case.
14-141Former Accountant Pleads Guilty to Tax ChargeRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A former accountant and restaurateur pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville.
James Kirk Baldi, 50, of Charlottesville, Va., waived his right to be indicted and pled guilty yesterday to a one-count Information charging him with willful failure to collect or pay over tax owing to the United States. At sentencing, Baldi faces a maximum possible penalty of up to five years in prison and/or a fine of up to $10,000.
“Mr. Baldi violated the trust of his clients when he stole their money and used it to pursue his failed business ventures,” United States Attorney Timothy J. Heaphy said today. “He admitted to this scheme and agreed to repay the United States the taxes he failed to pay during the course of his fraud. This case demonstrates our commitment to pursue restitution for all victims of financial fraud.”
"There is no mistaking the egregiousness of James Baldi’s conduct and the selfishness of his actions. As the owner of an accounting firm, he was entrusted with the responsibility of providing employment tax services and remitting employment tax funds to the Internal Revenue Service. Instead he chose to use the employment tax funds for his own personal use, not only violating the trust placed with him and potentially jeopardizing the businesses of his clients, but also violating the law,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation will continue to vigorously pursue anyone who collects taxes and fails to timely remit those taxes."
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Ronald M. Huber, Baldi’s accounting firm, which operated under a variety of names including CSGI, LLC and/or Virginia Payroll Tax, LLC, provided payroll services and conducted banking transactions from clients’ accounts in order to meet payroll obligations. Those bank transactions included making electronic transfers between the clients’ bank accounts and bank accounts controlled by Baldi. During this time, mid-2009, Baldi opened the Bel Rio restaurant and soon thereafter began experiencing financial difficulties.
In late 2009, a number of Baldi’s clients received notices from the Internal Revenue Service relative to payroll tax forms that had not be filled and/or the full amount of the employer’s quarterly federal tax return had not been paid. When confronted with this information, Baldi attempted to explain away the notices as IRS mistakes.
Baldi admitted yesterday that as his financial problems continued to increase, he began diverting clients’ funds to cover the costs of the Bel Rio and Cantina restaurants. He began a type of “kiting” scheme where he would use various clients’ payroll trust fund monies to cover other client’s tax obligations, all the while trying to balance or cover diverted clients’ funds to continue his restaurant ventures and pay his personal expenses.
Knowing the scheme would collapse, Baldi fled Charlottesville on July 10, 2010 and was a fugitive until his arrest in California on January 4, 2013.
In all, Baldi willfully failed to account for and pay over tax in the amount of $202,985 for the period/quarters ending in September 2009, December 2009, March 2010 and June 2010.
The investigation of the case was conducted by Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Ronald Huber and Joe Giannullo with the Tax Division of the Department of Justice are prosecuting the case for the United States.
Florida Men Charged Federally in Meat Theft ScamRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Gonzalo-Paulette and Guillermo Riol, both of Miami, Florida, have been charged for their alleged involvement in a scheme to steal over $330,000 worth of meat products from meat processing facilities in Omaha, Nebraska. Gonzalo-Paulette, age 25, and Riol, age 39, were indicted in May of 2014 by a federal grand jury for their alleged involvement in a scheme with others to steal loads of meat cargo by pretending to be the legitimate freight haulers to whom authority to transport the loads had been given. The indictment charges the defendants with conspiracy to commit wire fraud, conspiracy to transport stolen property in interstate commerce and two counts of aggravated identity theft.
The Indictment alleges that the two used the identities of truck drivers from Pennsylvania and posed as representatives of a legitimate trucking company to bid on hauling a load of beef product from Nebraska Beef to a destination in New York and a load of pork product from Quality Pork International to a destination in Texas. While posing as representatives of U.S. Road Corporation, Gonzalo-Paulette and Riol were provided two loads of beef from Nebraska Beef valued at $308,797 and a load of pork from Quality Pork International valued at approximately $25,000. The loads of meat picked up by Gonzalo-Paulette and Riol never made it to their intended destinations in New York and Texas and were never located.
Both defendants were arrested in Florida and are scheduled to make their initial appearances in U.S. District Court for the District of Nebraska on July 3, 2014.
Each defendant faces a maximum of up to 20 years in prison if convicted of conspiracy to commit wire fraud, 5 years if convicted of conspiracy to transport stolen property in interstate commerce as well as a mandatory two years consecutive for each of the aggravated identity theft counts.
The case was investigated by U.S. Department of Agriculture - Office of Inspector General, the Miami Metropolitan Major Theft Task Force, the Polk County Florida Sheriff's Office, the Nebraska State Patrol, and the Omaha Police Department.
Federal Jury Convicts Centreville Woman of Bilking MedicaidRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 18, 2014, Irma Jones, 67, of Centreville, Illinois, after a three day jury trial in the United States District Court in East St. Louis, was convicted by jury after less than one hour deliberation on all three counts of an indictment charging that she engaged in a scheme to defraud the Medicaid program. The three counts included health care fraud, making false statements in connection with a healthcare benefit program, and lying to investigating agents when confronted with her scam. Sentencing in this case is set for October 10, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
Evidence in Court showed that Jones was a Medicaid beneficiary and that she submitted false claims for Medicaid home health care services claiming that her daughter, who Jones falsely represented was her niece, provided services that were never performed. When investigators from the Illinois State Police, investigating federal charges, questioned Jones about the false billing, Jones lied to investigators.
“Nationwide, the biggest fraud problem in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee. By prosecuting these frauds, I hope to get more accountability into the programs and to preserve these funds for deserving people who really do benefit from the assistance.” said United States Attorney Wigginton.
This is the latest of a series of prosecutions targeting Medicaid abuse. On June 5, 2014, the U.S. Attorney and Special Agent in Charge Gerald Roy of the U.S. Department of Health and Human Services, Office of Inspector General, announced Operation Home Alone 3, a third wave of charges arising out of the troubled Medicaid home health care program in Illinois. Thus far, 43 defendants have been charged in the Southern District of Illinois in all three rounds of indictments. One defendant from Operation Home Alone 2 is awaiting trial (and is presumed innocent unless proven guilty beyond a reasonable doubt), but with this jury verdict all other defendants from rounds one and two have been found guilty. The defendants recently charged in Operation Home Alone 3 are all awaiting trial.
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was tried by Special Assistant U.S. Attorney Michael Hallock and Assistant U.S. Attorney Michael Quinley.
Federal Grand Jury Indicts Former Texas State Judge on Bribery, Extortion and Wire Fraud ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in San Antonio, Texas, has indicted Angus Kelly McGinty, 50, a former Texas state district court judge in Bexar County, Texas, on bribery, extortion and wire fraud charges, announced Damon P. Martinez, U.S. Attorney for the District of New Mexico, and Christopher Combs, Special Agent in Charge of the FBI’s San Antonio Division.
The 15-count indictment, which was filed in the U.S. District Court for the Western District of Texas late yesterday afternoon, charges McGinty with one count of conspiracy to commit federal programs bribery, one count of federal programs bribery, one count of extortion under color of official right, and 12 counts of honest services wire fraud. At the time of the events underlying the charges in the indictment, McGinty was a state district court judge in the criminal division of the 144th Judicial District Court in Bexar County, Texas. The indictment generally alleges that between Jan. 2013 and Sept. 2013, McGinty solicited and accepted bribes from an attorney who appeared before him in exchange for favorable rulings for the attorney’s clients. McGinty resigned from the bench on Feb. 14, 2014.
