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Friday 25 April 2014
Kodiak Man Convicted for Murder of Coast Guard Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, after deliberating for 6 hours, a jury of 6 women and 6 men, found James Michael Wells guilty of the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working as a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 62, of Kodiak, was tried before Chief District Court Judge Ralph R. Beistline in Anchorage.
Wells was arrested on February 15, 2013 under a federal arrest warrant based on a criminal complaint, and was indicted on February 19, 2013. Wells was convicted on all six counts of the indictment: two counts of murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.
According to Ms. Loeffler, the evidence established that on April 12, 2012, at approximately 7:15 a.m., U.S. Coast Guard Petty Officer First Class James Hopkins and U.S. Coast Guard civilian employee Richard Belisle were shot and killed while working at their duty stations in the Rigger Shop at U.S. Coast Guard Communications Station Kodiak. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing.
A third employee in the Rigger Shop, James Wells, was not present and had left two phone messages stating he was running late due to a flat tire. U.S. Coast Guard (USCG) security video captured a small blue SUV entering the back of the Rigger Shop parking lot just before the murders and leaving just afterwards. Later that day, investigators discovered a blue car consistent with the car in the video in the parking lot of the Kodiak Airport. The car was owned by James Wells and had been left there by Wells’ wife, who was in Anchorage.
Additional USCG security video showed James Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m.
The afternoon of the murders, Wells was interviewed and stated that he had left for work in his truck that morning, but discovered a low tire after passing the Base Main Gate near the Kodiak Airport and went back home to change it. Wells had a tire with a nail in it in the bed of his truck and produced it for investigators.
The day after the murders, Mrs. Wells returned to Kodiak from Anchorage. Investigators then learned that the blue car she had left at the airport parking lot had been moved from where she originally parked it when she left for her trip.
In a second interview, James Wells told investigators that he only took a couple of minutes to inspect the low tire at the airport. However, when asked about the 34 minute time gap shown by the Main Gate video, Wells stated “I don’t have a reasonable explanation for it.” Investigators determined that the times on the videos and voice mail messages matched almost exactly to the time it would have taken Wells to drive his white truck from his residence to the airport, change into his wife’s blue car, drive to the Rigger Shop, murder both men, come back to the airport, change back to his truck and return home.
The murder weapon, a .44 revolver, was never found. The evidence at trial showed that, a number of years prior to the murders, Wells had taken a similar weapon from an acquaintance’s gun safe and never returned it.
Judge Beistline scheduled sentencing for July 8, 2014. The law provides for a mandatory sentence of life in prison. Wells will remain in custody pending sentencing.
Ms. Loeffler stated that, “This was a long road to justice for the families of Richard Belisle and James Hopkins, the United States Coast Guard community and the citizens of Kodiak. The guilty verdicts were the result of the superb investigative effort of the FBI and Coast Guard Investigative Service, and I am very proud of the work of the members of the United States Attorney’s Office for the District of Alaska, and our Special Assistant U.S. Attorney from the U.S. Coast Guard Judge Advocate General who, with professionalism and dedication, worked to present that investigation to the jury and convict the man responsible for brutally murdering two innocent men while they were at work serving their country and their community.”
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska said, “The FBI would like to thank the Alaska State Troopers, Coast Guard Investigative Service, and the U.S. Attorney’s Office for their partnership and cooperation on this case. We are pleased that the lengthy and meticulous investigation of this brutal crime has resulted in the conviction of the person responsible. We continue to express our condolences to the Hopkins and Belisle families.”
Ms. Loeffler notes that the conviction comes after an extensive investigation led by the FBI, with support from the U.S. Coast Guard Investigative Service, and the Alaska State Troopers.
“We commend the Department of Justice and our partner law enforcement agencies for ensuring justice was served and James Wells was held accountable for these murders,” said Vice Adm. Charles W. Ray, Commander, Coast Guard Pacific Area. “We hope this verdict brings closure to this chapter of tragedy in the lives of the Belisle and Hopkins families, our Coast Guard men and women, and the people of Kodiak.”Justice Department Statement on U.S. District Court Finding That Department’s Settlement with US Airways/American Airlines is in the Public InterestRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division made the following statement today after the U.S. District Court for the District of Columbia found the department’s settlement involving US Airways Group Inc. and American Airlines’ parent corporation, AMR Corp., to be in the public interest:
“We’re pleased that the court agreed that the department’s remedy will enhance system-wide competition in the airline industry. By increasing the presence of low cost carriers at key constrained airports across the country–through significant divestitures of slots at Ronald Reagan Washington National and New York LaGuardia International and gates at five other important airports–consumers will have more choices to fly at more competitive airfares. History has shown that when low cost carriers have entered the market, consumers benefit. With the settlement, the department is requiring an unprecedented number of divestitures in this industry that will provide enhanced competition across the nation.”
