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18 June 2014
Credit Repair Company Agrees to Pay $400,000 Civil Penalty and Halt Illegal Credit Repair PracticesRead the Press Release
The Justice Department’s Civil Division announced today that RMCN Credit Services Inc. (RMCN), of McKinney, Texas, and the Texas residents who own it, Doug and Julie Parker, have agreed to settle a federal court case charging them with falsely disputing negative information on consumers’ credit reports and collecting illegal upfront fees from customers. The defendants have agreed to an order that puts an end to these practices, which are illegal under the Credit Repair Organizations Act (CROA), and pay civil penalties.
“This consent order sends a strong signal to the credit repair industry that we will enforce the law against companies that abuse the credit reporting system by flooding it with false disputes,” said Assistant Attorney General Stuart F. Delery of the Civil Division. “This conduct degrades the accuracy of credit reports and raises costs for all consumers.”
In a complaint filed on behalf of the Federal Trade Commission (FTC) in the U.S. District Court for the Eastern District of Texas, the United States alleged that the defendants operated a credit repair company that offered to improve consumers’ credit scores by disputing negative information on their credit reports. The complaint alleged that RMCN and Doug and Julie Parker lodged false disputes with credit bureaus by sending “consumer” letters raising fabricated disputes over negative information in its customers’ reports. For example, the letters made false statements such as “I was never late” or “This is not my account.” The government’s case further alleged that these letters were not written by consumers. According to the government’s court filings, RMCN sent more than a million dispute letters during the five-year period preceding the complaint (October 2006 to October 2011). This forced credit bureaus and creditors to incur costs responding to bogus letters, which ultimately raised the cost of credit for all consumers.
The complaint also alleged that RMCN charged their customers for credit repair services before those services were fully performed. In particular, the government alleged that defendants charged a significant portion of their fee before any credit repair work began.
The agreed order prohibits defendants from making any untrue or misleading statements to consumer reporting agencies or creditors, prohibits them from charging advance fees for credit repair services, and bars them from making misrepresentations in connection with the sale of any good or service. The order also imposes a civil penalty of $2.35 million. If the defendants pay $400,000, the remainder of the judgment will be suspended based on the defendants’ inability to pay the full amount of the penalty.
Congress enacted CROA to protect the public from unfair and deceptive advertising and business practices by credit repair organizations. CROA prohibits credit repair companies from making false statements, or statements they reasonably should have known were false, to credit bureaus and creditors concerning consumers’ credit standing or creditworthiness. CROA also forbids credit repair companies from charging customers for credit repair services before those services are fully performed.
In agreeing to settle this matter, defendants have not admitted that they knowingly violated CROA.
The case was handled by Trial Attorney Tim Finley of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kevin McClendon of the U.S. Attorney’s Office for the Eastern District of Texas, and Tom Carter, Emily Robinson and Luis Gallegos of the FTC.Colombian Drug Trafficker Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich yesterday sentenced Alex Gonzalez-Arango (39, Buenaventura, Colombia) to 19 years and 7 months in federal prison for conspiracy to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States. Gonzalez-Arango pleaded guilty on March 11, 2014.
According to court documents, Gonzalez-Arango was a manager/supervisor of a drug trafficking organization (DTO) operating out of Colombia and Venezuela. In that role, during July and September 2011, he helped to organize and execute multi-ton shipments of cocaine via two different self-propelled semi-submersible (SPSS) vessels. In particular, Gonzalez-Arango recruited crewmembers for both SPSS ventures, and managed the day-to-day operations at the SPSS construction sites in Venezuela.
On or about July 13, 2011, the United States Coast Guard (USCG) interdicted the first SPSS vessel in the Caribbean Sea. The vessel was approximately forty-five feet long. The USCG intercepted the SPSS just as its crew scuttled the vessel, causing it to sink. Thereafter, law enforcement retrieved approximately 232 bales of cocaine from the sunken SPSS, making the total shipment weight approximately 5,861 kilograms of cocaine.
On or about September 17, 2011, the USCG intercepted the second SPSS vessel off of the coast of Honduras, in international waters. This second SPSS was approximately fifty to sixty feet in length and was estimated to be carrying over 3,000 kilograms of cocaine when its crew scuttled it upon interdiction.
This case was investigated by the Panama Express Strike Force, involving members from the Drug Enforcement Administration, the Federal Bureau of Investigation and the United States Coast Guard, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Matthew Jackson.
The Panama Express Strike Force (PANEX) is a federally-approved Organized Crime Drug Enforcement Task Force (OCDETF). Operation Panama Express currently targets South American-based drug trafficking organizations responsible for smuggling drugs to the United States and elsewhere for distribution.
Clarks Summit Man Sentenced to One Year for Threatening to Kill the PresidentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 42-year-old Clarks Summit man was sentenced today to serve 12 months’ in prison by Senior U.S. District Court Judge James M. Munley to posting a threat to kill the President of the United States on the White House website.
According to United States Attorney Peter Smith, the defendant Nicholas Savino admitted to sending a threat on August 16, 2013, that read: “President Obama the Anti-Christ. As a result of breaking the constitution you will stand down or be shot dead.”
Savino was indicted by a federal grand jury in September 2013, as a result of an investigation by the United States Secret Service and Clarks Summit Police.
Under the terms of the plea agreement, Savino will forfeit to the United States three firearms and approximately 11,000 rounds of ammunition seized by agents from his apartment and vehicle during the investigation.Savino must also serve two years on supervised release following his prison sentence and pay a $3,000 fine.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Chicago Jury Convicts Woman for Retaliating Against Federal Officials by Filing False LiensRead the Press Release
Follow @SDILNewsAfter two days of testimony, a federal jury sitting in Chicago, Illinois, has returned a verdict finding Cherron Marie Phillips, who also goes by the name of “River Tali Bey,” 43, guilty of knowingly filing false maritime liens – each in the amount of $100 billion – against the property of current and former federal employees, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Phillips, a Chicago native, had been accused of filing the phony liens in March and April of 2011 at the Cook County Recorder of Deeds. The liens were placed on the property of two federal prosecutors, including Patrick Fitzgerald, who was then the United States Attorney for the Northern District of Illinois, four federal task force officers, a federal agent, a federal court clerk, and four federal judges, including the former Chief Judge of the United States District Court for the Northern District of Illinois – all on account of their role in the investigation and prosecution of her brother, Devon Phillips. The jury reached a guilty verdict on 10 of 12 counts.
During the trial, the government presented evidence that from 2006 to 2011, Devon Phillips had been investigated and prosecuted in the Northern District of Illinois for trafficking cocaine. His sister regularly attended his court proceedings and filed documents in the record objecting to the jurisdiction of the court. She filed the liens several weeks after he was sentenced to serve over six years in prison. The liens were discovered later that summer, when the clerk of court was attempting a real estate transaction. The title search uncovered a maritime lien that named the clerk as a vessel and claimed he owned Devon Phillips $100 billion.
In March 2012, agents with the Federal Bureau of Investigation and other federal agencies executed a search warrant at Phillips’ home and discovered the original liens locked inside a safe in the master bedroom. A fingerprint expert from the FBI’s laboratory in Quantico, Virginia, told the jury he found Cherron Phillips’ fingerprints on nine of the twelve liens. Jurors also were shown letters that Phillips sent to five of the victims, including former U.S. Attorney Patrick Fitzgerald, apologizing for what she termed “a serious mistake.”
To avoid the appearance of a conflict of interest, the trial was presided over by the Honorable Michael J. Reagan, United States District Judge for the Southern District of Illinois. Upon accepting the jury’s verdict, Judge Reagan ordered Phillips detained pending sentencing, calling her “a paper terrorist” and citing his concerns for the safety of the community if she were allowed to remain on bond. Sentencing is scheduled to be held in Chicago on October 14, 2014.
“We take these cases very seriously,” U.S. Attorney Wigginton stated, “and we will continue to prosecute to the fullest extent of the law all who seek to intimidate, 3 harass, and retaliate against federal judges and employees by filing false liens against their property. This is the basest form of harassment aimed at folks carrying out their sworn duties. No one should have to contend with this type of attempted intimidation.”
The investigation was conducted by the Chicago field office of the Federal Bureau of Investigation, acting in concert with the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Nathan D. Stump, from the Southern District of Illinois.
Central Texas Joint Terrorism Task Force Arrest Two for Allegedly Providing Material Support to TerroristsRead the Press Release
Authorities with the Central Texas Joint Terrorism Task Force arrested two Austin area residents for alleged offenses involving providing material support to terrorists announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security.
Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “AuthenticTauheed19,” and “AT19”), age 23, was arrested yesterday afternoon at his home in Round Rock, TX. Khan is charged in a federal criminal complaint unsealed in Austin today with conspiring to provide material support to terrorists in violation of Title 18 USC Section 2339A. According to the complaint, from early 2011 to January 2012, he conspired with others to recruit persons to travel overseas to support terrorist activities including committing violent jihad.
Michael Todd Wolfe (a.k.a. “Faruq”), age 23, of Austin, was arrested yesterday at the George H.W. Bush Houston Intercontinental Airport, before boarding a flight to Europe. Wolfe is charged in a separate federal criminal complaint filed in Austin this morning with attempting to provide material support to terrorists in violation of Title 18 USC Section 2339A. According to the complaint, Wolfe planned to travel to the Middle East to provide his services to radical groups engaged in armed conflict in Syria.
“This case is the culmination of a long-term investigation by the FBI and the Joint Terrorism Task Force made up of local, state and federal law enforcement agencies in Central Texas. It’s a textbook example of how well law enforcement agencies in this area work together,” stated United States Attorney Robert Pitman. “Protecting the citizens of this community from the threat of harm both from within the United States and abroad is our highest priority, and we will continue to work with our partners to detect, investigate and prosecute those who seek to advance their ideology through acts of terrorism.”
Khan and Wolfe face up to 15 years in federal prison and a maximum $250,000 fine upon conviction. Both remain in federal custody pending a detention hearing scheduled for Friday at 2:30pm before U.S. Magistrate Judge Mark Lane in Austin.
Both criminal complaints resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff's Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with DOJ Counterterrorism section trial attorneys Josh Parecki and Michael Dittoe, are prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are innocent unless proven guilty in a court of law.
California Drug Trafficker Sentenced to Life in Prison on Drug Conspiracy and Related ChargesRead the Press Release
CHARLOTTE, N.C. – Corvain T. Cooper, 34, of Inglewood, Calif., was sentenced today to life in prison by U.S. District Judge Robert J. Conrad, Jr., for his role as a source of supply in a drug conspiracy involving marijuana trafficking and financial crimes, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court documents and court proceedings, from in or about 2004 through January 2013, Cooper was involved in a drug conspiracy that trafficked marijuana from California to the Charlotte area. Court records show that Cooper was charged with conspiracy to distribute and to possess with intent to distribute at least one thousand kilograms of marijuana as well as money laundering conspiracy and structuring financial transactions through banking institutions to avoid IRS reporting requirements. Cooper, along with two co-defendants, Evelyn LaChapelle and Natalia Wade, were convicted of all charges on October 18, 2013, following a three-day trial.
According to filed documents and evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence established that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California. Cooper, who possessed firearms during some drug-related transactions, received a mandatory life sentence because of the drug amount involved and two prior felony drug convictions in California.
