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Wednesday 30 April 2014
Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Tynes, 54, of Buffalo, N.Y., pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a 250,000 fine or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, Tynes robbed two M&T Banks:
• On August 7, 2013, the defendant entered M&T Bank, located at 133 Jefferson Avenue, Buffalo, and passed the teller a demand note stating: “This is a stick up. Give me 30. $100.00 bills. And 40. $50.00 bills. No dye packs. I have a crew outside. If I am not out of here in 4 min, they will come in. Do not sound alarm.” The teller gave Tynes an amount of money.
• On September 11, 2013, the defendant entered M&T Bank, located at 1300 Jefferson Avenue in Buffalo and passed the teller a demand note stating: “Fast. This is a stick up. No dye packs. I have a crew outside. Don’t sound alarm. 30. $100.00 dollar bills 40. $50.00 dollar bills. FAST!” The teller gave Tynes an amount of money.
The plea is the culmination of an investigation by the Federal Bureau of Investigations Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 15, 2014 at 12:30 p.m.Bethel Park Man Charged in Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 29, named Richard Stromberg, 49, of Bethel Park, Pa., as the sole defendant.
According to the indictment, from in and around August of 2002, and continuing until in and around June of 2008, Stromberg knowingly conspired with other individuals known to the grand jury to defraud lenders. Stromberg operated a mortgage broker firm, Great American Home Equity. The conspiracy involved the submission to lenders of loan applications that contained material misrepresentations about the borrower’s financial condition, such as inflating the borrower’s income and assets, and appraisals that overstated the values of the properties serving as collateral for the loans. Stromberg and others also submitted false supporting documentation for the misrepresentations contained in the applications.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force (MFTF) conducted the investigation leading to the indictment in this case. The MFTF is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the MFTF include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other MFTF members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Mortgage industry members with knowledge of fraudulent activity are encouraged to call the Mortgage Fraud Task Force at (412) 894-7550. Consumers are encouraged to report suspected mortgage fraud by calling the Pennsylvania Attorney General's Consumer Protection Hotline at (800) 441-2555.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Art Gallery Owner Helly Nahmad Sentenced to One Year and One Day for Being A Leader of an International, Multimillion-Dollar Illegal Sports Gambling BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HILLEL NAHMAD, a/k/a “Helly,” was sentenced today in Manhattan federal court to one year and one day in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. NAHMAD was also ordered to forfeit $6,427,000 and all his right, title, and interest in the painting Carnaval à Nice, 1937 by Raoul Dufy to the United States. He was sentenced by U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “For art gallery owner Helly Nahmad, running a multimillion-dollar illegal sports gambling business came with a steep price, forfeiture of over $6 million and time behind bars – a punishment he likely never pictured.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
NAHMAD operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher operated and led a nationwide illegal gambling business in New York City and Los Angeles that catered primarily to multi-millionaire and billionaire clients. As part of this business, the organization ran a high-stakes, illegal sportsbook that utilized several online gambling websites operating illegally in the United States. The organization booked bets that were often in the hundreds of thousands of dollars, and at times a million dollars, on a single sporting event. The organization also made millions of dollars of sports bets each year. NAHMAD was the primary source of financing for the illegal gambling business, and he was entitled to a substantial share of its profits.
Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013.
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013.
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014.
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013, and were sentenced on January 21, 2014, and January 6, 2014, respectively.
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013, and were sentenced on April 18, 2014, and February 14, 2014, respectively.
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013, and is scheduled to be sentenced on May 1, 2014.
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013, and was sentenced on February 25, 2014.
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013, and is scheduled to be sentenced on June 10, 2014.
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013, and was sentenced on March 25, 2014.
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013, and is scheduled to be sentenced on May 2, 2014.
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013, and was sentenced on April 9, 2014.
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013, and was sentenced on April 30, 2014.
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013, and was sentenced on April 30, 2014.
- Eugene Trincher pled guilty to gambling charges on November 14, 2013, and is scheduled to be sentenced on June 9, 2014.
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013, and was sentenced on April 29, 2014.
- Illya Trincher pled guilty to gambling charges on November 15, 2013, and is scheduled to be sentenced on May 8, 2014.
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013, and was sentenced on March 27, 2014.
- Moshe Oratz pled guilty to gambling charges on December 3, 2013, and was sentenced on April 9, 2014.
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013. Sall was sentenced on April 18, 2014, and Hirsch is scheduled to be sentenced on May 9, 2014.
- Noah Siegel pled guilty to gambling charges on December 5, 2013, and was sentenced on April 10, 2014.
- Molly Bloom pled guilty to gambling charges on December 12, 2013, and is scheduled to be sentenced on May 2, 2014.
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014, and is scheduled to be sentenced on May 20, 2014.
- Donald McCalmont, John Jarekci, a/k/a “John Hanson,” and Abraham Mosseri pled guilty to making a fraudulent tax statement, failing to file a tax return, and causing a financial institution to participate in a lottery related matter, respectively, on January 24, 2014, and are scheduled to be sentenced on May 29, 2014, May 28, 2014, and May 21, 2014, respectively.
- William Edler and Peter Feldman entered into deferred prosecution agreements on April 11, 2014.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter J. Skinner, and Kristy J. Greenberg of the Violent and Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Albrecht Muth Sentenced to 50 Years in Prison for 2011 Slaying of His 91-Year-Old Wife-Slaying Followed History of Domestic Violence-Read the Press Release
WASHINGTON – Albrecht Muth, 49, of Washington, D.C., was sentenced today to 50 years in prison for first-degree murder in the slaying of his wife, 91-year-old Viola Drath, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Muth, who has taken on numerous personas over the years, including that of an Iraqi Army general, was found guilty in January 2014 by a jury following a trial in the Superior Court of the District of Columbia. The jury found Muth guilty of first-degree (premeditated) murder with the aggravating circumstances that the murder was especially heinous, cruel, and inflicted on a vulnerable victim. Muth was sentenced by the Honorable Russell F. Canan.
The sentencing, like the trial, took place without the defendant present in the courtroom. Muth, who has been in custody since his arrest in August 2011, has been hospitalized after staging a series of hunger strikes dating to December of 2012. His refusal of regular sustenance has caused his physical health to deteriorate and resulted in the hospitalization. The government contended that Muth’s refusal to eat was part of a manipulation designed to avoid trial. Muth was able to listen to and participate in the trial proceedings, out of view of the jury, via a video link to the courtroom. Likewise, he was able to listen to and participate in today’s sentencing that way.
At sentencing today, Judge Canan declared that the evidence against Muth was “overwhelming” and that his refusal to eat was “a transparent attempt to avoid prosecution.”
“Albrecht Muth’s 20 years of violence toward his wife ended only when he strangled her to death in their Georgetown home,” said U.S. Attorney Machen. “For the rest of his life, Muth won’t be able to masquerade as a military officer or member of a royal family while subjecting his wife to intolerable abuse. He will be a federal inmate paying the price for his brutal crime.”
“This was a tragic ending to an abusive relationship,” said Police Chief Lanier. “In addition to killing the victim, the defendant also further victimized her family by attempting to defraud the family out of a large sum of money. We hope this sentencing offers the family some sense of solace that these acts did not go unpunished.”
According to the government’s evidence, on the morning of Aug. 12, 2011, Muth called 911 and reported that Ms. Drath was dead on the bathroom floor of their home in the 3200 block of Q Street NW. The District of Columbia Office of the Medical Examiner determined that Ms. Drath’s death was caused by strangulation and blunt force injuries.
On the evening of Aug. 11, 2011, the government’s evidence showed, Muth had been drinking. Witnesses indicated that Muth became progressively louder and somewhat belligerent during the course of the evening. A witness escorted Muth to the house on Q Street and saw him walking down the stairwell to the basement of his residence at approximately 10 p.m.
In the early morning hours of Aug. 12, 2011, a witness heard a woman’s faint cry and a man’s laugh emanating from inside the defendant’s home. Then, at approximately 7:56 a.m. on Aug. 12, 2011, Muth made the call to 911. When MPD officers arrived, there were no signs of forced entry into the house and nothing was taken or disturbed. According to the defendant, only he and Ms. Drath had keys to the house. Also according to the defendant, he and his wife were the only two people present in the home during the previous evening.
During the trial, the government presented evidence of a documented history of domestic violence by the defendant against his wife. In addition, Muth had made a number of statements over the years indicating a desire to kill her. By the summer of 2011, Ms. Drath had enough of the defendant’s abuse and was trying to end the marriage. Also, despite the fact that Ms. Drath specifically disinherited Muth in her will, he regularly pressured her for money. After killing the victim, and before her body was removed from the home, Muth presented a fraudulent document to the daughter of the victim demanding $200,000.
In announcing the sentence, U.S. Attorney Machen and Chief Lanier recognized the outstanding efforts of the detectives, evidence technicians, and officers who investigated the case from the Metropolitan Police Department. They expressed appreciation to the District of Columbia Department of Corrections for its assistance in the matter. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Erin O. Lyons, who assisted in the investigation; Paralegal Specialist Meridith McGarrity; Investigative Analyst Zachary McMenamin; former Investigative Analyst Lawrence Grasso; Criminal Investigator John Marsh; Litigation Technology Specialist Leif Hickling, and Maria Shumar and David Foster of the Victim/Witness Assistance Unit.
Finally, they commended the work of Assistant U.S. Attorneys Glenn Kirschner and Laura Bach, who tried the case.
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Tuesday 29 April 2014
“Karl Lee” Charged in Manhattan Federal Court with Using a Web of Front Companies to Evade U.S. SanctionsRead the Press Release
Li Fangwei, who is more commonly known by his alias “Karl Lee,” is charged with violating the International Emergency Economic Powers Act (IEEPA) by using United States-based financial institutions to engage in millions of dollars of U.S. dollar transactions in violation of economic sanctions that prohibited such financial transactions. In addition, Li Fangwei is also charged with conspiring to commit wire fraud and bank fraud, a money laundering conspiracy, two separate violations of IEEPA and two separate substantive counts of wire fraud, in connection with such illicit transactions. Li Fangwei, a national of the People’s Republic of China, is a fugitive.
The announcement was made today by Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, Preet Bharara, U.S. Attorney for the Southern District of New York, George C. Venizelos, Assistant Director in Charge for the FBI’s New York Field Office.
“ These charges are an important part of the ‘ all tools’ approach our government is taking against Li Fangwei to shut down and deny him the profit from his proliferation activities,” said Assistant Attorney General Carlin. “This case is an outstanding example of multiple agencies working together to focus various enforcement efforts on the significant threat to our national security posed by such proliferation networks.”
“As alleged, Li Fangwei has used subterfuge and deceit to continue to evade U.S. sanctions that had been imposed because of his illicit trade in prohibited materials with Iran,” said U.S. Attorney Bharara. “Previously having been exposed as a violator of those sanctions, Li spun a web of front companies to carry out prohibited transactions essentially in disguise. He now stands charged with serious crimes, and millions of his dollars have been seized. It is the hope of this Office not only that Li’s banned commerce cease once and for all, but that he be apprehended and brought before the bar of American justice.”
