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13 June 2014
Herrin Man Charged with Heroin ConspiracyRead the Press Release
Follow @SDILNewsOn June 3, 2014, Adam M. Calvert, 30, of Herrin, was charged by indictment with conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson and Jackson Counties. Calvert made his in his initial appearance in federal court on June 12, 2014. He was ordered held without bond, pending an August 18, 2014, jury trial.
The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Harrisonburg Resident Pleads Guilty to Human Trafficking ChargeRead the Press Release
HARRISONBURG, VIRGINIA – A citizen of Honduras, residing in Harrisonburg, pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to offenses related to human trafficking.
Elin Coello-Ordonez, 32, pled guilty yesterday to one count of conspiring to recruit, entice, harbor, transport, provide, obtain and maintain a person in an interstate venture that used force, threats of force, fraud or coercion to cause a person to engage in a commercial sex act. According to the terms of the plea agreement entered into yesterday, Coello-Ordonez will be sentenced to 10 years in federal prison for the human trafficking charge. The defendant is currently serving a five year sentence in federal prison on a related immigration charge which arose out of the same investigation. In total, the defendant will serve 15 years in federal prison. The plea agreement is subject to final approval by the U.S. District Judge.
“Mr. Coello-Ordonez forced the young victim in this case to engage in prostitution, then physically abused her when she resisted,” United States Attorney Timothy J. Heaphy said today. “His despicable conduct has earned him a lengthy stay in federal prison. We must do all we can to identify and aggressively pursue similar patterns of human trafficking, which is sadly on the rise in our communities. We must also connect the victims of these awful crimes with services and relief, as the scars of trafficking are extremely difficult to erase.”
“The exploitation of vulnerable young women and children in our nation is a problem that demands a strong response from law enforcement,” said HSI DC Special Agent in Charge Clark Settles. “HSI special agents are on the front lines of this battle every day, seeking out victims and bringing their tormentors to justice.”
“The Albemarle County Police Department is committed to working with our federal, state & local partners on addressing this very real threat in our community. This case is only an example of what we believe to be a growing public safety threat in our region,” said Col. Steve Sellers, Chief of Police of the Albemarle County Police Department.
According to evidence presented in court yesterday by Assistant United States Attorney Craig “Jake” Jacobsen, Coello-Ordonez arrived in Honduras in February 2010 and soon thereafter met Jane Doe #1 (the victim), a 17-year-old Honduras citizen, and the two soon became boyfriend and girlfriend. The defendant promised the victim that he could get her a waitressing job in Harrisonburg, Virginia. Consequently, in August 2010, days before the victim’s eighteenth birthday, the defendant smuggled her across the border and into the United States.
Upon arrival in Harrisonburg, Virginia, it soon became clear to the victim that the defendant was involved in the operation of a prostitution ring, which consisted of brothels located in a trailer in Harrisonburg and an apartment in Charlottesville, Virginia. It became equally clear that there was no waitressing job for the victim. After several months, the defendant told the victim she was going to have to work as a prostitute and have sex with men to earn money. The victim refused. As a result, the defendant verbally and physically abused her. The defendant slapped, kicked and punched the victim until she agreed.
From January 2011 to July 2011, the defendant forced the victim to work as a prostitute at his brothels in Virginia, as well as brothels operated by others in Pennsylvania and Maryland. The victim was forced to have sex with as many as 30 men a day.
On July 16, 2011, the victim called 9-1-1 several times because the defendant was beating her. When the police arrived, the victim began to shake uncontrollably and told police the defendant had physically assaulted her. The victim had sustained multiple bruises and her right eye was swollen shut. The defendant was arrested and the victim placed in a rescue shelter.
The investigation of the case was conducted by the Western District of Virginia’s Human Trafficking Task Force, headed by the United States Attorney’s Office for the Western District of Virginia. Agencies who assisted in the investigation include: U.S. Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (H.S.I.), the Albemarle County Police Department, the United States Secret Service, the Department of State Diplomatic Security, the Hyattsville, Maryland Police Department, the Virginia Fusion Center, the Computer Crimes Division of the Virginia Attorney General’s Office, the Virginia State Police, the Harrisonburg Police Department and the University of Virginia’s Women’s Center. Assistant United States Attorney Craig “Jake” Jacobsen is prosecuting the case for the United States.
Four Sentenced in Scheme to Defraud NissanRead the Press Release
Wendell Young, 34, of Inglewood, Calif., Adrian Franklin, 40, of Chandler, Arizona, Francisco DeLaRosa, 42, of West Covina, Calif. and Tracey Young, 46, of Los Angeles, have been sentenced by United States District Court Judge William Haynes for their participation in a money laundering scheme to defraud Nissan, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. All defendants pleaded guilty earlier this year.
Yesterday, Tracey Young was sentenced to 12 months and one day in prison, to be followed by six months in a half-way house and ordered to pay $191,250 in restitution to Nissan. DeLaRosa was sentenced to five months in a half-way house, during which time he will be required to serve two days each week in a local correctional facility, to be followed by five months of house arrest and ordered to pay $31,500 in restitution to Nissan.
On May 30, 2014, Wendell Young was sentenced to 20 months in prison and ordered to pay $191,250 in restitution to Nissan. On June 6, 2014, Adrian Franklin was ordered to serve three years of supervised release, including 10 months in a halfway house, during which time he will be required to serve weekends in a local correctional facility. Franklin was also ordered to pay $191,250 in restitution to Nissan.
Two additional defendants, Bruce Young and Kenneth Carter, are scheduled to be sentenced by Judge Haynes in August 2014.The scheme originated from Kenneth Carter, a former Nissan employee who was employed at Nissan’s Franklin, Tennessee headquarters as an “Arbitration Specialist” from March 2007 through April 2008. As Arbitration Specialist, Carter’s duties included negotiating with attorneys who brought claims on behalf of Nissan owners, alleging that Nissan had violated “Lemon Laws” or the “Federal Warranty Act.”
Between March 2007 and April 2008, Carter, along with Wendell Young, Adrian Franklin, Tracey Young, Francisco DeLaRosa, and others, engaged in a scheme to defraud Nissan by filing false Lemon Law claims on behalf of individuals who owned Nissan vehicles.
The defendants provided Carter with information obtained from Nissan owners, such as the owner’s name, address, and vehicle identification number. Carter then used the information to file false and fraudulent Lemon Law claims with Nissan requesting settlement checks. Once Carter approved the false claims he would cause settlement checks to be issued. Defendants Wendell Young, Adrian Franklin, Tracey Young, and Francisco DeLaRosa then directed the Nissan owners to deposit the checks into their bank accounts or to cash the checks and then “kick-back” a portion of the funds received from Nissan. A portion of the funds were then paid to Carter, and the remaining funds were kept by Wendell Young, Adrian Franklin, and Tracey Young.
According to charging documents, between March 2007 and April 2008, Carter caused approximately 80 false claims to be paid by Nissan, totaling approximately $571,500.
The case was investigated by the IRS? Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn Ward Booth represents the government.Four Men Charged with Distributing Lethal Doses of HeroinRead the Press Release
Boston - A federal grand jury indicted four men yesterday on one count of conspiracy to distribute heroin and three counts of distribution of heroin.
Fernando Lnu, a/k/a Cesar Gonzalez, 43, of the Dominican Republic, Osvaldo Ortiz-Ventara, 23, of Dorchester, and Kevin Sanderson, 28, of Quincy, were indicted today. A fourth indicted defendant, Weslley Hernandez, 25, of Dorchester, remains a fugitive.
According to affidavits previously filed with the court, the investigation into Gonzalez started in January 2014 after Steven Radeos, a former Braintree Police Department informant, died from an apparent heroin overdose. A laboratory test of an empty heroin bag found next to Radeos’ body was positive for Fentanyl and Dipryone, an animal painkiller. Radeos’ family cooperated in the investigation into his death and provided Braintree detectives with Radeos’ cell phone. Officers discovered that Radeos’ phone contained a number of text message exchanges with Sanderson, a number of which indicated that Sanderson was purchasing heroin for Radeos from Sanderson’s drug supplier. It is further alleged that the text messages described the heroin as “fire” and Radeos was cautioned to be careful when using it. Federal agents approached Sanderson, who allegedly admitted to purchasing heroin from Gonzalez and selling it to Radeos. Sanderson agreed to cooperate in the investigation.
According to court documents, between February and May 2014, cooperating witnesses were used to make recorded calls and controlled heroin purchases from Gonzalez’s organization. It was also learned that Gonzalez used an apartment located at 1455 River Street, Hyde Park, to store heroin and that Gonzalez employed Hernandez and Ortiz-Ventara to pick up heroin from the River Street apartment on a near daily basis and then distribute the heroin around the Boston area.
On June 10, 2014, Gonzalez and Ortiz-Ventara were arrested on federal warrants and 1455 River Street was searched. At the time of the search, agents found Steven Juarbettores, Josue Torres Gonzalez, Lorenzo Antonio Nunez and Raul Romero, all of whom are believed to be from the Dominican Republic, in the apartment along with heroin, cocaine, drug packaging materials and a loaded semi-automatic handgun. Juarbettores, Josue Torres Gonzalez, Nunez, and Romero were charged in a separate federal complaint with possession with intent to distribute heroin and cocaine.
United States Attorney Carmen M. Ortiz; Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division; Norfolk County District Attorney Michael W. Morrissey; and Chief Russell Jenkins of the Braintree Police Department made the announcement.The case was investigated by members of the Boston FBI OCDETF Strike Force unit which includes the FBI; Braintree, Boston, Woburn and Watertown Police Departments; Department of Corrections, Customs and Border Protection; and the Massachusetts State Police Detective Unit assigned to the Norfolk County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Leah Foley of Ortiz’s Drug Trafficking Unit and Director of the OCDETF Strike Force.