Cooper has been in custody since his arrest in California on January 28, 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation to a federal facility. All federal sentences are served without the possibility of parole.
LaChapelle and Wade have been in custody since their October 2013 conviction and are currently awaiting sentencing.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation code-named “Goldilocks” that has resulted in the conviction of more than 55 defendants for marijuana trafficking, money laundering, and firearms violations over the past five years. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, assisted by the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments.
The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Victor Marshall, 36, of Buffalo, N.Y., who was convicted of conspiracy to distribute 500 grams or more of cocaine, was sentenced to 130 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that in 2011, Marshall supplied cocaine to co-defendants Gerry Spencer, Besari Torres, and Mario Pena who then distributed the cocaine in the City of Buffalo. On October 7 and October 19, 2011, the defendant sold cocaine to a confidential informant. On November 22, 2011, Marshall possessed 10 ounces of cocaine.
Besari Torres, Gerry Spencer and Mario Pena have been convicted of similar charges and sentenced.
The sentencing is the culmination of an investigation by the Safe Streets Task Force, under direction of the Federal Bureau of Investigation.Barrington Payroll Service Company Owner Indicted for Allegedly Diverting Client Federal Employment Taxes Due the IRSRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a nine-count indictment alleging that Warren Hebert, 66, of Barrington, R.I., owner of Checkmaster Payroll Service, a payroll company which provided payroll services to private companies and at least one municipal agency, devised a scheme to defraud at least nine businesses and the Seekonk, Mass., Water District of federal payroll taxes that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
The indictment alleges that Hebert withdrew funds from client accounts that were to have been used to pay the clients’ federal employment taxes and diverted the funds for other purposes. It is alleged that Hebert provided clients with “client copy” tax returns indicating that the taxes had been paid to the IRS, when they had not. It is also alleged that Hebert falsely represented to his clients that tax delinquency notices they received from the IRS were the result of administrative errors by the IRS.
According to the indictment, beginning in at least April 2009, and continuing through at least October 2011, Hebert allegedly diverted money from at least nine businesses operating in Rhode Island and Massachusetts, including, among others, a moving and storage company, nursery school, jewelry packaging company, and a marketing and communications company, and from the Seekonk Water District, a municipal water agency located in Seekonk, Mass.
The indictment charges Hebert with eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.
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[email protected]Baltimore Bank Ordered to Forfeit $560,000 for Failing to File Currency Transaction Reports on Drug Proceeds Laundered Through the BankRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar has ordered M&T Bank to forfeit $560,000 in drug proceeds laundered through the bank on which the bank failed to file currency transaction reports.
The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department."Financial institutions face penalties if they accept cash deposits without filing currency transaction reports,” said U.S. Attorney Rod J. Rosenstein. “The reports allow law enforcement to trace cash deposits by criminals who try to avoid creating a paper trail."
According to the complaint filed in support of the forfeiture, Deanna Bailey was a member of a drug trafficking organization based in Maryland. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions between 2011 and 2013, Bailey came to M&T Bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction for making the exchange without filing a currency transaction report.The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleged that the money was subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law. Fitts admitted that on each occasion she converted the bills without filing or causing anyone else at M&T Bank to file a currency transaction report.
Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds. Deanna Bailey, age 33, of Baltimore, was sentenced to 46 months in prison for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.Amherst Woman Convicted of Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sheila L. Cassata, 48, of Amherst N.Y., pleaded guilty before District Court Judge Richard J. Arcara to bank robbery. The charge carries a maximum term of imprisonment of 20 years, a $250,000 fine, or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, Cassata was arrested on January 15, 2014 along with co-defendant Michael Mitchell, a/k/a Max. The defendant drove Mitchell to a KeyBank branch at 201 Amherst Street, in Buffalo on December 27, 2013, knowing that Mitchell was intending to rob the bank. In addition, Cassata drive Mitchell to an M&T Bank at 130 Grant Street in Buffalo on January 3, 2014, and a First Niagara Bank at 1248 Abbott Road in Lackawanna on January 9, 2014, knowing that Mitchell was intending to rob the banks.
“With each conviction, we believe we are getting closer to the end of a crime spree which focused on area banks,” said U.S. Attorney Hochul.
Michael Mitchell is currently charged with robbing the three banks. As indicated in publicly filed charging documents, the bank robberies contain similarities to a total of 22 separate bank robberies that began on April 23, 2013. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI Safe Street Task Force.
Sentencing is scheduled for October 1, 2014 at 1:00 p.m. before Judge Arcara.Alien Indicted for Re-EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury today returned an indictment charging an illegal alien from Mexico with unlawful re-entry into the United States.
According to United States Attorney Peter Smith, Antonio Figueroa-Zamora, age 29, of Monroe County, an alien who had previously been deported from the United States pursuant to law, was charged by the grand jury for allegedly re-entering the United States on or before June 4, 2014 at an unknown place.
If convicted, Antonio Figueroa-Zamora faces a term of imprisonment of two years of imprisonment.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 2 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Alien Indicted for Re-EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury returned an indictment yesterday charging an illegal alien from Nicaragua with unlawful re-entry into the United States.
According to U.S. Attorney Peter Smith, Juan Carlos Tellar-Mendoza, age 27, of Lackawanna County, an alien previously been deported from the United States, was charged by the grand jury for allegedly re-entering the United States on or before May 4, 2014, at an unknown place.
If convicted, Juan Carlos Tellar-Mendoza faces a term of imprisonment of two years of imprisonment.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 2 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
28 Indicted on Synthetic Drug Trafficking ChargesRead the Press Release
St. Louis, MO – Within the last thirty hours, twenty-eight people have either been arrested or have surrendered on multiple charges contained in four separate indictments alleging offenses involving the manufacturing and sale of synthetic drugs. Specifically charged in each indictment are: a) conspiracy to distribute and possess with the intent to distribute Schedule I controlled substances and Schedule I controlled substance analogues; b) conspiracy to introduce and receive misbranded drugs in interstate commerce; c) conspiracy to import controlled substances and controlled substance analogues; d) conspiracy to receive, sell and facilitate the transportation of smuggled goods with forfeiture allegations; and e) money laundering counts.
The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine, but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations. The drugs masquerade as incense, potpourri, glass cleaner, bath salts, and plant food, just to name a few; their cost however is much higher than the normal commercial product they mimic.
One group of synthetic drugs is made up of cathinones, and is a “speed” type drug commonly marketed as bath salts. The synthetic cathinones are typically snorted and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz. Reported effects have included hypertension, paranoia, anxiety and even psychosis.
Another group of synthetic drugs is made from synthetic cannabinoids which are a far more powerful and unpredictable form of marijuana. The cannabinoids are typically smoked and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out, Golden Leaf, DEEW, Cloud 9, Primo, Optima and Crazy Eyes. Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects, including excessive heart rate, vomiting and seizures.
United States Attorney Richard Callahan warned, "Parents should not be lulled into a false sense of confidence that these substances must be okay just because they were purchased down at the corner gas station or convenience store. The bottom line is that these drugs are extremely dangerous, and the ingestion of these substances has led to serious medical consequences requiring hospitalization and even death and suicide."
"These drugs can cause serious health problems or even kill those who ingest them," said James Gibbons, Deputy Special Agent in Charge for HSI Chicago, which oversees St. Louis. "Homeland Security Investigations will continue to work with our federal, state and local law enforcement partners to identify these criminal schemes, seize their unregulated contraband and bring purveyors of synthetic drugs to justice."
IRS Criminal Investigation Special Agent in Charge James C. Lee stated, "IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society. IRS-CI will continue to investigate and protect the American people."
Charged in the first indictment (4:14CR00150 JAR) are:
- Anwer Rao, O’Fallon, IL
- Michael Lentsch, O’Fallon, IL
- Matthew Fiedler, Belleville, IL
- Larry Farmer, Jr., Keyesport, IL
- Charles Kinney, O’Fallon, IL
- Brandien Robinson, O’Fallon, IL
- Mansi Patel, Phoenix, AZ
Charged in the second indictment (4:14CR00152 FWS) are:
- Greg Sloan, St. Charles, MO
- Doug Sloan, Indianapolis, IN
- Igor Holdaiy, St. Louis, MO
- Elizabeth Pogue, Bridgeton, MO
- Charles Wolfe, St. Peters, MO
- Brett Beeman, O’Fallon, MO
- Sherri Beeman, O’Fallon, MO
- Roger Galvin, Charlack, MO
- John Galvin, St. Louis, MO
- Robert Jaynes, Jr., Indianapolis, IN
- Kirk Parsons, Indianapolis, IN
- David Neal, Carmel, IN
- Marcia Gronek, St. Peters, MO
Charged in the third indictment (4:14CR00175 AGF) are:
- Mark Palmer, Granite City, IL
- Anthony Palmer, Mt. Vernon, IL
- Samuel Leinicke, Arnold, MO
- Charles Wolfe, St. Peters, MO
- Robert Wolfe, Hazelwood, MO
- Joseph Gabrick, O’Fallon, MO
Charged in the fourth indictment (4:14CR000187 JAR) are:
- Pamela Tabatt, St. Peters, MO
- Richard Gross, Winfield, MO
- Paul Berra, Jr., Warrenton, MO
If convicted, the drug conspiracy charges and money laundering conspiracy charges carry a penalty of up to 20 years in prison for each count and/or fines ranging from $500,000 to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Additionally the indictments seek forfeiture of assets and property totaling more than $12 million.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorneys offices in St. Louis County, MO, St. Charles County, MO, Madison County, IL and St. Clair County, MO. Assistant United States Attorneys James Delworth, Erin Granger, Jennifer Winfield and John Mantovani are handling the cases 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.
17 June 2014
Zuni Pueblo Man Sentenced to Seven Years in Prison for Brandishing a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Shannon D. Concho, 36, a member of Zuni Pueblo, was sentenced this morning to seven years in federal prison followed by two years of supervised release for brandishing a firearm during a crime of violence, announced U.S. Attorney Damon P. Martinez and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Concho was arrested in Oct. 2012, on an indictment charging him with three counts of assault with a dangerous weapon (a shotgun), being a felon in possession of a firearm, and brandishing a firearm during a crime of violence. Concho was charged with committing all five offenses on Oct. 2, 2011, within Zuni Pueblo. At the time, Concho was prohibited from possessing firearms or ammunition because he previously had been convicted of two felonies, involuntary manslaughter and aggravated assault.
On Feb. 27, 2014, Concho pled guilty to Count 5 of the indictment charging him with brandishing a firearm during a crime of violence. In his plea agreement, Concho admitted that on Oct. 2, 2011, he brandished a 12 gauge shotgun during and in furtherance of a crime of violence. Concho admitted assaulting two men by pointing the shotgun at one man’s head and pushing the muzzle of the shotgun into the second man.
This case was investigated by the Zuni Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Woman Sentenced in Manhattan Federal Court for “Water Park for Foster Kids” FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LILIANA TRAFFICANTE was sentenced this morning in Manhattan federal court by U.S. District Judge Deborah A. Batts to 41 months in prison for her leadership role in a five-year scheme to obtain money from investors by claiming that the money would be used for a project intended to help foster children, when in fact TRAFFICANTE spent much of the money on personal expenses and other purposes. TRAFFICANTE pled guilty to charges of conspiracy to commit wire fraud in September 2010, and agreed to pay restitution to the victims of her offense, pursuant to a plan to be set by the Court.
