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17 June 2014
Denver Man Ordered Held Without Bond After Being Arrested for Receipt and Possession of Child PornographyRead the Press Release
U.S. Postal Inspectors and U.S. Attorney’s Office release photo of defendant and ask for the public’s help to see if the defendant had inappropriate sexual contact with minors
DENVER – A Denver man facing child pornography charges was ordered held without bond yesterday by U.S. Magistrate Judge Michael J. Watanabe after the court found the defendant, John Lee Mudgett, was a danger to the community. Mudgett, age 67 of Denver, faces charges of receiving and possessing child pornography, United States Attorney John Walsh and Denver Division U.S. Postal Inspector in Charge Adam P. Behnen announced. He was arrested without incident on June 4, 2014.
According to the affidavit in support of the Criminal Complaint, during an undercover investigation, it was determined that Mudgett had made 34 orders of child pornography via the internet, purchasing 70 items costing him a total of $2,047.92. These orders were made between July 9, 2007 and April 1, 2011. On June 4, 2014, Postal Inspectors and other law enforcement agents executed a search warrant at the residence of John Lee Mudgett. The majority of the items he ordered from the website and that were delivered via U.S. Mail were recovered from his residence. Inspectors also found a large cache of child pornography and child erotica during the search. The child pornography and child erotica were located in both electronic and hard copy formats.
The residence consisted of two bedrooms, one of which was utilized as a home office. Both the bedroom and home office contained framed photographs of nude, prepubescent males and females hanging on the walls. In addition to the framed photographs, there were printouts of child pornography and child erotica in plain view in the residence. Some of the photographs contained visual depictions of minors engaging in sexually explicit conduct. Numerous pairs of boy’s underwear were also located in Mudgett’s home as was a collection of newspaper articles that were about rape and/or the murder of children.
Postal Inspectors and prosecutors are asking for the public’s help to determine if Mudgett had inappropriate sexual contact with minor children. Please refer to attached photo of John Mudgett. If anyone has information about potential criminal activity regarding Mudgett and minors they are asked to call the U.S. Postal Inspection Service at 303-313-5345.
“The defendant faces serious charges related to the receipt and possession of child pornography,” said U.S. Attorney John Walsh. “There is some concern that Mudgett may have had inappropriate sexual contact with minors. I want to encourage anyone who may have knowledge of this type of conduct to come forward and notify the U.S. Postal Inspection Service.”
“The demand for child pornography facilitates sex crimes against children. Protecting children from these egregious crimes is a high priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge of the U.S. Postal Inspection Service in Denver. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to exploit children via the U.S. Mail.”
If convicted of the one count of receipt of child pornography, Mudgett faces not less than 5 years, and up to 20 years imprisonment, and up to a $250,000 fine. If convicted of the one count of possession of child pornography, the defendant faces not more than 10 years imprisonment, and up to a $250,000 fine.
This case is being investigated by the U.S. Postal Inspection Service.
The defendant is being prosecuted by Assistant U.S. Attorneys Judith Smith and Colleen Covell.
A criminal complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a grand jury.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.projectsafechildhood.gov.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Marshall Mayhew of Tuscaloosa, Alabama, was sentenced following a March 2014 guilty plea to a charge of possession of a stolen firearm. Mayhew has multiple felony convictions over the last fifteen years for a variety of property crimes. As a result of his numerous convictions, Mayhew was determined to have a criminal history category of VI under the U.S. Sentencing Guidelines. By virtue of his prior felony convictions, Mayhew is prohibited from possessing firearms or ammunition. Mayhew pled guilty to possession of a stolen AR-15 type rifle which occurred on September 26, 2013.
Possession of a stolen firearm is a violation of Title 18, United States Code Section 922(j). United States District Court Judge Callie V.S. Grande imposed the statutory maximum sentence of 10 years imprisonment, to be followed by 3 years of supervised release.
This case was investigated by Investigator Ron Baggette with the Clarke County Sheriff’s Office and Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the Marengo County Sheriff’s Office.
Colorado Man Sentenced for Conspiracy to DistributeRead the Press Release
And Distribution Of Methamphetamine In New HampshireCONCORD, NEW HAMPSHIRE – Daniel Preston, 36, of Colorado Springs, Colorado, was sentenced in United States District Court for the District of New Hampshire to 60 months in prison for engaging in a conspiracy to distribute methamphetamine and distribution of methamphetamine, announced United States Attorney John P. Kacavas.
In January 2012, members of the New Hampshire State Police and United States Postal Inspection Service seized a package containing approximately one ounce of methamphetamine, a schedule II controlled substance, which was destined for a resident of Milton, New Hampshire. The package was shipped by Daniel Preston, a resident of Colorado Springs, Colorado. During an ensuing investigation, law enforcement determined that from January 2011 through January 2012, Preston engaged in the weekly shipment of ounce quantities of methamphetamine from Colorado to New Hampshire. Once the methamphetamine arrived in New Hampshire, it would be repackaged and distributed.
The case was investigated by the New Hampshire State Police and the United States Postal Inspection Service, and prosecuted by Assistant United States Attorney Terry L. Ollila.
Co-Defendant in “Loomis Wealth Solutions” Mortgage Fraud Case Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. —Joseph Gekko, 45, of Yorba Linda, pleaded guilty today to three counts of wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
Gekko’s guilty plea marks another event in a wide-ranging series of prosecutions related to Loomis Wealth Solutions, a “wealth-building” program offered to the public in California, Illinois, Washington, and elsewhere, from 2006 through 2008. According to indictments, persons connected to Loomis Wealth Solutions are alleged to have committed various acts of investment fraud, mortgage fraud, and money laundering.
Gekko participated in a mortgage fraud scheme that caused more than $10 million in losses to mortgage lenders and others. Gekko controlled an escrow company called Lender Services Direct (LSD), in Mission Viejo, Calif., and Tulsa, Okla. According to his plea agreement, Gekko admitted to preparing fraudulent Form HUD-1 Final Settlement Statements that reflected false sales prices and that indicated down payments had been made by the nominee buyers when in fact they had not.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Paul A. Hemesath and Jared Dolan are prosecuting the case.
Gekko is scheduled to be sentenced by United States District Judge John A. Mendez on September 23, 2014. Gekko faces a maximum statutory penalty of twenty years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
California Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Gregorio Aguirre, age 26, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 12, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Aguirre possessing an unregistered firearm made from a Remington Model 12, .22 Caliber Rifle, on April 12, 2014, in South Dakota.
The charge is merely an accusation and Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 19, 2014.
Bountiful Resident Pleads Guilty to Filing False Tax Return in Connection with work with Health Care Facilities; Sentenced to One Year in Federal PrisonRead the Press Release
SALT LAKE CITY - Jon Robertson of Bountiful pled guilty to one count of filing a false tax return in U.S. District Court in Salt Lake City Monday afternoon. U.S. District Judge Clark Waddoups accepted the plea and imposed a sentence of one year and a day.
From 2002 until 2004, Robertson was employed by Infinia, Inc., as its president and had control over the day-to-day operations of the company. Infinia was a Utah-based company that operated nursing homes in several states around the country. Infinia was a closely-held corporation that was started and owned by Robertson’s brother, Scott Robertson. As president of Infinia, Jon Robertson controlled the finances of the company and had substantial discretion to move the company’s money around as he desired. Robertson was removed as president of Infinia in 2004 but remained actively involved until 2006 in the operations of the company and its finances.
While Robertson was affiliated with Infinia, he transferred large sums of Infinia money through unofficial, non-salary payments to personal bank accounts and other accounts in his control. Robertson did not report this money as income to the IRS or to Infinia.
Robertson pled guilty to filing a false tax return in tax year 2003 for failing to report the large sums of Infinia money he surreptitiously transferred to personal accounts. As a part of his sentence, he must pay restitution to the IRS arising out of his criminal activities in the amount of $150,000. The court also ordered him to work with the IRS to resolve other outstanding tax matters.
The case was investigated by special agents of IRS-Criminal Investigation and prosecuted by attorneys from the Department of Justice’s Tax Division and the U.S. Attorney’s Office in Utah.
Bellevue Man with Huge Cache of Images of Children Being Raped and Sexually Molested Sentenced to Nine Years in PrisonRead the Press Release
A Bellevue, Washington man was sentenced today to nine years in prison and 25 years of supervised release for distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. WILLIAM MERRILL ORR, 53, was arrested in Iowa in June 2012, and pleaded guilty in January 2014. ORR had relocated to Iowa after the Bellevue residence he shared with his parents was searched in 2011. Agents seized over seven terabytes of digital storage from the home, and forensic analysis revealed more than 800,000 images and videos of children being raped and sexually assaulted. Both the data storage capacity and the volume of child pornography were the largest seized in the Western District of Washington at that time. In line with a recent U.S. Supreme Court ruling, U.S. District Judge John C. Coughenour ordered restitution for the identifiable children who requested it from ORR. At sentencing, Judge Coughenour referenced the life-long therapy the victims will require to cope with the horrific sexual abuse depicted in ORR’s collection.