Background
On Aug. 13, 2013, the department, six state attorneys general and the District of Columbia filed an antitrust lawsuit against US Airways and American alleging that US Airway’s $11 billion acquisition of American would have substantially lessened competition for commercial air travel in local markets throughout the United States. The department alleged that the transaction would result in passengers paying higher airfares and receiving less service. In addition, the department alleged that the transaction would entrench the merged airline as the dominant carrier at Reagan National, where it would control 69 percent of take-off and landing slots, thus effectively foreclosing entry or expansion by competing airlines.
On Nov. 12, 2013, the department announced its settlement requiring US Airways and American’s parent corporation, AMR Corp. to divest slots and gates at key constrained airports across the country to low cost carrier airlines (LCCs) in order to enhance system-wide competition in the airline industry.The settlement requires US Airways and American to divest slots, gates and ground facilities at key airports around the country. Specifically, the settlement requires the companies to divest or transfer to low cost carrier purchasers approved by the department:
- All 104 air carrier slots (i.e. slots not reserved for use only by smaller, commuter planes) at Reagan National and rights and interest in other facilities at the airport necessary to support the use of the slots;
- Thirty-four slots at LaGuardia and rights and interest in other facilities at the airport necessary to support the use of the slots; and
- Rights and interests to two airport gates and associated ground facilities at each of Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami International.
Thus far, slots at Reagan National were divested to Southwest Airlines, JetBlue and Virgin America. At LaGuardia, slots were divested to Southwest Airlines and Virgin America. The divestiture process for the gates at the other airports is ongoing.
Jewett City Man Sentenced to 41 Months in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON MOORE, also known as “Natural Perfection Be-Allah,” 36, of Jewett City, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. MOORE was identified as a heroin customer of Emmanuel Blanco Balbuena, who regularly obtained distribution quantities of heroin from Capellan Maldonado.
On January 24, 2013, members of the Norwich Police Department arranged to make a controlled purchase of heroin from MOORE at a Goodwill Store in Norwich. After entering the store, MOORE apparently identified officers and quickly discarded a plastic bag onto one of the shelves in the store. Using the store’s video surveillance system, officers were able to find the plastic bag, which contained approximately 24 grams of heroin packaging material. A subsequent search of MOORE vehicle revealed $20,020 in cash that had been hidden in a computer tower in the car.
MOORE has been detained since his arrest. On January 6, 2014, he pleaded guilty to one count of possession with intent to distribute heroin.
MOORE’s criminal history includes multiple drug-related convictions, and convictions for robbery and assault.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
Capellan Maldonado and Balbuena have pleaded guilty. On April 23, 2014, Balbuena was sentenced to 30 months of imprisonment. Capellan Maldonado awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jacksonville Man Pleads Guilty to Child Sex TraffickingRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Clive S. Nelson (23, Jacksonville) today pleaded guilty to child sex trafficking. Nelson faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Nelson enticed and recruited a 15-year-old female to engage in commercial sex acts for him. Nelson advised the child that she could earn up to $600 per day working for him, if she would permit him to advertise her on the Internet. Nelson then took photos of the child wearing lingerie and posing provocatively. He used these photos to compile advertisements for sex with the child on various Internet advertising sites. Nelson also rented local hotel rooms in Jacksonville and transported the child to these hotels. She engaged in commercial sex acts, at the hotels, with customers who responded to the ads and were willing to pay money to have sex with the child. When potential customers arrived to have sex with the child, Nelson would engage in surveillance from the hotel parking lot, to ensure that the offenders were not the police. Once the offender and the child completed the commercial sex act, Nelson would collect the money from the child.
Nelson prostituted the child in this fashion from November 29, 2013 through December 15, 2013, when police officers from a specialized patrol unit of the Jacksonville Sheriff’s Office located Nelson and the child in a hotel parking lot.
This case was investigated by a joint task force of investigators with the Jacksonville Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
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.