Manhattan U.S. Attorney Preet Bharara said: “Instead of developing water parks for foster children as she said she would, Liliana Trafficante used the money to support her own lifestyle. In doing so, she exploited a worthy cause for personal gain, cheating foster kids out of an opportunity to truly benefit from the investors’ contributions.”
According to the charging documents in the case and statements made in open court today at the sentencing proceeding:
LILIANA TRAFFICANTE held herself out as the founder and Chief Executive Officer of International Dreams, a Manhattan-based entity. In addition, she is the principal of, or otherwise affiliated with, a number of entities that appear to be related to International Dreams, including GoOcean Park and Resort LLC, Bouchville Manors, The Little Water Park That Could, and Signature A (collectively, the “Trafficante Entities”). TRAFFICANTE claimed to be raising money for the purchase of land and completion of a water park for foster children (the “Water Park Project”). Among other methods, TRAFFICANTE raised money through postings on the Craigslist website. TRAFFICANTE made numerous false statements to individuals in order to induce them to make loans to and/or investments in the Trafficante Entities.
For example, according to the Complaint, TRAFFICANTE told one individual that land had been located for the Water Park Project. TRAFFICANTE claimed that the land was rich with natural resources, the exploration of which prior to construction could help fund the Water Park Project. Based on these representations, the individual loaned $100,000 to one of the Trafficante Entities. In connection with this loan, TRAFFICANTE and this individual executed a promissory note that stated that the “purpose” of the $100,000 loan was to help “GoOcean Water Park & Resort purchase excavating equipment.” In fact, no land had been purchased by TRAFFICANTE for a water park, or for any other purpose, and the money was not used for equipment of any kind. Rather, among other non-equipment payments, TRAFFICANTE made $40,000 in rent payments on behalf of family members the same day that the $100,000 was wired to an account she controlled.
In addition to the prison term, Judge Batts sentenced TRAFFICANTE to three years of supervised release. TRAFFICANTE also was ordered to pay restitution of $750,000, as well as a $100 special assessment fee.
Mr. Bharara praised the work of the FBI, which investigated this case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Eugene Ingoglia is in charge of the prosecution.
Woman Involved in Kidnapping and Death of Atlantic City Woman Sentenced to 35 Years in PrisonRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., woman was sentenced today to 35 years in prison for her role in the kidnapping and death of a 20-year-old Atlantic City woman, U.S. Attorney Paul J. Fishman announced.
Shamerria Smith, 27, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of use of a firearm in furtherance of a crime of violence – specifically, the Hobbs Act robbery and kidnapping that resulted in the death of Nadirah Ruffin. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:On March 23, 2011, a person identified as “D.H.” met with Isiah Ruffin (no relation to the victim) in the courtyard area of a housing complex on North Maryland Avenue, a section of Atlantic City known as “Back Maryland,” to talk to Isiah Ruffin about a dispute between Isiah Ruffin and Victim One. After a brief conversation, D.H. viciously assaulted Isiah Ruffin, knocking Isiah Ruffin unconscious and robbing him of cash. When Isiah Ruffin regained consciousness, D.H. assaulted him again. As a result of the assault, Isiah Ruffin was treated at the Atlantic City Medical Center for a possible concussion and facial lacerations. After Isiah Ruffin was released from the hospital, Smith and Aziz Sanders, 21, of Atlantic City, visited Isiah Ruffin, during which time Isiah Ruffin told Smith that D.H. had assaulted him.
To retaliate, Smith planned to enter Victim One’s house and assault and rob Victim One of illegal drugs and money. Sanders agreed to help Smith execute her plan and recruited a third co-defendant, DeShawn Hicks, 22, of Atlantic City, to participate. Smith supplied the gun, duct-tape and handcuffs.
On March 26, 2011, Smith, Sanders, and Hicks entered Victim One’s house and duct-taped Victim One and four other victims, including Nadirah Ruffin, who were present. While in the house, Sanders and Hicks took money from Victim One, some of which Victim One had earned from selling illegal drugs. They took money from another victim, as well as marijuana that the victim was planning to sell. Sanders and Hicks admitted to taking more than $500 dollars and 50 bags of marijuana from the house.
During the robbery, Nadirah Ruffin recognized Smith’s voice. Smith ordered Sanders to punch Nadirah Ruffin. After Sanders hit Nadirah Ruffin, Smith punched her because she did not think Sanders had hit her hard enough. As the three defendants were leaving the residence, Smith told Sanders and Hicks to take Nadirah Ruffin from the residence. Smith, Sanders and Hicks then placed Nadirah Ruffin in a green van. They drove first to the Clementon area and eventually to Philadelphia. Smith said that because she was a mother she could not kill Nadirah Ruffin. Smith placed the gun near Sanders and told him that they were not leaving until someone else killed Nadirah Ruffin. Sanders and Hicks took Nadirah Ruffin to the banks of the Schuylkill River, where Sanders shot her in the head, killing her. Her body was dumped in the river.
In addition to the prison terms, Judge Rodriguez sentenced Smith five years of supervised release and ordered her to pay restitution of $1,512,840. Hicks and Sanders have also pleaded guilty and both are scheduled to be sentenced July 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden, assisted by Assistant U.S. Attorney David Feder of the U.S. Attorney’s Office Appeals Division in Newark, and Mark Coyne, Chief of the Appeals Division.
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Defense counsel: Smith: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Sanders: Edward Borden Esq., Cherry Hill, N.J., and Carl J. Herman Esq., West Orange, N.J.
Hicks: Michael Huff Esq., Camden, and David Glazer Esq.Washington Woman Pleads Guilty to Assault and Causing Serious Bodily InjuryRead the Press Release
COEUR D'ALENE - Marisa Belle Hawk, 28, of Wapato, Washington, pleaded guilty today to assault with a serious bodily injury, U.S. Attorney Wendy J. Olson announced. Hawk was indicted by a federal grand jury in Coeur d'Alene on December 17, 2013.
According to court documents, Hawk admitted that on November 23, 2013, she used a handgun and shot the victim in the leg. All of these events occurred within the boundaries of the Nez Perce Indian Reservation.
The charge of Assault Resulting in Serious Bodily Injury is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
Sentencing is set for August 27, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI) and the Nez Perce Tribal Police.
U.S. Files Lawsuit Against IPC the Hospitalist Company, Alleges Overbilling of Federal Health Insurers for Physician ServicesRead the Press Release
CHICAGO — The United States filed a civil lawsuit against California-based IPC The Hospitalist Company, Inc., and its subsidiaries, alleging that IPC submitted false claims to federal health care programs, the U.S. Attorney’s Office announced today. The complaint alleges that IPC violated the federal False Claims Acts by knowingly engaging in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other federal health benefit programs.
The government’s complaint, intervening in a whistleblower’s lawsuit, was filed yesterday in U.S. District Court. Last December, when the whistleblower’s lawsuit was unsealed, the United States gave notice of its intention to file its own complaint.
IPC, based in North Hollywood, Calif., is one of the largest hospitalist companies in the United States, employing 2,500 hospitalist physicians and other health care providers in more than 1,300 facilities in 28 states. Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care for patients from admission to discharge.
The government’s lawsuit alleges that IPC physicians sought payment for higher and more expensive levels of medical service than were actually performed ― a practice commonly referred to as “upcoding.” Specifically, the lawsuit alleges that IPC encouraged its physicians to bill at the highest levels regardless of the level of service provided and pressured physicians with lower billing levels to “catch up” to their peers.
“IPC’s upcoding scheme caused, and still continues to cause, Medicare, Medicaid and other federal payors to overpay millions of dollars to IPC,” the suit states. “As a result of corporate/management pressure, and/or in keeping with IPC corporate culture and expectations to maximize billings, IPC hospitalists have routinely and systematically submitted upcoded claims for payment to the United States,” it adds.
The lawsuit was originally filed under seal in 2009 by Dr. Bijan Oughatiyan of Dallas, who worked as a hospitalist for IPC in San Antonio from 2003 to 2008, under the qui tam or whistleblower provisions of the False Claims Act. The federal law and similar state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times its damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted.
As alleged in the government’s complaint, more than half of IPC’s revenues have come historically from government medical insurers, including Medicare and Medicaid, as well as the TRICARE Program, the Federal Employee Health Benefits Program, and the Railroad Retirement Medicare Program.
The lawsuit alleges that IPC pressured and encouraged its physicians to engage in systematic overbilling of the codes submitted to government health benefit programs for evaluation and management procedures such as admission, subsequent hospital visits, and discharge of patients. Based on IPC’s regular and detailed monitoring of the codes billed by individual physicians, the lawsuit alleges that IPC was aware that its physicians were using the highest-level billing codes (those which require the most work and are reimbursed at the highest amounts) at rates far in excess of what would normally be expected. It further alleges that IPC knew or should have known that its physicians could not have actually been performing the services at the levels for which claims were submitted.
The complaint illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is being handled by the U.S. Attorney’s Office for the Northern District of Illinois and the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from the U.S. Department of Health and Human Service’s Office of Inspector General, the Office of Personal Management’s Office of Inspector General, and the Railroad Retirement Board’s Office of Inspector General. The government is being represented by Assistant U.S. Attorney Eric Pruitt and DOJ Senior Trial Counsel Elizabeth Rinaldo.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist Company, Inc., et al., No. 09 C 5418 (N.D. Ill.). The claims asserted against IPC are allegations only, and there has been no determination of liability. In a civil case, the government has the burden of proving the allegations by a preponderance of the evidence.
Complaint
Two Mexican Nationals Sentenced for Trafficking Cocaine, Meth in Cole, Moniteau CountiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were sentenced in federal court today for their roles in conspiracies to distribute large amounts of cocaine and methamphetamine in Cole and Moniteau Counties, Mo.
Froylan Pedroza-Guadarrama, 31, and Jesus Ricardo-Amaya, 29, both citizens of Mexico, were sentenced in separate hearings before U.S. District Judge Fernando J. Gaitan. Pedroza-Guadarrama was sentenced to nine years in federal prison without parole. Ricardo-Amaya was sentenced to two years in federal prison without parole.
Co-defendants Eloy Castaneda-Gonzalez, 34, Beroldo Almazan, 34, and Adolfo Almazan-Hernandez, 43, all of whom are Mexican nationals residing in California, Mo., have also been sentenced. Castaneda-Gonzalez was sentenced to 15 years in federal prison without parole. Almazan was sentenced to 10 years in federal prison without parole. The court also ordered them to forfeit to the government $52,928, which was derived from the offense. Almazan-Hernandez was sentenced to 18 months in federal prison without parole.
Ricardo-Amaya, Castaneda-Gonzalez, Almazan and Almazan-Hernandez each pleaded guilty to their roles in a conspiracy to distribute methamphetamine and a conspiracy to distribute cocaine. Pedroza-Guadarrama pleaded guilty to his role in the conspiracy to distribute cocaine.
According to court documents, a DEA agent learned that Castaneda-Gonzalez wanted to purchase seven kilograms of cocaine from two cooperating sources. The DEA’s cooperating sources agreed to travel to Missouri and deliver the cocaine for $24,000 per kilogram. On June 21, 2012, the cooperating sources directed Castaneda-Gonzalez to meet them at a Jefferson City, Mo., motel.