In announcing the indictment, U.S. Attorney Damon P. Martinez said, “The outcome of criminal cases should be determined by the evidence and the law, not by paid-for bias. When citizens cannot have faith in the very people who are sworn to uphold the law, confidence in our judicial system is shaken. The Justice Department is committed to restoring that faith by rooting out corruption wherever it may be found.”“A fair and impartial criminal justice system is one of the cornerstones of our democracy,” said FBI Special Agent in Charge Christopher Combs. “Judges, in particular, are expected to protect the public’s trust in the fairness of the judicial system. Investigations such as the one leading to today’s indictment are crucial to deter corrupt officials influenced by greed from breaking their oath to uphold the rule of law. This case should serve as a strong warning to those who might consider similar alleged behavior. No one is above the law, and everyone is accountable for their misdeeds.”
According to the indictment’s conspiracy count, from Jan. 2013 through Sept. 2013, McGinty allegedly solicited and accepted bribes from Alberto Acevedo, Jr., an attorney in San Antonio, in exchange for favorable judicial rulings that benefited Acevedo and his clients. The indictment alleges that Acevedo’s bribes to McGinty included cash, car repairs, arranging the sale of McGinty’s vehicle, and registering a vehicle purchased by McGinty. In exchange, McGinty allegedly provided the favorable judicial rulings requested by Acevedo, including lenient sentences and less restrictive conditions of release for Acevedo’s clients. McGinty allegedly received gifts, payments and other things of value totaling more than $6,655 from Acevedo during the course of the conspiracy.
Count 2 of the indictment alleges that McGinty corruptly solicited and accepted bribes in the form of car repairs and services to vehicles from Acevedo in exchange for using his official position to benefit Acevedo and his clients. Count 3 alleges that McGinty acting under color of official right in extorting and obtaining property to which he was not entitled from Acevedo. Counts 4 through 15 charge McGinty with engaging in a scheme to defraud the State of Texas and Bexar County and their citizens of their right to his honest services by soliciting and accepting bribes from Acevedo in exchange for using his official position to benefit Acevedo and his clients. Each of the 12 counts alleges a specific wire communication by which McGinty allegedly perpetuated the fraudulent scheme.
If convicted on the charges in the indictment, McGinty faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. The charges against McGinty are merely accusations and he is presumed innocent unless found guilty in a court of law.
Acevedo pled guilty on March 17, 2014, to a felony information charging him with bribery involving a program receiving federal funds. In entering his guilty plea, Acevedo admitted that he corruptly influenced a state court judge by giving him things of value. In his plea agreement, Acevedo admitted giving gifts, payments and other things of value totaling more than $6,655 to the state court judge in exchange for favorable judicial rulings that benefitted him and his clients. At sentencing, Acevedo faces a maximum statutory penalty of ten years in prison and a $250,000 fine. Acevedo is released on bond pending his sentencing hearing, which has yet to be scheduled.
U.S. Attorney Damon P. Martinez praised the investigative work of the San Antonio Division of the FBI, which he noted is ongoing. The prosecution of this case in federal court in San Antonio, Texas, is being handled by Special Attorneys Mark A. Saltman and Brock E. Taylor of the U.S. Attorney’s Office for the District of New Mexico. The U.S. Attorney’s Office for the Western District of Texas is recused.
- McGinty Indictment
Federal Charges Filed Against Four Individuals in Multi-Million Dollar Telemarketing OperationRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a federal grand jury returned four one-count Indictments for conspiracy to commit wire fraud and mail fraud against the following individuals:
- Elpenike Eddy-Aldava, 73, of Las Vegas, NV
Becky S. Marrs, 66, of Las Vegas, NV
Robert K. Mathews, 51, of Las Vegas, NV
Patrick A. Nosack, 33, of Henderson, NVEach is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The charges arose out of a telemarketing scam which operated in Las Vegas, Nevada, which the indictments allege bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve (12) victims in nine (9) of the thirty-eight (38) counties comprising the Southern District of Illinois. The indictments allege that the scheme operated from December 5, 2006 until January 24, 2012.
The indictments allege that the individuals were telemarketers at a telemarketing company called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. The indictments allege that the company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The indictments allege that the purported sales did not occur and that Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and is awaiting sentencing. In March 2014, a telemarketer for Vacation Max, John Nicosia, was indicted. Nicosia is awaiting trial.
These cases are four of approximately 60 cases prosecuted by the U.S. Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud and part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service.
The prosecution of the cases is being handled by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Liam Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Father, Son Each Sentenced to 15 Years in Prison for Operating A Multi-state Drug Trafficking OrganizationRead the Press Release
PHOENIX – On June 18, 2014, the final defendant was sentenced in connection with Operation Clean Green – a multi-year investigation conducted by the U.S. Drug Enforcement Administration and Internal Revenue Service. Hector Raul Ortiz-Tarazon, Sr. and his son, Hector Francisco Ortiz, Jr. ran a drug trafficking organization (DTO) that shipped marijuana to the Midwest and East Coast. Twelve (12) defendants were charged in the superseding indictment for crimes including conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
The organization trafficked over 1,300 pounds of marijuana, generating proceeds in excess of $1,000,000. The DTO received cash and money orders from marijuana customers as payment for the marijuana. Federal agents seized approximately $400,000 in assets, including cash, eight vehicles, thirty-nine (39) firearms, and numerous rounds of ammunition.
The sentences imposed include the following:
On June 11, 2014, Hector Raul Ortiz-Tarazon, Sr., 47, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison. Hector Raul Ortiz-Tarazon, Sr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
On June 11, 2014, Hector Francisco Ortiz, Jr., 24, of Mesa, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 15 years in prison. Hector Francisco Ortiz, Jr. pleaded guilty on Dec. 13, 2013, to conspiracy to possess with intent to distribute marijuana, money laundering, and possession of a firearm during a drug trafficking offense.
On June 17, 2014, Guadalupe Velazquez, 24, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 10 years and 1 month in prison. Guadalupe Velazquez pleaded guilty on Dec. 11, 2013, to conspiracy to possess with intent to distribute marijuana, and money laundering.
On June 12, 2014, Marcos Velazquez, 21, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 60 months in prison. Marcos Velazquez pleaded guilty on Dec. 10, 2013, to conspiracy to possess with intent to distribute marijuana.
On June 4, 2014, Gerardo Edmundo Andrada-Pastrano, 45, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 57 months in prison. Gerardo Edmundo Andrada-Pastrano pleaded guilty on Dec. 5, 2013, to possession with intent to distribute marijuana.
On June 18, 2014, Reuben Clayton Treasure, 45, of New York, NY, was sentenced by U.S. District Judge James A. Teilborg to 46 months in prison. Reuben Clayton Treasure pleaded guilty on Jan. 3, 2014, to conspiracy to possess with intent to distribute marijuana, and money laundering.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the U.S. Drug Enforcement Administration and Internal Revenue Service Criminal Investigation, and included the participation of the Pinal County Sheriff’s Office, the Coolidge Police Department, the Apache Junction Police Department, and the Chandler Police Department. The prosecution was handled by Keith Vercauteren and Jonell Lucca, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0877-PHX-JAT
RELEASE NUMBER: 2014-035_OrtizFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Falmouth Man Pleads Guilty to Cocaine Trafficking and Firearms ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
White, 27, of Falmouth, Maine, pleaded guilty today in U.S. District Court to possession with intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of a drug trafficking crime.Court records reveal that on February 12, 2013, law enforcement officers stopped
White’s vehicle in Portland in connection with a drug trafficking investigation and found about
400 grams of cocaine in the trunk of the car, and a handgun and loaded magazine near the driver’s seat. Officers searched White’s home in Falmouth later that day pursuant to a search warrant and found about 3 kilograms of cocaine, over $13,000 in cash, other items consistent with drug trafficking, and a loaded handgun.White faces a minimum of five years and up to 40 years in prison and a $5,000,000 fine on the drug charge, and a minimum of five years and up to life in prison and a $250,000 fine on the firearms charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine Drug Enforcement Agency, the U.S. Drug
Enforcement Administration, the Maine State Police, and the Portland, South Portland, and
Falmouth Police Departments.Eleven Individuals Arraigned for Original, Additional Charges in Operation "Battle of Honey Springs"Read the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that the following individuals were arraigned in federal court on June 18, 2014, on charges of Conspiracy To Possess With Intent To Distribute And Distribute Methamphetamine in violation of Title 21, United States Code, Sections 846, and 841(a)(1).