“Whether motivated by greed or otherwise, Li Fangwei allegedly ignored sanctions imposed by the United States Government and hid behind front companies he developed to engage in a series of illegal transactions, including attempts to acquire ‘dual use’ items on behalf of Iran-based entities,” said Director in Charge Venizelos. “IEEPA makes it a crime to willfully violate U.S. sanctions on designated countries such as Iran. Individuals and companies who evade U.S. sanctions and misuse our banking system to further their illegal activity not only undermine the integrity of our financial markets but also threaten U.S. National Security interests. The FBI is committed to ensuring that strategically important goods and technology, particularly those that could be used in the production or delivery of weapons of mass destruction, do not end up in the wrong hands.”
According to the superseding indictment previously filed in Manhattan federal court and other court documents:
Li Fangwei controls a large network of industrial companies based in eastern China, one of which is LIMMT Economic and Trade Company Ltd. (LIMMT). Over the years, Li Fangwei’s companies have done millions of dollars of business with Iran. This business has included selling to Iranian entities various metallurgical goods and related components that are banned for transfer to Iran by, among others, the United Nations, because the items are controlled by the Nuclear Supplier’s Group (a multinational group that maintains “control lists,” which identify nuclear-related dual-use equipment, material and technology). Li Fangwei has been, among other things, a long-time supplier to Iran’s Defense Industries Organization and Iran’s Aerospace Industries Organization. In addition, Li Fangwei has been a principal contributor to Iran’s ballistic missile program, through China-based entities that have been sanctioned by the United States.
In light of his supply of restricted items to Iran, the United States has imposed targeted sanctions on both Li Fangwei and LIMMT. Specifically, the United States Department of the Treasury’s Office of Foreign Asset Controls (OFAC) publicly added LIMMT (in 2006) and Li Fangwei (in 2009) to its List of Specially Designated Nationals and Blocked Persons (SDN List). By virtue of their inclusion on the SDN List, Li Fangwei and LIMMT were effectively precluded from conducting any business within the United States without first obtaining a license or authorization from OFAC. Neither Li Fangwei nor LIMMT has sought such a license or authorization.
The above-referenced restrictions have forced Li Fangwei to operate much of his business covertly. In response to United States sanctions, Li Fangwei has built an outsized network of China-based front companies to conceal his continuing participation, and LIMMT’s continuing participation, in sanctioned activities. The front companies are listed in Exhibit A to the superseding indictment. As shown in Exhibit A, many of those front companies have used the same address as LIMMT, or a close variant thereof.
During the period from 2006 through to the present, Li Fangwei has used front companies to engage in more than 165 separate U.S. dollar transactions, with a total value in excess of approximately $8.5 million dollars. Included in those illicit transactions have been transactions involving sales to U.S. companies and sales of merchandise by Li Fangwei to Iran-based companies utilizing the U.S. financial system. Li Fangwei also attempted to acquire on behalf of Iran-based entities so-called “dual use” items from the United States, China and other countries that could be used in the production of weapons of mass destruction and/or devices used to deliver weapons of mass destruction.
Additionally, the U.S. Attorney’s Office and the FBI announced the seizure of over $6,895,000 in funds attributable to the Li Fangwei front companies, and the filing of a civil complaint seeking the forfeiture of those funds to the United States. The seized funds are substitutes for money held by Li Fangwei’s front companies at banks in China, and were seized from accounts at U.S. banks held in the name of foreign banks used by these front companies to conduct U.S. currency transactions (the correspondent accounts). The funds were seized pursuant to seizure warrants issued on Dec. 18, 2013, and April 25, 2014. The $6,895,000 represents funds used by the Li Fangwei front companies to engage in transactions that violate the U.S. sanctions laws and thus are subject to forfeiture. There are no allegations of wrongdoing by the U.S. or foreign banks that maintain these accounts. Because the funds used in those transactions are held in banks overseas, the United States is unable to seize the funds directly. However, pursuant to U.S. law, the United States can seize funds located in a bank’s correspondent accounts in the United States if there is probable cause to believe that funds subject to forfeiture are on deposit with that bank overseas. Based on this provision and others, the seizure warrants were executed. These funds were transferred to a seized asset account maintained by the United States Marshals Service pending resolution of the forfeiture action.
Based on information developed in the course of the FBI’s investigation into Li Fangwei that forms the basis of the superseding indictment, OFAC today is adding eight additional front companies used by Li Fangwei to its List of Specially Designated Nationals and Blocked Persons.
Finally, the United States Department of Commerce announced today the addition of nine China-based suppliers of Li Fangwei to its Entity List.
The Superseding Indictment charges Li Fangwei with seven separate offenses:· Count One: Conspiracy to violate the International Emergency Economic Powers Act;
· Counts Two and Three: Substantive violations of the International Emergency Economic Powers Act;
· Count Four: Money laundering conspiracy;
· Count Five: Conspiracy to commit wire fraud and bank fraud; and
· Counts Six and Seven: Wire fraud.
If convicted, Li Fangwei faces a maximum sentence of 20 years in prison on each of Counts One through Four and Counts Six and Seven, and 30 years in prison on Count Five. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Additional efforts directed at Li Fangwei and his network were announced today by the U.S. Department of State’s Transnational Organized Crime Rewards Program, Department of Treasury and the Department of Commerce.
The charges contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.Worley Man Pleads Guilty to Assaulting Man with A Dangerous WeaponRead the Press Release
COEUR D’ALENE – Andrew Hunter Peone, 25, of Worley, Idaho, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Peone was indicted on January 22, 2014.
According to the plea agreement, Peone admitted that on August 22, 2013, he assaulted a man with a knife. Peone cut the man several times, resulting in lacerations to the victim’s arm and hands.
Sentencing is set is set for July 21, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and Coeur d’Alene Tribal Police.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce violence in Idaho.
West Haven Man Sentenced to 46 Months in Federal Prison for Possessing Stolen FirearmsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWIN CHARON, 30, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for possessing stolen firearms. CHARON also was ordered to pay a $7,500 fine.
According to court documents and statements made in court, on November 8, 2012, Elliot Perez stole three boxes containing a total of 111 firearms from the Smith & Wesson manufacturing plant in Springfield. Perez and his cohort, Michael Murphy, were arrested later that month on charges stemming from the theft, but not before they had sold the majority of the firearms into the illicit gun market in and around Bridgeport.
On April 2, 2013, the Bridgeport Police Department arrested an individual who possessed one of the stolen Smith & Wesson handguns. The investigation revealed that the individual had purchased the gun from CHARON in a storage locker in West Haven to which CHARON had access. A subsequent search of the storage locker revealed four handguns, including another of the stolen Smith & Wesson handguns, and a stolen Ruger 9mm pistol loaded with a high capacity magazine and containing 17 rounds of ammunition.
CHARON was previously convicted of felony offenses, and it is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CHARON has been detained since his arrest on April 24, 2013. On January 15, 2014, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
Perez and Murphy have pleaded guilty and await sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bridgeport Police Department and the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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[email protected]Virginia Beach Man Sentenced to 36 Years for Armed Bank RobberiesRead the Press Release
RICHMOND, Va. – Carlos McClammy, 21, of Virginia Beach, Va., was sentenced today to 432months in prison for his role in the robbery of six financial institutions in Virginia. Previously, McClammy’s co-conspirators, Taleak Harris and Jaquan Douglas, pled guilty to participating in a total of 11 armed robberies in the Eastern District of Virginia. On October 2, 2013, Harris was sentenced to 108 months’ imprisonment. On December 17, 2013, Douglas was sentenced to 432 months’ imprisonment.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Bruce Jones, Northampton County Commonwealth Attorney; William W. Davenport, Chesterfield County Commonwealth Attorney; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Colin Stolle, City of Virginia Beach Commonwealth Attorney, made the announcement after sentencing by United States District Judge Henry E. Hudson.
McClammypled guilty on January 28, 2014, admitting to his participation in the March 13, 2012 robbery of the SunTrust Bank, located in Nassawadox, Virginia; the March 27, 2012 robbery of the Bank of Southside Virginia, located in Jarratt, Virginia; the April 3, 2012 robbery of the Central Virginia Bank, located in Midlothian, Virginia; the April 19, 2012 robbery of the BB&T Bank, located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia, located in Stony Creek, Virginia; and the July 10, 2012 robbery of the Chartway Federal Credit Union, located in Virginia Beach, Virginia. During the July 20, 2012 robbery, McClammy discharged his firearm inside the credit union in an effort to intimidate the bank teller.
This case was investigated by the Federal Bureau of Investigation, the Northampton Sheriff’s Office, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department. Assistant United States Attorneys Erik S. Siebert and Peter Duffey prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Virginia Beach Man Charged with Distribution of HeroinRead the Press Release
NORFOLK, Va. – Stephen Ron Martin II, 20, of Virginia Beach, Va., was charged with distribution of heroin resulting in death in a criminal complaint that was filed on April 21, 2014 and unsealed today.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Acting Special Agent in Charge Katrina Berger, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement.Martin faces a mandatory minimum of 20 years in prison and maximum penalty of life in prison if convicted.
According to the criminal complaint, on October 27, 2013, Martin distributed heroin to Steven Bradley Nichols. On October 29, 2013, Virginia Beach Police found an unresponsive Nichols while they were conducting a well-being check that had been called into 9-1-1. Police also found evidence of recent heroin use in plain view inside Nichols’ apartment. A depressed syringe was found on top of a desk within an arm’s length of Nichols’ body. A needle mark was on Nichols’ arm. Two plastic bags, one of which was open, containing off-white powder were found on the kitchen counter. The bags were later tested and found to contain heroin. An autopsy confirmed that Nichols had ingested heroin and subsequently died as a result of acute heroin intoxication.
This case was investigated by HSI Norfolk and the Virginia Beach Police Department. Assistant United States Attorney Darryl Mitchell is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.United States Attorney Edward L. Stanton III Names Brian K. Coleman as Civil Rights Unit ChiefRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, has named Assistant U.S. Attorney Brian K. Coleman to lead the district’s Civil Rights Unit.
U.S. Attorney Stanton created the dedicated Civil Rights Unit in February 2011, in order to enhance the ability of the U.S. Attorney’s Office to enforce federal civil rights laws in the Western District of Tennessee. The Civil Rights Unit prosecutes the full spectrum of federal civil rights crimes, including official misconduct, law enforcement corruption, human trafficking, and hate crimes. In addition, fair housing, fair lending, Americans with Disability Act, and Uniform Services Employment and Re-employment Rights Act cases continue to remain a priority of the district. The Civil Rights Unit has received national acclaim for its dedicated efforts, including prominent recognition from U.S. Attorney General Eric Holder and the Department of Justice for its distinguished work in combatting human and sex trafficking.