Castaneda-Gonzalez was accompanied by Almazan and Almazan-Hernandez when he arrived at the motel room. Castaneda-Gonzalez explained that he didn’t have all of the money to purchase seven kilograms of cocaine, but offered to provide the cooperating sources with five pounds of methamphetamine, along with a portion of the money, in exchange for the cocaine. They accepted the offer, and Castaneda-Gonzalez, Almazan and Hernandez left the motel room, stating they would return shortly with the methamphetamine and money.
Approximately one and a half hours later, Castaneda-Gonzalez, Almazan and Almazan-Hernandez returned to the motel room. Castaneda-Gonzalez gave the cooperating sources a package that contained nearly one pound of crystal methamphetamine. A short time later, Almazan-Hernandez left the room momentarily and returned with a bag containing the remaining four pounds of crystal methamphetamine. While inside the motel room, Almazan made several telephone calls which sounded like he was arranging for Almazan-Hernandez to meet with one or more of Almazan’s customers at a nearby McDonald’s. Almazan-Hernandez returned approximately 30 minutes later with $20,000 in cash. The cooperating sources then provided Castaneda-Gonzalez with one kilogram of cocaine to inspect, and told him they were going to leave the room to obtain the remaining six kilograms.
Castaneda-Gonzalez became extremely nervous and fled from the room, followed by Almazan, but both were apprehended after a brief foot chase. Almazan-Hernandez was also taken into custody as he walked out of the motel room.
Based on Almazan’s telephone calls, investigators believed that additional conspirators were at a nearby McDonald’s. Investigators located Pedroza-Guadarrama, Ricardo-Amaya and co-defendant Victor Hugo De La Roza-Garza, 32, a Mexican national, who were arrested in separate car stops as they left the McDonald’s. Officers discovered $15,000 inside a bag on the back seat of De La Roza’s vehicle and another $14,000 hidden in a false compartment of a toolbox.
De La Roza-Garza pleaded guilty to his role in the conspiracy to distribute cocaine and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force and the Jefferson City, Mo., Police Department.Third Defendant Pleads Guilty in Procurement Fraud Scheme Involving Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
ALEXANDRIA, Va. – A former service contractor for U.S. Customs and Border Protection (CBP) pleaded guilty today for his role in accepting over $350,000 in connection with the awarding of a $24 million contract by CBP.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Roth, Inspector General for the Department of Homeland Security (DHS); Robert C. Erickson, Jr., Acting Inspector General, General Services Administration (GSA); Peggy E. Gustafson, Small Business Administration (SBA) Inspector General; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs (VA), made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Chancellor Ellis, 37, of Manassas, Virginia, pleaded guilty to conspiracy to obtain illegal gratuities and to violate the procurement integrity act. Ellis faces a maximum penalty of five years in prison when he is sentenced on September, 12, 2014. He will also pay restitution and forfeiture in the amount of $351,176.60, representing the total amount of illicit payments sought and accepted by Ellis in connection with the procurement fraud scheme.
In a statement of facts filed with the plea agreement, Ellis admitted that, throughout the conspiracy, he worked for CBP as a service contractor. Among other duties and responsibilities at CBP, Ellis worked as a technical advisor on a procurement for a Wide Area Network (WAN) optimization project. The procurement resulted in an award to a service-disabled veteran-owned small business, identified in the statement of facts as Company T, at a contract price of approximately $24 million.
Prior to the award to Company T, Ellis—who was actively working for CBP on the procurement—requested that Company T agree to pay ten percent of any profits from the WAN optimization contract to a company co-owned by Ellis. Shortly after reaching this agreement with Company T, Ellis provided nonpublic source selection information related to the WAN optimization procurement, including independent government cost estimates, to Company T employee Anthony Bilby. Bilby and other co-conspirators used the source selection information in crafting the winning bid on behalf of Company T. Bilby and other conspirators also caused nominal competitors of Company T to submit rigged bids on the contract in excess of the amount of Company T’s bid. After Company T won the contract, it paid $351,176.60—approximately ten percent of its profits—to Ellis’s company.
As part of his plea agreement, Ellis has agreed to cooperate in the investigation of others involved in the conspiracy. Two other co-conspirators, Anthony Bilby and Thomas Flynn, have previously pleaded guilty and have been sentenced for their roles in the conspiracy.
This case was investigated by the Offices of the Inspector General for DHS, GSA, SBA, and the VA, with assistance from DHS’s Office of the Chief Security Officer, Cyber Forensic Branch. Assistant U.S. Attorney Kosta S. Stojilkovic is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-205.Texas Woman Admits Illegally Exporting Advanced Combat Optical Gunsights, Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JANIECE MICHELLE HOUGH, 41, of Kempner, Texas, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of smuggling goods from the United States. The charge stems from HOUGH’s sale of two Advanced Combat Optical Gunsights (ACOGs) destined for Germany in violation of the International Trafficking in Arms Regulations.
Following her plea of guilty, Judge Underhill sentenced HOUGH to six months of imprisonment, followed by three years of supervised release, the first eight months of which she must serve in home confinement. HOUGH was also ordered to perform 100 hours of community service and to forfeit $198,054.
According to court documents and statements made in court, HOUGH worked for a government contractor and was based at Fort Hood in Texas. On the side, she operated an online business selling surplus military clothing and equipment on eBay. While working at Fort Hood, HOUGH purchased military equipment from U.S. Army personnel, including Michael Bartch, for re-sale online. In June 2010, HOUGH sold and shipped two ACOGs to an individual in Connecticut with the understanding that the AGOGs were destined for Germany.
HOUGH did not have a license from the U.S. State Department, which is required to export ACOGs and other items on the U.S. Munitions List.
Bartch, of Copperas Cove, Texas, was prosecuted by the U.S. Attorney’s Office for the Western District of Texas. On April 17, 2013, he was sentenced to 24 months of imprisonment.
In the District of Connecticut, this case was investigated by the Defense Criminal Investigative Service, Homeland Security Investigations, and the U.S. Department of Commerce, Bureau of Industry and Security, Boston Field Office. The case was prosecuted by Assistant U.S. Attorneys Edward Chang and Hal Chen.
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(203) 821-3722 [email protected]St. Paul Attorney Convicted of Money Laundering Drug Proceeds Through His Law FirmRead the Press Release
MINNEAPOLIS — Today in federal court, a jury returned guilty verdicts on all three counts of an indictment charging Robert David Boedigheimer, 51, of Stillwater, with one count of Conspiracy to Commit Money Laundering, one count of Money Laundering, and one count of making a False Statement to an IRS Agent. Boedigheimer, a St. Paul attorney, was indicted on December 10, 2013.
Boedigheimer conspired with Brandon Lusk, his brother-in-law, a marijuana dealer based in southem Minnesota to launder the proceeds from the sales of marijuana. Lusk pleaded guilty in October 2011 to one count of conspiracy and one count of conspiracy to commit money laundering. Lusk admittedly formed a company called Rochester Reliable Rentals, which acquired nine Rochester properties. Lusk knowingly financed improvements and renovations to those properties with proceeds of the marijuana conspiracy through the assistance of Boedigheimer. Brandon Lusk, along with Richard Kay of Rochester and others conspired to distribute more than 1000 grams of marijuana. Kay was sentenced to 200 months in prison and Lusk is currently awaiting sentencing.
Prosecutors are very pleased with the verdict. Assistant United States Attorney Steven L. Schleicher stated, “This case needed to be prosecuted because as a practicing lawyer, the defendant abused the trust that society places on the practice of law by laundering drug money through his law firm and obstructing a federal investigation.”
Boedigheimer faces a potential maximum penalty of 20 years in prison on the conspiracy count, 10 years on the money laundering count, and five years on the false statements count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Internal Revenue Service- Criminal Investigation Division, the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the Southeast Minnesota Narcotics and Gang Task Force (SEMNGTF), and the Wabasha County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Steven L. Schleicher and Julie E. Allyn.Sex Offender Charged for Failing to Register in PennsylvaniaRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a criminal information has been filed in U.S. District Court in Scranton charging an East Stroudsburg man with failing to register as a sex offender in Pennsylvania.
According to U.S. Attorney Peter Smith, the defendant, Barry Page, age 46, is designated as a sexual offender as a result of a 1998 New Jersey State conviction for sexual abuse of a minor. It is alleged in the information that Page traveled in interstate commerce and knowingly failed to register and update information in Pennsylvania as he was required to do pursuant to the provisions of the Adam Walsh Act.
The charge is the result of an investigation by the United States Marshals Service. It carries a penalty of a maximum term of 10 years incarceration and fines in the amount of $250,000.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
San Benito Man Sentenced for Role in Purchasing FirearmsRead the Press Release
BROWNSVILLE, Texas - Danny Cantu, 24,has been sentenced to 72 months for his role in purchasing firearms by making false statements, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cantu pleaded guilty in July 2013.
The evidence proved Cantu had recruited nine others to purchase a total of 30 firearms by making false statements on ATF Form 4473. Those individuals claimed they were the actual buyer of the firearms when in truth and in fact they were acquiring the firearms on behalf of Cantu.
Cantu’s sentence today included upward adjustments or increases in his calculated sentencing guideline range because he engaged in trafficking of firearms by acquiring the firearms for individuals in Mexico, because he was an organizer of the criminal activity and because the offense involved more than 25 weapons.
The nine individuals Cantu recruited have all pleaded guilty and been sentenced to varying terms of probation or federal imprisonment.
ATF investigated. Assistant U.S. Attorney Angel Castro is prosecuting.
Ridgefield Man Sentenced to Prison for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LOUIS VUCCI, JR., 45, of Ridgefield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months of imprisonment, followed by three years of supervised release, for evading the payment of nearly $200,000 in federal taxes over a five-year period.
According to court documents and statements made in court, from 2005 through 2009, VUCCI failed to report more than $678,000 in income he received while serving as president and CEO of Diamond Ranch Foods (“DRF”), a publicly-traded company in the business of selling and distributing meat products in the New York area. VUCCI underreported his income by $112,310 in 2005, $109,473 in 2006, $174,300 in 2007, $187,704 in 2008, and $95,126 in 2009. The unreported income consisted of weekly pay checks from DRF in the amount of $2,500 that were made payable to VUCCI’s spouse, who did not work for DRF, and deposited into a bank account in his spouse’s name. Also, in 2008 and 2009, VUCCI had one of DRF’s customers pay him for purchases with blank checks, which checks he then completed and deposited into his personal bank account. The checks totaled $26,236 in 2008 and $65,387 in 2009.
In addition, large cash deposits totaling $16,100 in 2008 and $25,020 in 2009 were made into VUCCI’s personal bank accounts. These deposits were cash payments from another DRF customer for DRF sales to the customer.
VUCCI’s federal individual income tax returns reported income of $19,590 in 2005, $12,500 in 2006, $12,000 in 2007, $30,000 in 2008, $125,202 in 2009. The reported low income from 2005 to 2008 automatically qualified VUCCI for the Earned Income Credit yielding refunds rather than taxes owed.
From mid-2005 to mid-2007, VUCCI and his spouse rented a home in Greenwich for $8,500 per month, had car expenses in excess of $1,000 per month, and paid a housekeeper for approximately 20 hours per week. In 2007, VUCCI purchased a house in Ridgefield for $975,000 and continued to make the car payments.
Judge Bryant ordered VUCCI to pay back taxes in the amount of $196,425, as well as substantial interest and penalties.