MICHAEL A. METZKER, a/k/a "Lurch", age 36, of Checotah, Oklahoma
MICHAEL W. METZKER, a/k/a "Chic", age 58, of Checotah, Oklahoma
LACEY RENEE PARK, age 29, of Checotah, Oklahoma
DEREK PARK, age 31, of Checotah, Oklahoma
MARGARET CASEY, age 45, of Checotah, Oklahoma
SHAWNA VANZANT, age 33, of Henryetta, Oklahoma
JACKIE DALE BRUMLEY, age 44, of Noble, Oklahoma
CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, Oklahoma
SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, Oklahoma
SUNNY ANN MARTINEK, age 38, of Norman, Oklahoma
STEVEN D. CARR, age 43, formerly of Checotah, Oklahoma
MICHAEL A. METZKER, a/k/a "Lurch" was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and thirteen counts of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
MICHAEL W. METZKER, a/k/a "Chic" was also arraigned on charges of two counts of Distribution of Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and six counts of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
MARGARET CASEY was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1); and one count of Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Section 843(b).
LACEY RENEE PARK was also arraigned on charges of Possession with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(b); and Maintaining Drug Involved Premises in violation of Title 21, United States Code, Section 856(a)(1).
The Indictment filed on June 11, 2014, charges that beginning in or about April 2013, up to and including April 15, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, who were members of the Metzker Drug Trafficking Organization (“Metzker DTO”), acted together in operating the Metzker DTO to distribute drugs for profit, and did knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute Methamphetamine.
Michael A. Metzker, a/k/a "Lurch", a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Michael A. Metzker, a/k/a "Lurch", utilized his UAB membership, and associations within the UAB, to contact other UAB members to assist in the distribution of methamphetamine. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker, a/k/a "Lurch", utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma and elsewhere. Upon release from incarceration up to and including April 15, 2014, Michael A. Metzker, a/k/a "Lurch", and his coconspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, Absentee Shawnee Tribal Police, Muscogee (Creek) Nation, Kickapoo Nation Tribal Police, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for Drug Conspiracy in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), is not less than 10 years and not more than life imprisonment and/or up to $10,000,000.00 in fines.
The statutory range of punishment for Maintaining Drug Involved Premises in violation of Title 21, United States Code, Sections 856(a)(1), is not more than 20 years imprisonment and/or up to $500,000.00 in fines.
The statutory range of punishment for Use of a Communication Device in Furtherance of Drug Trafficking in violation of Title 21, United States Code, Sections 843(b), is not more than 4 years imprisonment and/or up to $250,000.00 in fines.
Assistant United States Attorney Shannon Henson represented the United States.
El Paso TX Man Arraigned for Cocaine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ELADIO ARGUELLES, 26, of El Paso, Texas, was arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE 5 KILOGRAMS OR MORE OF COCAINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The Indictment filed on June 11, 2014, alleges that beginning on or about April 5, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for ARGUELLES is not less than 10 years imprisonment and/or up to $10,000,000.00 in fines.
Assistant United States Attorney Christopher Wilson represented the United States.
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor Realizan Acuerdo Conciliatorio de 169 Millones de Dólares en Resolución de Hechos de Alegatos de Discriminación en el Ot...Read the Press Release
WASHINGTON – El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor [Consumer Financial Protection Bureau (CFPB)] anunciaron hoy un acuerdo conciliatorio en resolución de alegatos de que GE Capital Retail Bank, conocido a partir de este mes como Synchrony Bank, exhibió un patrón o práctica nacional de discriminación al excluir a prestatarios hispanos de dos de sus programas de cancelación de deudas de tarjeta de crédito. El acuerdo conciliatorio resuelve alegaciones por parte del departamento y la CFPB que GE Capital violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al excluir a prestatarios que indicaron que preferían que las comunicaciones fueran en español o tenían dirección postal en Puerto Rico de dos programas de cancelación de deudas de tarjeta de crédito. El acuerdo es una acción de coacción de préstamos justos conjunto del departamento y la CFPB y es históricamente el mayor acuerdo conciliatorio de discriminación asociado a tarjetas de crédito del gobierno federal.
El acuerdo conciliatorio dispone el pago de 169 millones de dólares como reparación a alrededor de 108,000 prestatarios, en la forma de pagos monetarios, y la reducción o dispensa total de los saldos de las tarjetas de crédito de los prestatarios. El propio GE Capital identificó y reportó la discriminación a la CFPB, fue proactivo en tomar medidas para proporcionar reparación a los prestatarios afectados, y ha trabajado estrechamente con el departamento y la CFPB para identificar e indemnizar a otras víctimas de dicha discriminación. Específicamente, GE Capital ya ha provisto los beneficios de las ofertas o su valor equivalente a aproximadamente 84,000 prestatarios por un total de $131.8 millones en reparación. Según el acuerdo conciliatorio, el banco proveerá los $37 millones restantes en pagos, reducciones y dispensas a los prestatarios afectados.
"La evidente discriminación exhibida en este caso es ilegal y no será tolerada", señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles. "Los prestatarios tienen derecho a términos de tarjeta de crédito que no difieran según su origen nacional, y el acuerdo conciliatorio de hoy transmite el mensaje de que el Departamento de Justicia puede hacer valer la ley enérgicamente contra los prestamistas que violen dicho derecho, y así lo hará".
"La discriminación no tiene lugar en el mercado financiero de consumo. Nadie debe ser excluido de oportunidades de crédito simplemente debido a dónde vive o el idioma que habla", señaló el Director de la CFPB Richard Cordray.
De acuerdo con la demanda presentada por los Estados Unidos, el departamento alega que, entre enero de 2009 y marzo de 2012, GE Capital excluyó a ciertos prestatarios debido a su origen nacional, de su "Oferta de crédito de estado de cuenta" – un programa que ofrecía a prestatarios elegibles un crédito en su cuenta si cumplían con ciertos criterios – y la "Oferta de cancelación" – un programa que ofrecía a prestatarios elegibles la oportunidad de cancelar su deuda de tarjeta de crédito si pagaban un porcentaje del saldo pendiente de la cuenta, equivalente a entre el 25 y el 55 por ciento. Como resultado de las exclusiones, los prestatarios hispanos fueron objeto de niveles de deuda más altos y períodos más largos de deuda; algunos de estos prestatarios hispanos pueden haber sufrido daños económicos consecuenciales adicionales, incluidos mayor riesgo de problemas de crédito, insolvencia y reposesión, les pueden haber cerrado las cuentas, sus cuentas pueden haber sido contabilizadas como "incobrables" y vendidas a terceros, y pueden abrir sufrido otros daños, tales como sufrimiento emocional.
El acuerdo conciliatorio de GE Capital con el departamento, el que está sujeto a la aprobación del tribunal, fue presentado hoy en el Tribunal Federal de Distrito para el Distrito de Utah en conjunto con la demanda del departamento. GE Capital resolvió los alegatos del CFPB por medio de un acuerdo conciliatorio administrativo público.
Además de los 169 millones de dólares en reparación, GE Capital también ha aceptado eliminar los informes de crédito negativos de los prestatarios afectados, emitidos durante períodos de la supuesta discriminación. GE Capital también tomará medidas afirmativas para fortalecer su cumplimiento con las leyes de préstamos justos, y el departamento aplaude los esfuerzos del banco, realizados hasta el momento con dicha finalidad. Estos pasos implementan fuertes mecanismos de revisión y capacitación para garantizar que no se discrimine contra prestatarios debido a su origen nacional.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del departamento es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta ha entablado o resuelto 34 casos de préstamos bajo la Ley de Vivienda Justa, la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen más de 1,000 millones de dólares en reparación monetaria para comunidades y prestatarios individuales afectados. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del departamento en el otorgamiento de préstamos justos y están disponibles en el portal de la división en Internet.