Mr. Coleman has served as an Assistant U.S. Attorney in the Western District of Tennessee since 2008, specializing in public corruption and civil rights cases, including cases involving interstate stalking and criminal activities by members of law enforcement. As Unit Chief, Mr. Coleman will lead the implementation of the Unit’s strategic priorities and manage relationships with key federal, state, and local law enforcement partners and community stakeholders.
“As a state and federal prosecutor for over 11 years, Brian Coleman brings absolute professionalism and a tenacious desire for justice to every case he handles,” said United States Attorney Edward L. Stanton III. “I am confident that under his capable leadership, this District’s Civil Rights Unit will continue to work diligently to ensure that all Americans enjoy the rights and freedoms the Constitution guarantees them.”
Former Unit Chief Larry Laurenzi has been appointed to serve as First Assistant United States Attorney in the Western District of Tennessee.United States Attorney Announces Settlement with Bank Accused of Consumer FraudRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that United States District Judge Terrence W. Boyle signed a consent order resolving a civil lawsuit between the United States and Four Oaks Bank and Trust of North Carolina. The civil complaint alleged that the bank facilitated an illegal scheme to take money from consumers’ bank accounts.
"The integrity of our banking system is crucial to the protection of both consumers and businesses, and we will do whatever is necessary to ensure that banks, payday lenders and others using the banking system follow the rules," said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker.
Advocates at the National Consumer Law Center (NCLC) stated, “The Four Oaks case is a perfect example of what the Justice Department should be doing: cracking down on banks that turn a blind eye to illegal and fraudulent conduct and facilitate illegal payday lending, Ponzi schemes, money laundering for illegal gambling operations, and consumer fraud,” said Lauren Saunders, NCLC’s associate director.
The Complaint alleged that, from at least July 2009 through 2013, Four Oaks Bank knew of, or was deliberately ignorant to, the use of its accounts and access to the national banking system to further a scheme to defraud consumers. Four Oaks Bank, like all other banks, is obligated pursuant to federal statutes and regulations to have effective procedures to prevent the bank from providing to companies engaged in unlawful activity access to the national banking system. According to the Complaint, Four Oaks Bank failed to comply with these and other obligations and, as a consequence, facilitated a wire fraud scheme in which millions of unauthorized debit transactions were charged against consumers' bank accounts.
According to the department's Complaint, Four Oaks Bank worked with a Texas-based third-party payment processor, which is a "middle man" between a bank and a merchant in a financial transaction. Payment processors provide to a wide variety of merchants access to the national payment system. At a merchant's direction, a payment processor will originate a debit transaction against an individual consumer's bank account, receive the consumer's money into its own bank account and transmit the money to its merchant's client. In this case, Four Oaks Bank provided payment system access to a Texas-based third-party payment processor, which in turn provided that access to fraudulent merchants.
According to the Complaint, Four Oaks Bank permitted the Texas-based third-party payment processor to originate more than 9.8 million debit transactions, for a total of more than $2.4 billion, against consumers' bank accounts. The Justice Department alleged that Four Oaks Bank ignored guidance by federal bank regulators concerning the risks associated with providing payment system access to a third-party payment processor that serviced fraudulent merchants. Allegedly, these third-party payment processor's merchants included large numbers of Internet payday lenders that engaged in fraud against borrowers.
To resolve the civil action, Four Oaks Bank and the Department of Justice entered into a Consent Order, in which Four Oaks Bank will be required to pay $1 million to the U.S. Treasury as a civil monetary penalty and to forfeit $200,000 to the U.S. Postal Inspection Service's Consumer Fraud Fund. Four Oaks Bank also will be required to comply with a series of measures to prevent it from ever again permitting fraudulent merchants access to the national payment system. Specifically, Four Oaks Bank will be permanently prohibited from providing banking services to any third-party payment processor that serves high risk merchants absent a strict regime of prior and ongoing investigation and monitoring designed to prevent future consumer fraud. Four Oaks Bank also will be required to cooperate fully in other civil and criminal investigations.
This case was prosecuted jointly by the Department of Justice Consumer Protection Branch and the United States Attorney for the Eastern District of North Carolina. The investigation is part of the Consumer Protection Branch's initiative to identify and prosecute banks and payment processors that facilitate financial fraud in the national payment systems, an effort in which the U.S. Postal Inspection Service provides substantial investigative support.
Two Members of International Narcotics Trafficking Conspiracy Plead Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TCHAMY YALA and PAPIS DJEME, citizens of Guinea Bissau, pled guilty yesterday and today, respectively, in Manhattan federal court to narcotics importation conspiracy charges. YALA and DJEME were arrested on April 2, 2013, by the Drug Enforcement Administration’s (DEA) Special Operations Division, Bilateral Investigative Unit Narco-Terrorism Group and the DEA Foreign-deployed Advisory Support Team (FAST) off the coast of West Africa while on board a vessel under DEA control in international waters. They were transferred thereafter to the custody of the United States. YALA and DJEME pled guilty before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara said: “International drug traffickers pose a serious threat to the United States and its citizens. As this case makes clear, we are committed to halting the flood of narcotics from overseas into our nation, and to working with all of our law enforcement partners, both here and abroad, in bringing the exporters of this poison to justice.”
According to the Indictment previously unsealed in this case:
Beginning in the summer of 2012, YALA, DJEME, and a co-defendant engaged in a series of recorded meetings in Guinea-Bissau with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of South American-based narcotics traffickers.
In an early meeting in which the defendants discussed the shipment of ton-quantities of cocaine from South America to Guinea Bissau by sea, a co-conspirator noted that the Guinea Bissau government was weak in light of the recent coup d’etat and that it was therefore a good time for the proposed cocaine transaction. In further meetings, YALA and DJEME agreed to assist the CSs by receiving a two-ton load of cocaine that would be transported to Guinea-Bissau by boat and stored in Guinea Bissau for distribution to Europe and the United States. For example, on November 17, 2012, YALA, DJEME and a co-conspirator met with two of the CSs in Guinea Bissau and discussed importing 1,000 kilograms of cocaine into the United States. Also during the meeting, a co-conspirator offered to utilize a company that he owned to facilitate the shipment of cocaine out of Guinea Bissau. YALA and a co-defendant agreed to receive a fee of $1,000,000 per 1,000 kilograms of cocaine received in Guinea Bissau.
YALA, 42, and DJEME, 30, each pled guilty to one count of conspiring to distribute cocaine, knowing and intending that the cocaine would be imported into the United States. Each defendant faces a maximum sentence of life in prison. YALA is scheduled to be sentenced by Judge Berman on September 4, 2014. DJEME is scheduled to be sentenced by Judge Berman on September 23, 2014. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges against YALA and DJEME were the result of the extraordinary investigative efforts of DEA’s Special Operations Division. Mr. Bharara also praised the seamless, coordinated work of FAST, the DEA Lisbon Country Office, and the DEA Bogota Country Office, as well as the U.S. Department of Justice Office of International Affairs, and the U.S. State Department.
This case is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorney Aimee Hector is in charge of the prosecution.
U.S. v. Jose Americo Bubo Na Tchuto et al. Indictment
Two Elizabeth, N.J., Women Each Sentenced to Prison for Operating Counterfeit Check SchemeRead the Press Release
NEWARK, N.J. – Two Elizabeth, N.J., women were each sentenced today to prison for conspiring to commit bank fraud by depositing more than half a million dollars in counterfeit checks into different TD Bank accounts, U.S. Attorney Paul J. Fishman announced.
Latisha White, 29, was sentenced to 26 months in prison and Synethia Bland, 30, was sentenced to 24 months in prison. Both women previously pleaded guilty before U.S. District Judge William J. Martini to one count of bank fraud conspiracy in the superseding indictment against them. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2009 to May 2012, White created counterfeit checks on her computer using commercially available check-writing software. White and Bland deposited the counterfeit checks into multiple accounts at TD Bank. Bland recruited others to use their own accounts or open new accounts to deposit the counterfeit checks.
White and Bland employed a variety of methods to withdraw the fraudulent funds, including making ATM cash withdrawals, submitting cash withdrawal slips and making debit card purchases on merchandise and postal money orders.
White and Bland each admitted they arranged the deposit of more than 150 counterfeit checks into more than 120 different bank accounts. They also each admitted that they deposited counterfeit checks that totaled more than $500,000.
In addition to the prison term, Judge Martini sentenced White and Bland to each serve three years of supervised release and to forfeit $225,000 each. Restitution is still being determined.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; postal inspectors, under the direction of Inspector in Charge Maria L. Kelokates; and investigators at the Union County Prosecutor's Office, under the direction of Acting Prosecutor Grace H. Park, and the Morris County Prosecutor's Office, under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the U.S. Attorney’s Office Criminal Division in Newark.14-146
Defense counsel:
Bland: Rubin Sinins Esq., Springfield, N.J.
White: Ruth Liebesman Esq., Paramus, N.J.Two Convicted Felons Sentenced to Federal Prison for Possession of Methamphetamine and FirearmsRead the Press Release
U.S. Attorney’s Office and DEA announce more than 3 tons collected, breaking previous record by more than half a ton
CHARLESTON, W.Va. – Two men who possessed methamphetamine and firearms were sentenced today to federal prison after pleading guilty in January to federal drug trafficking charges, announced U.S. Attorney Booth Goodwin. Richard Milton Hudson Riggal, 44, of Zephyrhills, Florida was convicted of conspiracy to distribute methamphetamine and sentenced to fifteen years and 8 months on the conspiracy charge and an additional two years for violating his federal supervision. Howard Leon Lykins, II, 49, of Charleston, West Virginia was convicted of maintaining a residence for drug purposes and sentenced to nine years.
In July of 2013, detectives from the Metropolitan Drug Enforcement Network Team (MDENT) executed a search warrant at Lykins’ Stone Acres Drive residence in Charleston. Riggall was at the house when officers arrived. Police searched Riggall’s luggage and discovered methamphetamine, digital scales, two pistols (one of which was stolen), and $41,490 in cash. Police seized additional methamphetamine, firearms, and money from elsewhere in Lykins’ residence.
Police executed a second search warrant at another Kanawha County residence where they seized more than 900 grams of high-purity “Ice” methamphetamine which Riggall transported from Florida to West Virginia for distribution. Both Riggall and Lykins admitted distributing approximately seven pounds of methamphetamine in the months leading up to July 2013.
Riggall had been previously convicted of several felonies including burglary, grand theft, operation of a chop shop, and distribution of marijuana. In July of 2013, when he was arrested on the drug conspiracy charge, Riggall was still on federal supervision for a 2006 conviction for being a felon in possession of a firearm. Lykins had been previously convicted in 2007 in the Circuit Court of Kanawha County for possession with intent to distribute marijuana.