The details contained in the indictment and affidavits are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Thompson Woman Charged and Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman charged with Assault by Striking, Beating and Wounding pled guilty to and was sentenced on June 10, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Mary St. John, a/k/a Mary Hoisington, age 58, was sentenced to 6 months of custody, 1 year of supervised release, $500 in restitution, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 19, 2014, when St. John assaulted a female victim causing multiple bruises and abrasions to her head and body.
The investigation was conducted by the Bureau of Indian Affairs, Crow Creek Law Enforcement Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
St. John was remanded to the custody of the U.S. Marshals Service.
Former New River Marine Sentenced for EmbezzlementRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced today that in federal court on June 3, 2014, United States District Judge Louise W. Flanagan sentenced WILLIAM FERNANDO CARPIO , 37, to 37 months imprisonment, to be followed by 3 years of supervised release and ordered him to pay restitution to the United States Government in the amount of $1,012,875.06.
CARPIO was named in a Criminal Information filed on July 26, 2013 charging him with Larceny of Government Property, in violation of Title 18, United States Code, Section 641. On February 21, 2014, CARPIO pled guilty to that charge.
According to the investigation, between March 2012 and February 2013, CARPIO embezzled property belonging to the United States. Investigators seized $354,180.40 from an account controlled by CARPIO. In February, 2013, law enforcement was tipped off that CARPIO, then a Gunnery Sergeant in the United States Marine Corps, was mailing suspicious packages using a non-local return address. Further investigation revealed CARPIO, who had supervisory responsibility over military supplies at the New River Air Station, was engaged in large scale embezzlement of government property which he sold to businesses over the internet.
Investigation of this case was conducted by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. Special Assistant United States Attorney Mark Griffith prosecuted the case.
Former Correctional Officer Sentenced for Smuggling ContrabandRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher Cox, aged 35, of Pelham, Georgia, was sentenced by United States District Court Judge Louis Sands to serve 15 months in federal prison for conspiracy to smuggle contraband into a detention facility in exchange for bribes. The sentence was pronounced on June 12, 2014 in Albany, Georgia.Mr. Cox entered a guilty plea on April 2, 2 014. As a part of his plea agreement, Mr. Cox admitted that from about April 15, 2013 to May 16, 2013, while employed as a Correctional Officer at the Mize Street Detention Facility in Pelham, Georgia, he accepted money from inmates in custody at the facility in exchange for cell phones, liquor, marijuana and food, which are prohibited objects for the inmates.
“When people violate the law, they wind up in prison. While there, the last thing we expect is that one of the prison guards will help them to violate the law and the rules of the facility. Mr. Cox did just that, and we will make sure that for the duration of his sentence he won’t be a part of smuggling any contraband,” said U.S. Attorney Michael Moore.The case was investigated by the United States Marshal Service and the Pelham Police Department. Assistant United States Attorney Leah E. McEwen is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Chelsea Selectman Sentenced to More Than 7 Years on Extortion and Fraud ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Carole
J. Swan, 56, of Chelsea, Maine, was sentenced today in U.S. District Court in Bangor by Chief
Judge John A. Woodcock, Jr. to 87 months in prison and 3 years of supervised release for extortion, federal tax fraud and federal worker’s compensation fraud. She was also fined
$125,000 and ordered to pay over $106,000 in restitution. On July 26, 2013, Swan was convicted on the fraud charges following a three week jury trial. On September 17, 2013, Swan was convicted on the extortion charges following a one week jury trial.According to the court records and trial evidence, Swan was an elected member of the
Chelsea Board of Selectmen. Between January 2010 and February 2011, she used her position to extort and attempt to extort $20,000 from Frank Monroe Construction, a local construction company that plowed, salted and sanded Chelsea’s roads. She also filed false federal income tax returns for tax years 2006 through 2010 in which she under-reported about $650,000 in gross receipts and sales for her business, Swan Construction, thereby evading about $145,000 in income and self-employment taxes. She also fraudulently obtained over $75,000 in worker’s compensation benefits, by failing to report, among other things, her ownership of, and work for, Swan Construction and a harness horse racing business, and by under-reporting the hours she worked as a selectman and assessor.In imposing sentence, Chief Judge Woodcock found that Swan obstructed justice by repeatedly, deliberately and willfully lying throughout the proceedings. Chief Judge Woodcock also noted that Swan breached her duties of honesty and trust to Chelsea and Frank Monroe and described Monroe as “a local hero” for bringing Swan to justice.
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue
Service – Criminal Investigations Division; the Department of Homeland Security, Office of
Inspector General ("OIG"); the U.S. Department of Labor, OIG, Office of Labor Racketeering and Fraud Investigations; the U.S. Postal Service, OIG; and the Kennebec County Sheriff's
Office.Florida Man Pleads Guilty to $433,000 FraudRead the Press Release
SAN FRANCISCO – Leigh Farrington Fiske pleaded guilty in federal court on June 11, 2014, to wire fraud, announced U.S. Attorney Melinda Haag, Special Office of the Special Inspector General for the Troubled Asset Relief Program, Special Agent in Charge Scott O'Briant, and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Fiske, 50, of Tampa, Fla., admitted that he and his partner, Michael Ramdat, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Fiske’s role was to solicit customers, which he generally did over the Internet and by word of mouth. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Fiske admitted that he kept $102,000 of these payments for himself, and that he passed the remainder on to Ramdat.
Fiske and Ramdat were charged in a Superseding Indictment on Nov. 21, 2013. Fiske pleaded guilty to five counts of wire fraud, in violation of 18 U.S.C. § 1343. Ramdat pleaded guilty in February 2014, to five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349.
Fiske is scheduled for sentencing on Sept. 17, 2014, at 2:30 p.m., before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1343 is twenty years in prison, three years of supervised release, and a $250,000 million fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Rawaty Yim. The prosecution is the result of an investigation by SIGTARP and the FBI.
(Fiske and Ramdat superseding indictment )
Easton Woman Charged with Tax EvasionRead the Press Release
Lilliam Zawarski, 60, of Easton, PA, was charged today by Information with one count of tax evasion, announced United States Attorney Zane David Memeger. The defendant is charged with willfully evading the payment of $131,349.31 in federal income taxes owed by her to the United States of America for the calendar years 2007 through 2009.
If convicted, defendant Zawarski faces a maximum possible sentence of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Field Office of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney John Gallagher.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to 30 Years in Prison for Shooting Three Men Outside RestaurantDefendant Sought Revenge After Fight; One Victim Left ParalyzedRead the Press Release
WASHINGTON – Matthew Bullock, 30, of Washington, D.C., was sentenced today to 30 years in prison on charges stemming from the shooting of three men in December 2012 behind a restaurant in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bullock was found guilty by a jury of a total of 24 charges in March 2014, following a trial in the Superior Court of the District of Columbia. The jury found Bullock guilty of three counts of assault with intent to kill while armed, three counts of aggravated assault while armed, three counts of assault with a dangerous weapon, and 15 additional charges.
He was sentenced this morning by the Honorable John McCabe. Upon completion of his prison term, Bullock will be placed on 5 years of supervised release.
According to the government’s evidence, shortly after midnight, early on Dec. 3, 2012, Bullock and one of the victims were involved in a fistfight inside the Indulj Lounge, a bar/restaurant in the 1200 block of U Street NW. After the fight was broken up, Bullock was ushered out of the front door and the victims were ushered out of the back door.
Bullock hurried to his car, which was parked in front of the restaurant. He then drove to the alley behind the restaurant to intercept the man with whom he had been fighting. Once he saw the man in the alley, Bullock unleashed at least six rounds from a semi-automatic weapon, striking his intended target in the shoulder. In the barrage, Bullock also struck the two men accompanying his main target. One of these other men was struck by two bullets in the groin and leg. The final victim was struck in the back as he ran away from Bullock, and left paralyzed. Bullock fled the scene and was apprehended on an arrest warrant in January 2013.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians 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 Litigation Technology Specialists Leif Hickling and Aneela Bhatia; Victim/Witness Advocate Jennifer Clark; and Paralegal Specialists Anthony Griffith and Kalisha Johnson-Clark. Finally, he thanked former Assistant U.S. Attorneys Andrew Finkelman and Nicholas Cannon, who investigated and indicted the case, and Assistant U.S. Attorney Kevin Andrew Chambers, who prosecuted the case at trial.
14-135Defendant in Procurement Fraud Case Involving Services in Afghanistan Sentenced to 42 Months in Federal PrisonRead the Press Release
SALT LAKE CITY - An individual who pled guilty to disclosure of procurement information and money laundering in connection with a procurement fraud case involving a military contract for services in Afghanistan has been sentenced to 42 months in federal prison.
U.S. District Judge Tena Campbell, who imposed the sentence, ordered David Young, age 51, of Hernando Beach, Florida, to self-surrender to begin serving the sentence on Aug. 4. Young will be on supervised release for 36 months when he finishes his prison sentence.
As a part of a plea agreement reached with federal prosecutors, Young admitted that between March and June of 2007, he was deployed as an activated reservist in Afghanistan with the U.S. Army at the Combined Joint Special Operations Task Force and acted as an official liaison for Afghan National Security Force Partnering. In this position, he was involved in supervising the transfer of greater responsibility for Afghanistan’s national security to the Afghans. During that time, according to the plea agreement, a need arose to train the Afghan forces in weapons maintenance and property book management. A decision was made to solicit a pilot contract to meet that need.
Young admitted that by virtue of his position as a federal official, he possessed confidential bid, proposal, and source selection information concerning this pilot contract which the Army eventually issued solicitations for to private U.S. contractors. The contract stipulated a need for logistics and weapons maintenance support for Afghan commando units.