La División de Derechos Civiles y la CFPB son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó la Fuerza de Tarea de Coacción contra el Fraude Financiero interagencial para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de un amplio rango de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, ponen en uso un conjunto poderoso de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
El Departamento de Justicia Realiza Acuerdo Conciliatorio con el Distrito Escolar del Condado de Clay, Alabama, para Garantizar Igualdad de Oportunidades para Estudiantes del Programa Aprendiz del Idioma InglésRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo conciliatorio con el Distrito Escolar del Condado de Clay en Alabama. Con la cooperación del distrito, el departamento llevó a cabo una revisión de cumplimiento del programa Aprendiz del Idioma Inglés [English Language Learner (ELL)] del distrito, para determinar si los estudiantes de ELL del distrito estaban recibiendo servicios exigidos por la Ley de Igualdad de Oportunidades Educativas [Equal Educational Opportunities Act of 1974 (EEOA)] de 1974.
El acuerdo conciliatorio de tres años de duración garantizará que este distrito rural tome medidas adecuadas para atender a su población pequeña pero creciente de estudiantes de ELL, incluidos: brindar más servicios para estudiantes de ELL, obtener instructores adicionales con certificación como instructores de inglés como segundo idioma, brindar oportunidades de desarrollo profesional significativas para docentes, brindar materiales y medios de apoyo adecuados para las salas de aula de estudiantes de ELL, monitorear del desempeño académico de estudiantes de ELL actuales y anteriores, y mejorar la comunicación accesible en términos idiomáticos con los padres con conocimientos limitados del idioma inglés.
"El Departamento de Justicia se compromete a asegurar que todos los aprendices del idioma inglés reciban los servicios que requieren para el éxito, inclusive en un distrito rural pequeño como el Distrito Escolar del Condado de Clay", señaló Jocelyn Samuels, Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles. "Aplaudimos la decisión del Distrito Escolar del Condado de Clay de realizar este importante acuerdo. Nos complacerá seguir trabajando en conjunto con el distrito en satisfacer las diversas necesidades de sus aprendices del idioma inglés".
Hacer valer la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles del Departamento de Justicia. Este año se cumplen 40 años de la promulgación de la EEOA. Para obtener información adicional sobre la División de Derechos Civiles del Departamento de Justicia, visite www.justice.gov/crt.
Documentos Relacionados:
- Acuerdo de Resolución entre los Estados Unidos y el Distrito Escolar del Condado de Clay
Eddie Lopez-Lopez Sentenced to 33 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Eddie Lopez-Lopez, 36, to 33 months in prison for possession with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
According to court records, Lopez-Lopez was arrested on May 18, 2013, as part of the drug trafficking investigation of Roberto Tapia, the former Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Lopez-Lopez was charged in a 69-count indictment charging various drug trafficking offenses, along with seven other defendants, including Angelo Hill, Raymond Brown, Edwin Monsanto, Stephen Torres, Hector Alcenio, Walter Hill, and Angel Negron-Beltran. On January 29, 2014, Lopez-Lopez pleaded guilty to possession of cocaine with intent to distribute.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorneys Kelly B. Lake and Kim Lindquist prosecuted the case.
Eagle Butte Woman Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Jessalynn Cook, age 19, was indicted on June 10, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 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.
Cook is alleged to have assaulted an adult male with a knife in May 2014 in Eagle Butte. The victim received three different stab wounds.
The charges are merely accusations and Cook is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Cook was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Eagle Butte Man Sentenced for Sexual Contact with A Person Incapable of ConsentingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Sexual Contact with a Person Incapable of Consenting was sentenced on June 16, 2014, by U.S. District Judge Roberto A. Lange.
Sheldon Miner, a/k/a Salty Miner, age 62, was sentenced to 36 months in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and he must register as a sex offender.
Miner was indicted by a federal grand jury on April 12, 2013, for Sexual Abuse of a Person Incapable of Consenting and Sexual Contact with a Person Incapable of Consenting. He pled guilty to the sexual contact charge on March 24, 2014.
The conviction arose from an October 2012 incident in Dewey County when Miner engaged in sexual contact with the victim who was asleep on a couch following a house party. The contact occurred when the victim was incapable of appraising the nature of the sexual conduct and was physically incapable of declining participation in the sexual contact.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Miner was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Department of Justice Reaches Settlement with Clay County, Alabama School District to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Clay County School District in Alabama. With the district’s cooperation the department conducted a compliance review of the district’s English Language Learner (ELL) program to determine whether the district’s ELL students were receiving services required by the Equal Educational Opportunities Act of 1974 (EEOA).
The three-year settlement agreement will ensure that this rural district takes appropriate action to serve its small but growing population of ELL students, including: increasing services for ELL students, obtaining additional English as a Second Language-certified instructors, conducting significant professional development for teachers, providing adequate materials and classroom supports for ELL students, monitoring the academic performance of current and former ELL students and improving language-accessible communication with limited English proficient parents.
“The Department of Justice is committed to ensuring that all English language learners are provided the services they need to succeed, including in a small rural district like the Clay County School District,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We applaud the Clay County School District’s decision to enter into this important agreement and look forward to continuing to work cooperatively with the district to address the diverse needs of its English language learners.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. This year marks the 40th anniversary of the EEOA. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .Related Materials:
Clay County Agreement
Dallas Man Sentenced to 24 Months in Federal Prison for Committing Financial Aid Fraud at Local Community CollegesRead the Press Release
Defendant Commits Offense While Waiting to Report to Federal Prison on Separate Conviction
DALLAS — A Dallas man who used family members’ personal identifiers and photos to apply for admission to, and receive financial aid from, certain institutions and colleges was sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Desmond Ladell Johnson, 35, was sentenced by U.S. District Judge Jane J. Boyle to 24 months in federal prison and ordered to pay $22,442.00 in restitution. Johnson pleaded guilty in October 2013 to one count of financial aid fraud. He must surrender to the Bureau of Prisons in late August 2014.
At the hearing, it was noted that Johnson committed the instant crimes while on pre-sentence release for another conviction in the Northern District of Texas. Johnson pleaded guilty to one count of theft of government property on May 19, 2009, and in November 2009, he was sentenced to serve 46 months in federal prison for that offense. He was ordered to surrender to the Bureau of Prisons exactly two months later, on January 19, 2010, which he did, to begin serving that sentence. It was during that two-month period that Johnson committed the financial aid fraud crimes.
According to documents filed in the case, between May 2009 and January 2010, Johnson used the personal identifiers, including social security numbers, dates of birth and photo identifications of several family members, including his brother, stepbrother and father, to apply for admission to, and financial aid from the Dallas County Community College District and Trinity Valley Community College (TVCC). Those family members had no knowledge that Johnson was using this information or receiving disbursed funds.
When an address was required or requested on applications and forms, Johnson would typically list an address where he resided, or over which he had control, as opposed to the correct address for the relevant family member. When a telephone number or email address was required, Johnson would typically list a telephone number and email address over which he had control, as opposed to the correct telephone number or email address for the relevant family member. Johnson also obtained a student identification card at TVCC under his brother’s name, but which contained Johnson’s picture.
Using this scheme, Johnson stole $25,429.00 that he used for non-educational purposes.
The U.S. Department of Education investigated the case. Assistant U.S. Attorney P. J. Meitl prosecuted.
Convict Pleads Guilty to Criminal Contempt ChargeRead the Press Release
PITTSBURGH - A resident of Farrell, Pennsylvania, pleaded guilty in federal court to a charge of criminal contempt, United States Attorney David J. Hickton announced today.