On October 3, 2013, VUCCI pleaded guilty to one count of tax evasion.
VUCCI was ordered to report to prison on September 9, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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(203) 821-3722 [email protected]Polk County Felon Pleads Guilty to Firearm ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Damian Ramos Ramirez (59, Lakeland), today pleaded guilty to the charge of being a felon in possession of a firearm and ammunition. Ramos Ramirez faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Ramos Ramirez came to the attention of law enforcement officers in May 2013, when he and his wife began purchasing firearms from a Federal Firearms Licensee (FFL), in the Pinellas County area. On December 19, 2013, Ramos Ramirez purchased two Kel-Tec 9mm pistols from the FFL. Later that day, law enforcement officers executed a search warrant at Ramos Ramirez’s home and found numerous firearms and ammunition.
In all, twenty-seven firearms and 1,700 rounds of ammunition were seized in relation to this case. At the time of the incident, Ramos Ramirez was a convicted felon and thus prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco and Explosives. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Pittston Woman Sentenced to over Two Years on Federal Drug ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jennifer
Dowling, 33, of Pittston, Maine, was sentenced yesterday in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 31 months in prison and 3 years of supervised release for distribution of oxycodone. Dowling pleaded guilty to the offense on January 27, 2014.According to court records, on May 9, 2012, the defendant sold over 30 oxycodone pills to a confidential informant working with law enforcement. During sentencing, the court noted that prior to her arrest on this charge, Ms. Dowling was a significant drug trafficker in the
Augusta area.The investigation was conducted by the U.S. Drug Enforcement Administration and the
Kennebec County Sheriff’s Office.Nampa Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Mary Jane Pace, 49, of Nampa, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set for September 9, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, on May 24, 2012, Pace knowingly and intentionally distributed to an undercover police officer, five pills of 40 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $100 in payment. She had obtained the controlled substances by prescription from a provider.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Midlands Men Sentenced in Counterfeiting SchemeRead the Press Release
Contac Persont: Winston Holliday (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Steven Leonard Smart, age 32, of Cayce, Joshua Kendrell Smart, age 25, of Fairfax, and Frederick Shante Redfearn, 25, of Columbia, were sentenced today in federal court in Columbia, South Carolina, for participating in a Conspiracy to Make, Forge, and Pass Counterfeit Money, a violation of 18 U.S.C. § 371. Chief United States District Judge Terry L. Wooten of Columbia sentenced Steven Smart to 38 months imprisonment; Joshua Smart to twenty months imprisonment; and Redfearn to four years of probation.
Evidence presented at the change of plea hearing established that Redfearn was a salesman for Sears. Steven and Joshua Smart, who were brothers, purchased flat screen televisions and an Xbox from a Columbia-area Sears using counterfeit money, and then attempted to return the goods at the Sears in Aiken for genuine currency. Redfearn knew about the fake money but facilitated the sale in exchange for $800 counterfeit money that he could spend himself. Sears employees in Aiken identified the bogus transactions and contacted law enforcement officers. Counterfeiting equipment and additional bogus bills were found at an apartment frequented by the Smart brothers.
The case was investigated by the United States Secret Service. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.# # #
Man Who Defrauded Numerous Oil Companies and Oil Customers Pleads Guilty to Federal Fraud ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC CANNON, 40, of Bridgeport, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud stemming from a scheme to defraud both oil companies and individuals whose oil deliveries he fraudulently brokered.
According to court documents and statements made in court, between approximately February 2010 and April 2011, CANNON, sometimes known as “Marc the Oil Man,” engaged in a scheme to defraud heating oil companies and to obtain money from individuals who received oil deliveries. CANNON posed as a retail customer when dealing with oil companies, and as a bargain oil seller when dealing with property owners. As part of the scheme, CANNON would make an offer to a property owner to sell oil at below market cost in exchange for a cash payment. Then he would contact a retail oil company, set up a fraudulent account using stolen personal identifying information, and place an order for the oil company to deliver home heating oil to a property owned by the property owner. The oil would be delivered to the property as ordered. CANNON would then collect cash for the delivery from the property owner, but he did not remit this payment to the oil company. When the oil company contacted the property owner to collect payment for the oil, the company would discover that the property owner had already made payment to CANNON.
Judge Hall scheduled sentencing for December 3, 2014, at which time CANNON faces a maximum term of imprisonment of 20 years.
CANNON was originally charged in a criminal complaint that was issued on April 13, 2011, and he was a fugitive until his arrest on January 30, 2014. He is currently released on a $100,000 bond.
This matter has been investigated by the United States Secret Service, the Connecticut Financial Crimes Task Force, the North Haven Police Department and the North Branford Police Department. The case is being prosecuted by Assistant U.S. Attorney Krishna R. Patel.
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(203) 821-3722 [email protected]Man Sentenced to 120 Months for Federal Firearms OffensesRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DAQUIAN DEMARD NICHOLSON , 24, of Raleigh to a total of 120 months imprisonment, followed by 3 years of supervised release.
NICHOLSON was named in an Indictment filed on March 21, 2013, charging him with Possession of a Firearm with an Obliterated Serial Number and Possession of a Firearm and Ammunition by a Felon. On August 15, 2013, NICHOLSON pled guilty to these charges.
According to the investigation, on November 5, 2010, in Henderson, North Carolina, a Confidential Informant (CI) bought a firearm from Nicholson, and another person. The firearm had an obliterated serial number.
On February 18, 2013, officers from the Henderson Police Department conducted a traffic stop of a vehicle driven by Jammee Terry due to earlier information that Terry had a firearm and that he was prohibited from having a firearm. Officers detained Terry and NICHOLSON, the passenger of the vehicle. Officers seized a loaded Glock 9-millimeter handgun from under the driver's seat, and a loaded Lorcin 9-millimeter handgun from under the passenger's seat.
Terry is scheduled for sentencing during the Court’s July 8th term of court in New Bern, North Carolina.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Henderson Police Department and the Vance County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette prosecuted the case of the government.
Man Pleads Guilty to Assaulting Jail DeputyRead the Press Release
BOISE – Scott Vincente Hernandez, 42, of Oakland, California, pleaded guilty today in United States District Court to assaulting an Ada County Sheriff’s Deputy, announced U.S. Attorney Wendy J. Olson.
On July 9, 2013, Hernandez and ten others were indicted for conspiracy to distribute methamphetamine. The court ordered that Hernandez be held in custody while that case was pending. Hernandez was committed to the custody of the United States Marshal and confined at the Ada County Jail pursuant to an agreement between the U.S. Marshal and the Ada County Sheriff’s Office. Hernandez admitted in court today that on October 16, 2013, while incarcerated at the Ada County Jail, he assaulted an Ada County Jail Deputy.
U.S. District Judge Edward J. Lodge will sentence Hernandez on both the drug and assault charges on September 9, 2014. The charge of conspiracy to distribute methamphetamine is punishable by a minimum of five years and up to twenty years in prison, a maximum fine of $5 million, and at least four years of supervised release. The assault charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
The drug charges were investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The assault charge was investigated by the U.S. Marshals Service and the Ada County Sheriff’s Office.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatalah, a Libyan national approximately 43 years of age, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“Our nation’s memory is long, and our reach is far,” said U.S. Attorney General Eric Holder. “The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on the U.S. diplomatic facility in Benghazi. Since that attack – which caused the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
“The terrorist attacks on our diplomatic facilities in Benghazi were an affront to our nation and heartbreaking for the families of the four courageous Americans who perished that day,” said John Carlin, Assistant Attorney General for the National Security Division. “Capturing Ahmed Abu Khatallah was a critical step toward bringing him to justice, and we will not rest in our pursuit of the others who attacked our facilities and killed our citizens.”
“In July 2013, Ahmed Abu Khatallah was charged in a sealed criminal complaint in the District of Columbia for his alleged role in the attacks that resulted in the murders of four American citizens, including Ambassador Christopher Stevens, in Benghazi, Libya,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “Khatallah will now face justice in an American courtroom. We remain committed to holding accountable all of those responsible for the murders of those brave U.S. citizens who were serving our country in Libya.”
The charges were announced upon the unsealing of a three-count criminal complaint. The lead count in the complaint is a death-eligible offense. The complaint, which was filed under seal on July 15, 2013, in the United States District Court for the District of Columbia, charges Khatallah with:-- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
-- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
-- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Khatallah is in U.S. custody, and upon his arrival to the U.S. he will be promptly presented before a federal judge in Washington, D.C., and appointed counsel.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
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Libyan National Charged with Federal OffensesIn 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
FOR IMMEDIATE RELEASE
Tuessday, June 17, 2014WASHINGTON - Ahmed Abu Khatallah, aka Ahmed Mukatalah, a Libyan national approximately 43 years of age, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“Our nation’s memory is long, and our reach is far,” said U.S. Attorney General Eric Holder. “The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on the U.S. diplomatic facility in Benghazi. Since that attack – which caused the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
“The terrorist attacks on our diplomatic facilities in Benghazi were an affront to our nation and heartbreaking for the families of the four courageous Americans who perished that day,” said John Carlin, Assistant Attorney General for the National Security Division. “Capturing Ahmed Abu Khatallah was a critical step toward bringing him to justice, and we will not rest in our pursuit of the others who attacked our facilities and killed our citizens.”
“In July 2013, Ahmed Abu Khatallah was charged in a sealed criminal complaint in the District of Columbia for his alleged role in the attacks that resulted in the murders of four American citizens, including Ambassador Christopher Stevens, in Benghazi, Libya,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “Khatallah will now face justice in an American courtroom. We remain committed to holding accountable all of those responsible for the murders of those brave U.S. citizens who were serving our country in Libya.”
The charges were announced upon the unsealing of a three-count criminal complaint. The lead count in the complaint is a death-eligible offense.
The complaint, which was filed under seal on July 15, 2013, in the United States District Court for the District of Columbia, charges Khatallah with:
-- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
-- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
-- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Khatallah is in U.S. custody, and upon his arrival to the U.S. he will be promptly presented before a federal judge in Washington, D.C., and appointed counsel.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
14-139Lexington County Sherriff James Metts Indicted in Connection with Bribery Scheme to Aid Illegal AliensRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that James R. Metts (68), of Lexington, SC, was charged by a federal grand jury in a 10-count indictment. According to allegations in the Indictment, Metts accepted bribes from friends in return for using his position, power, and influence as Sherriff to interfere with the proper identification and processing of certain illegal aliens detained at the Lexington County Detention Center. Two others, Danny Frazier (46) and Greg Leon (47), both of Lexington, SC, have been charged by the State Grand Jury with bribing Metts.
United States Attorney Bill Nettles was joined in making the announcement by South Carolina Attorney General Alan Wilson, Special Agent in Charge David A. Thomas of the Federal Bureau of Investigation; Assistant Special Agent in Charge Kenneth R. Burkhart of Homeland Security Investigations; and Chief Mark Keel of the State Law Enforcement Division.
“Public corruption at any level will not be tolerated,” said United States Attorney Bill Nettles. “These indictments are a product of a new team at the United States Attorney’s Office whose goal is to use an unprecedented level of cooperation with state and federal agencies in routing out public corruption and returning public trust to the people.”