According to court records, Michael Taylor, another defendant in the case, was the owner and Chief Executive Officer of American International Security Corporation (AISC). During the source selection process and before the contract was awarded, Young admitted that he disclosed to Taylor and Christopher Harris, also charged in the case, the government’s price estimate for the contract, source selection information, information detailing the competitor’s bid, and other sensitive and protected material. AISC responded to a solicitation and used that information to prepare and submit a bid on the contract. Young admitted the protected information provided a competitive advantage in the source selection process. The Army subsequently awarded the contract to AISC.
According to the plea agreement, AISC paid Christopher Harris, who worked as the country manager in Afghanistan for AISC, more than $17 million throughout the life of the contract. Young received more than $9.4 million from the proceeds of the contract, according to court records.
“As we are all aware, families in Utah and across America continue to send loved ones to serve our nation in Afghanistan. Conduct like we see in this case undermines the confidence of American taxpayers who continue to pay for the cost of our efforts in Afghanistan,” U.S. Attorney David B. Barlow said today. “Young held a position of trust with the United States Army and violated his ethical duties as a soldier. He knew full well that he could not ethically use or disclose the protected information as he did.”
As a part of the plea agreement, Young agreed to forfeit money from multiple bank accounts; 16 pieces of real property in New Hampshire and Florida; money from the sale of a Hummer and boat; a Jaquar; 225 one-ounce American Eagle coins; and 175 one-ounce South African Gold Krugerrand coins.
Harris, age 49, of Lake Havasu, Arizona, who pled guilty to conspiracy to commit government procurement fraud and money laundering, is scheduled to be sentenced June 23. Sentencing has not been set for Taylor, age 53, of Boston, who pled guilty to a violation of the prohibition of obtaining procurement information. Taylor’s plea agreement includes a recommendation for a sentence of not more than 24 months.
“The defendant betrayed his oath to the Constitution and abused his position as a military officer to pilfer taxpayer dollars to feed his appetite for wealth and an opulent lifestyle,” said Jonathan Lines, assistant special agent in charge of ICE’s Homeland Security Investigations (HSI) in Utah. “This conviction should make clear, HSI and its investigative partners are committed to ensuring that those who misuse taxpayers' dollars and violate the public's trust are held accountable for their actions.”
“IRS Criminal Investigation and our investigative partners are pleased with today’s sentencing. The defendant abused his position as a high ranking special ops military officer and betrayed his country, and its taxpayers, by selling vital information for personal gain. IRS CI is committed to investigating egregious crimes such as these,” said IRS Criminal Investigation Assistant Special Agent in Charge, Shea Jones of the Las Vegas Field Office.
“Fraud and corruption in military contracting not only take away precious dollars necessary for the dedicated American warfighter, but they undermine the confidence of the American public who demand a military procurement system that spends their tax dollars wisely and responsibly. In this case, both a military officer and a government contractor betrayed the public’s trust. This investigation should serve as a warning for those intent on defrauding the U.S. military and the American public that law enforcement will pursue these crimes relentlessly,” Janice M. Flores, Special Agent in Charge of the DCIS Southwest Field Office said.
The case was investigated by the Defense Criminal Investigative Service (DCIS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit. It was prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Utah.
Crystal Lake Man Pleads Guilty in Secret Shopper SchemeRead the Press Release
ROCKFORD — A Crystal Lake, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to mail fraud. MICHAEL S. MACKAY, 47, of Crystal Lake, Ill., admitted that from Sept. 2011 to at least May 16, 2012, he participated in a scheme to defraud victims into falsely believing they were hired to work as “secret shoppers” or payment processors.
According to the written plea agreement, after applying to work-at-home advertisements on the Internet, victims would receive a letter with at least one counterfeit negotiable instrument, such as a counterfeit money order. The victims were instructed to deposit the counterfeit negotiable instrument in their financial institution, retain a certain percentage as payment for their services, go to the nearest Western Union and wire transfer the remaining proceeds as instructed. The victims were also instructed to report their experience, believing they were hired as secret shoppers to evaluate local businesses, via email to an email address contained in the letter. The participants in the scheme received the proceeds via the wire transfers before the victims learned that the money orders were counterfeit.
Mackay admitted that during the course of the scheme he received at least $2.5 million in counterfeit negotiable instruments in packages sent to Crystal Lake from New York, Nigeria, and Ghana, and other locations. Each package contained counterfeit money orders and other negotiable instruments in amounts ranging from $500 to $2,000 each of which appeared to be issued by either the United States Postal Service, American Express, Capital One Bank, Citizens National Bank of Texas, First National Bank, or the Navy Federal Credit Union. Mackay received emails from other scheme participants that contained instructions, a “secret shopper” letter, and United States Postal Service Express mailing labels. Mackay then placed a “secret shopper” letter in a United States Postal Service express mailing envelope along with at least two counterfeit money orders to multiple victims throughout the United States. Mackay received wire transfers of at least $10,000 from his victims and others involved in the scheme as payment for his role in the scheme before the victims learned that the negotiable instruments were counterfeit.
Sentencing for Mackay is set for Sept. 19, 2014, at 2:30 p.m. Mackay faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court may also impose a term of probation of between 1 and 5 years, and must order restitution to the victims of the offense in an amount determined by the Court. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Antonio Gomez, Postal Inspector-In-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Boise Doctor Charged with Controlled Substance DeliveryRead the Press Release
BOISE – Michael Minas, 49, of Boise, Idaho, appeared today in federal court in Boise on an indictment charging him with seventeen counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. He was arrested yesterday morning outside of his medical practice in Eagle. Trial is set for August 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose.
The court released Minas until trial and ordered him to follow several specific conditions while on release. Pending trial, Minas will be prohibited from writing prescriptions and will not engage in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also must relinquish any prescription pads in his possession. Minas will be subject to home detention and electronic monitoring and will be allowed in the community only for limited purposes and with the pre-approval of his pre-trial services officer.
The charge of distributing a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anchorage Gang Member Sentenced to 19 Years for Carjacking, EscapeRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that a gang member with a long criminal record of violence was sentenced today to federal prison for escape and carjacking.
United States District Court Judge Sharon L. Gleason sentenced Andrea Lavelle Vickers, 25, to serve 19 yearsin prison. Vickers, of Anchorage, pled guilty to criminal charges stemming from his escape from a halfway house where he was finishing a federal prison sentence stemming from a firearms charge, and a subsequent high-speed chase by Anchorage Police officers in the early morning hours of January 11, 2014.
According to documents and testimony provided in court, Vickers escaped from the Cordova Center halfway house in Anchorage on January 4, 2014.
On January 11, Vickers abducted his former girlfriend and her infant child, forcibly taking her car in the process. Vickers threatened to throw the child out the window, and take the 19-year-old victim to the valley, where he planned to kill her and burn her body. Vickers obtained a can of gasoline and 72 rolls of toilet paper to accomplish the burning.
The victim convinced Vickers to let her drop off the baby with a friend, and she asked the friend to call 911 and report the kidnapping. Anchorage Police spotted the car, and Vickers fled at high speed because he knew he was wanted on the escape charge. Running red lights and speeding at 80-85 mph on the Glenn Highway, Vickers then exited the highway at Boniface Parkway, ran the red light and crashed into another vehicle occupied by two women. The kidnap victim and the other two women were injured, and Vickers fled on foot. He was arrested nearby after a foot pursuit by APD officers.
In imposing the sentence, Judge Gleason found that Vickers had used death threats and force, that he chose vulnerable victims, that he recklessly endangered others during flight, that he caused bodily injury to the victim, and that he obstructed justice. Evidence presented in court showed that despite no-contact orders from a state judge and two federal judges, Vickers repeatedly called the victim from jail to threaten or otherwise persuade her to drop charges against him and change her story.
Court papers show that Vickers, although only 25, already has a long, violent criminal record, including numerous crimes involving firearms and prior threats to victims. According to testimony provided in a prior federal court sentencing, Vickers has admitted being a member of at least two Anchorage street gangs, and has numerous gang tattoos.
Vickers still faces state criminal charges stemming from the pursuit and crash on January 11.
United States Attorney Karen Loeffler stated, “Mr. Vickers, though young, is and was a violent gang member who preyed on the community through violence and intimidation as reflected in the very significant sentence imposed by Judge Gleason. I am proud of our partnership between our hard working federal, state and local law enforcement agencies and our continued joint commitment to enhancing the safety of our communities through prosecution of dangerous individuals such as Mr. Vickers.”
Ms. Loeffler commends the U.S. Marshals Service and the Anchorage Police Department for the investigation leading to the convictions in this case. The U.S. Attorney’s Office worked closely with and received substantial assistance from the Violent Crime Unit of the Anchorage District Attorney’s Office in the investigation and prosecution of Vickers, and Ms. Loeffler extends her thanks to Deputy District Attorney Gustaf Olson, the chief of that unit.2 O.C. Men Arrested in Multimillion Dollar Synthetic Drug RingRead the Press Release
Federal Indictment is First in Southern California Involving Narcotic ‘Analogues’
SANTA ANA, California – Two Orange County men were arrested this morning on federal drug trafficking charges that allege they were part of a far-reaching conspiracy to smuggle, manufacture and distribute millions of dollars’ worth of analogue drugs commonly called “spice” and “bath salts.”
The men were taken into custody pursuant to a 16-count grand jury indictment – the first in Southern California alleging violations of the Controlled Substances Analogue Enforcement Act. This federal law makes it illegal to manufacture or possess chemicals intended for human consumption that are similar to controlled substances – such as Ecstasy and marijuana – and have effects similar to these narcotics.
Sean Libbert, 38, of Newport Coast, and Kyle Kledzik, 26, of Dana Point, were arrested by federal agents associated with the Los Angeles HIDTA (High-Intensity Drug Trafficking Area) Southern California Drug Task Force. Those involved in the investigation include special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration and IRS - Criminal Investigation.