Robert M. Spruill, 30, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in 2007, Spruill was prosecuted in federal court in the Western District of Pennsylvania for drug-trafficking and firearms offenses. On June 6, 2008, he was sentenced to 57 months imprisonment, followed by three years of supervised release.
Spruill was released from custody and began his supervised release on Dec. 27, 2011. During the following year, Spruill was convicted in state court of misdemeanor Criminal Trespass and Theft by Unlawful Taking. He also failed to comply with various conditions of his supervised release, including refraining from illegal marijuana use.
The United States Probation Office filed a petition to revoke Spruill’s supervised release. A hearing was held on Dec. 14, 2012, after which the Honorable Terrence F. McVerry revoked Spruill’s supervised release and sentenced him to six months’ incarceration. Judge McVerry initially stated that Spruill would commence his term of imprisonment immediately. Spruill’s counsel, however, requested that the Court allow Spruill to spend the holidays with his family, and Judge McVerry agreed to permit Spruill to remain at home for the holidays. He was specifically instructed to surrender to the United States Marshals Service’s office on the Second Floor of the United States Federal Courthouse, in downtown Pittsburgh, on Jan. 3, 2013, by noon, to begin to serve his sentence.
Spruill disobeyed that Court Order, and he failed to turn himself in as directed. On Jan. 4, 2013, a bench warrant was issued for Spruill’s arrest.
On Jan. 10, 2013, the United States Marshals Service’s Fugitive Task Force found and arrested Spruill at his girlfriend’s residence in Mercer County. Spruill was found hiding in the attic, under clothing.
Judge Bissoon scheduled sentencing for Oct. 9, 2014, at 10 a.m. The law provides for a maximum total sentence of an unlimited period of incarceration, an unlimited fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Spruill.
Connecticut U.S. Attorney’s Office Celebrates Annual U.S. Attorney’s AwardsRead the Press Release
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The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony this afternoon in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized more than 160 individuals for their investigative efforts in 30 significant federal criminal prosecutions and civil cases in Connecticut.
The highlighted cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut, including the FBI, DEA, ATF, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, U.S. Department of Health and Human Services, U.S. Department of Housing and Urban Development, U.S. Department of Labor, U.S. Department of Transportation, U.S. Department of Homeland Security, U.S. Department of Defense, SIGTARP, the Connecticut State Police, Connecticut Department of Correction, and Connecticut Department of Banking. More than 30 of the award recipients are members of local police departments from across Connecticut.
“Today, we proudly recognize our law enforcement partners for their exceptional work,” stated U.S. Attorney Daly. “We are grateful for the courage and dedication they bring to the job. It is our great honor to work with them and to celebrate their accomplishments as they devote their lives to ensuring the safety and security of our communities and all those who live in our state.”
Several unit awards and special awards were also presented during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to FBI Financial Analyst Elizabeth McCartney for her exceptional work on many significant financial fraud investigations.
The U.S. Attorney’s Award for Outstanding Partnership was presented to a group of local and state law enforcement officers who are assigned to various federal task forces. Award recipients include Captain Luis Sosa of the Connecticut Department of Correction, Detective Stanford Dowling of the Bridgeport Police Department, Detective Mark Solomon of the Greenwich Police Department, Detective Francis Bellizzi of the New Britain Police Department, Officers Michael Mastropetre and Jonathan Young of the New Haven Police Department, Officer Brian Laurie of the New London Police Department, and Officer Heather Bozentko, Detective William Brevard, Sergeant Christopher Broems and Sergeant Kevin Keenan of the Stamford Police Department.
The Civil Division Unit Award was presented to Debra Reale, who has been the Associate Area Counsel, Small Business, Self Employed Division for the Internal Revenue Service’s Office of Chief Counsel for 26 years.
The National Security and Major Crimes Unit Award was presented to Peter Kenyon, Regional Criminal Enforcement Counsel for the Environmental Protection Agency, for his investigation and prosecution of numerous major environmental cases in Connecticut during the past 23 years.
The Financial Fraud and Public Corruption Unit Award was presented to FBI Special Agents William Aldenberg, Stacy Bowery, Matthew McPhillips and Jeffrey Waterman, whose investigative efforts led to the successful prosecution of eight individuals who engaged in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives.
The Violent Crimes and Narcotics Unit Award was presented to the lead investigators in Operation Bloodline, which targeted narcotics trafficking and gang violence in New Haven, and resulted in more than 90 federal convictions. The award recipients were DEA Special Agents Michael Cogan and Anastas Ndrenika, DEA Task Force Officers Tony Miranda and David Rivera of the New Haven Police Department, and DEA Task Force Officers Joshua Cameron and Dedric Jones, and Investigator Lance Helms, of the Hamden Police Department.
The United States Attorney’s Office is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The District is composed of approximately 64 Assistant U.S. Attorneys and approximately 60 staff members at offices in New Haven, Hartford and Bridgeport.
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Tom Carson
(203) 821-3722 [email protected]Charles City Man Sentenced to Life in Prison on Firearms ViolationsRead the Press Release
Sentencing Judge Finds Defendant Murdered Burglary Victim
Randy Patrie, age 41, from Charles City, Iowa, received a life sentence after a September 6, 2013, guilty plea to possessing sawed-off shotguns and being a felon in possession of firearms. The court found at sentencing that he had used a sawed-off shotgun to commit a murder while stealing other firearms from the victim.
Evidence presented at a sentencing hearing in February 2014 showed that, in October 2012, Patrie burglarized the home of Ken Gallmeyer, located outside Nashua, Iowa. Finding Gallmeyer asleep in his bed, Patrie shot Gallmeyer in the head with a sawed-off .410 gauge shotgun. Patrie then ransacked the house in search of a large amount of cash Gallmeyer was rumored to have had in his house. In July 2013, a Charles City Police Officer arrested Patrie for burglarizing his step-mother’s house. In a search of Patrie’s house, officers found three firearms stolen from Gallmeyer, along with Gallmeyer’s large screen television and other property belonging to Gallmeyer. Patrie was also found in possession of approximately 32 firearms, two of which had been stolen in March 2013 during a burglary of another residence near Gallmeyer’s house, and 22 of which had been stolen in May 2013 during a burglary of the Gilbert’s Sales Yard in Floyd, Iowa. Among the firearms recovered from Patrie’s house was a .410 gauge sawed-off shotgun believed to have been the weapon Patrie used to murder Ken Gallmeyer.
Patrie was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. After hearing the evidence during the February sentencing hearing, the Court took the case under advisement. On June 12, 2014, the Court issued written findings of fact and made rulings on legal issues (Document 58). In the written findings, the Court concluded Patrie had murdered Gallmeyer. The Court found that Patrie qualified as an Armed Career Criminal, which carries a mandatory minimum of fifteen years and a maximum sentence of life imprisonment. At today’s hearing, the Court heard victim impact statements, and then imposed sentence. Patrie was sentenced to life imprisonment. There is no parole in the federal system.
Patrie is being held in the United States Marshal’s custody until he can be transported to a federal prison.
“This was a horrible crime,” said U.S. Attorney Techau. “The sentence is just and will certainly ensure that Randy Patrie never inflicts such intolerable and unspeakable cruelty on anyone else again. It is a measure of justice for Mr. Gallmeyer and his family.”
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Iowa Division of Criminal Investigation, the Chickasaw and Floyd County Sheriff’s Offices, and the Charles City Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-2016.
Canton Man Faces Child Pornography ChargesRead the Press Release
Richard B. Elbert, 50, of Canton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about April 24, 2014, through on or about May 21, 2014, Elbert knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On May 22, 2014, images of child pornography were also found on his HP Compaq Presario laptop computer.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Gregorio Aguirre, age 26, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 12, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 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 charge relates to Aguirre possessing an unregistered firearm made from a Remington Model 12, .22 Caliber Rifle, on April 12, 2014, in South Dakota.
The charge is merely an accusation and Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 19, 2014.