MDENT and the Drug Enforcement Administration (DEA) Task Force conducted the investigation. Assistant U.S. Attorney Joshua Hanks is in charge of the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Tinmouth Man Imprisoned 37 Months for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday Alan H. Willis, II, of Tinmouth, was sentenced by Chief United States District Judge Christina Reiss to 37 months imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Willis serve two years on supervised release after his incarceration ends. Willis has been detained since his arraignment.
According to court documents, Willis trafficked between 700 and 1000 grams of heroin in the Rutland area from summer 2012 to February 2013. In late January 2013, the Vermont Drug Task Force (VDTF) used a confidential informant to make two controlled purchases of heroin from Willis, the first at his home and the second in the parking lot of Rutland's Diamond Run Mall. On February 4, 2013, the VDTF and several other agencies executed a search warrant at Willis's residence, seizing 1500 bags of heroin and $4800 in cash.
Originally charged in Rutland Superior Court by the Vermont Attorney General=s Office, Willis was first indicted by a federal grand jury on April 24, 2013, leading to dismissal of the state charges. On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned a superseding indictment expanding the temporal scope of the conspiracy and charging Joshua Rose, 21, Devon Cruz, 29, Charles Hercules, 23, all of New York, Evan Murphy, 23, and Jean Marie Phillips, 47, both of Rutland, along with Willis, as conspirators. On January 24, 2014, Phillips entered a guilty plea to a charge of aiding and abetting Rose's possession with intent to distribute heroin. She is scheduled for sentencing on May 9, 2014. Today, Murphy entered a guilty plea to the conspiracy charge in the superseding indictment. Murphy is scheduled for sentencing on August 26, 2014. Rose, Cruz, and Hercules are awaiting trial.
United States Attorney Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General's Office for its cooperation. Rutland attorney Elizabeth Mann represented Willis. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Timothy Warren Mann Sentenced to Serve Six Months in Prison for Stealing Military Body ArmorRead the Press Release
KNOXVILLE, Tenn.- On Apr. 29, 2014, Timothy Warren Mann, 50, of Morristown, Tenn., was sentenced to serve six months in federal prison, by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Upon his release from prison, Mann will be required to serve two years of supervised release, the first six months of which will be served under a condition of home detention.
Mann pleaded guilty in September 2013 to a federal indictment charging him with stealing body armor manufactured for the U.S. government. The body armor, consisting of approximately 500 protective vests, was manufactured by BAE Specialty Defense Group, Inc., (“BAE”) for the U.S. Department of Defense (DOD). The vests, which had not been delivered to DOD, were slated for destruction pursuant to the terms of the government contracts under which they were manufactured, in order to prevent the body armor from being used by civilians for improper purposes, including criminal activity. Over a period of several months in 2012, Mann stole the vests from BAE’s facility in Morristown, Tenn., and sold them to persons who were re-selling them, typically at gun shows, to members of the public.
A six-month long undercover investigation conducted by the Defense Criminal Investigative Service and the Army Criminal Investigative Command identified Mann as the source of the stolen vests. Assistant U.S. Attorney Matthew Morris represented the United States.
Three Men Plead Guilty to Heroin Trafficking that led to OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three men have pleaded guilty to their roles in a heroin-trafficking conspiracy in Columbia, Mo.
Toney Antwane Jones, also known as “Tuffy,” 34, of Columbia, pleaded guilty today before U.S. Magistrate Judge Matt J. Whitworth. His brother, Gregory Lamont Townsend, also known as “LG,” 31, of Columbia, pleaded guilty to his role in the conspiracy on Thursday, April 24, 2014. Terrell Deandre Williams, 36, of St. Louis, Mo., pleaded guilty to his role in the conspiracy on Monday, April 28, 2014.
According to court documents, Williams provided heroin to Townsend and Jones to distribute in Columbia.
Columbia police officers were called to a local motel on May 8, 2012, in response to an apparent heroin overdose. A woman reportedly was not breathing and had no pulse. Someone in a neighboring room initiated CPR, and when emergency medical technicians arrived, the woman had a faint pulse. Later that day, the woman told officers that she and her fiancé had purchased heroin from Townsend. They met Jones, who had been sent by Townsend to complete the $30 heroin transaction, at another motel. Then they returned to their motel room, where the woman ingested half the heroin and overdosed.
Officers conducted surveillance at the motel where Jones was staying. Two individuals were stopped after leaving the motel, and both stated they had gone to the motel to purchase heroin from Townsend. The next day, May 9, 2012, officers executed a search warrant at the hotel. They found Jones in the hotel bathroom, standing in front of the sink where nine grams of heroin was recovered.
The following day, on May 10, 2012, officers arrested Townsend. Townsend attempted to flee from officers but was apprehended after a brief foot chase.
Further investigation led officers to suspect that Williams was the source of Townsend’s heroin. Investigators contacted a cooperating source, who agreed to arrange a heroin transaction with Williams. Between May 10 and May 12, 2012, the cooperating source placed a series of telephone calls to Williams to arrange a heroin transaction. During the calls, Williams agreed to sell two ounces of heroin to the cooperating source’s girlfriend for $4,800. She went to St. Louis on May 12, 2012, accompanied by officers, to meet with Williams and complete the transaction. She was provided with $4,800 and equipped with a recorder. When she arrived at the location, Williams walked out of the building and met her at her vehicle. He handed her a bag that contained 46.7 grams of heroin and she paid him $4,800.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Columbia, Mo., Police Department.Third Woman in Carbon County Cocaine Conspiracy Sentenced to PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a third woman from Carbon County was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 21 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Ceres Lozada, age 27, of Nesquehoning, Carbon County, previously admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2010 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Lozada be supervised by a probation officer for three years following her prison sentence.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, was sentenced to 60 months in prison by Senior Judge Kosik, while Victoria Argott, age 34, of Lansford, Carbon County, was sentenced to 40 months in prison. Vosburgh and Argott entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The case resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****Tampa Man Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Robert L. Wimbush to 3 years and 9 months in federal prison for access device fraud and aggravated identity theft. The court also ordered Wimbush to forfeit $9,530 which is traceable to proceeds of the offense. Wimbush pleaded guilty on January 21, 2014.
According to court documents and evidence introduced at sentencing, Wimbush used prepaid debit cards issued in the names of other individuals to make cash withdrawals from ATMs in the Tampa area. The withdrawn funds were largely the result of refunds from fraudulently-filed federal income tax returns that had been deposited onto the cards. For example, on October 31, 2012, Wimbush drove to an ATM at a credit union in Tampa, used a prepaid debit card issued in the name of another individual (“W.G.”), and withdrew $490 from the ATM. W.G. was a victim of identity theft and was not aware that a debit card had been obtained in her name. She had not authorized Wimbush or anyone else to obtain a debit card in her name. Between June 30, 2012 and December 10, 2012, more than $6,300 was withdrawn from the account associated with that card.
Wimbush received the fraudulent debit cards from Brian E. Simmons and Wimbush’s aunt, Tressa V. Guy. Simmons and Guy were charged in a related case. On February 27, 2014, U.S. District Judge Virginia Hernandez Covington sentenced the pair for their involvement in a stolen identity refund fraud scheme. Simmons was sentenced to 16 years in federal prison. Guy was sentenced to 10 years and one month in federal prison. Wimbush’s sister, Ashley Guy, previously pleaded guilty in a separate stolen identity refund fraud case. She was sentenced last week to 7 years in federal prison.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Tallahassee Man Sentenced as Armed Career CriminalRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today that Michael Townsend Anthony, 40, of Tallahassee, has beensentenced to 188 months in federal prison today for possession of a firearm by a convicted felon. Because Anthony had previously been convicted of three or more crimes of violence committed on separate occasions, he faced a minimum fifteen year term of imprisonment.
Anthony was stopped by officers of the Tallahassee Police Department on August 13, 2013, because his vehicle’s windows were illegally tinted. A police canine alerted to the odors of controlled substances in the car, leading to the discovery of crack cocaine, oxycodone, and drug packaging. The car also held a loaded 9 millimeter pistol and two loaded 12-gauge shotguns. Mr. Arnold’s passenger, Issac Williams, 39, was recently sentenced to state prison for a probation violation arising from the same incident.
Anthony pled guilty after his motion to suppress was denied.
In imposing sentence, United States District Judge Robert L. Hinkle determined that Anthony possessed the firearms in connection with drug distribution offenses. Judge Hinkle also imposed a five-year term of supervision to be served upon release from custody and a $100 special monetary assessment.
At sentencing, the government noted that Anthony had eighteen prior felony convictions and that he had only been out of custody for limited periods since 1991. Anthony was last released from the Florida Department of Corrections in June 2012, thirteen months before the new arrest.
U.S. Attorney Marsh praised the joint efforts of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Michael T. Simpson prosecuted this case.
Stafford Tax Preparer Pleads Guilty to $600,000 Tax FraudRead the Press Release
RICHMOND, Va. – Daniel L. Jones, 56, of Stafford, pled guilty to two counts of aiding in the preparation of fraudulent tax returns for his clients and one count of making a false statement to the Internal Revenue Service that he was a certified public accountant.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after the guilty plea in front of Magistrate Judge David J. Novak. Jones will face a maximum exposure of 11 years in prison, 3 years of supervised release, $750,000 in fines, and full restitution when he is sentenced on August 21, 2014, before United States District Judge Robert E. Payne.
According to the court documents, Jones ran a tax preparation service for many years in the Fredericksburg area called the Tax Doctor Plus. To increase refunds for his clients, he regularly prepared and electronically filed tax returns that contained false entries and items. These included: (a) improper filings statuses for married couples to place both taxpayers into lower tax brackets and create earned income credit opportunities for both; (b) false Schedules C, Business Income or Loss, with enough false deductions so that the client would qualify for the earned income tax credit; (c) false Schedule A expenses and education credits when there was no basis to claim such deductions or credits; and (d) false income with false W-2’s to qualify the taxpayer for the maximum amount of government credits, such as the earned income credit, various education credits, and the making work pay credit.In addition, to represent his clients before the Internal Revenue Service, Jones submitted to the IRS false Forms 2848 (Power of Attorney and Declaration of Representative) on which he falsely claimed he was a certified public accountant. He has agreed that the total tax loss for the various false returns from 2009 to 2012 is approximately $600,000.
This case was the product of an investigation by the Internal Revenue Service, the Treasury Inspector General for Tax Administration (TIGTA) and the U.S. Attorney’s Office. Assistant United States Attorney David T. Maguire is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
St. Louis Man Pleads Guilty to Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – BRANDON HARPER, St. Louis, Missouri, pled guilty to one count of credit card fraud in federal court this morning. With his plea, Harper admitted to charging $11,400 to the credit card account of another person without that person’s knowledge or consent. Harper purchased prepaid debit cards for himself at the Maplewood Sam’s Club store on March 4, 2013.