Libbert and Kledzik are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
The case against Libbert, Kledzik and four Chinese nationals focuses on the smuggling and distribution of cannabinoids, which include synthetic marijuana or “spice,” and synthetic cathinones, otherwise known as “bath salts. The indictment charges a series of criminal violations, including conspiracy to manufacture, possession with the intent to distribute, and distribution of controlled substance analogues. The indictment also alleges that the defendants smuggled chemical products and engaged in money laundering. Additionally, Libbert – who has prior convictions that include narcotics offenses – is accused of being a felon in possession of firearms and ammunition.
The charges are the result of a nearly three-year HIDTA investigation that targeted an organization allegedly headed by Libbert. Authorities believe Libbert’s organization was one of the nation’s largest importers and shippers of synthetic narcotics. According to the indictment, from March 2010 until July 2012, Libbert and his coconspirators smuggled more than 300 kilograms of chemicals into the U.S. at a cost of more than $1.4 million. The organization also allegedly purchased more than 300 kilograms of chemicals from domestic sources.
As part of the scheme, the defendants allegedly formed a company called “RCS Labs” and used various Internet websites to sell more than $12 million worth of chemical products and analogue substances to people across the United States, including other distributors and individual users. The ring is also accused of manufacturing its own synthetic marijuana, which they marketed and sold under the brand “Da Kine Blend.”
According to the indictment, one customer who purchased approximately six grams of cannabinoids from the organization nearly died after ingesting the drug. Due to his prior criminal history, Libbert could face a mandatory minimum life sentence if convicted on this count.
The indictment also charges four Chinese nationals who allegedly served as Libbert’s suppliers. Three of the defendants reside in China and their full identities are unknown at this time. The fourth Chinese defendant, Jin Liu, 30, is in federal custody in Jacksonville, Florida, on unrelated narcotics charges.
Previously in this investigation, federal charges were filed against three other individuals tied to the ring. Those cases are pending in federal court in Santa Ana.
“This groundbreaking investigation identified a complex scheme to import into Southern California large quantities of chemicals that are used to manufacture designer drugs such as spice,” said DEA Special Agent in Charge Anthony D. Williams. “Today’s arrests demonstrate law enforcement’s intolerance for those who place the public at risk by manufacturing and distributing these extremely dangerous synthetic substances.”
In July 2012, HIDTA investigators executed multiple federal search warrants in connection with the case, resulting in the seizure of several luxury vehicles, hundreds of pounds of analogues, firearms and ammunition.
“These substances may have benign names like ‘spice’ and ‘bath salts,’ but they’ve been linked to serious health complications and even death,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Compounding the concern is the fact that the distributors of these dangerous synthetic drugs are packaging and marketing them to appeal to young people. For that reason, those involved in this emerging side of the illicit drug trade should be on notice, this may be the first federal prosecution of its kind in the greater Los Angeles area, but it will not be the last.”
In addition to the drug and firearms charges, Libbert is accused of laundering the profits of drug sales through various bank transactions and spending the proceeds to buy luxury vehicles, vacations and a $1.4 million home in San Juan Capistrano. As part of the indictment, the government is seeking the forfeiture of property and proceeds related to the scheme. So far, investigators have seized more than $1.1 million in assets connected to the case, including more than $700,000 in profits from the sale of Libbert’s former San Juan Capistrano home.
“The use and distribution of synthetic drugs cause irreparable harm to our society,” said IRS - Criminal Investigation Special Agent in Charge Erick Martinez. “The magnitude and complexity of this particular ring required multi-agency cooperation to take down. IRS pursued financial leads in this investigation to attack the group's ability to further profit from their illegal activity and to hold them accountable for their actions.”
Release No. 14-074
12 June 2014
Yonkers Man Sentenced to 37 Months in Prison in White Plains Federal Court for Impersonating an FBI AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that AYMAN RABADI, of Yonkers, New York, was sentenced to 37 months in prison after having pleaded guilty last May to a charge of wire fraud relating to his impersonation of a Special Agent of the Federal Bureau of Investigation (“FBI”).
U.S. Attorney Preet Bharara said: “Rabadi’s actions were both criminal and heartless, as he used the authority and prestige of the FBI to lure victims into his greedy scheme. Today he learned the price of his behavior.”
According to the Complaint and Information, and statements made in prior proceedings in this matter in White Plains federal court:
From November 2010 until his arrest on April 18, 2013, RABADI impersonated an FBI agent, and in doing so, obtained at least $180,000 and other things of value from individuals he promised that he could provide various forms of federal assistance. RABADI was arrested shortly after he accepted $10,000 in cash from an undercover agent of the FBI who was posing as the niece of one of his victims. The money was purportedly a down payment toward the $300,000 RABADI requested in exchange for obtaining the release of the victim’s relatives from jail. He was arrested immediately after leaving the Yonkers restaurant where the payment was made, and was in possession of the $10,000.
RABADI, 52, has an extensive criminal history that includes a 2008 conviction in the state of New Jersey for the felony of theft by deception. In that case, he created the false impression that there were criminal charges pending against a victim, that RABADI was connected to law enforcement, and that he could resolve the charges favorably for $75,000.
In addition to the 37-month prison sentence, Judge Kenneth M. Karas ordered RABADI to forfeit $190,000 in ill-gotten gains and to make restitution to a victim of his fraud in the amount of $180,000.
Mr. Bharara praised the work of the FBI in this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Elliott B. Jacobson is in charge of the prosecution.
Virginia Man Pleads Guilty to Pandering Woman He Lured to District-Defendant Advertised Himself as Security for Fake Escort Business-Read the Press Release
WASHINGTON – John Burrell Crist, 43, pled guilty on June 10, 2014 to two felony counts of pandering for inducing and compelling a woman to engage in prostitution in various parts of the District between April 20, 2014 and April 28, 2014, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant pled guilty in the Superior Court of the District of Columbia and will be sentenced by the Honorable John Ramsey Johnson on August 26, 2014. He will be facing up to ten years in prison and a fine of up to $25,000.
According to the government’s evidence, Crist posted ads on Backpage.com soliciting partners for his alleged escort business, promising to provide transportation and security for the dates in exchange for half of the profits. Enticed by one of these ads, the victim agreed to meet Crist. Crist picked the victim up from Union Station and housed her in his Alexandria home. Crist would screen the calls for “dates,” telling the victim, who was unfamiliar with the District, where she could and could not agree to go for dates, to which he would then provide the transportation. Within days, Crist turned violent against the victim, beating her, taking all of her possessions, identification, and money as she was forced to continue to prostitute. Crist came to the attention of the Metropolitan Police Department after he beat the victim in a public parking lot in the District on April 28, 2014.
In announcing the guilty plea, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-134Two Separate and Unrelated Indictments Charge Similar SchemeRead the Press Release
Identities of children used in tax fraudPHILADELPHIA – Agents with the Internal Revenue Service Criminal Investigation, this morning, arrested a total of five people charged in two separate and unrelated indictments that allege a similar scheme. Momolu Sirleaf is charged with stealing the identifying information of foster children to falsely use as dependents on income tax returns he was preparing for clients. In a separate indictment, six people, including a one-time social worker, are charged with stealing the identifying information of disabled children and foster children to falsely use as dependents on income tax returns.
The charges were announced in separate press releases issued today by United States Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner.
“The allegations in these indictments depict a disturbing practice of exploiting some of the most vulnerable members of our community,” said Memeger. “Unfortunately, it is not unusual for criminals to injure victims through identity fraud and cheat the government of its tax revenue through tax fraud. But the conduct in these cases, in which the fraud schemes involved stealing identity information from disabled children and children in foster care, is truly despicable, and those who are responsible must be brought to justice.”
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Conner. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. Today’s arrests should serve as a strong warning to those who are considering similar conduct.”
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Press Release (Kamara, et al) | Indictment.pdf (Kamara, et al) | Press Release.pdf (Momolu Sirleaf) | Indictment.pdf(Sirleaf)
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Two Men Plead Guilty in Separate Cases for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYRELL C. SUTHERLAND, age 28, of New Orleans, pled guilty to one count of Conspiracy to Provide Contraband into a Prison Facility, in violation of Title 18, United States Code, Section 371.
According to court documents, in or about 2008, the Orleans Parish Prison ("OPP") contracted with the United States Marshals Service to provide for the custody, care, and safekeeping of federal prisoners in the Eastern District of Louisiana. During that year, SUTHERLAND, then employed as an Orleans Parish Sheriff's Deputy, smuggled contraband items (including marijuana and cell phones) into the facility.
The Orleans Parish Sheriff’s Office suspended SUTHERLAND on September 25, 2008, and terminated his employment on October 22, 2008.
SUTHERLAND faces a maximum penalty of five (5) years' imprisonment, a $250,000 fine, three (3) years' supervised release, and an $100.00 special assessment.
Sentencing is set for September 17, 2014, before United States District Judge Stanwood R. Duval, Jr.U.S. Attorney Polite stated, "Sutherland's criminal conduct jeopardized the safety of his fellow Sheriff's Deputies and the inmates he was entrusted to protect. We will not tolerate this type of misconduct that undermines public trust in our law enforcement community."
U.S. Attorney Polite also thanked the Federal Bureau of Investigation and the Orleans Parish Sheriff’s Office for their cooperation and assistance in investigating this matter. The case is being prosecuted by Assistant United States Attorney Duane A. Evans.
(Factual Basis )
Tribunal Federal de Distrito Cierran Empresa de Preparadores de Declaraciones de Impuestos de CaliforniaRead the Press Release
WASHINGTON -- Un tribunal federal EN Fresno, California ha prohibido en forma permanente a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. Ken Mendoza y Alice Mendoza, quienes funcionaban bajo el nombre comercial "Mendoza Business Services" en Fresno, consitieron a la orden de interdicto civil firmada por el Juez Federal de Distrito J. O'Neill en el Tribunal Federal de Distrito para el Distrito Este de California.