Calhoun City MS Man, Houlka MS Woman Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON JEVAR PITTMAN, 32 of Calhoun City, Mississippi, and DEJA MONET PHILLIPS, 18, of Houlka, Mississippi, were arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2.
The Indictment alleges that on or about March 6, 2014, within the Eastern District of Oklahoma, the defendants, did knowingly possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Both defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for PITTMAN and PHILLIPS is not less than 5 years and not more than 40 years imprisonment and/or up to $5,000,000.00 in fines.
Assistant United States Attorney Kyle E. Waters represented the United States.
Bullhead Man Sentenced for Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on June 16, 2014, by U.S. District Judge Charles B. Kornmann.
Landon Iron Thunder, age 24, was sentenced to 36 months in custody on one count and 24 months in custody on the second count, to run concurrently. The Court further ordered that these sentences be served consecutive to a Burleigh County, North Dakota, sentence. Iron Thunder was also sentenced to 5 years of supervised release and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury on July 17, 2013. He pled guilty on March 21, 2014.
The conviction stems from an incident occurring between June 1, 2010, and July 31, 2010, when Iron Thunder was socializing with family members, including the juvenile female victim. Late one evening, the group went to Iron Thunder’s house to sleep. The victim slept on a mattress, along with other family members, located on the floor of Iron Thunder’s room. At some point during the night, the victim awoke to discover that her belt had been unbuckled and her pants had been pulled down. Iron Thunder was lying next to her and had his hands inside the victim’s underwear. The victim woke up others in the room and was able to flee the residence.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Iron Thunder was immediately turned over to the custody of the U.S. Marshals Service to be returned to North Dakota to finish serving his state sentence before serving his federal sentence.
Buffalo Woman Pleads Guilty to Theft of Government FundsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bernice Robinson, 79, of Buffalo, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to theft of public money. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Kathleen A. Lynch, who is handling the case, stated that between October 1998 and April 2011, the defendant fraudulently collected $101,150.95 in benefits from the Social Security Administration. Robinson began collecting Social Security benefits as a widow in 1992 following the death of her first husband. In 1998, using a false name and birth certificate, the defendant applied for and began to receive an additional set of supplemental benefits.
In March 2001, Robinson again began collecting widow benefits following the death of her second husband. In August 2010, the defendant began to receive social security retirement benefits using a false name and social security number.
The plea is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan.
Sentencing will be scheduled at a later date.Buffalo Woman Pleads Guilty to Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bernice Robinson, 79, of Buffalo, N.Y., who was convicted of theft of public money, was sentenced to three years supervised release, by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $101,150.95.
Assistant U.S. Attorney Kathleen A. Lynch, who handled the case, stated that between October 1998 and April 2011, the defendant fraudulently collected $101,150.95 in benefits from the Social Security Administration. Robinson began collecting Social Security benefits as a widow in 1992 following the death of her first husband. In 1998, using a false name and birth certificate, the defendant applied for and began to receive an additional set of supplemental benefits.
In March 2001, Robinson again began collecting widow benefits following the death of her second husband. In August 2010, the defendant began to receive social security retirement benefits using a false name and social security number.
The sentencing is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan.
Buffalo Appraiser Sentenced for Bank FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Darryl Glasco, 55, of Pendleton, N.Y., who was convicted of bank fraud, was sentenced to six months home detention and four years supervised release by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $334, 024.08 to JP Morgan Chase and Bank of America.
According to Assistant U.S. Attorney Kathleen A. Lynch, Glasco, a New York State licensed real estate appraiser, submitted a fraudulent appraisal in connection with a mortgage fraud scheme. The defendant conspired with a borrower, James P. Vasiliou, Jr., to submit a fraudulent appraisal report to support an inflated property value for a mortgage loan. Glasco inflated the value of the property in Lockport, N.Y. by using false locations and values for comparable properties resulting in an inflated fair market value for the appraised property. The appraisal was submitted to JP Morgan Chase Bank which approved and funded a loan for the property.
Vasiliou has been convicted of bank fraud and will be sentenced in August 2014. As part of the plea agreement, Glasco admitted to providing false appraisals for nine additional properties.
The plea is the result of an investigation by the Mortgage Fraud Task Force of WNY, led by the U.S. Attorney’s office, which includes agents and personnel from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Federal Bureau of Investigation, and Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi.Box Elder Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Michael J. Fech, age 30, a Captain in the U.S. Air Force, was indicted on June 17, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 19, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between December 2013 and June 2014, at Box Elder, Fech knowingly distributed and possessed computers files containing images of child pornography.
The charges are merely accusations and Fech is presumed innocent until and unless proven guilty.The investigation was conducted by the Pennington County Sheriff’s Department, and the South Dakota Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Fech was released pending trial, with conditions limiting his use of the internet and contact with children. A trial date has not been set.
Boston Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to armed bank robbery.
Anthony Hamilton, 28, pleaded guilty to armed bank robbery and being a previously convicted felon in possession of a firearm. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Sept. 24, 2014.In December of 2010, after entering the Citizen’s Bank in Malden, Hamilton approached a teller and handed her a demand note which stated he would shoot her if she did not give him money. After the teller complied Hamilton fled, but became trapped in the bank’s vestibule. Hamilton pulled out a semi-automatic firearm and fired into the vestibule’s door. The door released and he fled. A few weeks later, he was located and arrested at his home in Dorchester where he was in possession of a semi-automatic firearm with an obliterated serial number and multiple rounds of ammunition.
Hamilton, a previously convicted felon, faces a maximum sentence of a lifetime in prison, five years of supervised release, and a $250,000 fine on the gun possession charge; and a maximum sentence of 25 years in prison, five years of supervised release, a $250,000 fine, and $4,700 in restitution on the armed bank robbery charge.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Bergen County, N.J., Man Arrested for Defrauding Foreign Nation of More Than $3.5 MillionRead the Press Release
NEWARK, N.J. - A Bergen County, N.J., man who was re-entering the United States from a trip abroad was arrested today at Newark International Airport on charges that he allegedly orchestrated a scheme to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced today.
Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 50, of Franklin Lakes, N.J., is charged by complaint with one count of wire fraud conspiracy and six counts of wire fraud. He is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint: Beginning in July 2010, Boye worked as an international legal advisor for the victim nation, which is referred to in the complaint as “Country A.” Boye served on a three-member committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multi-million dollar contract to provide legal and tax accounting advice to Country A. Boye allegedly deceived Country A representatives into awarding the lucrative contract to Opus & Best Services LLC (Opus & Best), a sham New York law and accounting firm that, unbeknownst to Country A, was secretly controlled by Boye.
On March 17, 2012, Boye allegedly caused Opus & Best to submit by email a bid for the contract with Country A. The bid documents, which allegedly were authored by Boye and a conspirator (CC-1), contained multiple, material misrepresentations and omissions, including: (1) a false claim that Opus & Best was founded in 1985, when in fact it was not founded until late March 2012; (2) a fraudulent listing of several purported employees of Opus & Best, who were described in the bid as a “first class talent of attorneys, accountants and economists.” There was no record of individuals of those same names as being admitted to practice law in New York or New Jersey or as being New York-licensed certified public accountants; (3) a false representation that Opus & Best had no conflicts of interest; Boye was both the sole member of Opus & Best and a member of the committee reviewing the bids; (4) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country when that country had never awarded any type of consulting services contract to Opus & Best; and (5) a false representation that there were no third-party beneficiaries to the proposed contract between Opus & Best and Country A, when Boye himself was an undisclosed third-party beneficiary, given his alleged concealed intent to misappropriate the contract for his own benefit.
Unaware that Opus & Best allegedly was a sham firm, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012. Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.
Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000) and two designer watches for almost $20,000.