Harper pled guilty to one felony count of credit card fraud before U.S. District Judge John A. Ross. Sentencing has been set for July 31, 2014.
He now faces a maximum sentence of fifteen years in prison, and/or a fine of up to $250,000. Restitution to the victims is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Louis County Man Indicted on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography. He appeared in federal court earlier today.
According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona. The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography.
If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.St. Louis County Man Indicted on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RYAN THAYER STEPHENS, Fenton, Missouri, was indicted for his alleged transportation and possession of child pornography. He appeared in federal court earlier today.
According to the indictment, between January and October 2013, Stephens transported a thumb drive containing child pornography from Missouri to Arizona. The indictment states that he possessed child pornography between January 2010 and October 2013, and that he has a prior military conviction for Possession of Child Pornography.
If convicted, transportation of child pornography carries a penalty range of 15 to 30 years in prison; each count of possession of child pornography carries a penalty range of 10 to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service, St Louis County Special Investigations Unit, Internet Crimes Against Children Task Force and Scottsdale, AZ police department. Assistant United States Attorney Erin Granger is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Sinaloa Cartel Supervisor Operating in Central Florida Sentenced to More Than 19 Years in Prison for Drug TraffickingRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Demis Ulises Mokay-Fong (31, Orlando) to 19 and one-half years in federal prison for drug trafficking charges and illegally re-entering the United States after deportation. Mokay-Fong pleaded guilty to the offenses on November 21, 2013.
On December 18, 2013, Carlos Armando Castro-Medina (40, Orlando) was sentenced to 13 years in prison for his role in the drug trafficking conspiracy. Another co-conspirator, Irvin Gutierrez (26, Orlando), was sentenced to 6 years’ imprisonment on February 25, 2014. Jesus Emmanuel Corrales (34, Las Vegas, Nevada), was also sentenced to 3 years in prison for his role in the conspiracy.
According to court documents, Mokay-Fong and his co-conspirators distributed twelve pounds of methamphetamine (“Ice”), over 11,000 pounds of marijuana using tractor trailers, and kilograms of cocaine. The drugs were obtained through Mokay-Fong, who acted as the Sinaloa Cartel’s contact for the supply of the narcotics that were transported from Mexico, through the Southwestern United States, into Central Florida. The investigation revealed conversations between the conspirators discussing the cartel’s use of hit men and kidnappings of family members to help collect drug debts incurred by others during the course of the conspiracy, as well as the cartel’s attempts to lure debtors to Mexico to face the cartel. In addition to their activity in Central Florida, Mokay-Fong and Gutierrez traveled to Philadelphia for the cartel, and stole a tractor trailer containing 8,000 pounds of marijuana that had been inadvertently delivered to the wrong truck depot.
This case was investigated by the Drug Enforcement Administration, the U.S. Border Patrol, and the Upper Allen Township (Pennsylvania) Police Department. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Saco Attorney Pleads Guilty to $177,500 Money Laundering ConspiracyRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gary
Prolman, Esq., 52, of Saco, pleaded guilty today in U.S. District Court in Portland to conspiracy
to launder $177,500 worth of marijuana trafficking proceeds.According to court records, between 2011 and October 2013, David Jones and others
illegally distributed hundreds of pounds of marijuana in Maine and elsewhere. Between June and
September 2012, Prolman laundered about $177,500 worth of those drug proceeds by: (1) taking
cash from Jones to purchase an interest in Prolman’s sports agency business; (2) illegally
structuring cash deposits and cashier’s check purchases to avoid federal currency reporting
requirements; and (3) using structured cashier’s checks to jointly purchase real estate with Jones
in a transaction where only Prolman’s name appeared on the deed as the owner.Prolman received three separate $50,000 cash installment payments, largely consisting of
low denomination bills delivered in a backpack. When Prolman attempted to deposit more than
$10,000 from the first $50,000 installment into bank accounts he controlled, a bank teller advised
him of the federal currency reporting requirement for deposits exceeding $10,000. Under federal
law, financial institutions that receive more than $10,000 in cash from a customer are required to
report the transaction to the Internal Revenue Service (IRS). Structuring occurs when a customer
breaks up cash transactions into multiple increments of less than $10,000 to avoid this cash
transaction reporting requirement. Structuring is illegal under federal law and is commonly
associated with the laundering of drug proceeds. After being advised of the reporting
requirement by the bank teller, Prolman structured numerous cash deposits and paid $60,409 to
close the joint real estate purchase using seven structured cashier’s checks.
Prolman faces up to 20 years in prison, a $500,000 fine, or both. He will be sentenced
after the completion of a presentence investigation report by the U.S. Probation Office.This case was investigated by the U.S. Drug Enforcement Administration, and the IRS,
and resulted from the ongoing effort of the Organized Crime Drug Enforcement Task Forces
(OCDETF), a partnership between federal, state and local law enforcement agencies. The
principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious
drug trafficking, weapons trafficking and money laundering organizations, and those primarily
responsible for the nation’s illegal drug supply.Resident of Florida and Ohio Sentenced to 37 Months in Prison for Defrauding Charter Flight Company, Others, of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. - A resident of Florida and Ohio was sentenced to 37months in prison today for his role in defrauding a charter flight company and other merchants of hundreds of thousands of dollars in luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 46, of Miami, Fla., and Akron, Ohio, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with conspiracy to commit wire fraud. Judge Martini imposed the sentence – which will run consecutively to a one-year sentence previously imposed by U.S. District Judge Dickinson R. Debevoise for a violation of supervised release – today in Newark federal court.According to documents filed in this case and statements made in court:
From May through June of 2013, Dixon and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation – an international business aviation services company with U.S. headquarters in Teterboro, N.J. – as well as tens of thousands of dollars in other luxury goods and services. Dixon and others used sham lines of credit issued to a well-known financial institution, of which they claimed to be employees.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation's offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. He identified himself as a senior vice president at the financial institution and provided a supposedly affiliated email address, to which a Jet Aviation employee sent a draft charter services agreement. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Dixon as a vice president. The aviation company established an account and a line of credit for $350,000, which Dixon and others used to take private charter flights.
As a result of their misrepresentations to Jet Aviation, Dixon and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790, for which Jet Aviation never received payment.
Dixon and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, sterling silver and leather business cardholders, and approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of their scheme, Dixon and others fraudulently obtained more than $220,000 in luxury goods and services.In addition to the prison term, Judge Martini sentenced Dixon to three years of supervised release and ordered him to pay restitution of $220,957.
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.
The government is represented by Assistant U.S. Attorney Andrew Pak of the U.S. Attorney's Office Economic Crimes Unit in Newark.
This case was coordinated with 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 is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the Task Force, visit www.StopFraud.gov.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.
14-147Plummer Man Sentenced to Aggravated AssaultRead the Press Release
COEUR D’ALENE – Joseph L. James, 30, of Plummer, Idaho, was sentenced today in United States District Court to 30 months in prison, followed by three years supervised release for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. James was also ordered to pay $6,577.49 in restitution to the victim. James appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to the plea agreement, James admitted that on August 12, 2013, he assaulted a woman by grabbing her by the hair, shoving her to the ground, and breaking her nose.
The case was investigated by the Federal Bureau of Investigation and Coeur d’Alene Tribal Police.
Pittsburgh Man Admits Running $2M Magazine Subscription ScamRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Samuel Cole, 44, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that in February, 2007, Cole and his co-defendant, Lahron Buchanan, who previously pled guilty, formed New Image Consultants, Inc. They used Pittsburgh as their home base and traveled to several cities with other salespersons to sell door to door. Over the next four years they owned and operated the following corporations: New Image Consultants, Inc.; Fresh Start Opportunities; A Fresh Start by Larhon Buchanan; A Fresh Start by Samuel Cole; and Destiny Sales, Inc. None of these businesses provided or paid for a magazine subscription for any of the persons who paid for them.
Salespersons often wore fraudulent credentials purporting to show their company was a member of the National Field Selling Association (NFSA), and when in fact none of the companies were members. As described in the indictment, the NFSA was a trade association of the door to door sales and the direct sales industry. Each member company agrees to comply with the NFSA Code of Ethics to promptly handle consumer complaints, to not make false, deceptive or misleading statements to prospective purchasers, and to not misrepresent the time period for product delivery.
The sales pitches used were designed to create sympathy for the salesperson, who represented himself/herself to be impoverished, a student, a single parent, or a criminal who was starting over in life. The sales pitches were also designed to take advantage of any charitable inclination of victims by representing that delivery of the magazines could be directed to the local Children’s Hospital, or to the war fighters in the war zone.
Only checks were accepted as payment and the checks were collected by salespersons on the spot. During the course of the scheme, magazine delivery was promised from as little as 90 days and up to as many as 160 days. The victims were given a “receipt” at the time of the sale with instructions on how to seek a refund. Attempts by victims to get refunds were uniformly unsuccessful, and in fact, magazines were never delivered to any victim.
The extensive investigation involved reviewing checks from more than 30 checking accounts used during the scheme. Approximately 30,000 victims from virtually all over the country were identified through these checking accounts. The documented losses to victims is approximately $1,933,586.
Judge Cohill scheduled sentencing for Aug. 5, 2014. The law provides for a maximum sentence of 20 years of incarceration and a $250,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Samuel Cole.
Oregon Man Sentenced to Years for Sexual AbuseRead the Press Release
COEUR D'ALENE - Michael Anthony Wheeler, 21, of Troutdale, Oregon, was sentenced yesterday to 144 months in prison followed by seven years of supervised release for sexual abuse of a minor, U.S. Attorney Wendy J. Olson announced. United Stated District Judge Edward J. Lodge also ordered Wheeler to undergo treatment for sexual deviancy, and register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
In his guilty plea, Wheeler admitted that while he lived in Lapwai, Idaho, he engaged in sexual acts with someone who could not consent because she was incapable of appraising the nature of the conduct. Wheeler is an enrolled member of the Nez Perce Tribe and the offense happened within the boundaries of the Nez Perce Indian reservation. Wheeler was arrested in Oregon and appeared in United States District Court in Coeur d’Alene on October 31, 2013. He pled guilty on January 30, 2014.
United States Attorney, Wendy J. Olson commended the work of Nez Perce Tribal Police, Lapwai School District, and the FBI in bringing Wheeler to justice. “My office takes seriously our responsibility to prosecute such crimes on the reservation. It is only with cooperative efforts of all those involved with children that we can keep our children safe,” said Olson.
Orange County Business Owner Using Multiple Identites and Shell Companies Charged with Tax Fraud and Bank FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of SHLOIME TORIM on various fraud charges. TORIM was arrested today, and was presented this afternoon in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith, who ordered him jailed pending the satisfaction of bail conditions.
U.S. Attorney Preet Bharara said: “As alleged, Shloime Torim evaded his responsibilities as a taxpayer to the IRS and ultimately to the American people. He will now face his responsibilities as a criminal defendant.”