De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos, pedir créditos falsos o exagerados, especialmente créditos educativos, y deducir gastos personales de sus clientes. En total, la demanda alega que la pérdida para el Tesoro de EE.UU. debido a las actividades de los Mendoza podría ser de hasta 2.8 millones de dóalres para los años fiscales 2010 a 2011. La demanda también alega que muchos de los clientes de los Mendoza podrían deber impuestos adicionales, intereses y multas debido a declaraciones preparadas indebidamente.
Además de prohibir a los Mendoza la preparación o presentación de declaraciones de impuestos federales para terceros, el tribunal también prohibió la preparación o presentación de declaraciones de impuestos federales a cualquiera que actúe en conjunto con los Mendoza, y prohibió a los Mendoza de solicitar o encauzar la preparación de declaraciones de impuestos federales para terceros. El tribunal exigió que los Mendoza se comunicaran con todas las personas para las que prepararon una declaración de impuestos federales desde el 1° de enero de 2008, para informar a dichas personas del interdicto permanente contra ellos.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2013 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.
Three Warrensburg Residents Among Six Indicted for Conspiracy to Distribute MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine.
Phuoc Hong, also known as Tony Hong, 31, Garrett D. Statler, 20, and Alyce M. Maher, 26, all of Warrensburg, Mo.; Tony D. Meyer, 41, of Sedalia, Mo.; Dylan K. Avery, 18, of Clinton, Mo.; and Arturo-Lorenzo Roldan, 33, of Independence, Mo.; were charged in a 22-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, June 11, 2014. That indictment was unsealed and made public today upon Hong’s arrest and initial court appearance.
The federal indictment alleges that each of the six defendants participated in a conspiracy to distribute methamphetamine from December 2013 to May 2014. According to the indictment, Hong traveled to Independence to obtain methamphetamine from Roldan, then sold the methamphetamine to customers at various locations (including his own residence in Warrensburg and parking lots of various businesses in the Kansas City, Mo., area). Hong also allegedly sold methamphetamine to Statler, Maher, Meyer and Avery, who allegedly distributed methamphetamine to their own customers.
In addition to the conspiracy, Hong is charged with 11 counts of distributing methamphetamine, four counts of distributing cocaine, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine with the intent to distribute.
Hong is also charged with illegally possessing a firearm and a pipe bomb. The indictment alleges that Hong, an unlawful user of methamphetamine, was in possession of a Harrington and Richardson .22-caliber revolver on March 24, 2014. The indictment also alleges that Hong was in possession of a pipe bomb on Feb. 4, 2014.
In addition to the conspiracy, Meyer is charged with one count of distributing methamphetamine and one count of being a felon in possession of a firearm. The indictment alleges that Meyer, having been convicted of a felony, was in possession of a Hi-Point 9mm pistol on Jan. 18, 2014.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Warrensburg, Mo., Police Department, the Johnson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Knob Noster, Mo., Police Department, the Sedalia, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Third State Auditor Charged with Federal Program FraudRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that federal corruption charges has been filed against a third state auditor in the ongoing federal and state investigation into the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation.
Today’s Charges
COREY S. POLK, age 33, of Baton Rouge, Louisiana, has been charged in a Bill of Information with federal program fraud, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, Polk faces up to 10 years imprisonment, a $250,000 fine, forfeiture of the proceeds from the offense, restitution, 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.
Polk is charged based on his alleged conduct while employed as a managing auditor in the Special Investigations and External Audit Unit within DCFS’ Bureau of Audit and Compliance Services. In that role, Polk was responsible for handling special investigations, including those involving allegations of fraud and theft by individuals employed by DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually.
The Bill of Information alleges that Polk and his supervisor, Audit Director Delrice Augustus, fraudulently misused government purchasing cards to obtain items for personal use, including hotel stays during Mardi Gras and NBA All-Star Weekend, and created and used fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Polk would allegedly sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount which Polk and Augustus would split.
Other Defendants
Two other state auditors have been previously charged in this investigation. Augustus, who served as the Director of the Bureau of Auditing and Compliance Services, was charged and pled guilty on May 28, 2014, to federal program fraud involving between $120,000 and $200,000. Kaneasha Goston, a former auditor within the Bureau of Auditing and Compliance Services, has been charged in a separate Bill of Information with federal program fraud and is scheduled for an initial appearance and arraignment on June 19, 2014.
The matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as Chief of the Criminal Division and Special Assistant United States Attorney J. Brad Casey.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Texas Man Sentenced for Coercion & Enticement of a MinorRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 12, 2014, Lawrence E. Hundley Jr., 50, Porter, Texas, pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of coercion & enticement of a minor.
Judge Hovland sentenced Hundley to serve five years and three months in federal prison, to be followed by five years of supervised release. Hundley was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Hundley was arrested on Nov. 22, 2013, as a result of Operation Vigilant Guardian, a joint anti-Human Trafficking investigation by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations aimed at “johns” trying to arrange sex with underage human trafficking victims online. The investigation resulted in the arrest on federal charges of 14 defendants in Williston and Dickinson, N.D., in October and November of 2013.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the
Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a 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 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.Assistant U.S. Attorney Gary Delorme prosecuted the case.
Sixteenth Member of Colombian Cocaine Trafficking Organization Pleads Guilty in Connection with Attempt to Import 7,000 Kilos of CocaineRead the Press Release
Drug traffickers used hidden compartments in trucks and shipping containers, bribed customs officials and worked with Mexican drug cartels
ALEXANDRIA, Va. – Manuel Salas, 62, of Barranquilla, Colombia, pleaded guilty today to charges relating to his participation in a large-scale Colombian cocaine trafficking organization that bought, stored and transported several tons of cocaine for importation into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Derek S. Maltz, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Salas is the sixteenth defendant to plead guilty in this case.
Salaswas indicted on Aug. 24, 2011, by a federal grand jury on charges of conspiracy to manufacture and distribute five kilograms or more of cocaine for unlawful importation into the United States, along with four counts of distributing five kilograms or more of cocaine for unlawful importation into the United States. Salasfaces a maximum penalty of life in prison when he is sentenced on September, 19, 2014.
In a statement of facts filed with the plea agreement, along with other court records, Salas admitted that he was part of a large-scale Colombian cocaine trafficking organization that purchased cocaine in Colombia for eventual sale in the United States. The group bought several tons of cocaine from a lab in Colombia’s interior. From there, the group controlled trucks with hidden compartments to transport the cocaine to Colombian ports, including Cartagena and Barranquilla, where the group controlled warehouses. In those warehouses, the cocaine was offloaded from the trucks and loaded into hidden compartments that members of the group constructed in 40-foot maritime shipping containers.
Once the cocaine shipments, consisting of 1,000 to 3,000 kilograms, were loaded into the hidden shipping compartments, those containers were taken to the port, where members of the conspiracy bribed customs officials to allow the containers to pass inspection. Other conspirators created shell companies in Colombia and Honduras, along with falsified export documents, to make the shipments appear legitimate. Once the cocaine arrived in Honduras, other members of the conspiracy worked with Mexican drug cartels to transport the cocaine over land to the United States, where it was sold for huge profits.
Law enforcement in Colombia seized approximately 7,000 kilograms of cocaine associated with this organization. Salas controlled a warehouse in Barranquilla and hired members to construct the hidden compartments and guard the warehouse while the cocaine was being loaded into the shipping containers.
This case was investigated by the DEA’s Special Operations Division, with assistance from the Colombian National Police and the U.S. Justice Department’s Office of International Affairs. Assistant U.S. Attorneys Michael P. Ben’Ary and Lynn E. Haaland are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Shiprock Man Sentenced to Federal Prison for Assaulting a Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Victor Tyler, 45, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this afternoon to 30 months followed by two years in federal prison for his assault conviction.
Tyler was arrested on Aug. 20, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. Tyler subsequently was indicted and charged with that same charge and also with assaulting a federal officer with a dangerous weapon and inflicting bodily injury.
On Nov. 5, 2013, Tyler pleaded guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Tyler admitted that on Aug. 16, 2013, officers of the Navajo Nation Division of Public Safety came to his Shiprock residence in response to his wife’s call for assistance. At the time, Tyler had armed himself with two kitchen knives and locked himself into a bedroom. After two uniformed officers entered the residence, Tyler came out of the bedroom with the knives, ignored the officers’ repeated instructions that he drop the knives, and threw one of the knives at one of the officers. The knife struck the officer in the foot, causing injury to her foot.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney David Adams.
Sentencing for June 6 - 9, 2014Read the Press Release
Raymond Parr, 51, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 9, 2014, for possession with intent to distribute 48 grams of methamphetamine. Parr was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Audrey Cantrell, 47, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 6, 2014, for possession with intent to distribute at least 50 grams but less than 150 grams of methamphetamine. Cantrell was arrested in Rock Springs, Wyoming. She received 78 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
San Diego Man Pleads Guilty to Defrauding the United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, pleaded guilty today to conspiring commit mail and wire fraud, conspiring to launder monetary instruments, and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
In pleading guilty, Volen admitted to defrauding the United Auburn Indian Community (UAIC) of more than $17 million dollars. The UAIC is a federally recognized Native American tribe consisting mostly of Miwok and Maidu Indians indigenous to the Sacramento Valley region. The UAIC is located at the historic Auburn Rancheria in the Sierra Nevada foothills near Auburn. In pleading guilty, Volen agreed to a restitution order requiring that he and any co-defendants who are convicted to pay at least $17 million to their victims, which include both the UAIC and the Internal Revenue Service.