According to records filed in the case, ORR came to the attention of law enforcement when he used a peer to peer file sharing network to provide images of child rape and abuse to an undercover Homeland Security Investigation agent. Even after the search warrant was served at ORR’s Bellevue home, and he moved to Iowa, he continued to collect child pornography on a new computer.
“Every one of the more than 800,000 images and video files in Orr’s possession depicted a child being victimized,” said Brad Bench, special agent in charge of ICE’s Homeland Security Investigations in Seattle. “We must not forget these are real children – real victims – who are subjected to sexual violence. Those who trade child pornography over the Internet are a part of a disturbing cycle of violence against children. HSI will continue to aggressively target those who prey on and sexually exploit children. We owe it to youngsters, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
The case was investigated by ICE’s Homeland Security Investigations and was prosecuted by Assistant United States Attorney Marci Ellsworth.Auburn Man Sentenced to 7 Years in Prison for Distributing Images of Child RapeRead the Press Release
A 39- year-old Auburn, Washington man, who lived less than a block from an elementary school, was sentenced today to seven years in prison for distributing images of children being raped and sexually molested by adults, announced U.S. Attorney Jenny A. Durkan. HANK HIRST, pleaded guilty to distribution of child pornography in February 2014. He was arrested in June 2013 following a search of his home and electronic devices. The search revealed HIRST had more than 2,700 images and 447 videos showing children being raped and sexually molested. HIRST had a 170 page manual on his computer about pedophilia and how to groom children for sexual abuse. At sentencing U.S. District Judge John C. Coughenour imposed 25 years of supervised release and ordered HIRST to register as a sex offender following his release from prison.
According to records filed in the case, HIRST came to the attention of law enforcement after he emailed another person in Ohio a video of a toddler being raped by an adult man. In addition to the videos of child sexual assault found on HIRST’s computers and other electronic devices, investigators found videos on HIRST’s computer taken from his window of children playing in the neighborhood. The manual HIRST had downloaded onto his computer described how pedophiles should conduct such surveillance of children looking for those vulnerable to sexual abuse.
The case was investigated by the Federal Bureau of Investigation and the Auburn Police Department.
The case was prosecuted by Assistant United States Attorney Ehren Reynolds.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Attorney General Holder Delivers Statement on the Arrest of Ahmed Abu Khatallah for His Role in Attack in Benghazi, LibyaRead the Press Release
WASHINGTON—Attorney General Eric Holder released the following statement Tuesday regarding the arrest of Ahmed Abu Khatallah for his role in the attack on the U.S. facilities in Benghazi, Libya:
“Our nation’s memory is long and our reach is far. 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 our facilities in Benghazi. Since that attack – which caused the deaths of Ambassador 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.”
Alabama Tax Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Russell Burroughs pleaded guilty today to aiding in the preparation of false tax returns in U.S. District Court for the Middle District of Alabama, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business located in Montgomery, Alabama. Burroughs admitted he falsified information for his clients on their tax returns in order to illegally generate higher tax refunds. He acknowledged that he intentionally included false items such as false business income or loss, false deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his clients’ refunds.
As part of his plea, Burroughs agreed to pay restitution to the United States in the amount of $211,960 and to be to be permanently enjoined from preparing or filing federal tax returns for others in the future.
As a result of his plea, Burroughs faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
Akeem Bethea-harris of Philadelphia Sentenced to Five Years for Possession with Intent to Distribute Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on June 16, 2014, Akeem Bethea-Harris, 26, of Philadelphia, Pennsylvania, was sentenced to five years in federal prison after his guilty plea to a charge that he possessed crack cocaine with intent to distribute it. Chief United States District Judge Christina Reiss, sitting in Rutland, also ordered that Bethea-Harris serve four years of supervised release following his prison term.
According to court records, Bethea-Harris’s criminal history includes a felony for possession of a firearm without a license, three felony drug convictions, and several probation violations. On May 2, 2013, investigators with the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation observed Bethea-Harris get off a Greyhound bus at the Burlington International Airport. Bethea-Harris was wearing unusually heavy clothing for a very warm day. Agents encountered Bethea-Harris in Colchester as he got out of a taxicab. Agents subsequently recovered approximately 60 grams of crack cocaine secreted on Bethea-Harris’s person.
This case was investigated by the DEA and the FBI, with the assistance of the Burlington and Colchester Police Departments. This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. Bethea-Harris is represented by Federal Defender Michael L. Desautels.
72 Linked to Broadway Gangster Crips Criminal Street Gang Charged in Federal Racketeering Indictment That Alleges Murders, Robberies and Drug Sales in South Los AngelesRead the Press Release
LOS ANGELES – More than 1,300 FBI agents and LAPD officers this morning arrested 50 people associated with the Five Deuce Broadway Gangster Crips, a street gang that claims control of a South Los Angeles neighborhood and drug sales in an area just west of the “Skid Row” district of Los Angeles. Those taken into custody are among 72 defendants named in a 213-page racketeering indictment that outlines two decades of criminal conduct, including murders, robberies, extortion, witness intimidation and narcotics trafficking.
The investigation into the Broadway Crips was called Operation “Gremlin Riderz,” because authorities focused on a particularly violent “clique” – or subset of the gang – called the Gremlin Riderz. According to the 112-count indictment that was unsealed this morning, the Broadway Crips, which has an estimated 200 members, operated as a criminal enterprise that used violence and intimidation to control an area centering on the intersection of 52nd Street and South Broadway in South Los Angeles. The gang was formed in the 1970s to confront other African-American street gangs, according to the indictment, which alleges that the enterprise has grown into a violent and criminal enterprise that conducts annual meetings and enforces a strict set of rules.
“Criminal street gangs make their livelihood by ruthlessly preying on the innocent people that live in the neighborhoods they claim as territory,” said United States Attorney André Birotte Jr. “What makes the conduct of this gang particularly insidious is not only the violent crimes alleged, but also the exploitation of Skid Row drug users who are already living in difficult circumstances.”
The defendants named in the federal indictment face various charges, including conspiracy to engage in racketeering activity in violation of the federal Racketeer Influenced and Corrupt Organizations Act; violent crimes in aid of racketeering; conspiracy to interfere with commerce by conducting a series of robberies that targeted bank customers; weapons offenses; and various drug trafficking activities involving crack cocaine, cocaine, methamphetamine, phencyclidine (PCP), Ecstasy, marijuana and codeine.
The indictment specifically alleges that members of the gang:
committed four murders, dating back to 1987, that include fatal shootings of unarmed men with no gang affiliations in 2003 and 2012;
threatened a surviving victim of the 2003 shooting, which followed a concert at the House of Blues on the Sunset Strip;
conspired to murder a fellow gang member who had provided a statement to law enforcement in relation to the 2012 murder incident in which a total of four people with no gang ties were shot, including a 10-year-old girl on a bicycle;
fired shots at California Highway Patrol Officers who were pursuing gang members two years ago;
engaged in a series of violent, “follow-home” robberies that targeted customers of South Bay banks; and
participated in numerous narcotics sales near schools and playgrounds.
In addition to committing crimes in its claimed territory east of the Harbor Freeway, the indictment alleges that the Broadway Crips sell drugs near the Skid Row section of downtown Los Angeles. “This area is desirable to the gang because it is close to Skid Row, where there is a large and vulnerable customer base of drug addicts and mentally ill persons,” according to the indictment.
Out of 72 defendants named in the federal indictment, 48 were arrested this morning. Two more people were arrested on local charges, meaning that a total of 50 were arrested today. Seventeen defendants named in the grand jury indictment were already in custody on unrelated charges. Authorities are continuing to search for eight defendants, including one who faces local charges.
All 72 defendants named in the racketeering indictment face mandatory minimum sentences of 10 years in federal prison if they are convicted. Many of the defendants face potential sentences of life without parole.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The investigation into the Broadway Crips was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
Additionally, several agencies provided substantial assistance during this morning’s takedown, including the Los Angeles Sheriff’s Department, the Hawthorne Police Department, the Pasadena Police Department, the Inglewood Police Department and the Los Angeles Fire Department.
Operation Gremlin Riderz is a result of a partnership between the FBI and the Los Angeles Police Department under the auspices of the FBI’s Task Force on Violent Crime in the City of Los Angeles. This task force is one of dozens of such partnerships throughout the United States, known as Safe Streets Task Forces, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
Release No. 14-075
16 June 2014
Yale Employee Charged with Operating Kickback SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in Hartford has returned a four-count indictment charging GEORGE DOBUZINSKY, 57, of Durham, with conspiracy and fraud offenses stemming from a kickback scheme he allegedly operated while employed at Yale University.
The indictment was returned on June 11. DOBUZINSKY appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and entered a plea of not guilty. He was released on a $300,000 bond.