Acting Special Agent-in-Charge Shantelle P. Kitchen stated: "In order to maintain the public's confidence in the tax system, it is important that the government thoroughly investigates and prosecutes those who willfully obstruct and impede the administration of the tax laws. IRS Criminal Investigation is committed to ensuring that everyone pays their fair share and our investigators are skilled in unraveling the complicated schemes that criminals use to conceal income."
According to the Indictment previously filed in White Plains federal court:
SHLOIME TORIM resided in Orange County, New York, and engaged in a variety of income-producing businesses, including car leasing, rentals and real estate. When conducting business, TORIM used multiple identities. At times he used his actual name, “Shloime Torim,” and the social security number assigned to him, and other times he used different social security numbers associated with his aliases, such as “Shloime Goldstein,” or “Max Gold.” TORIM controlled over 100 corporations and other business entities (the “Torim Entities”). Most of the Torim Entities were shell companies and served no purpose other than to conceal TORIM’s income.
From at least 2002 through April 2014, TORIM engaged in a course of conduct calculated to impede and impair the due administration of the Internal Revenue laws by obstructing the IRS in assessing and collecting United States income taxes. TORIM impeded the IRS by using shell companies and corresponding bank accounts to conceal his income, using family members as nominees to disguise his interests in various business accounts, commingling funds among nominee and business accounts, using multiple identities and social security numbers that he obtained under the names “Shloime Torim,” “Shloime Goldstein,” and “Max Gold,” and failing to file individual corporate income tax returns.
TORIM, 76, of Monroe, New York, is charged with one count of endeavoring to obstruct and impede the due administration of the Internal Revenue laws, which carries a maximum sentence of three years in prison, five counts of failing to file United States Individual Income tax returns for the tax years 2007 through 2011, each of which carries a maximum sentence of one year in prison, and two counts of making a false statement to a bank for the purpose of obtaining a loan, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of IRS-CI and United States Department of State Diplomatic Security Service. He also thanked the U.S. Department of Justice’s Tax Division for its significant assistance in the investigation
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr. is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mortgage Fraud Ringleader and Title Agent Convicted in Multi-Million Dollar Fraud SchemeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found James Fidel Sotolongo (48, Port Orange) guilty of one count of conspiracy and eleven counts of bank fraud. The jury found Stephanie Musselwhite (52, Daytona), a title agent in Orlando, guilty of one count of conspiracy, nine counts of bank fraud, and one count of making false statements to a federally insured financial institution. Realtor Ramara Garrett (35, Port Orange) was acquitted of conspiracy and making false statements to a federally insured financial institution. Sotolongo and Musselwhite each face a maximum penalty of five years in federal prison on the conspiracy count, and a maximum of 30 years’ imprisonment on each of the remaining counts. In addition, both face fines of $250,000 and a five-year term of supervision. The sentencing hearing is scheduled for July 28, 2014.
Sotolongo and Musselwhite were indicted on April 24, 2013.
According to testimony and exhibits presented at trial, Sotolongo and Musselwhite were part of a scheme that recruited straw buyers with high credit scores to apply for and obtain 11 mortgages (first and second mortgages were obtained) totaling approximately $10 million. The purpose of the scheme was to obtain the properties with no money down and no money at closings, rent the properties, and then sell the properties for a profit. To carry out the plan, Sotolongo enlisted the straw buyers and told them that they did not need to bring a deposit or cash to the closing, and that they only needed to be involved in the loan application process. The straw buyers testified that the loan applications submitted in their names contained false information, including the use of the property as a primary residence, their income, their assets, and their liabilities. For example, the monthly income was stated as being $35,000 to $48,000, when the straw buyers’ monthly income ranged from $3,000 to $10,000. Other false information included grossly inflated checking and savings account balances.
Mortgage broker Christopher Mencis (53, North Carolina) previously pleaded guilty for his involvement in this case. According to his plea agreement, he prepared the loan applications and submitted them through his brokerage company, Real Estate Mortgage Professionals (REMP). REMP has since gone out of business. Mencis also used a former bank branch manager at SunTrust bank, at the direction of Sotolongo, to falsely verify the incomes and assets for the straw buyers. The loan applications were sent off to several lenders, all of whom testified that they would not have funded the loans had they known that the information contained in the loan applications was false and grossly inflated.
After the loans were approved, the title agent prepared settlement statements listing closing costs and payments to a company called American Signature Homes, which was partly owned by Sotolongo. Musselwhite, who owned Orlando Title and Abstract of Florida, Inc., would wire lender money to American Signature Homes, and Sotolongo would use a portion of the lender money to finance the deposit and closing costs that Musselwhite would collect after the closings. The banks did not know that they were actually funding 100% of the loans on the multi-million dollar homes.
This case was investigated by Federal Bureau of Investigation, Florida Department of Financial Services, and the City of Daytona Beach Shores Department of Public Safety. It was prosecuted by Assistant United States Attorneys Tanya Davis Wilson and Shawn P. Napier.
Mission Man Receives 20 Years for Drug Trafficking for the Gulf CartelRead the Press Release
LAREDO, Texas - Israel Garza, 40, of Mission, has been ordered to federal prison for 240 months following his conviction for possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. Garza pleaded guilty Dec. 10, 2013, admitting he possessed with the intent to distribute 14 kilograms of cocaine.
Today, U.S. District Judge Marina Garcia-Marmolejo handed Garza the 20-year sentence which will be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Marmolejo noted Garza is a career drug offender and his actions resulted in a significant punishment. At sentencing, Garza addressed the court as well as a group of visiting school children, whom he told to live a clean and positive life and not make the mistakes he did or else they will spend their lives in prison.
On Sept. 18, 2013, Border Patrol (BP) agents arrested Garza at the checkpoint approximately one mile south of Hebbronville. At that time, a canine dog alerted to the presence of narcotics in an ice cooler located in the cab of the freightliner tractor-trailer he was driving. The cooler appeared to be bulging abnormally. Upon further inspection, agents discovered 12 vacuumed-sealed packages inside, containing approximately 14 kilograms of cocaine, valued at $976,000.
Garza admitted he was delivering drugs for the Gulf Cartel.
The case was investigated by the Drug Enforcement Administration and United States Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted this case.
Miramar Resident Convicted for Filing A False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of defendant Erica Jacovia Bryant, 33, of Miramar, after a two day jury trial on charges of filing a false claim, in violation of Title 18, United States Code, Section 287.
At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine. Sentencing has been scheduled for July 11, 2014 at 9:00 a.m. in front of U.S. District Judge James I. Cohn in Ft. Lauderdale.
According to the indictment and evidence introduced in court, Bryant filed a false 2011 tax return that fraudulently sought a $110,859.00 tax refund. Based upon this fraudulent return and the information contained therein, Bryant obtained a $100,653.22 tax refund from the Internal Revenue Service, which was later utilized to purchase a 2013 Lincoln MKZ. The 2013 Lincoln MKZ was subsequently seized by the IRS for forfeiture.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service-CI Division. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mercer County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BLUEFIELD, W.Va. – A 54-year old Mercer County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. David A. Punturi, of Bluefield, West Virginia entered a guilty plea before Senior United States District Court Judge David A. Faber.
Punturi admitted that on August 14, 2013, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computers. The court scheduled sentencing for September 2, 2014 in Bluefield.
The West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Members of Violent Trinitarios Gang Found Guilty in Manhattan Federal Court in Connection with Racketeering, Murder, Attempted Murder, and Narcotics OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CARLOS URENA and LIMET VASQUEZ were both found guilty after trial of racketeering, racketeering conspiracy, and a drug conspiracy involving marijuana, crack cocaine, powder cocaine, and oxycodone. As part of the racketeering conviction, the jury found, among other things, that URENA and VASQUEZ participated in a conspiracy to murder Ka’Shawn Phillips in Yonkers, New York, in 2005, and in a separate attempted murder in Manhattan, New York, in 2005. URENA was also convicted of murder in aid of racketeering and the use of a firearm in connection with the murder in aid of racketeering, both in connection with the murder of Ka’Shawn Phillips. URENA and VASQUEZ were convicted following a seven-week jury trial presided over by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “The defendants, Carlos Urena and Limet Vasquez, now stand convicted after trial for perpetuating the crusade of crime for the Bronx Trinitarios Gang, including conspiring to murder a sixteen year-old rival gang member. The Bronx streets are safer because of the jury’s verdict and the continued efforts of our law enforcement partners – the NYPD, ATF, and the DEA – who help us in building these cases.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
URENA and VASQUEZ were members of the Bronx Trinitarios Gang (“BTG”), a criminal organization that operated primarily in the Bronx, New York. The BTG started in the prison system in the late 1980s and subsequently spread to the streets. URENA, VASQUEZ, and others carried out illegal activities as part of a racketeering conspiracy, and to accomplish BTG’s goals of enhancing its power, protecting its turf from rival gangs including the Dominicans Don’t Play, the Bloods, the Crips, the Latin Kings, and other gangs, and enriching its members. Those activities included murder, attempted murders, conspiracies to commit murders, robbery, and narcotics trafficking.
On September 2, 2005, URENA and VASQUEZ participated in an attempted murder of a rival gang member in the Fort Washington area of Manhattan. The next evening, on September 3, 2005, URENA and VASQUEZ participated in a conspiracy to murder a 16-year-old named Ka’Shawn Phillips, who they had been told was a member of a rival gang. On that evening, a group of Trinitarios attacked Phillips on Saratoga Avenue in Yonkers, stabbing and shooting him to death. URENA was one of the men who shot and killed Phillips. In addition, as part of their membership in the BTG, URENA and VASQUEZ also participated in other acts of violence and a narcotics conspiracy involving marijuana, crack cocaine, powder cocaine, and oxycodone.
URENA faces a mandatory minimum sentence of life in prison. VASQUEZ faces a maximum sentence of life in prison, with a mandatory minimum sentence of five years in prison. A sentencing date has not yet been scheduled. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Joint Firearms Task Force, and the Drug Enforcement Administration.
This case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Ryan P. Poscablo, Timothy D. Sini, and Micah W. J. Smith conducted the trial.
U.S. v. Leonides Sierra et al S5 Indictment
Mayfield Rheumatologist Pleads Guilty to Importing Medications Not Approved by the FDARead the Press Release
A Mayfield Village rheumatologist pleaded guilty to importing medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dr. David Mandel, 65, admitted causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act.
“This doctor used drugs that had not been approved by the FDA,” Dettelbach said. “Our office is committed to working with our partners to make sure patients are getting medicine that has been properly inspected.”
“FDA’s regulatory standards are designed to ensure the safety and quality of the medical devices and drugs distributed to American consumers,” said Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations. “We will continue to work to investigate all persons, including medical professionals, who disregard regulatory requirements and jeopardize the public health by participating in the distribution of misbranded products.”