According to his plea agreement, Volen was hired as a developer by the UAIC in October of 2006 to finish construction on four tribal buildings — a school, a community center, and two administrative offices — on UAIC property on Indian Hills Road in Auburn. Between October 2006, and November 2007, Volen regularly submitted false and inflated invoices to the UAIC for work purportedly done on the tribal construction projects. In many instances, these invoices were based upon cost proposals from Volen’s subcontractor that he caused to be inflated. In other instances, Volen submitted false change order invoices for work that was never performed. Volen admitted making payments to co-conspirators employed by the UAIC to ensure that his fraudulent invoices were approved and paid.
With regard to the tax offense, according to court documents, Volen filed tax returns that contained a Schedule C in which Volen falsely claimed business loss deductions to which he was not entitled. As a result, the United States suffered a tax loss of between $2.5 million and $7 million.
“Utilizing insiders and an extensive trail of false documents to back up his scheme, Bart Volen managed to steal an incredibly large amount of money from a community that plays a very special role in our district,” said U.S. Attorney Wagner. “My office, our colleagues at the IRS, and all of our law enforcement partners are committed to bringing to justice those who would commit crimes against our tribal communities.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.Also named in the indictment with Volen are UAIC employees Greg Scott Baker, 46, of Newcastle; and Darrell Patrick Hinz, 48, of Cameron Park. Baker and Hinz are scheduled for trial in Sacramento on October 20, 2014. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Volen is scheduled to be sentenced by United States District Judge Troy L. Nunley on December 4, 2014. Volen faces a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement .
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police . The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement.
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
If convicted of wire fraud or obstruction of justice, Lazar faces a maximum of 20 years of incarceration, and if convicted of unauthorized access of a protected computer or cyberstalking, he faces a maximum of 5 years of incarceration. He also faces a mandatory additional 2 years of incarceration if convicted of aggravated identity theft.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police. The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement.
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
If convicted of wire fraud or obstruction of justice, Lazar faces a maximum of 20 years of incarceration, and if convicted of unauthorized access of a protected computer or cyberstalking, he faces a maximum of 5 years of incarceration. He also faces a mandatory additional 2 years of incarceration if convicted of aggravated identity theft.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police. The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittston Man Charged with Bringing A Gun into the Federal Building in ScrantonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 58-year-old Pittston resident unlawfully possessing and causing to be present a loaded firearm inside the William J. Nealon Federal Building.
According to United States Attorney Peter Smith, his office filed a criminal Information yesterday against Jerome Vantaggi, charging him with committing the offense on June 5, 2014.
The charge against Vantaggi resulted from an investigation by the United States Marshals Service.
If convicted of the charge, Vantaggi faces up to one year in prison and a $100,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 1 year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Physician-Businessman Convicted of Mortgage Loan FraudRead the Press Release
NORFOLK, Va. – Irfan M. Jameel, 51, of Virginia Beach, Va., was convicted today by a federal jury on charges of wire fraud, bank fraud, and use of a false social security number.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office, made the announcement after the jury returned its verdict. Senior United States District Judge Henry Coke Morgan, Jr., presided over the trial.
Jameel faces a maximum penalty of thirty years on each of counts one through three, and a maximum penalty of five years on count four, when he is sentenced on October 16, 2014.
Jameel was indicted on July 25, 2013 by a federal grand jury on one count of wire fraud affecting a financial institution, two counts of financial institution fraud, and one count of using a false social security number. According to court records and evidence at trial, Jameel defrauded several lenders by misrepresenting the status and nature of his business and income in the US and Canada and by misrepresenting his medical career and accomplishments. Among other things, Jameel claimed to be the chief scientist of an international biotechnology company, Biocer, and reported that it paid him approximately $8,000,000 in 2005 and 2006. As a result of these and other misrepresentations, Jameel obtained $3 million in loans from SunTrust to buy an 8 acre waterfront estate, $2.375 million in loans from Gateway Bank, and a $46,000 car loan from a local credit union. Although he used a portion of the loan proceeds to extinguish some of this debt, Jameel later defaulted upon all of these loans. After obtaining such loans, Jameel also used a false social security number when seeking the preparation of three years of federal income tax returns by an accounting firm.
This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office. Assistant United States Attorneys Robert Krask and Stephen Haynie are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of New Jersey Debit Card Business Sentenced to 18 Months in Prison for Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – An Orange County, N.Y., man who owned a New Jersey company was sentenced today to 18 months in prison for filing false income tax returns, U.S. Attorney Paul J. Fishman announced.
Richard Jackowitz, 61, of Warwick, N.Y., previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with two counts of filing false tax returns.
According to documents filed in this case and statements made in court:
Jackowitz owned and operated Branded Marketing, a Haskell, N.J., company that sold debit cards. For the 2007 and 2008 tax years, Jackowitz had unreported income from his company of $105,512 and $359, 677, respectively. Jackowitz’s false tax returns caused a loss to the IRS of more than $300,000.
In addition to the prison term, Judge Wigenton sentenced Jackowitz to one year of supervised release and fined him $4,000. As part of his plea agreement, Jackowitz also agreed to pay $319,940 in restitution to the government.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Jenny Kramer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-217
Defense counsel: John D. Williams Esq., Vernon, N.J.Owner of Defense Contracting Company Charged with Wire Fraud Conspiracy for Providing Nonconforming Parts to GovernmentRead the Press Release
TRENTON, N.J. – The former president of a Burlington, N.J.,-based defense contracting business was arrested and charged today with allegedly stealing $3 million through fraudulent contracts with the U.S. Department of Defense, U.S. Attorney Paul J. Fishman announced.
Richard Melton, 44, of Moorestown, N.J., was charged by complaint with one count of conspiracy to commit wire fraud for receiving $3 million from 2008 to 2009 as a result of allegedly fraudulent contracts with the U.S. Department of Defense (DoD). Melton is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
Melton was the founder, owner, and president of Partz Network LLC (Partz Network), a company located in Burlington. Melton owned and operated Partz Network from April 2003 to December 2009. Partz Network contracted with the government to supply the DoD with parts on small-dollar contracts. The majority of the contracts were for replacement parts for military rolling stock: trucks, trailers, and engineering equipment. The majority of Partz Network’s DoD contracts required that the items provided be manufactured by DoD-recognized qualified manufacturers.
Melton and his conspirators allegedly lied on Partz Network’s bids for DoD contracts, stating that they would be providing the “exact product” sought by the DoD, meaning that the product was manufactured by a DoD-recognized qualified manufacturer. In fact, Partz Network was allegedly providing parts made by unapproved, and oftentimes unknown, sources.
In 2007, the Defense Logistics Agency (DLA), a DoD contracting agency, became aware of reports of nonconforming parts being received from Partz Network. As a result, DLA required Partz Network to provide “traceability documents” to confirm that the items it was supplying were actually being manufactured by DoD recognized qualified manufacturers. Partz Network provided traceability documents and invoices to DLA regarding items provided under the DoD contracts. When DLA researched the traceability documents supplied by Partz Network, DLA learned that the documents were either altered or completely fictitious.
For example, on Nov. 15, 2007, Partz Network submitted a bid electronically through the DoD’s internet bid system to supply the DoD with 1,400 oil pans for $53.85 per item. Partz Network represented that the company was providing the exact product manufactured by one of the two DoD-recognized qualified manufacturers. Partz Network was subsequently awarded the contract for 1,400 oil pans for a total contract price of $75,390. Both the request for quotation (RFQ) and the final contract included the language that the exact product was required. The items ultimately provided by Partz Network were not the exact products required under the contract because the items were not manufactured by a qualified manufacturer. In fact, on Nov. 10, 2007, five days prior to Partz Network submitting its bid for the contract, Melton sent an e-mail to a Partz Network employee with a link to the DoD RFQ that stated the following: “Bid these (1400) HMMWW oil pans at $53.85 and I will have them made overseas by [a company located in the People’s Republic of China] or another overseas firm, 200-day lead time.” Based on Partz Network documents related to that contract, Partz Network purchased the oil pans that were provided to the DoD from a company located in India in January 2008.On Aug. 27, 2009, Partz Network was awarded a contract to supply the DoD with 887 bearing half sets for a total contract price of $16,010.35. Partz Network certified that the items would be the exact product required under the contract. The items ultimately provided by Partz Network under the contract were not the exact products required because the items were not manufactured by the qualified manufacturer. DoD ultimately inspected the items and determined that the items were manufactured by an unapproved source.
The wire fraud conspiracy count with which Melton is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; special agents of Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HIS), under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton and Evan Weitz of the Office’s Asset Forfeiture Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-216Defense counsel: Scott S. Christie Esq., Newark
Melton, Richard Complaint
New York City Police Officer and Customs and Border Protection Officer Plead Guilty to International Arms TraffickingRead the Press Release
Earlier today, Rex Maralit, a New York City Police Officer previously assigned to police headquarters in Manhattan, and his brother Wilfredo Maralit, a Customs and Border Protection Officer previously assigned to Los Angeles International Airport, pleaded guilty in Brooklyn federal court to violating the Arms Export Control Act. The two men were charged in connection with their respective roles in the export of high-powered weapons from the United States to the Philippines, without a license from the U.S. State Department.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office; Thomas J. Cannon, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
According to court filings and statements at today’s proceedings, between January 2009 and September 2013, the defendants engaged in a scheme to smuggle high-powered assault rifles, sniper rifles, pistols, and firearm accessories, such as high-capacity magazines, from the United States to the Philippines, where they were sold to overseas customers. Both of the defendants who pleaded guilty today are American law enforcement officers, who brazenly used their credentials and status to obtain extremely dangerous weapons and ship the weapons for export and resale, as well as to obtain discounts on various weapons from U.S.-based gun dealers. The firearms that the defendants illegally exported and sold included the Barrett M82A1 .50 caliber semi-automatic long range sniper rifle, the FN “SCAR” assault rifle, and the FN Herstal 5.7mm semi-automatic pistol. Many of the weapons the defendants exported are specifically designed to penetrate both hard and soft body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the State Department before shipping weapons overseas. The United States Munitions List requires export licenses for firearms such as the military-style assault rifles, sniper rifles, and semi-automatic handguns exported by the defendants. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
“Today a New York Police Officer and a Customs and Border Protection Officer admitted their involvement in a serious federal crime. This is a sad day for American law enforcement. But make no mistake: the laws that are designed to regulate the trafficking of dangerous weapons apply with equal force to anyone who would dare to ignore them,” stated U.S. Attorney Lynch. “Criminal conduct by police officers, federal agents, and their confederates is intolerable. I commend our law enforcement partners who brought these men to justice though their diligence and professionalism.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF, and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Offices for the Central District of California and the District of New Jersey for their assistance.