According to the indictment and to statements made in court, DOBUZINSKY has been employed by Yale University as a project manager responsible for obtaining vendors to complete audio/visual projects on Yale’s campus. It is alleged that between 2005 and 2013, DOBUZINSKY arranged to receive tens of thousands of dollars in kickback payments from vendors in exchange for awarding them additional audio/visual project work. At first, DOBUZINSKY directed the vendors to make kickback payments to him in the form of checks payable to an entity owned by DOBUZINSKY’s friend, who later provided the money to DOBUZINSKY. Later in the scheme, DOBUZINSKY directed an individual to start a limited liability corporation (“LLC”) to which vendors could direct their kickback payments. The individual would deposit the checks at bank branches in Connecticut, and DOBUZINSKY and the individual would spend the money on household expenses.
The indictment further alleges that at various times and during holidays, DOBUZINSKY would request and receive gifts from vendors, including steakhouse gift certificates and electronic equipment for personal use.
The indictment charges DOBUZINSKY with one count of conspiracy to commit wire fraud and three counts of honest services wire fraud. Each charge carries a maximum term of imprisonment of 20 years.
The case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Wyoming Man Pleads Guilty to Tax FraudRead the Press Release
Sonny Pilcher of Casper, Wyoming, pleaded guilty to tax fraud today in the U.S. District Court for the District of Wyoming, the Justice Department and Internal Revenue Service (IRS) announced. The sentencing hearing was set for Oct. 28, 2014 before U.S District Judge Alan B. Johnson.
According to the charging document, Pilcher attempted to obstruct and impede the IRS. Pilcher did this by claiming a false bad debt expense of $258,000 on his 2008 Form 1040 tax return, and by paying his employees in cash to evade paying employment taxes. Pilcher faces a statutory maximum sentence of 36 months in prison, a $250,000 fine and may be ordered to pay restitution to the IRS.
This case is being prosecuted by Trial Attorneys Lori A. Hendrickson and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation Special Agents in the Cheyenne, Wyoming, field office.
Washington, D.C. Man Sentenced to 12 Years for Robbing Banks and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Devontae West, age 26, of Washington, D.C., today to 12 years in prison, followed by 15 years of supervised release, for possession of child pornography and conspiracy to commit bank robbery. Chief Judge Chasanow ordered that upon his release from prison, West must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, West and his co-conspirators stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.
More specifically, on five occasions from March 20 to May 22, 2013, West and others, including juveniles, drove to the following bank branches where his conspirators stole a total of $14,598: SunTrust Bank in Clifton, District Heights and Forestville, Maryland; Capitol One Bank in Landover Hills, Maryland; and TD Bank in Washington, D.C. Also, on May 13, 2013 West and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Additionally, on May 5, 2013 West had sex with a 15 year girl who he had directed to help him rob banks. West took eight pictures of the girl having sex with him. These pictures were on West’s cell phone when he was arrested.Co-conspirator Calvin Manning also pleaded guilty to bank robbery. Manning admitted to robbing the Sun Trust Bank in District Heights on March 25, 2013, which is one of the bank robberies in which West participated. Chief Judge Chasanow sentenced Manning on June 12, 2014 to four years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.
U.S. Attorney Charges Manhattan Man with AttemptedEnticement and Sexual Exploitation of A MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced today the filing of federal charges against STEPHEN P. BROWN. The Complaint charges that BROWN communicated with an individual he believed to be an 11-year-old boy via emails and instant messages, and made plans to meet the boy at a hotel in Peekskill to engage in sexual activity and take sexually explicit photographs. In March 2014, BROWN was arrested in Peekskill, New York, by New York State law enforcement authorities when he arrived at the designated meeting-place to meet the boy. The federal charges filed today follow state charges against BROWN in Manhattan, Westchester County, Sullivan County and Albany County. BROWN, who is currently in jail in Albany County, is scheduled to be presented in federal court on Wednesday, June 18.
According to the allegations of the Complaint:
Between January 14, 2014 and March 4, 2014, STEPHEN P. BROWN, using email addresses “[email protected]” and “[email protected],” engaged in sexually explicit online communications with a New York State Police Investigator who was acting in an undercover capacity and posing as an 11-year old boy. During these communications, BROWN discussed various sexual acts he wished to perform on the boy, requested that the boy provide BROWN with sexually explicit photographs of the boy, and made a plan to meet the boy at a hotel in Peekskill, New York for the purpose of engaging in sexual activity. On March 4, 2014, BROWN was arrested at the Peekskill hotel after as he went to meet with whom he thought was the 11-year old boy.
BROWN, 62, of Manhattan is charged with one count of attempted sexual exploitation and one count of attempted enticement. With respect to the attempted sexual exploitation, he faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of 30 years’ imprisonment. With respect to the attempted enticement, he faces a minimum sentence of 10 years’ imprisonment and a maximum sentence of life. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York County District Attorney’s Office, the Sullivan County District Attorney’s Office, the Westchester County District Attorney’s Office, the Albany County District Attorney’s Office, the City of New York Police Department, the New York State Police, and the Rockland County Computer Crimes Task Force in connection with this investigation.
Mr. Bharara stated that the investigation is ongoing. Mr. Bharara requests that any individuals who believe they may have information concerning STEPHEN P. BROWN that may be relevant to the investigation contact the Federal Bureau of Investigation in Goshen, New York at 1-845-615-1700.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Brothers Indicted for Receiving over $16.5 Million in Fraudulent Tax RefundsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Sean Aude Gallman, age 37, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, today on charges arising from a $16.5 million fraudulent tax scheme.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Because of the greed of Sean Gallman and Eric Gallman, the U.S. taxpayer was defrauded of over $16 million. The Gallmans used business entities and addresses in different states to create an elaborate scheme to hide their stolen funds.” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “The indictment announced today reinforces the commitment by law enforcement and the Maryland United States Attorney’s Office that individuals who steal from the government will be held accountable.”
The three count indictment alleges that Sean and Eric Gallman established trusts and business entities, including Gallman Charitable Trust and LEA Group Holdings Trust. The defendants used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the Trusts.Acting as the trustee and agent of the Gallman Charitable Trust, on or about January 4, 2013 Sean Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,218,930. Also around this time and as the trustee and agent of LEA Group Holdings Trust, Eric Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,293,562.
The indictment alleges that the defendants knew that the Trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled.
The indictment seeks forfeiture in the total amount of $16,512,492, the amount of the two refunds.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud; 10 years in prison for conspiring to defraud the government; and five years in prison for false claims against the government. An initial appearance is expected to be scheduled for both defendants in the next two weeks in U.S. District 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.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom, who is prosecuting the case.
Topeka Man Pleads Guilty to Aiding and Abetting RobberyRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty Monday to giving another man a rifle and serving as a lookout while the gun was used in a liquor store robbery U.S. Attorney Barry Grissom said.
Aaron Roy Bundy, 27, Topeka, Kan., pleaded guilty to one count of aiding and abetting robbery. In his plea, he admitted that he gave a man who was staying in his apartment a .22 caliber rifle. On May 12, 2014, Bundy served as a lookout while the other man used the rifle to rob Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.
Co-defendant Weston Brett Canfield is awaiting trial.
Bundy is set for sentencing Sept. 29. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Third Former State Corrections Official Charged in Inmate BeatingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a third former state corrections official has been charged with civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
Mark Sharp, age 33, of Amite, Louisiana, has been charged in a Bill of Information with deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and making false statement, in violation of Title 18, United States Code, Section 1001. If convicted, Sharp faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment. His initial appearance and arraignment will be held on a date to be determined.
Sharp is charged based on his alleged conduct while employed as a correctional officer at the Louisiana State Penitentiary in Angola. The Bill of Information alleges that Sharp willfully deprived an inmate of a right, secured, and protected by the United States Constitution, to be free from cruel and unusual punishment. On January 24, 2010, Sharp allegedly struck an inmate with an asp baton, while the inmate was handcuffed with his hands behind his back, resulting in bodily injury to the inmate. Sharp then allegedly lied to the Federal Bureau of Investigation during its investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giror have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
This matter was investigated by the FBI and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
NOTE: A Bill of Information is an accusation by the United States. The defendant is presumed innocence unless adjudicated guilty at trial or through a guilty plea.
Tax Preparation Business Owner Convicted of Tax FraudRead the Press Release
HOUSTON – Charles Lee Harrison, the owner of a tax preparation business, has entered a guilty plea to willfully aiding and assisting in the preparation and presentation of a false tax return, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).
According to the plea agreement filed in the record of the case, Harrison was the owner of Harrison and Harrison, a tax preparation business with offices in Houston and Navasota.
Today, he admitted he placed false items on a client’s income tax return that caused a loss of more than $9,000. However, as part of his plea, Harrison stipulated that the relevant conduct for purposes of sentencing is approximately $396,057, which includes tax loss on other returns he prepared for others as well as his own.