The conspiracy and wire fraud counts with which Boye is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
This arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-224Defense counsel: TBD
Boye, Bobby Complaint
Bay County Man Sentenced for PerjuryRead the Press Release
A Bay County man was sentenced on June 17, 2014, to 21 months in prison for committing perjury before a federal grand jury, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Randall Ashe, Special Agent in Charge, U.S. Environmental Protection Agency Criminal Investigation Division in Michigan.
U.S. District Judge Thomas Ludington imposed sentence on Rodolfo Rodriguez, 57.
According to court records, Rodriguez was called to testify before a grand jury investigating asbestos-related crimes and knowingly provided false testimony regarding the illegal removal of asbestos from a church, which was being converted to a school used by the Bay City Academy.
Co-defendants Roy Bradley and Gerald Essex have been charged with illegally disturbing and handling asbestos while performing the demolition work on the church. They are currently scheduled for trial on August 19, 2014, in Bay City, Michigan.
“Our criminal justice system depends upon witnesses to provide truthful information,” McQuade said. “Witnesses who lie to a grand jury commit a serious crime that will be prosecuted.”
“As with any criminal case, the prosecution of environmental crimes depends on honest answers and testimony,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “Lying under oath is criminal conduct, and when it’s about removing asbestos illegally, potentially endangering vulnerable children, it’s especially egregious. Today’s sentencing demonstrates that companies and individuals who callously place the American people at risk, then lie about it under oath, will be held accountable.”
The case was investigated by special agents of the U.S. Environmental Protection Agency and the Internal Revenue Service. The prosecution is being handled by the U.S. Attorney’s Office in Bay City, Michigan.
Armed Career Criminal Sentenced to 15 Years in Prison for Federal Firearms ViolationRead the Press Release
ASHEVILLE, N.C. – A South Carolina man was sentenced in federal court on Tuesday, June 10, 2014, for being a felon in possession of a firearm, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Lawrence Doe, Jr., 30, of Beaufort, S.C. was sentenced by Chief U.S. District Judge Martin Reidinger to 180 months in prison, followed by three years of supervised release.
Chief Chris Beddingfield of the Columbus Police Department joins U.S. Attorney Tompkins in making today’s announcement.
According to the criminal indictment and statements made in court, on or about August 10, 2012, Columbus PD conducted a traffic stop of a vehicle in which Doe was a passenger. During the traffic stop, law enforcement found a loaded Smith & Wesson .357 magnum revolver inside the car. Doe’s foot had been resting on the firearm until law enforcement ordered Doe out of the vehicle. At the time of the offense, Doe was a convicted felon and was prohibited from possessing a firearm. In August 2013, Doe pleaded guilty to the gun charge. Court records indicate that Doe had four prior burglary convictions in South Carolina and at sentencing he qualified as an armed career criminal.
Doe has been in federal custody since January 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by Columbus PD. The case was prosecuted by Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
Ardmore Man Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that NIKEA PAUL LEE, 38, of Ardmore, Oklahoma, was arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleges that on or about February 6, 2014, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute over five (5) grams or more of actual Methamphetamine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Chickasaw Lighthorse Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for LEE is not less than 5 years and not more than 40 years imprisonment and/or up to $5,000,000.00 in fines.
Assistant United States Attorney Kyle E. Waters represented the United States.
Alleged Leader of Sex Trafficking Ring Lands in U.S. After Extradition from MexicoRead the Press Release
HOUSTON - Gerardo Salazar has landed in the U.S. to face charges related to the smuggling of minor girls and young women from Mexico and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Carlos J. Barron of the FBI.
“The formal arrest following the successful extradition of the defendant today represents our commitment to bring those accused of human trafficking to the bar of justice,” said Magidson.
“The victims in this case were young Mexican women and girls alleged to have been beaten and forced into prostitution inside Houston area cantinas,” said Barron. “Let Salazar’s return provide assurance to these victims and others that those who engage in the egregious crimes of human trafficking will be pursued around the globe and brought to justice.”
Salazar, 47, of Mexico City, Mexico, had been a fugitive since 2005. He was recently arrested in Mexico and arrived in Houston this afternoon. He is expected to make an initial appearance before U.S. Magistrate Judge Mary Milloy tomorrow.
Gerardo Salazar aka “El Gallo" was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar.
The indictment alleged “El Gallo” was the leader of the group. He is charged with conspiracy, sex trafficking, transportation of minor for immoral purposes, alien harboring for prostitution and transportation of illegal aliens. If convicted, he faces up to life in federal prison and a maximum $250,000 fine.
All the other co-defendants have entered guilty pleas in the case and were sentenced to federal prison.
The investigation was conducted by the FBI, Harris County Sheriff's Office, Homeland Security Investigations, Texas Alcoholic Beverage Commission and others as part of the Human Trafficking Rescue Alliance. The Justice Department's Office of International Affairs provided assistance with the extradition.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Albuquerque Woman Sentenced to Prison for Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Daisy Alaniz, 28, of Albuquerque, N.M., was sentenced today to 27 months in federal prison followed by two years of supervised release for her bank robbery conviction.
Alaniz and her co-defendant, Anthony Paloni, 51, also of Albuquerque, were arrested on April 20, 2013, on bank robbery charges. Both have been in federal custody since that time.
According to court filings, Alaniz and Paloni robbed the Bank of the West branch located at 1422 Carlisle Blvd. NE in Albuquerque on the morning of April 20, 2013. On that day, Paloni drove Alaniz to the bank where Alaniz demanded that the tellers put currency into her duffle bag while holding her hand inside the front pocket of her jacket in a way that suggested that she might be holding a weapon. Paloni drove Alaniz away from the bank, and officers later located the pair at a truck stop in the vicinity of University Blvd NE and Menaul in Albuquerque. The officers were able to recover the money that Alaniz stole from the bank, most of which was in the duffle bag that Alaniz used during the robbery and the remainder was in Paloni’s possession.
Alaniz entered a guilty plea to a bank robbery charge on March 24, 2014, and admitted robbing the bank on April 20, 2013. In her plea agreement, she stated that she drew a beard and mustache on her fact to make herself look like a man before entering the bank.
Paloni plead guilty to a bank robbery charge in July 2013, and was sentenced to 30 months in federal prison followed by two years of supervised release in Oct. 2013.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Charles L. Barth.
16 Charged in Alleged Large Scale Marijuana Trafficking OrganizationRead the Press Release
HOUSTON – A multi-count federal indictment has been unsealed following the arrest of 11 individuals throughout south Texas and the Houston areas, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI), and Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA).
The indictment was returned under seal May 29, 2014, and unsealed upon each arrest yesterday. Those taken into custody are expected to make initial appearances before U.S. magistrate judges in Houston or McAllen today.
“These arrests demonstrate the value of multi-agency collaboration, which is essential to our ability to disrupt and dismantle drug trafficking organizations,” said Arabit. “DEA, HSI and the numerous state and local agencies that worked on this investigation underscore the commitment that enabled us to dismantle this network charged with the distribution of marijuana and other illicit drugs from McAllen to Houston and the transportation of bulk cash from Houston to south Texas.”
The joint DEA/HSI - led investigation into the organization began in March 2011. Since that time, agents have seized approximately 7500 pounds of marijuana and thousands of dollars.
During the course of the arrests, law enforcement also discovered and seized approximately 400 pounds of marijuana and thousands of dollars in U.S. currency as well as several utility trailers, tractors, vehicles and firearms.
“Our collective efforts today under ‘Operation Ranch Hand’ have struck a blow to what we believe is a significant drug trafficking organization operating in south Texas,” said Moskowitz. “Those who bet the ranch on being able to traffic tons of marijuana from the border up through our cities are now feeling the long arm of the law upon them.”