Metts was charged with Conspiracy to Violate Federal Law and Interfere with Government Function (18 U.S.C. §371), Use of Interstate Facility to Facilitate Bribery in violation of South Carolina Code Sections 8-13-705 and 16-9-220 (18 U.S.C. §1952), Use of Interstate Wire to Defraud the Citizens of Lexington County of Their Right to Honest Services (18 U.S.C. §1343, 1346), and Conspiracy to Harbor Illegal Aliens (8 U.S.C. §1324).
The charge of Conspiracy to Violate Federal Law and Interfere with Government Function carries a maximum sentence of 5 years and a $250,000 fine; each charge of Use of Interstate Facility to Facilitate Bribery carries a maximum sentence of 5 years and a $250,000 fine; each charge of Use of Interstate Wire to Defraud the Citizens of Lexington County of Their Right to Honest Services carries a maximum sentence of 20 years and a $250,000 fine; and the charge of Conspiracy to Harbor Illegal Aliens carries a maximum sentence of 10 years and a $250,000 fine. Additionally, these charges include a maximum term of supervised release following imprisonment of 3 years.
This multi-agency investigation included the Federal Bureau of Investigation; Homeland Security Investigations; State Law Enforcement Division (SLED); and South Carolina Attorney General’s Office, and is assigned to Assistant United States Attorneys Nancy Wicker, Julius N. Richardson, and James H. May for prosecution.
The United States Attorney stated that all charges in this indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
View Full Indictment Here#####
Las Vegas Man Pleads Guilty to False StatementsRead the Press Release
In Connection With The Purchase Of FirearmsCONCORD, NEW HAMPSHIRE – David Reiter, 57, of Las Vegas, Nevada, pleaded guilty to one count of making false material statements in connection with the purchase of eight firearms, announced United States Attorney John P. Kacavas.
On June 1, 2006, Reiter purchased eight firearms from a federally licensed firearms dealer located in New Hampshire. At the time of the purchase, Reiter completed a Form 4473 with respect to the firearms on which he claimed to be a New Hampshire resident and also claimed that he was the actual buyer of the firearms. On the date of the purchase, Reiter was not a New Hampshire resident and he was not the actual buyer of the firearms. Reiter purchased the firearms and delivered them to a third party.
United States Attorney John P. Kacavas praised the efforts of federal law enforcement in this case and said, “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our state and federal partners to enforce federal gun laws.”
Reiter faces a statutory maximum sentence of ten years in prison and a $250,000 fine and is scheduled to be sentenced on September 22, 2014 at 10:30 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by First Assistant United States Attorney Don Feith.
Johnstown Woman Conspired to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, pleaded guilty in federal court to a charge of conspiracy to distribute and possess cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Donna M. Hawk, 48, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 31, to April 23, 2013, Hawk conspired with co-defendants to distribute more than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Dec. 4, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Hawk on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Hawk.
Iberia Parish Man Pleads Guilty to Traveling to North Carolina to Have Sex with MinorRead the Press Release
LAFAYETTE, La. – A New Iberia man pleaded guilty to traveling to North Carolina in order to have sex with a minor, U.S. Attorney Stephanie A. Finley announced today.
Ray Paul Dionne, 55, of New Iberia, La., pleaded guilty before U.S. District Judge Richard T. Haik, to one count of travel with the intent to engage in illicit sexual conduct. According to evidence presented at the guilty plea, Dionne admitted that he traveled to North Carolina on two occasions in June and August of 2012 to engage in sexual contact with a minor under the age of 12. On August 27, 2012, when law enforcement learned that Dionne was staying at a North Carolina residence, they entered the residence and discovered Dionne lying in bed with the child.
Dionne faces five to 30 years in prison, five years to life of supervised release, and a $250,000 fine. A sentencing date has not been set.
The Iberia Parish Sheriff’s Office, Boiling Point Springs Police Department, Brunswick County Sheriff’s Office, and the U.S. Marshal’s Service conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Habitual Domestic Violence Offender Sentenced to Seventy Months for Assaulting Pregnant GirlfriendRead the Press Release
ALBUQUERQUE – Tayah Edwards, 41, was sentenced this morning to 70 months in federal prison followed by three years of supervised release for his conviction on assault charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Edwards, an enrolled member of the Navajo Nation who resides in Cudei, N.M., was arrested in Aug. 2013, based on a criminal complaint alleging that he assaulted his domestic partner with dangerous weapons, including a stick, a knife and a rock. According to court filings, the assault occurred at a location within the Navajo Indian Reservation on Aug. 20, 2013. The victim, who was pregnant, sustained numerous injuries, including a compound fracture to her left leg, a large scalp laceration and multiple contusions, as a result of the assault.
On November 12, 2013, Edwards pled guilty to a felony information charging him with assault resulting in serious bodily injury and domestic assault by a habitual offender. Edwards admitted assaulting his intimate partner by striking her in the head and face numerous times and hitting her repeatedly with a stick and a rock. In his plea agreement, Edwards acknowledged that the victim, who was 35 weeks pregnant with the couple’s child at the time of the assault, sustained serious injuries as a result of the assault. Edwards also admitted that he previously has been convicted on at least two occasions for assaulting his spouse or intimate partner in Utah state courts.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Special Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Gloucester Woman Pleads Guilty to Making A False Distress CallRead the Press Release
NEWPORT NEWS, Va. – Ashley Strum-Smith, age 29, of Gloucester, Va., pleaded guilty yesterday to Making a False Distress Call.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Rear Admiral Stephen Metruck, District Commander of the Fifth Coast Guard District, made the announcement after the plea was accepted by United States District Judge Robert G. Doumar.
Strum-Smith pleaded guilty to a criminal information filed in United States District Court on May 27, 2014. Strum-Smith faces a maximum penalty of six years imprisonment, a fine of $250,000 and $82,764 in restitution when she is sentenced on October 20, 2014 in Norfolk, Va..
According to a statement of facts filed with the plea agreement, on August 13, 2012, Strum-Smith called in a false report of a ship taking on water in the Severn River. Multiple rescue vehicles from the Abingdon Volunteer Fire and Rescue Squad, Gloucester Fire Department, York County Fire Department, Mathews Fire Department and the United States Coast Guard were dispatched to locate and aid the foundering vehicle. After a two hour search costing over $82,000 it was determined that the call was a hoax. Strum-Smith admitted making the false report.
This case was investigated by the Coast Guard Criminal Investigative Service and the Gloucester County Sheriff’s Department Assistant United States Attorney Eric M. Hurt 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.Four Additional Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings, Kidnapping, Extortion and Witness Tampering
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment today charging the following four additional defendants, all of Hyattsville, in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:Hector Daniel Villanueva-Cortez, a/k/a “Muertito,” age 24; Roni Arriola-Palma, a/k/a “Maniako,” age 24; Luiz Guzman-Ventura, a/k/a “Casper,” and “Chele,” age 20, and
Jose Rodriguez-Nunez, a/k/a “El Killer,” age 25.The second superseding indictment was returned yesterday, June 16th, under seal and unsealed today at the initial appearance for Arriola-Palma this afternoon in federal court in Greenbelt. Arriola-Palma was arrested this morning by HSI agents, as a result of assistance provided by the Prince George’s County Sheriff’s Office. Charges remain pending against eight of the original defendants, listed below. A ninth original defendant, Francisco Hernandez, aka “Chicle,” age 21, of Silver Spring, Maryland, has pleaded guilty to his participation in the conspiracy. All of the defendants are in custody.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI's highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. "Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, kidnapping, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly committed extortion and witness tampering, among other crimes.
More specifically, the second superseding indictment alleges the following additional acts. On January 3, 2010, co-defendant Wilmer Argueta and other MS-13 members attempted to kidnap and assault two victims in the area of East West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
The second superseding indictment alleges that on January 13, 2011, Arriola-Palma drove a van containing defendants Argueta, Carlos Beltran-Flores and Miguel Angel Manjivar. They passed a victim walking on the side of the road near the Fort Totten Metro Station. After getting out of the vehicle, they sprayed the victim with pepper spray, dragged him into the van and held him on the van floor, kicking and stabbing him while they drove to the area of Chillum Manor Road in Hyattsville. The defendants allegedly attempted to murder the victim by strangling him with a belt, stripping him of his clothes and stabbing him repeatedly. The defendants took the victim’s belongings and left him naked and unconscious in the woods, believing that he was dead.
According to the second superseding indictment, from around September to November 2011, defendant Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. The indictment also alleges that on December 4, 2013, Villanueva-Cortez and another MS-13 member attempted to murder a suspected rival gang member.
The indictment further alleges that on December 5, 2012, Rodriguez-Nunez and Guzman-Ventura were driving in the area of 23rd and Sheridan Avenue in Hyattsville when they spotted four individuals crossing a street frequented by rival gang members. After waiting for the individuals to pass, Rodriguez-Nunez and Guzman-Ventura fired several shots at the group, killing one of the victims and attempting to murder the other three.
The indictment also alleges that on March 9, 2014, while in custody in Washington, D.C., defendants Minor Perez-Chach and Melvin Marquez-Sanchez attacked and stabbed another inmate when that person refused their demands to join MS-13.
All four additional defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Villanueva-Cortez also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Villanueva-Cortez, Guzman-Ventura and Rodriguez-Nunez are expected to have their initial appearances in the next week in federal court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The following defendants were named in the superseding indictment, and charges remain pending against them in the second superseding indictment:
Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights; Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York; Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland; Wilmer Argueta, a/a “Chengo” and “Happy,” age 22, of Hyattsville; Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville; Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias, age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 22, of Hyattsville.United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, the Takoma Park Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Founder of Ukraine-Based Hardcore Child Sexual Assault Website Sentenced in New Jersey to 30 Years in PrisonRead the Press Release
Investigation Led to Conviction of More Than 600 American Subscribers to Illegal Site
NEWARK, N.J. – A Ukrainian man who founded and ran an international hardcore child sexual abuse website was sentenced today to 360 months in prison for his role in a child exploitation enterprise, U.S. Attorney Paul J. Fishman announced.Maksym Shynkarenko, 35, of Kharkov, Ukraine, previously pleaded guilty to Count 31 of an indictment charging him with conducting a child exploitation enterprise in connection with a website he operated between 2005 and 2008. The investigation into that website has led to convictions in 47 states of more than 600 American consumers of hardcore images of children being sexually assaulted and abused.
Shynkarenko was initially detained in Thailand in January 2009 pending extradition. He was transported to the United States, where he has been in custody since making his initial court appearance in June 2012. He pleaded guilty to the charge Jan. 8, 2014, before U.S. District Judge William H. Walls, who also imposed the sentence today in Newark federal court.
“Shynkarenko worked the supply side of a market that sells images of the most depraved, predatory abuse of children,” said U.S. Attorney Fishman. “Those images endure – as do the wounds inflicted when they were created and when others look at them. Shynkareko appropriately will spend decades of his life paying for significantly fostering the international consumption of documented child sex abuse.”
“The massive HSI investigation that led to today’s sentencing of an international, hardcore child sex abuse website founder is directly tied to more than 600 other criminal convictions for child pornography across 47 states, including dozens of individuals who were already convicted sex offenders,” said Andrew McLees, special agent in charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) Newark. “Today’s sentencing illustrates HSI Newark’s ongoing commitment to identify and seek prosecution of criminals who destroy lives by preying on innocent children. The website operated by Shynkarenko not only offered subscribers access to thousands of images and videos showing graphic, unimaginable child sexual abuse, but it further exploited these victims by making money off their mistreatment. As we did in this case, HSI and our international law enforcement partners will continue to use every tool at our disposal to track down those who exploit children and bring them to justice.”