U.S. District Judge Lynn N. Hughes, who accepted the plea today, has set sentencing for Sept. 15, 2014. At that time, Harrison faces up to three years imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Takoma Park Man Sentenced to 5 Years in Prison for Two Residential Mortgage Fraud SchemesRead the Press Release
Used Other Individuals’ Identities, False Income and Credit Information to Induce Lenders to Provide Home Mortgage Loans
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland today to five years in prison followed by five years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes. Chief Judge Chasanow also ordered Wambura to pay restitution of more than $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"This investigation demonstrated that through the cooperative investigative efforts with our law enforcement partners, those who commit fraud affecting financial institutions of the United States will be brought to justice," said John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, from March 2007 to November 2008, Wambura conspired with real estate agent Tibakweitira and others to unlawfully use the identity of another individual to buy residential property. For example, in June 2008, Wambura used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Hyattsville, Maryland. The conspirators inflated the sales price by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
During the second fraud scheme from July 2007 to May 2009, co-conspirator Mrisho Mzese sold his residence in Silver Spring, Maryland to Wambura, and attempted to conceal the scheme by using the identity of Wambura’s friend and roommate as the purported buyer. Wambura again made false statements about the buyer’s assets and income. For example, Wambura listed a joint credit union account held by Wambura and his friend as an asset, which Wambura created without his friend’s knowledge. After securing the mortgage and obtaining possession of the residence, Wambura continued to use his friend’s stolen identity to become a Section 8 landlord for federally subsidized funds. Wambura received portions of the monthly rent paid by the tenant. Wambura and Mzese also caused $29,186 in government housing program assistance checks, payable to Wambura’s friend, to be mailed to Wambura.
As a result of the two conspiracies, Wambura caused between $400,000 and $1 million in losses to federally-insured financial institutions.
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 37, of Severn, Maryland, previously pleaded guilty to the conspiracy and to aggravated identity theft, and has agreed to forfeit a Range Rover vehicle. Tibakweitira is scheduled to be sentenced on November 3, 2014 at 10:00 am.
Mrisho Mavuruma Mzese, age 39, of Clarksburg, Maryland, was convicted at trial on May 1, 2014 on 11 counts including conspiracy to commit wire and mail fraud, wire fraud, mail fraud and aggravated identity theft, based on his participation in the second fraud scheme in which he engaged with Wambura. Mzese's sentencing is scheduled for August 7, 2014 at 2:00 pm.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Stamford Man Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that ASM AFSARY, 41, of Stamford, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AFSARY participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. During the scheme, AFSARY and his co-conspirators provided materially false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
In pleading guilty, AFSARY admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, AFSARY was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
AFSARY pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum term of imprisonment of 30 years. Judge Hall scheduled sentencing for October 1, 2014.
AFSARY is the fourth individual involved in this scheme to plead guilty.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]St. Charles Parish Tax Preparer Pleads Guilty on Morning of TrialRead the Press Release
A St. Charles Parish tax preparer pled guilty this morning to conspiracy to defraud the United States and, specifically, the Internal Revenue Service, announced U.S. Attorney Kenneth Allen Polite, Jr. Her daughter, LASHANDA RUTH VINNETT, age 29, also of Destrehan, Louisiana, pled guilty on Friday, June 13, 2014, to the same charge.
According to court documents, CATHY ROSS VINNETT, 46, of Destrehan, Louisiana, opened the D&C Tax Service in 2006. In 2008, CATHY VINNETT and LASHANDA VINNETT (“the VINNETTS”) created River Parish Tax Professionals (“River Parish”). River Parish was established by the VINNETTS for the purpose of filing fraudulent tax returns. The VINNETTS, through River Parish, filed approximately 310 tax returns which falsely claimed the First-Time Homebuyer Credit, the Earned Income Tax Credit, as well as the listing of false dependents resulting in approximately $1.845 million in fraudulent tax refunds.
CATHY VINNETT and LASHANDA VINNETT utilized recruiters to locate potential clients. These recruiters advised potential clients that the federal Government was giving out stimulus money and instructed the individuals to visit River Parish in order to obtain their money. The VINNETTS would interview clients at their office in LaPlace, Louisiana to obtain their personal information including their name, address and Social Security Number. The VINNETTS used that personal information to file false tax returns. The clients had no knowledge that the VINNETTS were filing false returns in their names.
The VINNETTS specifically attempted to conceal and shield CATHY’s identity with the IRS, knowing that the IRS had previously suspended CATHY’S Electronic Filing Identification Number as a result of another fraudulent tax scheme involving D&C Tax Service. Additionally, in May 2009, CATHY VINNETT knowingly made material false statements to IRS federal agents when she claimed she had no knowledge about false tax returns being prepared at River Parish, she did not own a tax business, and that her brother was the owner of River Parish.
United States District Court Judge Ivan L.R. Lemelle will sentence CATHY VINNETT on October 1, 2014 and LASHANDA VINNETT on September 17, 2014. The VINNETTS face a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, restitution, and a $250,000 fine.
Gabriel Grchan, Special Agent in Charge - IRS Criminal Investigation, stated that: “The guilty pleas entered by Cathy and Lashanda Vinnett represent a great victory for all U.S. taxpayers. A tax stimulus, such as the First Time Homebuyer’s Credit, is meant to strengthen the country’s economy. When these types of programs are exploited by fraud, it cannot be tolerated. IRS - CI will continue working to bring to justice those individuals who scheme and conspire to benefit themselves at the expense of other citizens and the government."
This case is being investigated by special agents from the Internal Revenue Service-Criminal Investigation Division. The prosecution of this case is being handled by Fraud Unit Chief and Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Matthew Payne.
(Factual Basis - Cathy Vinnett )
(Factual Basis - Lashanda Vinnett )
Spalding County Battalion Chief and Firefighter Indicted for Tipping Off Drug DealersRead the Press Release
ATLANTA - Dwayne Tyrone Coggins and Michael Owens have been arraigned on federal charges for tipping off drug traffickers to police activity in the Griffin area. Coggins and Owens were indicted by a federal grand jury on June 11, 2014.
“When called upon to assist the police, Coggins and Owens’ first instinct was to call the drug dealers to warn them," said United States Attorney Sally Quillian Yates. “Now, they face federal charges for protecting drug dealers.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Many of today’s criminal investigations are complex in nature and often involve other jurisdictions and the assistance of other agencies. While the FBI values the partnerships of those agencies that provide us with so much assistance, the criminal conduct alleged in the federal indictment of these two Spalding County Firefighters cannot be tolerated.”
According to United States Attorney Yates, the charges, and other information presented in court: Coggins has been employed by the Spalding County Fire Department since 1990 and, most recently, served as a Battalion Chief. Owens is also employed by the Spalding County Fire Department as a firefighter.
Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants. In April and May 2014, both Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred. They were aware of the police activity because they had been informed by law enforcement about the investigation or had seen officers gathering near the fire station before serving warrants. Police became aware that Coggins and Owens were tipping off drug traffickers to law enforcement activities during the course of an on-going drug investigation.
Dwayne Tyrone Coggins, 47, and Michael Owens, 37, of Griffin, Ga., were arraigned today before Magistrate Judge Alan J. Baverman.
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 Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine 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 Newnan Division is http://www.justice.gov/usao/gan/.
Schuylkill County Woman Sentenced for Role in False Income Tax Return SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Mahanoy City, Pa., has been sentenced in federal court to five years probation, the first 14 months of which must be served by conditions of home confinement, and pay restitution to the Internal Revenue Service in the amount of $128,105 on her conviction of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kimberly Lynn Snyder, 38.
According to information presented to the court, from April 2008 to Oct. 2010 Snyder conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Snyder.
Rochester Man Pleads Guilty to Obstructing the MailsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Rodney Dugan, 42, of, Rochester, N.Y., pleaded guilty before U.S. Magistrate Judge Marian W. Payson, to obstructing the mails. The charge carries a maximum sentence six months in prison, a fine of $5,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dugan worked as a driver for a carrier contracted by the United States Postal Service. On April 11, 2014, in a sting operation conducted by Special Agents of the U.S. Postal Service, Office of Inspector General, the defendant was caught unlawfully removing a letter containing a Target gift card from the mail he was transporting that day.
The plea is the culmination of an investigation by Special Agents with the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for August 6, 2014 at 12:00 p.m. before Judge Payson.Mexican Restaurant Owners Plead Guilty to Hiring Undocumented Aliens and False StatementsRead the Press Release
Contact: Julia M. Lipez
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that brothers, Guillermo Fuentes, 38, of Westbrook, Maine and Hector Fuentes, 40, of Waterville, Maine, pleaded guilty today in U.S. District Court to knowingly hiring 10 or more undocumented aliens in a 12-month period and making false statements to federal agents.
Court records reveal that the employment charge relates to hiring practices at the Fajita
Grill restaurant in Westbrook. The false statement charge arises out of post-arrest statements the defendants made to law enforcement officers in September 2011 regarding the hiring practices at the Fajita Grill and at the Cancun Mexican Restaurant in Waterville, in which they falsely stated, among other things, that federally required documentation regarding the immigration status of employees had been properly completed.The defendants face up to five years in prison, a fine of $250,000, or both. They will be sentenced after the completion of a pre-sentence investigation report by the U.S. Probation
Office.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the United States Department of Labor, Office of
Inspector General.Mexican National and Las Cruces Resident Plead Guilty to Trafficking Heroin in Dona Ana CountyRead the Press Release
ALBUQUERQUE – Jovita Belmonte-Gonzalez, 43, of Ciudad Juarez, Chihuahua, Mexico, entered guilty pleas today in federal court in Las Cruces, N.M., to heroin trafficking charges in four separate cases. One of her confederate, Nathan Andrew Maestas, 31, of Las Cruces, also pleaded guilty to heroin trafficking and firearms charges in one of the four cases.