When sentenced on October 16, 2014, by the Hon. Allyne R. Ross, the defendants each face up to 20 years in prison, forfeiture, and a fine of up to $1,000,000.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendants:
REX G. MARALIT
Lawrenceville, New Jersey
Age: 45
WILFREDO MARALIT
Garden Grove, California
Age: 49
New Jersey Doctor Sentenced to 21 Months in Prison for Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A doctor who was convicted at trial of receiving cash kickbacks for diagnostic testing referrals was sentenced today to 21 months in prison, U.S. Attorney Paul J. Fishman announced today.
Maryam Jafari, 43, was convicted Feb. 4, 2014, of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Jafari was a doctor licensed in New Jersey to practice internal medicine and operated an office in Newark. From 2010 through December 2011, Jafari solicited and received cash kickbacks from Orange Community MRI LLC (Orange MRI) in exchange for MRIs and CAT scans she referred to the diagnostic testing facility.
At the end of each month, OCM printed patient reports that included information such as dates of service, patient name, referring health care practitioner and medical insurance to be billed. The reports were used to tally the number of tests referred by each doctor and determine the amount of kickback payment paid to the referring healthcare provider.
On Nov. 22, 2011, Jafari met with a cooperating witness at Jafari’s office and accepted a white envelope containing $1,965 in cash, payments for three months of tests Jafari referred to Orange MRI. On Dec. 6, she accepted another payment of $420 in cash for referrals from October 2011. A trial on these charges in 2012 ended in a mistrial when the jury could not reach a unanimous verdict.
In addition to the prison term, Judge Cecchi sentenced Jafari to two years of supervised release, fined her $45,000 and ordered forfeiture of $40,261.U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.
The government is represented by Assistant U.S. Attorneys Scott B. McBride, deputy chief of the Economic Crimes Unit, and Joseph G. Mack, deputy chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Maria Noto Esq., Matawan, N.J.
14-217Navajo Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Jeremiah Burns, 33, a member of the Navajo Nation who resides in Dulce, N.M., was sentenced this morning to 20 months in federal prison followed by two years of supervised release for his involuntary manslaughter conviction. Burns also was ordered to pay $2080.25 to cover funeral expenses for the victim of his criminal conduct.
Burns was arrested in Aug. 2013, based on an indictment charging him with killing a man on Oct. 22, 2011, while driving under the influence of alcohol within the Jicarilla Apache Indian Reservation.
On Jan. 3, 2014, Burns pled guilty to the indictment and admitted killing the victim while driving under the influence of alcohol and marijuana which rendered him incapable of exercising clear judgment and a steady hand in handling a vehicle. Burns acknowledged operating the vehicle without due caution and with a reckless disregard that imperiled the lives of others.
Burns was ordered to surrender himself by noon today to the U.S. Marshals Service to begin serving his prison sentence.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Milford Woman Sentenced to 2 Years for Straw Gun PurchasesRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Maureen Hammond, 50, of Milford, Maine, was sentenced yesterday to two years in prison and three years of supervised released for conspiring to make false statements during the purchase of firearms. Hammond pled guilty in June 2013.Court documents reveal that on October 9, 2012, Hammond purchased three handguns in two transactions at Jimi’s Trading Center in Brewer, Maine. At the time of the sales, she completed a federally-required form claiming to be the actual buyer, when, in fact, she was buying the handguns for a man she knew to be a drug dealer and paying with money he had given to her. The handguns have never been recovered.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Penobscot County Sheriff’s Office.
Mexican Nationals Indicted for Growing Marijuana in the Sequoia National Forest in Kern CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Mexican nationals Jesus Avalos-Cervantes, 26, and Pedro Pantoja-Padilla, 46, charging them with one count of conspiring to distribute, possess with intent to distribute, and manufacture marijuana, one count of manufacturing marijuana, and one count of causing more than $1,000 in damage to the national forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 4, 2014, United States Forest Service agents and Kern County Sheriff’s deputies executed a search warrant in the Kern River drainage of the Sequoia National Forest in Kern County. Officers located over 5,500 marijuana plants. Pantoja-Padilla was placed under arrest, but Cervantes was able to flee and avoid apprehension. Cervantes was identified through documents he left behind. Extensive damage was caused to the national forest as a result of the marijuana cultivation. Native vegetation had been cut and removed, and the steep hillside had been dug and terraced into plots. Fertilizers, pesticides and rodenticides were found throughout the site, including the banned pesticides zinc phosphide and furadan.
This case is the product of an investigation by the United States Forest Service and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Pantoja-Padilla faces a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted, Jesus Avalos-Cervantes faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leonard Man Pleads Guilty to Filing A False Tax ReturnRead the Press Release
Paul Michajlyszyn, of Leonard, Michigan, former Vice President of Odyssey, Inc. a Lake Orion, MI corporation, pleaded guilty yesterday to one count of filing false tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Michajlyszyn, entered the guilty plea before U.S. District Judge Arthur J. Tarnow.
Michajlyszyn entered his plea two days after Randal Bellestri, owner of Odyssey, Inc, plead guilty to filing false tax returns and conspiracy to file false tax returns.
According to court records, Odyssey, Inc. produces machine tools for the aviation industry. Beginning before 2004 and continuing until July 2009, Michajlyszyn had an agreement with Randll Bellestri, owner of Odyssey, Inc. regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Michajlyszyn was authorized by Bellestri to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Michajlyszyn and Bellestri. By accepting only cash for the sale of the scrap, Michajlyszyn was able to conceal the receipt of the cash from Odyssey, Inc. as well as the Internal Revenue Service. Michajlyszyn did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Michajlyszyn’s failure to report these cash proceeds for the 2004 through 2008 tax years caused his income to be understated by approximately $270,483.
Michajlyszyn’s sentencing is set for September 18, 2014 at 2 pm. Filing a false tax return charge carries a maximum term of imprisonment of three years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.
Law Firm Paralegal Sentenced to Prison in Mail Fraud and Tax Evasion SchemeRead the Press Release
OAKLAND – Ana Lissa Reyes was sentenced today to 27 months in prison and ordered to pay $327,795 in restitution to victims of her mail fraud scheme, and $67,448 in restitution to the Internal Revenue Service for tax evasion, announced United States Attorney Melinda Haag, along with Special Agents in Charge David Johnson of the Federal Bureau of Investigation and Jose M. Martinez of the Internal Revenue Service, Criminal Investigation.
Reyes pleaded guilty on April 17, 2014, to mail fraud and tax evasion. According to the plea agreement, Reyes worked as a secretary, office manager, and paralegal for a Bay Area law firm. Reyes admitted that from about 2006 through June 2011, she, without authorization, settled claims without the knowledge of the law firm or its clients, and stole the settlement proceeds. Reyes admitted to engaging clients without the law firm’s knowledge and to stealing their retainer fee payments.
Reyes also admitted that, in carrying out the scheme to defraud, she created a bogus company, “Lincoln Litigation,” to correspond with clients, and to defraud them into believing that their cases were ongoing. She admitted to embezzling a total of $327,795.05 from the law firm and its clients.
Reyes also admitted to under-reporting her income for the calendar years 2006 through 2011. For each of those tax years, Reyes admitted that she knew her joint taxable income was substantially in excess of the amount stated on the return, resulting in additional tax due and owing to the United States.
Reyes, 42, of San Lorenzo, was charged in an information on January 25, 2013, and waived indictment on January 31, 2013. She was charged with five counts of mail fraud, in violation of 18 U.S.C. § 1341, and six counts of tax evasion, in violation of 26 U.S.C. § 7201.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, following a guilty plea on one count of 18 U.S.C. § 1341, and to one count of 26 U.S.C. § 7201. Judge Gonzalez Rogers also sentenced Reyes to a three-year period of supervised release. Reyes will begin serving the sentence on August 11, 2014.
Wade Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan and Patty Lau. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.
Largo Man Convicted at Trial for Accessing Child Pornography on the InternetRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Eric Thomas (37, Largo) guilty of access with the intent to view child pornography. Thomas faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 18, 2014. He was remanded to the custody of the United States Marshals Service pending sentencing. Thomas was indicted on September 30, 2013.
According to the testimony and evidence presented at trial, on July 21, 2012, Thomas’s then wife discovered evidence that Thomas had been looking at child pornography on the Internet, using the couple’s home computer. Law enforcement obtained a search warrant for the computer. A forensic review revealed that more than 850 images of child pornography had been deleted from the computer. Thomas had taken considerable steps to conceal his activities by removing the Internet history and the child pornography files from his computer.
This case was investigated by the Federal Bureau of Investigation, the Largo Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Josephine W. Thomas.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
Killeen Man Pleads Guilty to Federal Obstruction ChargeRead the Press Release
Defendant intimidated witness in trial of Killeen brothers convicted of distributing close to 30 kilograms of cocaine
In Waco, 33-year-old Carrick Mondale Mango of Killeen, TX, faces up to ten years in federal prison after pleading guilty this afternoon to an obstruction of justice charge, namely witness tampering, announced United States Attorney Robert Pitman and United States Marshal Robert Almonte.