According to documents filed in this case and statements made in court:
From at least 2005 through mid-2008, Shynkarenko operated from Ukraine a website, that he helped design, which offered access to thousands of images and videos of child sexual abuse. Subscribers typically paid a fee of $79.99 for a 20-day subscription to the website. Shynkarenko worked in conjunction with other individuals, including one from Siberia who helped process credit card payments in a way that disguised the true nature of the purchases. Shynkarenko and the others operating the website granted access to images and videos to subscribers on hundreds of occasions from 2005 to 2008.
During his guilty plea proceeding, Shynkarenko said he worked with other individuals who advertised the child pornography website over the Internet under names such as “Illegal.CP” and “Pedo Heaven.”
HSI agents first located the child pornography website operated by Shynkarenko in October 2005 – based in part on e-mails recovered from the computer of an individual in Long Branch, N.J. At that time, the banner page of the site identified it as “Illegal.CP,” and the page featured more than a dozen images of minors engaged in sexual acts with other minors and adults. That page declared “[n]ow you are in [sic] few minutes away from the best children porn site on the net!” and “[i]f you join this site you will get tons of uncensored forbidden pics . . . forbidden stories, of course, many videos.” The words “join now” appeared at the top and bottom of the page.
Working with the U.S. Attorney’s Office for the District of New Jersey, HSI agents in Newark were able to identify hundreds of individuals who subscribed to the “Illegal.CP” website between November 2005 and February 2006. Those leads, largely developed through agents’ monitoring of the website, led to what became a three-phase investigation: Operation Emissary, Emissary II, and Thin Ice. In late 2006, agents recovered a database of hundreds of additional individuals whose credit cards had been processed while subscribing to the “Illegal.CP” website. During the third phase in 2008, the continued investigation by HSI agents focused more on the operators of the website, including Shynkarenko, and recovered evidence of hundreds of additional individuals who had attempted to subscribe.
The leads, along with master search warrants prepared by the New Jersey U.S. Attorney’s Office, were distributed to HSI offices and U.S. Attorney’s Offices throughout the nation. The investigation has led to the conviction of more than 600 individuals in 47 states, making the investigation one of the most successful child sexual abuse investigations in the nation’s history. A list of the more than 600 American consumers of images of child sexual abuse convicted as a result of the investigation and the sentences they received was made available at the time of Shynkarenko’s guilty plea, and can be accessed at http://go.usa.gov/9c93.
In addition to the prison term, Judge Walls sentenced Shynkarenko to serve a lifetime of supervised release, and noted he would be required to register as a sex offender, but would likely be deported. In sentencing Shynkarenko, Judge Walls referred to his conduct as “one of the most serious crimes imaginable in our culture as human beings.”U.S. Attorney Fishman credited HSI special agents, under the direction of Special Agent in Charge McLees, for the investigation leading to today’s guilty plea. He also thanked the United States Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its work in transporting Shynkarenko from Thailand, and acknowledged the important work of Thai authorities. U.S. Attorney Fishman also thanked the numerous HSI offices and U.S. Attorney’s Offices around the country which prosecuted the cases that secured the 600 convictions achieved during Operations Emissary and Operation Thin ICE, and thanked the Department of Justice’s Office of International Affairs and Child Exploitation and Obscenity Section for their important roles.
The government is represented by Senior Litigation Counsel Mark J. McCarren and Assistant U.S. Attorney Danielle Walsman of the U.S. Attorney’s Office in Newark and Attorney in Charge Harvey Bartle IV in Trenton.
14-219
Defense counsel: Nicholas Wooldridge Esq. and Arkady Bukh Esq., Brooklyn, N.Y.
Former Maryland Division of Corrections Lieutenant Sentenced for Obstruction of JusticeRead the Press Release
Edwin Stigile III, formerly a lieutenant at the Roxbury Correctional Institution (RCI) in Hagerstown, Maryland, was sentenced today by U.S. District Court Judge James K. Bredar to serve 36 months in prison for obstruction of justice in connection with his involvement in a series of assaults against an inmate, Kenneth Davis, at RCI.
On Jan. 9, 2014, Stigile pleaded guilty to a charge of destruction of records. According to court documents filed in connection with his guilty plea, Stigile acknowledged that he intentionally used a magnetic device to erase incriminating surveillance video footage related to the RCI officers’ assaults of Davis. RCI officers from three different shifts assaulted Davis in March 2008, in retaliation for a prior incident in which Davis struck an officer. Stigile also instructed an officer to hide the magnetic device after the surveillance footage was destroyed. In September 2012, Stigile made false and misleading statements to federal authorities and a federal grand jury in an attempt to obstruct the federal investigation related to the assaults.
“The defendant participated in the cover-up of the assaults suffered by Mr. Davis, and then he lied to cover up this crime,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The defendant’s actions run completely counter to the responsibilities and trust given to a supervisor at a correctional facility. The Justice Department will continue to vigorously prosecute those officers who, like this defendant, try to cover up the misconduct of other officers.”
To date, 16 current or former officers at RCI were convicted in connection with the series of assaults that Davis suffered on March 8 through 9, 2008. One former officer still awaits sentencing.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Former Manager Pleads Guilty to Embezzling from A Lawrence Credit UnionRead the Press Release
TOPEKA, KAN. – A former manager of a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $93,500, U.S. Attorney Barry Grissom said. She also admitted allowing a teller to steal more than $81,000 from the credit union.
Karolyn J. Stattelman, 42, Topeka, pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime took place while she was manager of the Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She manipulated credit union accounts for money orders, share drafts, ATM and returned checks in order to conceal the thefts.
She also allowed co-defendant Christi Marie Hout, who was a teller, to write checks on Hout’s personal and business accounts when she did not have sufficient funds to cover them. Hout has pleaded guilty to one count of theft of credit union funds.
Stattelman and Hout will be set for sentencing at a later time. They each face a maximum penalty of 30 years in federal prison and a fine up to $1 million.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Former Chicago Tax Preparer Sentenced to Six Years in Federal Prison for Tax and Unemployment Insurance Fraud SchemesRead the Press Release
CHICAGO ― A suburban Chicago woman was sentenced to six years in federal prison for operating a federal income tax fraud scheme as well as one of the largest fictitious employer unemployment fraud schemes ever prosecuted nationwide. The defendant, JACQUELINE KENNEDY, who owned a south side tax preparation business, engaged in one scheme to falsely claim federal tax refunds and, together with 15 co-defendants, engaged in a related scheme using the identities of other individuals, including some of her tax service clients, to fraudulently obtain millions of dollars from state unemployment insurance agencies in Illinois, Indiana and four other states.
Kennedy, 41, formerly of Country Club Hills, received the six-year prison term and was ordered to pay more than $4.8 million in restitution last Thursday by U.S. District Judge Joan Lefkow. Kennedy and her co-defendants were indicted in April 2012, and, after initially being released on bond, Kennedy became a fugitive in September 2012 while she continued to commit unemployment insurance fraud. She was arrested in December 2012 and has remained in federal custody.
Judge Lefkow said Kennedy’s conduct “undermines the public’s confidence in the validity of state unemployment programs.” Kennedy has been defiant and “made choices knowing full well they were illegal,” the judge added.
Kennedy pleaded guilty in December to one count of making false claims for tax refunds, one count of wire fraud, and three counts of mail fraud. Kennedy owned and managed ATAP Financial Enterprises, Inc., ATAP Tax & Business Solutions, Inc., and ATAP Tax Services, Inc., (collectively ATAP), all tax preparation businesses located at one time at 1757 West 95th St., in Chicago. Between January 2008 and April 2010, Kennedy prepared more than 200 false income tax returns by attaching false W-2 forms from fictitious entities to her clients’ tax returns to inflate their Earned Income Tax Credit.
Between February 2009 and December 2012, Kennedy and her co-defendants registered 97 fictitious companies they created with state unemployment agencies and then filed more than 900 false unemployment insurance claims for fictional employees who were purportedly terminated from the fictitious companies without fault. Proceeds from the claims were deposited on debit cards that Kennedy and her co-defendants used to withdraw the proceeds of their scheme.
After a sentencing hearing on May 30, Judge Lefkow ruled last week that Kennedy alone was responsible for restitution totaling $4,815,740, consisting of a $546,619 loss resulting from the tax fraud scheme, and an actual loss of $4,269,121 from the unemployment insurance benefits fraud scheme. She also found that Kennedy intended a loss of more than $13.8 million from the unemployment fraud scheme.
In total, Kennedy and co-defendants bilked state unemployment insurance agencies in Illinois, Indiana, Kansas, Minnesota, Mississippi, and Oklahoma out of approximately $9.1 million, including nearly $6 million from the Illinois Department of Employment Security.
In addition to Kennedy, who was a leader and organizer of the schemes, all 15 codefendants have been convicted, and 11 of them have been sentenced to terms ranging from probation to three years in prison, while four others are awaiting sentencing.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Social Security Administration Office of Inspector General also assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Michelle Petersen and Andrianna Kastanek.
Former Attorney Pleads Guilty to Lying to Federal Investigators About His Role in A Million-Dollar Fraud SchemeRead the Press Release
Earlier today, Barry Stephen Zornberg pleaded guilty at the federal courthouse in Central Islip, New York, to lying to federal investigators about his role in a million dollar foreclosure rescue fraud scheme. The scheme ensnared at least ten families, defrauding them of approximately $1.3 million in home equity and caused some of them to lose their homes. Zornberg faces up to five years of imprisonment. As a part of the plea agreement, Zornberg has agreed to pay a total of $1,261,149.50 to the victims of the foreclosure rescue fraud scheme.
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, New York Field Office Criminal Division, Federal Bureau of Investigation (FBI); and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (USPIS).
“The defendant, a disbarred attorney, has now admitted to a judge that he lied to federal investigators about the role that he played in this fraud scheme, which took advantage of people who were looking to save their homes from foreclosure. A license to practice law is not a license to steal or lie,” stated United States Attorney Lynch. “We are committed to protecting our communities from the abuses of fraud. I would like to thank our partners at the Federal Bureau of Investigation and the United States Postal Inspection Service for their hard work on this important investigation.”
The foreclosure rescue fraud was perpetrated out of Empire Property Solutions, LLC (AEmpire@) in Bethpage, New York. Empire held itself out to be a home foreclosure rescue specialist operated by John Rutigliano and Kenneth Kiefer. On November 4, 2011, a federal grand jury returned an indictment charging Rutigliano and Kiefer with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and two counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Rutigliano and Kiefer encouraged distressed homeowners to “refinance” their homes with Empire, when, in reality, the homeowner victims were tricked into transferring title in their homes to straw buyers and paying large fees to Empire. Zornberg conducted real estate closings and provided other legal services to Empire. Rutigliano and Kiefer used the escrow accounts of Zornberg’s law firm to hold and transfer funds during the scheme. Zornberg falsely told federal investigators that he advised the victims to not participate in the scheme when, in fact, he encouraged the victims to sign over their homes to Rutigliano and Kiefer, thereby losing title to their homes. Kiefer has since pleaded guilty to the charges.1
The guilty plea proceeding took place before United States Magistrate Judge William D. Wall.
The defendant’s sentencing has not yet been scheduled.