Belmonte-Gonzalez, Maestas and 14 others were charged with heroin trafficking offenses in four indictments filed in Nov. 2013, as a result of a multi-agency investigation led by the FBI that targeted Belmonte-Gonzalez’s heroin trafficking activities in Doña Ana County, N.M. Belmonte-Gonzales was charged as the lead defendant in all four indictments which alleged that she supplied heroin to four drug trafficking organizations that were distributing heroin in Doña Ana County.
In entering her guilty pleas in the four cases, Belmonte Gonzalez admitted conducting frequent heroin transactions, including transactions involving hundreds of grams of heroin, with her co-defendants between June 2013 and Oct. 2013. According to the indictments, Belmonte-Gonzalez typically negotiated heroin sales by telephone from Juarez. Belmonte-Gonzalez’s co-defendants then traveled from Doña Ana County to Juarez where they purchased the heroin from her and returned to Doña Ana County where they distributed the drugs.At sentencing, Belmonte-Gonzales faces a mandatory minimum of ten years in prison and a maximum of life in prison. She has been in custody since her arrest on Nov. 15, 2013, and remains detained pending her sentencing hearing, which has yet to be scheduled. Belmonte-Gonzalez will be deported after she completes her prison sentence.
Maestas pled guilty to conspiracy to distribute heroin and to being a felon in possession of a firearm. Maestas admitted conspiring with Belmonte-Gonzalez and others to distribute heroin in Doña Ana County between June 4, 2013 and Oct. 27, 2013. He acknowledged that he negotiated three heroin transactions, involving an aggregate of 128 grams of heroin, from Belmonte-Gonzalez during this period and arranged to smuggle the heroin from Juarez into the United States. Maestas also admitted unlawfully possessing a firearm and ammunition on June 4, 2013. At the time, he was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary and larceny.
Under the terms of his plea agreement, Maestas will be sentenced to 72 months in federal prison followed by a term of supervised release to be determined by the court. Maestas has been in federal custody since his arrest on Nov. 15, 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled.
The remaining 14 defendants have entered not guilty pleas to the charges against them. They are presumed innocent unless found guilty in a court of law.
These cases are being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office. The investigation leading to the charges in the four cases was led by the Las Cruces office of the FBI in collaboration with U.S. Customs and Border Protection, the U.S. Border Patrol, the Las Cruces office of the DEA, the U.S. Marshals Service, the Las Cruces Police Department and the Doña Ana County Sheriff’s Office.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
McCandless Man Received Child Pornography, Faces at Least 5 Years in PrisonRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Mark Janosko, 48, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Mark R. Hornak.
According to information presented to the court, on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for Oct. 9, 2014 at 9:30 a.m. The law provides for a mandatory minimum sentence of 5 years in prison and a maximum of 20 years imprisonment, a fine of $250,000.00, 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.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Indiana County and Allegheny County District Attorney’s Office and the McCandless Police Department conducted the investigation that led to the prosecution of Janosko.
This case was brought as part of the Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For information about Project Safe Childhood, please visit www.justice.gov/psc .
Maryland Man Sentenced to 28 Months in Prison for Bias-Related Assault in Northeast WashingtonDefendant Struck Transgender Woman with A GunRead the Press Release
WASHINGTON – Michael Phillips, 36, of Fairmount Heights, Md., was sentenced today to 28 months in prison on charges stemming from an attack earlier this year against a transgender woman at a store in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Phillips pled guilty in March 2014, in the Superior Court of the District of Columbia, to a charge of assault with a dangerous weapon. The charge included a bias-related (hate) crime enhancement. Phillips was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Phillips will be placed on three years of supervised release.
According to the government’s evidence, at approximately 2:40 a.m. on Jan. 27, 2014, Phillips, the victim, and the victim’s friends were customers at a convenience store in the 900 block of Eastern Avenue NE. Phillips and the victim did not know each other.
Upon seeing the victim and her friends walk into the store, Phillips stated words to the effect of, “Let me see who’s the real bitch here.” He then pointed at the victim and made a derogatory remark about her sexuality. When the victim told Phillips to leave her alone, Phillips stated words to the effect of, “Well you wasn’t born no female.”
Words were exchanged inside the store, and Phillips approached the victim, pulled a handgun from his pocket and struck her in the face with the weapon multiple times. At his plea hearing, Phillips admitted assaulting the victim with the handgun because of his prejudice based on her perceived sexual orientation and gender identity.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Richard Cheatham and Assistant U.S. Attorney Brandon S. Long, who prosecuted the matter.
14-137Manhattan U.S. Attorney Announces Arrest of Information Technology Specialist at the Northport Veterans Affairs Medical Center for Illegally Accepting over $40,000 in Benefits from A Telecommunications FirmRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Jeffrey Hughes, the Special Agent-in-Charge of the Northeast Field Office of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (“VA-OIG”), announced today the unsealing of a Complaint charging KENNETH CZUMAK, an Information Technology Specialist with the Northport Veterans Affairs Medical Center (the “VAMC Northport”), with accepting more than $40,000 in benefits, including meals, golf outings, and car services, from a telecommunications firm that did business with the VAMC Northport. CZUMAK surrendered to the U.S. Marshals Service this morning. He was presented today in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis.
According to the Complaint unsealed today in Manhattan federal court:
The VAMC Northport is a medical center that provides healthcare services to veterans in Long Island and surrounding areas. Throughout the relevant time period, a telecommunications firm had a subcontract for approximately $6 million to provide voice and data infrastructure and related services to the VAMC Northport (the “Telecommunications Firm”). During this same time period, CZUMAK served as an Information Technology Specialist at the VAMC Northport, and was the primary point of contact for the Telecommunications Firm at the VAMC Northport.
As alleged in the Complaint, between January 2008 and June 2013, CZUMAK accepted a total of more than $40,000 in goods and services paid for by the Telecommunications Firm. Among other things, CZUMAK received meals, golf outings, hotel rooms, car services, and other benefits. According to an account executive at the Telecommunications Firm (“Account Executive-1”), Account Executive-1 spent approximately 20% of an annual $35,000 expense budget on CZUMAK, which was more than Account Executive-1 spent on any other customer of the Telecommunications Firm.
During the same time period, CZUMAK served as a reference for other potential clients of the Telecommunications Firm. For example, in approximately 2011, another account executive from the Telecommunications Firm (“Account Executive-2”) was attempting to win a new client, and referred that potential client to CZUMAK. Subsequently, CZUMAK stated to Account Executive-1 that CZUMAK had heard that the Telecommunications Firm had won that contract with Account Executive-2’s new client, and thought that he, CZUMAK, now had a nice dinner coming his way
In an interview with law enforcement agents in March of this year, CZUMAK acknowledged that he was aware from training he had received from VAMC Northport that, as a government employee, he could not accept gifts worth more than $15 from an outside source.
CZUMAK is charged with one count of illegal salary supplementation and faces a statutory maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the VA-OIG and the criminal investigators of the U.S. Attorney’s Office in the investigation of this case.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Brian A. Jacobs is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Kenneth Czumak complaint
Man Sentenced to 14 Years in Federal Prison for Laundering Monetary Proceeds from Sex TraffickingRead the Press Release
DALLAS — At a hearing concluding late Friday afternoon, Chief U.S. District Judge Sidney A. Fitzwater sentenced Duc Luu, a naturalized U.S. citizen from Vietnam, to 14 years in federal prison for laundering monetary proceeds from sex trafficking, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the hearing, Chief Judge Fitzwater noted the horrific nature of the crime and added that he was incapable of capturing its heinousness in words. Chief Judge Fitzwater also ordered Luu to pay $16,766 in restitution to the victim.
“I commend the dedication and hard work of law enforcement, not only in their persistence in investigating this case, but in their efforts to locate and rescue victims who may be unable to seek help themselves,” said U.S. Attorney Saldaña. “This district remains vigilant in our efforts to vigorously and aggressively prosecute human traffickers and hold them accountable for their crimes.”
Luu, 50, was indicted in August 2011, while he was living in Vietnam, on one count of sex trafficking by force, fraud or coercion and two counts of money laundering. According to documents filed in the case, Luu travelled to Vietnam on his U.S. passport, but shortly after his indictment, the U.S. initiated efforts to arrest and extradite him. Ultimately, the U.S. Department of State revoked Luu’s passport and Vietnam expelled him. Luu was then arrested and returned to the Northern District of Texas, where he made his initial appearance in federal court on the charges in September 2012.
Luu pleaded guilty in August 2013 to two counts of money laundering. According to the stipulated facts in the factual resume, in October 2008, Luu caused $12,000 to be wire-transferred from a bank in Texas to a bank in Vietnam, knowing that the funds had been derived from sex trafficking. Again, in July 2009, Luu caused $26,000 to be wire-transferred from a bank in Texas to the same bank in Vietnam, knowing that these funds also were derived from sex trafficking. Luu was the sender and beneficiary of both wire transfers.