Those taken into custody include Daniel Villarreal Sr., 55, of Conroe; Jose Villarreal aka Mikey, 38, Ishmael Villarreal, 56, Guadalupe Arechiga-Gutierrez aka Lupe, 36, Felipe Licea, 35, and Danny Sandoval aka Capo, 29, all of Sullivan City; Jaime Garcia aka YuYu, 49, of Palmview; Severiano Homero Garza Jr. aka Cuerdas or Borracho, 55, of Rio Grande City; Osvaldo Martinez-Trevino, 42, and Joel Blanco, 31, both of Houston; and Gerardo Flores, 37, of Mission.
Also charged but not as yet in custody are Gilberto Mena-Garcia, aka Yune, 60, and Daniel Garza, 33, both of Mexico; David Isaac Garcia, 43, of Pharr; Erbey Siller aka BiBi, 35, of Mission; and Gerardo Mena, 32, of Pasadena.
Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332), DEA at 1-713-693-3000 or HSI at 1-866-347-2423.
All have been charged with conspiracy with the intent to distribute more than 1000 kilograms of Marijuana. If convicted, they each face a minimum of 10 years and up to life in prison as well as a possible $4 million fine. With the exception of Ishmael Villarreal, Flores and Licea, all are also charged with one or more counts of possession with intent to distribute more than 100 kilograms of marijuana for which they face a mandatory minimum of five and up to 40 years in federal prison and another possible $2 million on each count. Martinez-Trevino is further charged with two counts of distribution of marijuana and faces up to 20 years and a potential $1 million fine, while Ishmael Villarreal and Martinez-Trevino further face a maximum of 20 years upon conviction of conspiracy to launder drug proceeds.
The indictment also includes a notice of forfeiture of 10 properties, including a ranch in Conroe, as allegedly used in the facilitation of drug smuggling or acquired with drug proceeds. The United States is also seeking a money judgment in the amount of $4 million.
The investigation was led by both HSI and DEA as part of the High Intensity Drug Trafficking Area Task Force in Houston and McAllen with the assistance of sheriff's offices in Montgomery, Harris and Hidalgo Counties, Texas Department of Public Safety, Border Patrol, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas National Guard, as well as police departments in Houston, Pasadena, Palmview, Sullivan City, McAllen, Weslaco, San Juan, Pharr, Mission and Rio Grande City. Assistant U.S. Attorney Bertram Isaacs is prosecuting.
A defendant is presumed innocent unless convicted through due process of law."Breaking Bad" Heroin Case Charging DocumentRead the Press Release
U.S. v. Dennis Sica and John Rohlman Complaint
$20,000 Methamphetamine Deal Sends Wichita Man to Federal Prison for 10+ YearsRead the Press Release
WICHITA, KAN. – A Wichita man who sold an undercover buyer a pound of methamphetamine for $20,000 was sentenced Thursday to 121 months in federal prison, U.S. Attorney Barry Grissom said.
Patrick C. Hains, 39, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
In his plea, Hains admitted he was arrested Jan. 14, 2014, at Pelican Point Apartments, 2150 N. Meridian, after a Wichita police officer working undercover paid him $20,000 cash for a pound of methamphetamine. Investigators searched Hains’ residence in the 500 block of South Woodchuck and seized a shotgun that he kept behind the front door to protect himself during drug transactions.
Co-defendants include: Wyatt Leedy, 35, Wichita, who is awaiting trial.
Jose Ramon Montelongo-Castrejon, 28, Wichita, is set for sentencing Aug. 1.Grissom commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
18 June 2014
York County Man Pleads Not Guilty to Federal Firearms Offenses and Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced today that Brandon Dawson, age 29 of York pleaded not guilty today before United States Magistrate Judge Susan E. Schwab in federal court in Harrisburg. A federal grand jury indicted Dawson for distributing heroin and marijuana and possession of firearms on June 11, 2014.
According to United States Attorney Peter Smith, on October 23, 2013, the York County Quick Response Team executed a search warrant at Dawson’s apartment on Cottage Place, York, and allegedly found reinforced doors, surveillance cameras, heroin, marijuana, drug trafficking materials, ammunition, and a stolen firearm. Dawson has a prior federal conviction for drug trafficking and a firearms offense, which makes it unlawful for him to possess a firearm.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and York City Police Department and assigned to Special Assistant United States Attorney David Sunday, of the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Wheeling Resident Sentenced on Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – A 44-year old Wheeling resident was sentenced to prison as a result of a Federal firearms conviction, according to U.S. Attorney William J. Ihlenfeld, II.
Donald L. ELLIS was sentenced to five months in prison and two years of supervised release, with the first five months of the supervised release to be served in a half-way house, for being a prohibited person in possession of a firearm. ELLIS admitted that he possessed a gun in February in Wheeling.
ELLIS had prior convictions in Martin County, Florida, in 1998 for the felony offenses of resisting a law enforcement officer with violence and battery on a law enforcement officer and therefore was prohibited from possessing a firearm. ELLIS was remanded to the custody of the United States Marshal pending designation to a Federal institution. He was sentenced by U.S. District Judge Frederick P. Stamp, Jr.
The case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.Virginia Man Sentenced to Five Years in Prison for Violent Attack and Sexual Assault at LoungeFor Violent Attack and Sexual Assault at LoungeRead the Press Release
WASHINGTON -Amulraj Arun, 29, of Fairfax, Va., was recently sentenced to five years in prison for a vicious attack he committed last year against a young woman at a lounge in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Arun was found guilty by a jury in March 2014, following a trial in the Superior Court of the District of Columbia, of kidnapping and sexual abuse. He was sentenced on June 6, 2014 by the Honorable Milton C. Lee. Following his prison term, Arun will be placed on three years of supervised release. He also must register as a sex offender for 10 years following his release.
According to the government’s evidence, on the evening of May 30, 2013, the victim and her husband traveled to Washington D.C. by way of New York from their home in San Francisco to attend a college reunion. The victim and her husband met a few friends for dinner before going to the 18th Street Lounge, in the 1200 block of 18th Street NW.
After arriving at the lounge, the victim separated from her friends and husband to find the bathroom. She went up one flight of stairs and encountered Arun, a stranger to her. Arun was leaning against a desk and, though she did not realize it at the time, blocking the bathroom. Arun directed the victim up another flight of stairs, telling her that she would find the bathroom there.
The victim, trusting the defendant, went up the stairs. The upper floor where Arun had directed the victim was dark and dimly lit, and so she took out her cell phone to illuminate the path. The victim felt concerned that the floor was so removed from any other activity in the establishment, and so she also texted her husband, asking him to come upstairs.
Once the victim reached the top of the stairs, Arun raced behind her. He lunged for her, grabbing and squeezing her breast with one hand while wrapping his other arm around her body. Arun wrapped his arms around her neck, choking the victim and cutting off her air supply. He then aggressively tried to drag her into the room he had previously identified to the victim as the bathroom – which was actually a small, dark utility closet. The victim struggled with all her might, wrapping her arms around the bannister at the top of the stairs and clinging to it. She started screaming in the hope that someone would come to her aid.
In response, Arun wrapped his hands around the victim’s mouth to muffle her screams. He continued to choke her and tried to drag her back into the room behind them. The victim continued to fight, kicking out one of the railings below the bannister. Once the railing was dislodged, the victim slid to the floor, her leg sliding between the railings, her foot dangling precariously over the floors below. Arun slid down, too, and he continued to try to drag her back.
The victim’s husband came upstairs, and Arun ran away as the husband came to the victim’s aid. A bouncer, who had heard screaming and went toward the crime scene to investigate, crossed paths with Arun as he fled the lounge. The bouncer pursued the defendant and saw him drop his passport as he ran down the stairs. The bouncer turned the passport over to members of the Metropolitan Police Department (MPD), who were on patrol outside the lounge. Arun was apprehended by the police a short time later in the vicinity of the lounge.
In announcing the sentence, U.S. Attorney Machen commended the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur and Victim Witness Advocate Meshall Thomas. Lastly, he expressed appreciation for the work of Assistant U.S. Attorney Michelle Parikh, who investigated and prosecuted the case.
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