The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.
The Defendants:
BARRY STEPHEN ZORNBERG
Age: 54
Hauppauge, New York
_________________________________________________________________________
1 Rutigliano died while the charges were still pending.
Federal Grand Jury IndictmentRead the Press Release
Contac Persont: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment(s) against the following:Maryland Man Indicted for Wire Fraud
Charles Brown, age 53, of Laurel, Maryland was charged in a 17-count indictment with Wire Fraud, a violation of Title 18, U. S. C. §1343. The indictment charges that, between in or about March of 2009, and continuing to in or about October 2012, Mr. Brown devised scheme to defraud the United States and to obtain money and property from the United States by means of materially false and fraudulent pretenses, representations, and promises. The indictment alleges that scheme involved The Service-Disabled Veteran-Owned Small Business Concern Procurement Program.
The maximum penalty Brown could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Veterans Administration OIG and is assigned to Assistant United States Attorney John Potterfield of the Columbia office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.# # #
Federal Government and State Attorneys General Reach Nearly $1 Billion Agreement with SunTrust to Address Mortgage Loan Origination as Well as Servicing and Foreclosure AbusesRead the Press Release
The Justice Department, Department of Housing and Urban Development (HUD), and the Consumer Financial Protection Bureau (CFPB), along with 49 state attorneys general and the District of Columbia’s attorney general have reached a $968 million agreement with SunTrust Mortgage Inc. (SunTrust) to address mortgage origination, servicing, and foreclosure abuses.
The joint agreement is the result of extensive investigations by federal agencies, including the Department of Justice, HUD and the HUD Office of the Inspector General (HUD-OIG), CFPB and state attorneys general across the country, and includes recoveries for both improper mortgage origination and servicing practices.
“SunTrust’s conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis,” Attorney General Eric Holder said. “From mortgage origination to servicing to securitization, the Department of Justice is attacking every facet of conduct that led to the Great Recession. We will continue to hold accountable financial institutions that, in the pursuit of their own financial interests, misuse public funds and cause harm to hardworking Americans. We expect that there will be more cases like this to come.”
“This agreement, which totals nearly $1 billion, not only holds SunTrust accountable for years of abusive practices mortgage origination practices; it also provides for restoration,” said Associate Attorney General Tony West. “By the terms of this resolution, SunTrust is required to provide $500 million in consumer relief for homeowners as well as abide by terms that will help to prevent the abuses of the past from being repeated. It's a result attained thanks to the close coordination among our enforcement agency partners throughout the government."
As part of the settlement, SunTrust has agreed to pay $418 million to resolve its potential liability under the federal False Claims Act for originating and underwriting loans that violated its obligations as a participant in the Federal Housing Administration (FHA) insurance program. As a participant in that program, SunTrust had the authority to originate, underwrite and certify mortgages for FHA insurance.
SunTrust admitted that between January 2006 and March 2012, it originated and underwrote FHA-insured mortgages that did not meet FHA requirements, that it failed to carry out an effective quality control program to identify non-compliant loans, and that it failed to self-report to HUD even the defective loans it did identify. SunTrust also admitted that numerous audits and other documents disseminated to its management between 2009 and 2012 described significant flaws and inadequacies in SunTrust’s origination, underwriting, and quality control processes, and notified SunTrust management that as many as 50 percent or more of SunTrust’s FHA-insured mortgages did not comply with FHA requirements. For example, a 2012 internal SunTrust document noted two “significant” issues that had been plaguing the company for years – a “Broken Loan Origination Process” coupled with a “Deficient Government Insuring Process.” Other reports received by SunTrust management described its quality control program as “severely flawed” and “ineffective.” These reports described to management that the volume of problems in the program was “excessive,” and that the error rates were “elevated” and at an “unacceptable level.”
“SunTrust’s irresponsible FHA lending practices caused grievous harm to homeowners and the housing market, as well as wasting hundreds of millions of dollars in taxpayer funds,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement demonstrates, we will continue to hold accountable financial institutions that misuse public funds and ruin the lives of hardworking Americans in the pursuit of their own financial interests.”
The servicing portion of the agreement parallels the $25 billion National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia’s attorney general and the five largest national mortgage servicers. Under the agreement announced today, SunTrust has agreed to provide $500 million in additional relief in the next three years directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates for homeowners who are current but underwater on their mortgages, and other relief. The settlement will likely provide direct benefits to borrowers far in excess of $500 million because SunTrust will not be permitted to claim credit for every dollar spent on the required consumer relief. SunTrust has also agreed to pay $50 million in cash to redress its servicing practices, $40 million of which will be distributed to borrowers and homeowners through the Borrower Payment Fund established by the NMS and administered by the states.
“This agreement with SunTrust is another step forward in the Obama Administration’s ongoing effort to hold mortgage lenders accountable,” said HUD Acting Deputy Secretary Helen Kanovsky. “By using the framework of the National Mortgage Settlement, we will ensure that SunTrust provides mortgage relief to struggling homeowners in the hardest hit communities and changes their worst practices. HUD will continue working with the Department of Justice, CFPB and state attorneys general to hold lenders accountable and require them to institute practices that are beneficial to borrowers and the FHA fund.”
“The culmination of this case today represents the long hours dedicated by auditors, investigators, counsel and the data analytics team in the Office of Inspector General to address the significant problems we identified in SunTrust’s underwriting,” said HUD Inspector General David A. Montoya. “The case begins and ends with the crucial work produced by this office and the commitment by my staff to work with the Department of Justice, HUD and others in a concerted effort to combat misrepresentation and fraud against vital government programs. My office will continue to aggressively seek out instances in which the FHA, and by extension the American taxpayer, are harmed by misconduct that should not be tolerated.”“Deceptive and illegal mortgage servicing practices have pushed families into foreclosure and devastated communities across the nation,” said CFPB Director Richard Cordray. “Today’s action will help homeowners and consumers harmed by SunTrust’s unlawful foreclosure practices. The Consumer Bureau will continue to investigate mortgage servicers that mistreat consumers, and we will not hesitate to take action against any company that violates our new servicing rules.”
“Homeownership is the bedrock of the American dream, and we continue to address the many mortgage servicing nightmares that homeowners across the country experienced for years,” said Iowa state Attorney General Tom Miller. “State attorneys general are working across party lines with our federal partners to address past practices, and we’re trying to ensure that borrowers are treated more fairly in the future.”
The joint federal-state agreement also requires SunTrust to implement significant changes in how they service mortgage loans, handle foreclosures, and ensure the accuracy of information provided in federal bankruptcy court. The agreement requires new servicing standards which will prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create dozens of new consumer protections. The new standards provide for strict oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court.
The new servicing standards ensure that foreclosure is a last resort by requiring SunTrust to evaluate homeowners for other loss mitigation options first. In addition, SunTrust is restricted from foreclosing while the homeowner is being considered for a loan modification. The new standards also include procedures and timelines for reviewing loan modification applications and give homeowners the right to appeal denials. SunTrust will also be required to simplify the process for homeowners needing help by creating a single point of contact for borrowers seeking information about their loans and—importantly—maintaining adequate staff to handle calls.
The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor, Joseph A. Smith Jr., who is also the monitor for the NMS. Smith has served as the North Carolina Commissioner of Banks since 2002, and is also the former Chairman of the Conference of State Banks Supervisors (CSBS). The monitor will oversee implementation of the servicing standards required by the agreement; impose penalties of up to $1 million per violation (or up to $5 million for certain repeat violations); and publish regular public reports that identify any quarter in which a servicer fell short of the standards imposed in the settlement.
The agreement resolves potential violations of civil law based on SunTrust’s deficient mortgage loan origination and servicing activities. The agreement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by SunTrust, or from punishing wrongful securitization conduct that is the focus of the Residential Mortgage-Backed Securities Working Group of President Barack Obama’s Financial Fraud Enforcement Task Force. The agreement does not prevent the CFPB from pursing civil enforcement actions against SunTrust for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014. State attorneys general also preserved, among other things, all claims against the Mortgage Electronic Registration Systems (MERS), and all claims brought by borrowers. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.SunTrust is a mortgage lender and servicer headquartered in Richmond, Virginia, and is a wholly-owned subsidiary of SunTrust Banks Inc., a bank and financial services company headquartered in Atlanta, Georgia.
The settlement announced today was the result of investigations conducted by the Civil Division and the U.S. Trustee Program of the Department of Justice, state attorney general offices throughout the country, HUD-OIG and HUD’s FHA, and the CFPB. The Department of the Treasury, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the Department of Veterans Affairs and the U.S. Department of Agriculture also made critical contributions.
The joint federal-state agreement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force, visit: www.stopfraud.gov.Ephren Taylor, II, Leader of “Building Wealth Tour,” Arrested on Fraud ChargesRead the Press Release
ATLANTA - Ephren Taylor, II, has been arrested on a federal indictment charging him and another defendant with defrauding investors across the country of more than $5 million.
“Mr. Taylor came into our community, promising hard-working citizens a way to make their retirement money go farther,” said United States Attorney Sally Quillian Yates. “The investments he pitched proved to be worthless, along with his promises.”
“This case demonstrates the wide-reaching effects of fraudulent investment schemes, its impact on innocent victims, our northern Georgia communities, and the importance of cooperation among our law enforcement partners to suppress this type of criminal activity," said Reginald Moore, Special Agent in Charge of the United States Secret Service Atlanta Field Office.
“Illegal activity involving the investment industry has brought financial ruin to many Americans,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “The indictment of Mr. Taylor illustrates our commitment to pursuing those individuals who victimize investors, violate the public trust and enrich themselves financially at the expense of the investor.”
According to United States Attorney Yates, the charges, and other information presented in court: From at least April 2009 through October 2010, Ephren Taylor, II, then CEO of City Capital Corporation, and his co-defendant Wendy Connor, the former COO of City Capital Corporation, participated in a conspiracy to defraud investors. The scheme allegedly defrauded hundreds of investors of more than $5 million nationwide.
As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations. During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity. One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga. While there, Taylor and Connor met potential investors to discuss possible investments. Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.
The investments pushed by Taylor included investing in promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations. Taylor is alleged to have falsely represented the revenues and returns for these businesses knowing that they were not profitable.
Taylor also pushed an investment in sweepstakes machines. Sweepstakes machines are computers loaded with various games that allow players to win cash prizes. Taylor published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns. He also stated that the sweepstakes machine investments were 100% risk free.
Taylor allegedly knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.
As part of the scheme, Taylor, 31, of Overland Park, Kan., encouraged investors to use self-directed IRAs to make their investments. Many victims transferred their retirement savings to trust companies that acted as custodians for self-directed IRAs, expecting these funds to be used to fund the investments pushed by Taylor.
After victims funded their self-directed IRAs, Taylor and others directed the use of those funds. The money allegedly was not invested as promised, but rather was used to pay ongoing business expenses of City Capital, pay personal expenses for Taylor, and in some limited instances, to pay supposed returns to earlier investors.
Taylor was indicted by a federal grand jury on June 10, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Secret Service and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Deported Alien Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH - An alien found in Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Hernandez-Segura, 35, of El Salvador, as the sole defendant.
According to the indictment presented to the court, Jose Hernandez-Segura, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 25, 2012. Jose Hernandez-Segura was found to be illegally present in Allegheny County, Pennsylvania, on April 19, 2014.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.