The victim testified at the sentencing hearing regarding the depraved acts of the defendant in recruiting, grooming, manipulating, exploiting and subjecting her to a fraud of the most serious nature.
“Individuals such as Mr. Luu, who use money laundering to conceal the true source of their money run the risk of federal prosecution and imprisonment,” said R. Damon Rowe, Special Agent in
Charge of the IRS-CI Dallas Field Office. “IRS Criminal Investigation is committed to unraveling money laundering schemes and assisting our law enforcement partners to ensure that the type of criminal conduct engaged in by Mr. Luu is not ignored. Mr. Luu’s sentence is a reminder to criminals that money laundering schemes will be vigorously investigated and prosecuted.”“Even a harsh prison sentence seems inconsequential compared to the horrors visited on the victim in this case,” said Special Agent in Charge David Marwell of HSI Dallas. “Nonetheless this is a stern warning to criminals who flee justice that Homeland Security Investigations will continue to use our unique authorities and international partnerships to bring criminals to justice, no matter how far they run or in what country they hide.”
IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Department of State and the Garland Police Department investigated. Assistant U.S. Attorney Errin Martin prosecuted.
Leader of Armenian Alien Smuggling Ring Arraigned on Federal ChargesRead the Press Release
The alleged leader of an Armenian alien smuggling ring was arraigned on an indictment unsealed today in federal court. Grigor Chatlayan, 44, is charged with coordinating and directing an international alien smuggling organization that brought undocumented Armenian nationals illegally into the United States in exchange for thousands of dollars. Chatalyan, of North Hollywood, California, was arrested on Saturday as he applied for entry into the United States from Mexico at the San Ysidro, California Port of Entry. He was arraigned in federal court this morning before U.S. Magistrate Judge David H. Bartick.
The indictment makes it clear that Chatalyan led an international smuggling enterprise whereby Armenian nationals were smuggled from Armenia to the United States by way of Moscow, Russia and Cancun, Mexico. In exchange, Armenian nationals were made to pay up to $18,000 each to be brought into the United States. Chatalyan’s smuggling group arranged for the Armenian nationals to fly into Moscow, Russia, where they were given fraudulent Russian passport to travel to Cancun, Mexico. Once in Mexico, the smuggling organization would transport the Armenian nationals to Tijuana, Mexico. Chatalyan and his co-conspirators would then procure valid U.S. legal permanent resident or passport cards from within the United States and attempt to use those documents to pass imposter Armenian nationals through the San Ysidro, California Port of Entry.
According to the indictment, Chatalyan coordinated these activities with several co-conspirators, including two others charged in the indictment with Chatalyan: Varduhi Avagyan, 42, and Meri Avetsiyan, 40, both of Glendale, California. Avagyan and Avetisyan were arrested on November, 1, 2013 attempting to smuggle two Armenian nationals into the country.
All three are charged with conspiracy and bringing in illegal aliens for financial gain. In addition, Chatalyan is charged with aiding and abetting aggravated identity theft. Chatalyan and his co-conspirators face a maximum penalty of up to 15 years’ imprisonment and a $250,000 fine. If convicted on all charges, Chatalyan could be sentenced to a mandatory minimum of seven years in custody.
DEFENDANT Grigor Chatalyan Age: 44 North Hollywood, California Varduhi Avagyan Age: 42 Glendale, California Meri Avetsiyan Age: 40 Glendale, California CHARGESConspiracy, 18 U.S.C. § 371
Bringing in Illegal Aliens for Financial Gain, 8 U.S.C. §1324(a)(2)(B)(ii)
Aiding and Abetting Aggravated Identity Theft, 18 U.S.C. § 1028A and 18 U.S.C. § 2
INVESTIGATING AGENCYU.S. Department of Homeland Security - Homeland Security Investigations
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Kirtland, N.M., Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Justin Chee, 24, a member of the Navajo Nation who resides in Kirtland, N.M., pleaded guilty this morning to an indictment charging him with statutory rape.
Chee was arrested in March 2014, based on a criminal complaint alleging that he engaged in a sexual act with a Jicarilla Apache child between the age of 12 and 16 years. Chee subsequently was indicted and charged with statutory rape. According to the indictment, Chee committed the offense in Aug. 2012, in a location within the Navajo Indian Reservation.
In his plea agreement, Chee admitted that on Aug. 30, 2012, when he was 22 years of age, he knowingly engaged in a sexual act with the 14-year-old victim.
Chee has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Chee faces a maximum statutory penalty of 15 years in federal prison. Chee also will be required to register as a sex offender.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Jicarilla Apache Tribal Police Department and the San Juan Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Jody Farnham Imprisoned for Embezzlement from UvmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jody Farnham, 55, of Burlington, was sentenced today in United States District Court in Rutland to 13 months of imprisonment following her guilty plea to a charge of federal program embezzlement. Chief Judge Christina Reiss ordered that Farnham serve a three-year term of supervised release upon completion of her prison term and pay restitution in the amount of $200,000. The court directed that Farnham report to the Bureau of Prisons on July 29 to begin serving her sentence.
According to the information to which Farnham pled guilty last January, Farnham had been employed for a number of years by the University of Vermont, College of Agriculture and Life Sciences. Farnham was an office support specialist for the Vermont Institute for Artisan Cheese, which provided educational, research and technical consulting services to artisan cheese makers. VIAC offered courses and workshops in cheesemaking and enrollees paid tuition to UVM to attend the programs. According to the information, Farnham began embezzling money from UVM in about 2006 and, before the thefts were discovered in late 2012, she stole not less than $200,000. Farnham embezzled much of the money by altering checks given to her by VIAC enrollees. She changed the checks, which were made out to VIAC, to make her a co-payee. She then deposited the forged checks into her personal bank account. Farnham also stole some cash tuition payments, and misused UVM credit cards to make personal purchases. During the time period of the embezzlement, UVM received substantial amounts of federal funding.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Farnham is represented by Robert Hemley. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Jeffrey Scott Kendrick, Jr. Sentenced to 114 Months for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. – On June 16, 2014, Jeffrey Scott Kendrick, Jr., 25, of Kingsport, Tenn., was sentenced to serve 114 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison Kendrick will be subject to supervised release under the supervision of the U.S. Probation Office for five years. There is no parole in the federal system.
Kendrick pleaded guilty in February 2014 to a Hobbs Act robbery and possession of a firearm in furtherance of the robbery. Kendrick robbed the Road Runner Market on Lynn Garden Drive in Kingsport, at gunpoint, in November 2012.
Law enforcement agencies participating in the joint investigation included the Kingsport Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Houston Store Owner Convicted of Identity Theft and Multiple Counts of Wire FraudRead the Press Release
HOUSTON – Austyn Enahoro Afenkhena, 53, of Houston, has entered a plea of guilty to eleven counts of wire fraud and four counts of aggravated identity theft, announced United States Attorney Kenneth Magidson.
Beginning in at least January 2008, and continuing through June 2013, Afenkhena obtained credit cards that were created from stolen identities, according to the information presented in court today. He would then run the cards through his store front, Phase 2 Auto Repair on Harwin Drive, in order to obtain cash.
To facilitate the scheme, Afenkhena also created fake merchant accounts under the names of Phase 2 Auto Inc., Phase 2 Automotive, ENA Auto Repair and ENA Automotive, so that he could obtain multiple credit card machines on which to run the fraudulent cards. Afenkhena often created false documentation such as invoices and receipts whenever necessary to further the scheme. He would use these documents to falsely represent to multiple banking institutions that transactions occurred at his store.
Afenkhena fraudulently received at least $350,000 as a result of his scheme.
U.S. District Judge David Hittner, who accepted the plea, has set sentencing for Sept. 11, 2014. At that time he faces up to 30 years in federal prison and a possible $1 million fine for each count of wire fraud. He also faces a mandatory two-year-term for aggravated identity theft, which must be served consecutively to any other sentence imposed.
The investigation was conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 24-year-old Houston man will be spending the next nine years in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Justin Devon Hayes entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Demontray Ward, 22, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Hayes a sentence of 24 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes will also serve five years of supervised release following completion of his prison term.Ward was sentenced in March 2014 to a total of 189 months in prison.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
Governor Martinez’s Former Campaign Manager Pleads Guilty to Computer Intrusion and False Statement ChargesRead the Press Release
ALBUQUERQUE – Jamie Estrada, 41, of Los Lunas, N.M., pleaded guilty this afternoon to the unlawful interception of electronic communications and false statement charges arising out of the unlawful interception of wire communications intended for others, including New Mexico Governor Susana Martinez and members of her staff.
In announcing Estrada’s guilty plea, U.S. Attorney Damon P. Martinez said, “Each and every one of us has a right and an expectation of privacy in our electronic communications, including our emails, and those who violate the law by diverting, stealing or otherwise misappropriating our private communications should face serious consequences. At a time when so much of our personal, professional and financial information is repeatedly transmitted on a daily basis by email and other wireless devices, the Department of Justice is committed to protecting Americans from those who seek to violate their privacy.”