“Acquiring and prescribing prescription medications that have not met regulatory standards puts the safety and well-being of patients at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our law enforcement partners to ensure that medical professionals who choose to evade these standards are held accountable.”
Dr. Mandel obtained Boniva, Aclasta, Prolia, Euflexa and Orthovisc, from outside the United States, where the drugs are not approved by the FDA, according to the charges.
A drug may be considered misbranded even if it is identical in composition to an FDA-approved drug (that is, a drug labeled and packaged in compliance with the FDA’s standards) and even if it was made by the same manufacturer in the same facility as the FDA-approved version.
Dr. Mandel faces up to one year in prison and fines up to $100,000. His sentence will be determined by the court after reviewing factors unique to this case, including his prior criminal record, if any, his role in the offense and the 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.
These cases are being prosecuted by Assistant U.S. Attorney Michael L. Collyer following investigations by the FDA – Office of Criminal Investigations and the Department of Health and Human Services – Office of Inspector General.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov
A charge is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mansfield Man Indicted on Multiple ChargesRead the Press Release
Michael J. Kisling, 24, of Mansfield, Ohio, was charged with sexual exploitation of a child, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, and identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about November 1, 2010, through on or about November 22, 2010, Kisling used, persuaded, induced, enticed and coerced a minor, that is, a 14-year-old girl to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct, knowing that such visual depictions would be transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce, and such visual depictions were actually transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce.
The indictment also charges that on or about November 22, 2010, and again on or about April 4, 2013, Kisling knowingly distributed, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor, that is, a 14-year-old girl engaged in sexually explicit conduct.
The indictment also charges that on or about April 4, 2013, Kisling knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit a violation of federal law.
The indictment also charges that on or about December 23, 2013, Kisling knowingly possessed several printed pages that contained visual depictions of a real minor, that is, a 14-year-old girl engaged in sexually explicit conduct, which visual depictions had been shipped and transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce. The indictment also charges that on or about January 28, 2013, through on or about December 10, 2013, Kisling knowingly received in interstate and foreign commerce, numerous digital files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
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 Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Eau Claire County, Wisconsin Sheriff’s 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.
Local Labor Official Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was indicted for his alleged embezzlement of approximately $40,660 of union funds.
Davis, O’Fallon, IL, was indicted by a federal grand jury April 23, on one count of embezzlement of Labor Union funds. He appeared in federal court Monday afternoon, April 28.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Labor-Office of Inspector General and Office of Labor-Management Standards. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Li Fangwei Charged in Manhattan Federal Court with Using A Web of Front Companies to Evade U.S. SanctionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, and George C. Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that LI FANGWEI, who is more commonly known by his alias “Karl Lee,” is charged with violating the International Emergency Economic Powers Act (“IEEPA”) by using United States-based financial institutions to engage in millions of dollars of U.S. dollar transactions in violation of economic sanctions that prohibited such financial transactions. In addition, LI FANGWEI is also charged with conspiring to commit wire fraud and bank fraud, a money laundering conspiracy, two separate violations of IEEPA, and two separate substantive counts of wire fraud, in connection with such illicit transactions. LI FANGWEI, a national of the People’s Republic of China, is a fugitive.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Li Fangwei has used subterfuge and deceit to continue to evade U.S. sanctions that had been imposed because of his illicit trade in prohibited materials with Iran. Previously having been exposed as a violator of those sanctions, Li spun a web of front companies to carry out prohibited transactions essentially in disguise. He now stands charged with serious crimes, and millions of his dollars have been seized. It is the hope of this Office not only that Li’s banned commerce cease once and for all, but that he be apprehended and brought before the bar of American justice.”
Assistant Attorney General for National Security John P. Carlin said: “These charges are an important part of the all tools approach our government is taking against Li Fangwei to shut down and deny him the profit from his proliferation activities. This case is an outstanding example of multiple agencies working together to focus various enforcement efforts on the significant threat to our national security posed by such proliferation networks.”
FBI Assistant Director in Charge George C. Venizelos said: “Whether motivated by greed or otherwise, Li Fangwei allegedly ignored sanctions imposed by the United States Government and hid behind front companies he developed to engage in a series of illegal transactions, including attempts to acquire ‘dual use’ items on behalf of Iran-based entities. IEEPA makes it a crime to willfully violate U.S. sanctions on designated countries such as Iran. Individuals and companies who evade U.S. sanctions and misuse our banking system to further their illegal activity not only undermine the integrity of our financial markets but also threaten U.S. National Security interests. The FBI is committed to ensuring that strategically important goods and technology, particularly those that could be used in the production or delivery of weapons of mass destruction, do not end up in the wrong hands.”
According to the Superseding Indictment previously filed in Manhattan federal court and other court documents:
LI FANGWEI controls a large network of industrial companies based in eastern China, one of which is LIMMT Economic and Trade Company, Ltd. (“LIMMT”). Over the years, LI FANGWEI’s companies have done millions of dollars of business with Iran. This business has included selling to Iranian entities various metallurgical goods and related components that are banned for transfer to Iran by, among others, the United Nations, because the items are controlled by the Nuclear Supplier’s Group (a multinational group that maintains “control lists,” which identify nuclear-related dual-use equipment, material, and technology). LI FANGWEI has been, among other things, a long-time supplier to Iran’s Defense Industries Organization and Iran’s Aerospace Industries Organization. In addition, LI FANGWEI has been a principal contributor to Iran’s ballistic missile program through China-based entities that have been sanctioned by the United States.
In light of his supply of restricted items to Iran, the United States has imposed targeted sanctions on both LI FANGWEI and LIMMT. Specifically, the United States Department of the Treasury’s Office of Foreign Asset Controls (“OFAC”) publicly added LIMMT (in 2006) and LI FANGWEI (in 2009) to its List of Specially Designated Nationals and Blocked Persons (the “SDN List”). By virtue of their inclusion on the SDN List, LI FANGWEI and LIMMT were effectively precluded from conducting any business within the United States without first obtaining a license or authorization from OFAC. Neither LI FANGWEI nor LIMMT has sought such a license or authorization.
The above-referenced restrictions have forced LI FANGWEI to operate much of his business covertly. In response to United States sanctions, LI FANGWEI has built an outsized network of China-based front companies – to conceal his continuing participation, and LIMMT’s continuing participation, in sanctioned activities. The front companies are listed in Exhibit A to the Superseding Indictment. As shown in Exhibit A, many of those front companies have used the same address as LIMMT, or a close variant thereof.
During the period from 2006 through the present, LI FANGWEI has used front companies to engage in more than 165 separate U.S. dollar transactions, with a total value in excess of approximately $8.5 million. Included in those illicit transactions have been transactions involving sales to U.S. companies, sales of merchandise by LI FANGWEI to Iran-based companies utilizing the U.S. financial system, as well as attempts to acquire on behalf of Iran-based entities so-called “dual use” items from the United States, China, and other countries that could be used in the production of weapons of mass destruction and/or devices used to deliver weapons of mass destruction.
The U.S. Attorney’s Office and the FBI announced the seizure of over $6,895,000 in funds attributable to the LI FANGWEI front companies, and the filing of a civil complaint seeking the forfeiture of those funds to the United States. The seized funds are substitutes for money held by LI FANGWEI’s front companies at banks in China, and were seized from accounts at U.S. banks held in the name of foreign banks used by these front companies to conduct U.S. currency transactions (the “correspondent accounts”). The funds were seized pursuant to seizure warrants issued on December 18, 2013, and April 25, 2014. The $6,895,000 represents funds used by the LI FANGWEI front companies to engage in transactions that violate the U.S. sanctions laws and thus are subject to forfeiture. There are no allegations of wrongdoing by the U.S. or foreign banks that maintain these accounts. Because the funds used in those transactions are held in banks overseas, the United States is unable to seize the funds directly. However, pursuant to U.S. law, the United States can seize funds located in a bank’s correspondent accounts in the United States if there is probable cause to believe that funds subject to forfeiture are on deposit with that bank overseas. Based on this provision and others, the seizure warrants were executed. These funds were transferred to a seized asset account maintained by the United States Marshals Service pending resolution of the forfeiture action.
Based on information developed in the course of the FBI’s investigation into LI FANGWEI that forms the basis of the Superseding Indictment, OFAC today is adding eight additional front companies used by LI FANGWEI to its List of Specially Designated Nationals and Blocked Persons.
Finally, the United States Department of Commerce announced today the addition of nine China-based suppliers of LI FANGWEI to its Entity List.
The Superseding Indictment charges LI FANGWEI with seven separate offenses:
- Count One: Conspiracy to violate the International Emergency Economic Powers Act;
- Counts Two and Three: Substantive violations of the International Emergency Economic Powers Act;
- Count Four: Money laundering conspiracy;
- Count Five: Conspiracy to commit wire fraud and bank fraud; and
- Counts Six and Seven: Wire fraud.
If convicted, LI FANGWEI faces a maximum sentence of 20 years in prison on each of Counts One through Four and Counts Six and Seven, and 30 years in prison on Count Five. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The U.S. Department of State’s Transnational Organized Crime Rewards Program is offering a reward of up to $5 million for information leading to the arrest and/or conviction of LI FANGWEI.
Mr. Bharara praised the outstanding investigative efforts of the FBI and thanked the New York County District Attorney’s Office, which had charged LI FANGWEI and LIMMT in April 2009 for their use of front companies to commit books and records violations and to evade U.S. sanctions. Evidence developed by the New York County District Attorney’s Office greatly assisted the FBI's investigation of LI FANGWEI's more recent criminal conduct.
In addition, Mr. Bharara thanked the U.S. Department of Justice’s National Security Division Counterespionage Section, the U.S. Department of State, the U.S. Department of Treasury, and the U.S. Department of Commerce for their assistance in this matter.
The case is being handled by the Terrorism and International Narcotics Unit. Assistant United States Attorney Sean S. Buckley is in charge of the prosecution. Assistant United States Attorneys Micah W. J. Smith and Paul M. Monteleoni are in charge of the forfeiture aspects of the case.
The charges contained in the Superseding Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Li Fangwei in Rem Complaint and S1 Indictment
Laredo Downtown Merchant Heads to Federal PrisonRead the Press Release
LAREDO, Texas – Yi Hui Chen, 47, a merchant in downtown Laredo, has been ordered to federal prison for trafficking in counterfeit goods and ordered to pay more than $400,000 in restitution, United States Attorney Kenneth Magidson announced today along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI). Chen pleaded guilty May 16, 2013.
Today, U.S. District Judge Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Chen a sentence of 18 months in federal prison. He was further ordered to pay restitution in the amounts of $265,836 to Coach and $80,324.23, $39,943.33, $35,675, $5,343, $826.23 and $290 to Tory Burch, Louis Vitton, Gucci, Burberry, Nike and Prada, respectively.
Chen, a U.S. legal permanent resident who was born in Taiwan, was the owner of J Design located in downtown Laredo. He is expected to face deportation proceedings following his release from prison.
HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna.
“Intellectual property theft is not a victimless crime and should concern every American,” said Ayala. “Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”
The case was investigated by HSI. The case was prosecuted by former Assistant U.S. Attorney (AUSA) Roel Canales. AUSA Shawn Coker handled the sentencing today.
Jamaican Citizen Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Oneike Mickhale Barnett, a Jamaican citizen, was sentenced today in Ft. Lauderdale, Fla., in connection with his role in a fraudulent lottery scheme based in Jamaica that targeted victims in the United States, the Justice Department announced. Barnett was sentenced by U.S. District Court Judge William J. Zloch to serve 60 months in prison and 5 years supervised release. Barnett also was ordered to pay $94,456 in restitution.
Barnett’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent foreign lottery schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“This sentence sends a strong message that the American justice system will not stand by while criminals defraud unsuspecting Americans of their savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will use all available means to hold these international criminals accountable.”
Barnett was arrested in Orlando, Fla., in August 2013, following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. Barnett pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. As part of his guilty plea, Barnett acknowledged that had the case gone to trial, the United States government would have proved beyond a reasonable doubt that, from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. In an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings which claimed to be from a genuine sweepstakes company, and from federal agencies, including the Internal Revenue Service and the Federal Reserve.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “ We will continue to bring international fraudsters to justice in the United States.”
Also as part of his guilty plea, Barnett acknowledged that the government would have proved beyond a reasonable doubt that he knew the claims of lottery winnings were completely fabricated and he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings.
Assistant Attorney General Delery and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning.Jamaican Citizen Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Oneike Mickhale Barnett, a Jamaican citizen, was sentenced today in Ft. Lauderdale, Fla., in connection with his role in a fraudulent lottery scheme based in Jamaica that targeted victims in the United States, the Justice Department announced. Barnett was sentenced by U.S. District Court Judge William J. Zloch to serve 60 months in prison and five years’ supervised release. Barnett also was ordered to pay $94,456 in restitution.
Barnett’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent foreign lottery schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to bring international fraudsters to justice in the United States.”
“This sentence sends a strong message that the American justice system will not stand by while criminals defraud unsuspecting Americans of their savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will use all available means to hold these international criminals accountable.”
Barnett was arrested in Orlando, Fla., in August 2013, following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. Barnett pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. As part of his guilty plea, Barnett acknowledged that had the case gone to trial, the United States government would have proved beyond a reasonable doubt that, from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. In an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings which claimed to be from a genuine sweepstakes company, and from federal agencies, including the Internal Revenue Service and the Federal Reserve.
Also as part of his guilty plea, Barnett acknowledged that the government would have proved beyond a reasonable doubt that he knew the claims of lottery winnings were completely fabricated and he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings.
U.S. Attorney Ferrer and Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Investment Fund Manager Pleads Guilty in $96 Million Ponzi SchemeRead the Press Release
Earlier today, Brian R. Callahan, 44, pleaded guilty to one count of securities fraud and one count of wire fraud for operating a $96 million Ponzi scheme through his various offshore investment funds. Pursuant to his plea agreement with the government, Callahan has agreed to the forfeiture of $67.4 million, which includes proceeds from the sale of his former residence in Old Westbury, New York and a beachfront condominium in Westhampton, New York. When sentenced, Callahan faces up to 40 years in prison and the payment of approximately $96 million in restitution to the victims of his fraud.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
“Callahan used six offshore entities to perpetrate one of the largest investment frauds in Long Island history. Through lies and deceit, he misled investors and stole investor funds, including investments from a local fire department, to support a lavish lifestyle and operate a multi-million dollar Ponzi scheme. Today’s guilty plea marks the end of Callahan’s schemes and his lavish lifestyle and demonstrates this Office’s steadfast commitment to protect the investing public from fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the IRS, Securities and Exchange Commission, and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
According to court filings and facts presented at the plea hearing, between December 2006 and February 2012, Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. He had assured those investors that their money would be invested in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, that he owned with his brother-in-law and co-defendant, Adam Manson.1 He also commingled the money from the various investment funds and used it to pay tens of millions of dollars in partial redemptions to his victim investors to keep the Ponzi scheme afloat, and to purchase luxury items such as expensive cars and homes in Old Westbury and Westhampton, New York. To avoid detection and continue the scheme, Callahan sent fake account statements to investors that falsely showed that their funds were invested and performing well, and he repeatedly lied to his investors about both the nature and status of their investments.
Today’s guilty plea took place before United States Magistrate Judge A. Kathleen Tomlinson.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Winston M. Paes, Brian D. Morris and Karin K. Orenstein.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
BRIAN R. CALLAHAN
Age: 44
Old Westbury, New York
E.D.N.Y. Docket No. 13-CR-453
___________________________________________________________________________
1 The charges against co-defendant Manson are merely allegations, and he is presumed innocent unless and until proven guilty.
Indictment: Former Cabela's EmployeeStole Merchandise, AmmoRead the Press Release
WICHITA, KAN. – A former employee of Cabela’s in Wichita was indicted Tuesday on charges of stealing ammunition and other merchandise from the store, U.S. Attorney Barry Grissom said.
Garrett T. Alley, 25, Wichita, Kan., is charged with one count of possession of stolen merchandise and one count of possession of stolen ammunition. The indictment alleges that from December 2012 to July 2013, Alley stole merchandise including clothing, optics and binoculars worth more than $5,000 from the Cabela’s store where he worked at 2427 N. Greenwich Road. It also alleges he stole 3,000 rounds of .223 caliber ammunition, 1,000 rounds of .45 ACP ammunition, and 250 rounds of 28 gauge ammunition.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Deandre A. Freeman, 40, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. An affidavit filed in the case alleges that on April 14, 2014, Wichita police responded to a report of a disturbance in the street in the 6400 block of East Cottonwood. Witnesses said they saw Freeman beat a woman with a gun and fire shots at an unidentified man who tried to stop him.
If convicted, Freeman faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Kelly Tunnell, 42, Wichita, Kan., is charged with three counts of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in February and April 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on each drug count and a maximum penalty of 10 years and a fine up to $250,000 on the firearm count. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Ernesto Romo, 48, Wichita, Kan., is charged with eight counts of distributing methamphetamine. The crimes are alleged to have occurred in 2013 and 2014 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on each count. The Sedgwick County Sheriff and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Jose Ambriz-Lara, 20, El Monte, Calif., and Magellan Jimenez, 19, El Monte, Calif., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 11, 2014, in Thomas County, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Jose Manuel Penuelas-Valenzuela is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 27, 2014, in Sedgwick County, Kan. The government is seeking forfeiture of $15,000 seized from the defendant.
If convicted, the defendant faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Macario Mendoza-Saldivar, 29, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found April 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Miguel Soltero-Marin, 39, a citizen of Mexico, is charged with one count of unlawful possession of immigration documents, two counts of aggravated identity theft and two counts of misusing a Social Security number. The crimes are alleged to have occurred at various times from 2002 to 2014 in Finney County, Kan.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of immigration documents: A maximum penalty of 15 years and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence and a fine up to $250,000 on each count.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000.Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indiana Man Sentenced to 17 1/2 Years in Prison for Illicit Sexual Conduct with A MinorRead the Press Release
An Indiana man was sentenced to 17 1/2 years in prison for crimes involving illicit sexual conduct with a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
James W. McCormick, 36, of Fort Wayne, Indiana, was sentenced to 210 months in prison by U.S. District Judge Jeffrey J. Helmick. McCormick previously pleaded guilty to four counts of travelling in interstate commerce with the intent to engage in illicit sexual conduct and one count of transportation with the intent of criminal sexual activity.
McCormick travelled across state lines for the purpose of engaging in illicit sexual conduct with a minor between July and August 2013, according to court documents.
The case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling following an investigation by the FBI (both Toledo and Fort Wayne offices), the Northwest Ohio Crimes Against Children Task Force and the Maumee Police Department.
Husband and Wife Admit Role in Million Dollar Scam Involving City Ink and Toner CartidgesRead the Press Release
PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012. A sentencing hearing is scheduled for October 10, 2014.
The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville. They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk. As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD.
Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees. After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors. The Willis’ knew that the cartridges had been stolen. Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan. Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).
The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees. Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account. Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.
Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Husband and Wife Admit Role in Million Dollar Scam Involving City Ink and Toner CartidgesRead the Press Release
PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012. A sentencing hearing is scheduled for October 10, 2014.
The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville. They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk. As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD.
Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees. After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors. The Willis’ knew that the cartridges had been stolen. Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan. Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).
The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees. Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account. Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.
Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Man Sentenced for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Alexander Joseph Johnson, 25, has been ordered to prison following his three convictions of transportation, transportation of a minor and sex trafficking of a minor, announced United States Attorney Kenneth Magidson. Johnson was indicted in August 2013 and pleaded guilty Dec. 16, 2013, to all counts as charged without a plea agreement.
Today, U.S. District Judge Nancy F. Atlas handed Johnson 120 and 128 months for the transportation and transportation of a minor charges, respectively, and 128 months for sex trafficking of a minor. The sentences will run concurrently for a total of 128 months. In handing down the sentence, Judge Atlas commented that he was an adult and should have known better and that hopefully his time in prison would lead him to understand that he cannot exploit young women to make a living. Johnson was further ordered to serve 10 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The investigation concluded that Johnson had posted online advertisements for commercial sex with a female in both Houston and Colorado. The 15-year-old victim was forced to perform sex acts with strangers for money and was required to earn $500 an evening and turn that money over to Johnson. When she met her quota, he would “reward” her by having sex with her. Johnson repeatedly gave the young female marijuana and alcohol. Food was provided only at his discretion.
Johnson was arrested Aug. 6, 2013, based on a criminal complaint. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using online advertisements for the victim’s services and hotel records from several hotels.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Heroin, Ecstasy and Oxycodone Supplier Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Darius Nicholson, 33, of Baltimore, Maryland, pleaded guilty today to a single-count indictment charging him with conspiracy to distribute 100 grams or more of heroin, oxycodone and ecstasy pills.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Nicholson faces a mandatory minimum term of ten years in prison and a maximum term of life imprisonment when he is sentenced on July 25, 2014.
In a statement of facts filed with the plea agreement, Nicholson admitted that from about February 2012 until February 2013, he distributed various quantities of heroin, oxycodone and ecstasy pills to a co-conspirator who delivered the illegal drugs to a customer in the Eastern District of Virginia. During the course of the conspiracy, Nicholson distributed approximately 196 grams of heroin, 75 oxycodone pills and 11,600 ecstasy pills. The conspirators obtained approximately $89,750.00 in profit from the sales of illegal drugs.
This case was investigated by the DEA and the Fairfax County Police Department. Assistant U.S. Attorney Adam B. Schwartz and Special Assistant U.S. Attorney Nicholis D. Mutton prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.