According to court records, on March 6, 2014, during the trial of U.S. v. Cornelius Tywarren Wilson, et al. (W-13-CR-138) in federal court in Waco, Mango approached a trial witness and instructed the witness not to testify against defendant Christopher Wilson. The witness told deputy U.S. Marshals that Mango gave the witness an intimidating look, which made the witness feel threatened and uncomfortable. The witness took the stand during trial and testified but failed to identify Christopher Wilson, even though they were neighbors.
Mango’s intimidation tactics also included accosting the prosecutor trying the case and intentionally following another government witness to the lobby of the United States Attorney’s Office.
Mango remains in federal custody pending sentencing. Sentencing is scheduled for August 6, 2014, before United States District Judge Walter S. Smith, Jr.
On March 10, 2014, the jury found Christopher and his brother, Cornelius Wilson, guilty of multiple drug charges in connection with their cocaine distribution operation based in Killeen. On April 30, 2014, Christopher and Cornelius Wilson were sentenced to 35 years and 30 years in federal prison, respectively.
Justice Department Settles Immigration-Related Discrimination Claim Against Commercial Cleaning SystemsRead the Press Release
The Justice Department reached an agreement today with Commercial Cleaning Systems, a janitorial services company with headquarters in Denver. The agreement resolves claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services. The investigation found that Commercial Cleaning Systems required work-authorized non-U.S. citizens to present specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Commercial Cleaning Systems will pay $53,500 in civil penalties, create a $25,000 back pay fund to compensate individuals who may have lost wages as a result of the company’s discriminatory document practices, and be subject to monitoring of its employment eligibility verification practices for one year.
“Discriminating against work-authorized employees because they are not citizens violates federal law and the Justice Department is committed to enforcing this law,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud Commercial Cleaning Systems for working cooperatively with the division to resolve this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute also prohibits, among other things, citizenship status and national origin discrimination in hiring, firing and recruitment or referral for a fee. The case was handled by OSC Trial Attorney Linda White Andrews.
For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired) or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral for a fee should contact the worker hotline above for assistance.
Jury Convicts Prisoner of Assaulting CounselorRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced an inmate at the U.S. Medical Center for Federal Prisoners in Springfield was convicted in federal court today of assaulting a federal correctional counselor at the facility.
Willard Begay, 34, an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, was found guilty of punching a counselor in the face and throwing a computer printer at the counselor’s face.
Evidence introduced during the trial indicated that a counselor at the prison facility met with Begay on Oct. 1, 2012, to discuss the friction Begay was having with fellow inmates and to move Begay to another unit in order to eliminate the brewing conflict between Begay and fellow inmates. At the conclusion of their meeting, the counselor was attempting to secure Begay to move him to the new unit. The counselor grabbed Begay’s left arm in order to handcuff him, when Begay abruptly turned toward the counselor and punched him in the face with a closed fist. The counselor lost his balance and fell back a few feet. While he was still dazed from the punch, Begay removed a printer from a table in the office, raised it above his head, and smashed the printer onto the counselor’s face.
The counselor radioed for assistance and correctional officers entered the room and handcuffed Begay after a struggle. The counselor was transported to the hospital emergency room. A physician determined that he sustained an orbital floor fracture. The physician closed the wound with sutures and recommended the counselor to follow up with a plastic surgeon.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for two hours before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Wednesday, June 11, 2014.
Under federal statutes, Begay is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by the FBI.
Joint Law Enforcement Effort Leads to Issuance of First Ever Interpol Purple Notice from the United StatesRead the Press Release
WASHINGTON - A joint investigation between the National Oceanic and Atmospheric Administration (NOAA), the United States Coast Guard (USCG), and Interpol Washington (U.S. National Central Bureau) has led to the publication of the first-ever Interpol Purple Notice issued by the United States for a vessel believed to be engaged in illegal fishing activities.
According to the Purple Notice, the fishing vessel named 'Stellar' was sighted twice in May 2014 operating on the high seas of the North Pacific Ocean by the USCG. It appears to change its name, national registration and other identifying characteristics in order to hide illegal activity. 'Stellar' is suspected of engaging in illicit fisheries transshipment activities near the Russian Exclusive Economic Zone.
'Stellar' was last known to have arrived in the port of Busan, Korea on June 3, 2014. The USCG provided information to the Korean authorities regarding the suspicious activities of 'Stellar' and recommended the vessel be inspected for potential violations.
“Illegal fisheries activity has a wide-ranging impact on the health and sustainability of the oceans fish stocks,” said Bruce Buckson, Director of NOAA's Office of Law Enforcement. “We're pleased to be working with Interpol, its member agencies, and the U.S. Coast Guard to combat this type of activity. We expect this international effort will help level the playing field for U.S. domestic fishers.”
“I commend NOAA, the USCG and Interpol Washington's Economic Crimes Division representatives for their extraordinary efforts, collaboration and partnership during this investigation which has resulted in the first Interpol Purple Notice issued by U.S. law enforcement authorities,” stated Interpol Washington Director Shawn A. Bray.
The United States wishes to make all 189 other Interpol member countries aware of the suspected illegal operations of the fishing vessel 'Stellar' (also known as 'Sungari'). By raising awareness of this vessel's operations, member countries will be able to investigate possible violations of their laws and take appropriate enforcement measures should the vessel attempt to operate illegally in their waters or ports, or under their national jurisdiction.
Johnstown Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Matthew John Claycomb, 22, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 25, 2013, Matthew John Claycomb along with co-defendants, distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Matthew John Claycomb on Dec. 2, 2014, at 10 a.m.
The law provides for a maximum total sentence for Matthew John Claycomb of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Matthew John Claycomb.
International Drug Money Laundering ConvictionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Alvaro López Tardón, 39, of Miami Beach and Madrid, Spain, was convicted on 14 counts of conspiracy to launder narcotics proceeds and money laundering, in violation of Title 18, United States Code, Sections 1956 and 1957. Sentencing is scheduled for August 19, 2014, before U.S. District Judge Joan A. Lenard. At sentencing, Tardón faces a maximum sentence of 20 years in prison on the conspiracy to commit money laundering count and ten years in prison on each substantive money laundering count, followed by three years of supervised release.
Tardón was the head of an international narcotics trafficking and money laundering syndicate which distributed over 7,500 kilograms of South American cocaine in Madrid and laundered over $15,000,000 in narcotics proceeds in Miami by buying high-end real estate, luxury, exotic automobiles and other high-end items. The proceeds were smuggled into Miami by couriers through Miami International Airport, wire transferred to South Florida by co-conspirators via MoneyGram and Western Union, wire transferred to third parties internationally on behalf of Tardón, and wire transferred directly to Tardón and his co-conspirators in Miami through Tardón’s exotic car dealership and other companies controlled by him located in Madrid, Spain.
Following the guilty verdicts, the jury found that a significant portion of the defendant’s assets should be forfeited. Those assets involved real estate and cars. The real estate purchased by Tardón included condominium units in Miami Beach and Coconut Grove areas of Miami. The exotic automobiles included a Bugatti Veyron and Ferrari Enzo, each worth over $1 million, a Mercedes-Benz Maybach 57S, two Mercedes-Benz G55, a Rolls Royce Ghost, and a Land Rover Range Rover. The government also seized three bank accounts.
The seven-week trial included the introduction of over 36,000 pages of financial and corporate documents from Spain and the United States. The trial also included testimony from six members of the Spanish National Police, a member of the Spanish national wiretapping agency (SITEL), and the Spanish taxing authority (Agencia Estatal de la Administración Tributaria).
The investigation and prosecution of Tardón was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies to identify, investigate and prosecute high level narcotics traffickers and money launderers.
U.S. Attorney Wifredo A. Ferrer stated, “This case demonstrates that we will work vigorously with our local, federal, and international partners to bring to justice those who traffic in narcotics as well as those who launder drug proceeds. Our efforts transcend international borders and we are grateful for the cooperation of our domestic and foreign partners who worked together to ensure the success of this case.”
“In the world of drug trafficking, Alvaro Lopez Tardon is a bona fide kingpin,” said George L. Piro, Special Agent in Charge FBI Miami. “His multi-million dollar cocaine enterprise spanned the globe from South America to Spain to Miami. Thus bringing him to justice required immense cooperation. As such, the FBI praises the assistance and investigative efforts of the Spanish National Police and our partners in the Organized Crime Drug Enforcement Task Force.”
Jose A. Gonzalez, IRS-CI Special Agent in Charge stated, “Today’s guilty verdict against the head of a major international narcotics trafficking and money laundering organization represents an important victory for all of us. By following the money trail, we were able to disrupt and dismantle Tardon’s drug trafficking organization and elaborate money laundering scheme and seize a significant portion of his ill-gotten gains. IRS-CI is proud to work alongside its law enforcement partners to bring criminals to justice.”
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and members of the South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) for their extraordinary work in this multi-agency multi-jurisdictional investigation. Mr. Ferrer also thanked Customs and Boarder Protection, Tactical Analytical Unit, Drug Enforcement Administration, Miami Police Department and Monroe County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Tony Gonzalez, Cristina Maxwell, Daren Grove and Evelyn B. Sheehan.
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.
Indiana Man, Andrew J. Korpal, Sentenced in Child Pornography CaseRead the Press Release
ANDREW J. KORPAL, age 29, a resident of Granger, Indiana, was sentenced today for receipt of child pornography, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, KORPAL was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that KORPAL was responsible for receiving and posting videos depicting the sexual exploitation of children on the Internet.
U.S. District Judge Carl Barbier sentenced KORPAL to a term of imprisonment of ninety-seven (97) months, twelve (12) years of supervised release, and KORPAL will have to register as a sex offender.
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.
This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.