“The right to privacy has been a cornerstone of our democracy since its founding and remains true today in our high-tech world. All Americans, regardless of the jobs or the positions they hold, deserve to have their emails and other computer transactions protected from criminals who would steal and exploit confidential information for unlawful purposes,” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “I thank the FBI special agents and professional staff who worked on this case, as well as the U.S. Attorney’s Office for their successful prosecution. While much has changed since our nation was established, one thing has not: Americans rely on their government to protect their rights, and that's a duty the FBI takes very seriously.”
Estrada was charged in a 14-count indictment filed in May 2013. The first 12 counts of the indictment alleged that, between July 2011 and June 2012, Estrada unlawfully intercepted wire communication intended for individuals who had email accounts on an internet domain owned by the Governor’s political organization. The final two counts charged Estrada with making false statements to the FBI in Sept. 2012, in which he denied taking certain actions to unlawfully intercept wire communications as charged in first 12 counts of the indictment. The indictment subsequently was superseded in Oct. 2013 and May 2014 to add two more false statement charges.
According to court filings, in summer 2009, Governor Martinez, who was then the District Attorney in Dona Ana County, N.M., began assembling a political campaign as she prepared to enter the Nov. 2010 gubernatorial race. In July 2009, a political supporter of the Governor registered an internet domain designated as susana2010.com (the Domain) for a two-year period through an online service. The supporter donated the Domain, including its username and password, to the Governor’s political organization. The username and password were required for making administrative changes to the Domain, including posting content to the Domain’s website and creating email accounts associated with the Domain. They also were required to renew the registration for the Domain, which was scheduled to expire on July 18, 2011. As the owner of the Domain, the Governor’s political organization had the exclusive right to renew the registration before it expired and during a 42-day grace period following the expiration date.
During the gubernatorial campaign, the Domain became an important tool for the Governor’s political organization. Members of the campaign staff, including the Governor, maintained email accounts on the Domain which they used to communicate with each other, the Governor’s political supporters, and the media. Estrada, who joined the Governor’s political organization as the campaign manager in July 2009, was provided with the username and password for the Domain. When Estrada left the campaign in Dec. 2009, the Governor requested that he cooperate in efforts to remove his access to and privileges regarding the campaign’s accounts.
After Governor Martinez was inaugurated in Jan. 2011, the Governor, members of her staff and others continued to use the email accounts associated with the Domain. In July 2011, individuals who had email accounts on the Domain began receiving reports that emails sent to those accounts were bouncing back to the senders and soon determined that the emails were not getting delivered because the Domain had expired. Their efforts to re-register the Domain were unsuccessful because they could not locate or recall the Domain’s username and password. In July 2011 and as part of their efforts to locate the username and password, the Governor’s staff asked Estrada to provide this information and he did not respond.
During today’s hearing, Estrada entered guilty pleas to Counts 6 and 16 of the second superseding indictment, charging him with unlawful interception of electronic communications and false statements, respectively. In his plea agreement, Estrada admitted that on July 29, 2011, he logged onto the Domain and altered the customer profile using a fictitious name with a Colorado address. Estrada also admitted renewing the Domain under the fictitious name and paid for the renewal with a pre-paid gift card so that the renewal could not be traced back to him.
According to the plea agreement, Estrada changed the settings for the Domain to direct all incoming email to an email account he controlled so that the emails were routed to him instead of the intended recipients. From July 2011 through June 2012, Estrada intercepted hundreds of email messages intended for recipients at the Domain, including the Governor. The intercepted emails included personal emails, internal political communications and emails from ordinary citizens to the Governor or her staff. In his plea agreement, Estrada admitted sharing the emails he unlawfully intercepted with the Governor’s political opponents to disseminate the emails to news media and other outlets.
Estrada admitted unlawfully intercepting an email dated Jan. 4, 2012, which was entitled “Confidential RGA [Republican Governors’ Association] Update” and was intended for the Governor, as charged in Count 6 of the second superseding indictment. In his plea agreement, he also acknowledged unlawfully intercepting the eleven other emails described in Counts 1 through 5 and 7 through 12 of the indictment.
Estrada also admitted making false statements to FBI agents on Sept. 19, 2012, when they executed a search warrant at his residence. Specifically, Estrada told the FBI agents that he had not paid for the renewal of the Domain using a pre-paid gift card as charged in Count 16 of the second superseding indictment. In his plea agreement, he also acknowledged making the false statements charged in Counts 13, 14 and 15 of the indictment.
Under the terms of the plea agreement, Estrada faces a sentence of zero to a year and a day in federal prison. The remaining components of Estrada’s sentence, including the length and conditions of his supervised release and any fine or restitution, will be determined by the court.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Fred J. Federici and Jeremy Pena.
Georgia Resident Pleads Guilty in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
A man from Atlanta, Georgia, pleaded guilty today for his role in a Jamaican-based fraudulent lottery scheme.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, Inspector in Charge David W. Bosch of the Postal Inspection Service Philadelphia Division and Acting Special Agent in Charge Jonathan Larson of the Internal Revenue Service-Criminal Investigations Newark Field Office made the announcement.
Dominic Smith, 26, a citizen of the United States, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud. Sentencing will be scheduled at a later date.
Smith was charged in connection with a fraudulent lottery scheme based in Jamaica that induced elderly victims in the U.S. to send Smith thousands of dollars to cover purported fees for lottery winnings that victims had not won and never received. Smith acted as a middleman in the U.S., receiving money from victims via wire transfers, bank transfers, and mailings. Smith kept a portion of this victim money for his own benefit, and provided the rest to others participating in the scheme.
“This guilty plea demonstrates the Justice Department’s commitment to prosecute those responsible for fraudulent lottery schemes,” said Assistant Attorney General Delery. “Schemes targeting Americans from other countries often cannot fully succeed without assistance from co-conspirators in the U.S. who are willing to help them rip off people in this country.”
“These lottery scammers prey on older Americans, and convince them to send significant amounts of money based on false promises,” said Postal Inspector in Charge Bosch. “The Postal Inspection Service is committed to investigating and combating these international lottery schemes.”
“These fraudulent lottery schemes result in hundreds of thousands of dollars of victim money flowing through the hands of scammers within and outside of the U.S.,” said Acting Special Agent in Charge Larsen. “The IRS will continue to work with the Department of Justice and our law enforcement partners to stop the flow of illegal proceeds across the U.S. border.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Smith pleaded guilty to one count of conspiracy to commit wire fraud with enhanced penalties for telemarketing. As part of his guilty plea, Smith acknowledged that, had the case gone to trial, the U.S. would have proved beyond a reasonable doubt that, from December 2010 through at least April 2012, Smith was a member of a conspiracy that targeted victims in the United States by informing them that they had won cash and prizes in a lottery. Victims received a telephone call stating that they had won a sweepstakes or lottery and sometimes a new car. Victims were instructed to send thousands of dollars for “fees” or other expenses via wire transfers, direct bank transfers, and the mail in order to release their purported lottery winnings. Victims sent hundreds of thousands of dollars to Smith in the U.S. Smith acknowledged that the government would have proved that he knew there was no lottery and no winnings were paid, and that he, along with his coconspirators, kept the victims’ money for their own benefit.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service and the U.S. Internal Revenue Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Lauren Fascett of the Civil Division and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina.Galveston Resident Charged with Stealing Deceased Benefits for More A DecadeRead the Press Release
GALVESTON, Texas – John Stephen Davis, 64, of Galveston, has been charged with theft of nearly $400,000 in federal government benefits from the Social Security Administration (SSA) and the Office of Personnel Management (OPM), announced United States Attorney Kenneth Magidson.
The criminal information was filed in federal court this morning. Davis is expected to make an initial appearance before a U.S. magistrate judge in Galveston later this week.
For more than a decade, Davis allegedly stole the Social Security and retirement benefits of an individual who died in 2003. According to the allegations, Davis had a power of attorney over the individual’s bank account and failed to notify the government of the death in order to continue receiving government benefits.
Davis fraudulently received $385,632.15 as a result of the scheme, according to the criminal information.
If convicted, he faces up to 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by SSA – Office of Inspector General (OIG) and OPM – OIG. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Former President of Central Kentucky Glass Company Guilty of Fraud in Connection with the Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Former president pleaded guilty to wire fraud and agreed to 27 month prison sentence
– Charges pending against the companyLOUISVILLE, Ky. – The former president of Central Kentucky Glass Company, headquartered in Lexington, Kentucky, pleaded guilty today, in United States District Court, to a single count of wire fraud, in connection with a multi-million dollar contract at Fort Knox High School, announced David J. Hale, United States Attorney for the Western District of Kentucky. Central Kentucky Glass Company was charged separately in a grand jury indictment, with wire fraud, mail fraud and major fraud against the United States.
According to the plea agreement, Dennis Martin, age 51, of Nicholasville, Kentucky, agreed to pay the Army Corp of Engineers and/or the United States Department of Defense $74,061.88 in restitution, and agreed to serve 27 months in prison in exchange for his admission of guilt. Also, Martin agreed that Barton Marlow Company suffered $558,780.44 in losses, but Barton Marlow Company and Central Kentucky Glass Company (CKG) reached a civil settlement for losses due to Martin’s conduct. The amount paid shall be joint and several with restitution owed by CKG.
According to court records, CKG Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project which included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. CKG was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards.
Martin admitted in court today, that he forged certifications from two testing companies, Bowser-Morner, Inc., and National Certified Testing Laboratories, which falsely reflected that CKG’s glass and windows had been tested and met contract requirements. On October 22, 2008, the forged certifications were faxed from CKG’s office in Kentucky to Barton Malow’s office in Ohio. In fact, CKG’s glass and windows had not been tested per the specifications of the contract, and subsequent tests conducted on behalf of the Army Corp. of Engineers indicated that the glass and windows CKG installed at Fort Knox High School did not meet antiterrorism standards.
If convicted, at trial, the company faces a maximum fine of $6,000,000, and a three year period of supervised release. Martin faced no more than 20 years in prison, a fine of $250,000 and a three year period of supervised release.
Sentencing is scheduled before Senior District Judge Thomas B. Russell, on September 16, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Defense Office of Inspector General.
Former Executive Director of Mississippi Department of Marine Resources Sentenced to 60 Months in Federal PrisonRead the Press Release
Hattiesburg, Miss - William Walker, 69, of Ocean Springs, was sentenced to 60 months in federal prison followed by three years of supervised release for conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. He was also ordered to pay restitution in the amount of $572,689.14 and a $125,000 fine.
Walker pled guilty on March 10, 2014, to conspiring with his son, Scott Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former D’iberville City Manager Sentenced to Prison for Federal Program FraudRead the Press Release
Hattiesburg, Miss - Michael Janus, 47, of Biloxi, was sentenced to 21 months in federal prison followed by three years of supervised release for theft concerning programs receiving federal funds, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Janus was also ordered to pay restitution in the amount of $180,000.
Janus pled guilty in February, admitting that, while serving as City Manager for the City of D’Iberville, he fraudulently obtained a $180,000 “finder’s fee” in connection with a $3 million grant from the Mississippi Department of Environmental Quality to the City of D’Iberville.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Firearm Conviction, Arrest RecordSend Wichita Man to Federal Prison for 10 YearsRead the Press Release
WICHITA, KAN. - A federal judge in Wichita cited a defendant’s long criminal record in sentencing him Monday to 10 years in prison on a firearm violation, U.S. Attorney Barry Grissom said.
Thomas Lee Wohlford, 32, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm following felony convictions.
U.S. District Court Judge Monti L. Belot said in court records that Wohlford “has been involved in the criminal justice system on a more or less continuous basis since age 15,” and “has no respect for the law.”
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
In his plea, Wohlford admitted he was arrested Feb. 11, 2014, at a Quick Trip at 1610 E. Lincoln. Police were called to the scene by a man whose car had been stolen. The man told police he had spotted Wohlford putting gas in the stolen vehicle. Police arrested Wohlford and seized a .22 caliber handgun from the car.Final Three Defendants Sentenced in Wide-Ranging Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Kawana Brown, 35, of West Palm Beach, Elton Baker, 29, and Eltonya Wiley, 40, both of Center Hill, were sentenced before Judge Kenneth A. Marra for their participation in a wide-ranging identity theft scheme. Brown was sentenced to 102 months in prison, to be followed by three years of supervised release. Baker was sentenced to 65 months in prison, to be followed by three years of supervised release. Wiley was sentenced to 42 months in prison, to be followed by three years of supervised release. Brown, Baker and Wiley were also ordered to pay restitution in the amount of $122,075.21.
Each of the defendants previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Brown also pled guilty to two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and Baker and Wiley each pled guilty to one count of aggravated identity theft.
Ringleader and co-conspirator Jennifer Robinson, 36, of West Palm Beach, was sentenced on May 30, 2014, to 121 months in prison, to be followed by three years of supervised release. A restitution hearing is scheduled for July 25, 2014 at 11:00 a.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach. Robinson previously pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, eleven counts of stealing government monies, in violation of Title 18, United States Code, Section 641, twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of unauthorized access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Co-defendants Antoinette Simmons, 40, of Ocoee, and Josh Brown, 25, of Riverdale, Georgia, were sentenced to probation for their roles in the thefts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Prisoner Admits Running Bank Fraud Scheme While in Hartford Halfway House, and Then EscapingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD GLENN, 42, formerly of Hartford, pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of bank fraud and one count of escape from the custody of the Attorney General.
According to court documents and statements made in court, in December 2009, GLENN was sentenced in Hartford federal court to 78 months of imprisonment for running an extensive fraudulent check cashing scheme that involved more than 200 counterfeit business checks and 75 different bank branches in Connecticut. Through this scheme, GLENN and his associates defrauded banks of more than $155,000.
On September 28, 2012, the Bureau of Prisons transferred GLENN to a halfway house in Hartford where he was to serve the final six months of his sentence.
In November 2012, while he was in federal custody in the Hartford halfway house, GLENN began to engage in another bank fraud scheme. In December 2012, GLENN gave an individual a counterfeit check from a Connecticut business in the amount of $4,809.02, and gave a second individual a counterfeit check from the same business in the amount of $4,743.80. At GLENN’s direction, the individuals deposited the checks into bank accounts and then withdrew a portion of the funds.
On March 27, 2013, GLENN left the halfway house without permission and did not return.
On April 2, 2013, GLENN deposited a counterfeit business check in the amount of $7,321.60 into a bank account he controlled in Connecticut and then withdrew a portion of the funds.
On August 2, 2013, GLENN was arrested in Florida on state charges. He has been detained since his arrest.
GLENN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 3, 2014, at which time he faces a maximum term of imprisonment of 35 years.GLENN’s criminal history also includes a 1997 federal conviction for bank fraud, for which he received a 41-month prison term, and at least 15 state convictions.
This matter was investigated by the Connecticut Financial Crimes Task Force and the U.S. Marshals Service. The Task Force includes the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Inmate Convicted of MurderRead the Press Release
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the murder of another inmate after a 5-day federal jury trial before U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Bellinger was convicted by a federal jury on June 16, 2014, on one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and physically assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000, and his co-defendant was serving a life sentence for two separate homicides that took place in 1997 and 2000.
Bellinger, who is in custody pending sentencing, faces a mandatory penalty of life in prison for his conviction of murder by a federal prisoner serving a life sentence and a term of years up to life imprisonment for his conviction of second degree murder.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Brandon Flower.Federal Inmate Convicted of MurderRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WASHINGTON – Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the murder of another inmate after a 5-day federal jury trial before U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Bellinger was convicted by a federal jury on June 16, 2014, on one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and physically assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000, and his co-defendant was serving a life sentence for two separate homicides that took place in 1997 and 2000.
Bellinger, who is in custody pending sentencing, faces a mandatory penalty of life in prison for his conviction of murder by a federal prisoner serving a life sentence and a term of years up to life imprisonment for his conviction of second degree murder.This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Brandon Flower.
Eighth Defendant Sentenced for Drug Trafficking and Conducting Illegal Cash TransactionsRead the Press Release
FRESNO, Calif. — A Tacoma, Wash. man was sentenced today for participating in an oxycodone and hydrocodone trafficking conspiracy where co-conspirators obtained prescriptions from a Central Valley doctor, filled them in area pharmacies and mailed the drugs to Washington and other states, United States Attorney Benjamin B. Wagner announced.
United States District Judge Anthony W. Ishii sentenced David Ruem, 32, to 10 years and one month in prison for his role in the drug trafficking conspiracy and for conducting illegal cash transactions to evade reporting requirements. Ruem was indicted with 12 others on April 11, 2013, and pleaded guilty in February 18, 2014. According to court documents, the defendants obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, filled those prescriptions at pharmacies in Modesto, and then transported or mailed the pills to Washington for distribution on the black market. After illegally selling the pills, the defendants then deposited the cash proceeds of those sales into bank accounts held by the defendants in California.
In addition, Ruem admitted to structuring deposits of $145,000 into various accounts opened by co‑conspirators in California. Deposits and withdrawals were made in amounts less than $10,000 to prevent the bank from filing Currency Transaction Reports that banks are required to file on transactions greater than $10,000. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Seven co-defendants have been sentenced as follows: Phary Chim, of Kent, Wash.: four years and three months in prison; Sdey Chim, of Modesto: three years and 10 months in prison; Chanrath Yath, of Modesto: three years and four months in prison; Phally Thach, of Modesto: two and a half years in prison; Raeb Chou, of Modesto: two years in prison; Cindy Doeum, of Kent, Wash.: three years of probation; and
Chantha Chim, of Murietta: three years of probation.In connection with this case, on June 7, 2013, Visalia doctor Terrill Eugene Brown, 62, was charged with conspiracy to dispense oxycodone, dispensing of oxycodone and hydrocodone, and structuring currency transactions to avoid bank reporting requirements. The charges against him and the remaining five defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.