Investment Manager Principal of WG Trading Company, LP and WG Trading Investors Pleads Guilty in Manhattan Federal Court to Several-Hundred-Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEPHEN WALSH, an investment manager and principal of WG Trading Company, LP (“WG Trading Company”) and WG Trading Investors, pled guilty today in Manhattan federal court to securities fraud. WALSH and his partner Paul Greenwood ran a fraudulent commodities trading and investment advisory scheme that raised billions of dollars, misappropriated hundreds of millions of those dollars for their own personal benefit, and then created false promissory notes and account statements to conceal their theft. WALSH was originally charged in February 2009, and he pled guilty today before United States Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara said: “Stephen Walsh and his partner Paul Greenwood ran an investment operation that was a veritable money-making machine – for them. Their purported investing strategy wasn’t nearly as effective as their fraudulent sales pitch to investors. Walsh personally pocketed tens of millions in stolen investor dollars. He will soon surrender his money and himself to answer for this fraud.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least 1996 through February 2009, WALSH and Greenwood solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called “equity index arbitrage,” which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than 10 years. As a result, several institutional investors – including charitable and university foundations, and retirement and pension plans – invested billions of dollars. Investors either became limited partners in WG Trading Company or received promissory notes issued by WG Trading Investors that WALSH and Greenwood represented would pay interest at a rate equal to the investment returns earned by a limited partner of WG Trading Company.
Contrary to their representations to investors, WALSH and Greenwood misappropriated hundreds of millions of dollars in investor funds for their own personal use, and to satisfy obligations on investments that were unrelated to the “equity index arbitrage” trading business. Among other things, WALSH used the funds to finance his lifestyle, to make payments to his ex-wife totaling millions of dollars pursuant to their divorce settlement, and to finance business ventures of his children.
WALSH and Greenwood executed promissory notes in favor of WG Trading Investors, partly to conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, of which approximately $261 million were payable by WALSH to WG Trading Investors. These notes materially misstated the financial condition of WG Trading Company and misled investors. WALSH and Greenwood also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
WALSH, 69, of Sands Point, New York, pled guilty to Count Two of the Indictment, which charges him with securities fraud. This charge carries a maximum penalty of 20 years in prison. Pursuant to a plea agreement, WALSH agreed to entry of a forfeiture order in the amount of $50,743,779, which represents the amount of funds that WALSH misappropriated and by which he personally profited from the fraud. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
On July 21, 2009, Deborah Duffy, the former Chief Compliance Office of WG Trading Company, pled guilty to conspiracy, securities fraud, and money laundering for her role in the fraud scheme. On July 28, 2010, Greenwood, a managing general partner of WG Trading Company, pled guilty to conspiracy, securities fraud, commodities fraud, wire fraud, and money laundering for his role in the fraud scheme. Sentencing dates for Duffy and Greenwood have not yet been set.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell, Jessica A. Masella, and Benjamin A. Naftalis are in charge of the prosecution.
U.S. v. Stephen Walsh & Paul Greenwood Indictment
International Competition Network Adopts Recommended Practices <br /> for Predatory Pricing Analysis and Advances Convergence on <br /> Confidentiality ProtectionsRead the Press Release
The International Competition Network (ICN) adopted new recommended practices for predatory pricing analysis and competition assessment, and approved new work product on international merger enforcement cooperation, confidentiality protections during investigations, leniency policy and digital evidence gathering, the Department of Justice announced today.
The 13th annual ICN conference, hosted by the Moroccan Competition Council, was held on April 23-25, 2014, in Marrakesh, Morocco. More than 500 delegates from 90 jurisdictions participated, including competition experts from international organizations and the legal, business, consumer and academic communities. Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division and Federal Trade Commission (FTC) Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on cartels, competition advocacy, competition agency effectiveness, mergers and unilateral conduct.
The Department of Justice co-chairs the Cartel Working Group, which addressed the challenges of cartel enforcement, including prevention, detection, investigation and sanctioning of cartel conduct. The working group showcased revised work product focusing on the implementation of effective leniency policy and digital evidence gathering. Assistant Attorney General Baer spoke on a panel about effective cartel enforcement, highlighting the Antitrust Division’s digital evidence gathering techniques.
“Gathering the world’s antitrust enforcers together to discuss and share ideas on the most effective ways to combat cartel and civil anticompetitive behavior is critical to ensuring that the global marketplace remains open and competitive benefiting consumers and businesses,” said Assistant Attorney General Baer. “It is important to stay nimble and take advantage of new technology, such as the digital evidence gathering tools being used by many antitrust enforcement agencies.”FTC Chairwoman Ramirez participated in the Merger Working Group’s plenary discussion of international cooperation in merger cases, the subject of a multi-year study by the working group. The Chairwoman highlighted that, “Our experience demonstrates that international cooperation is essential to ensure effective and consistent merger review. The ICN is a uniquely valuable forum in which to advance the coordination and sound analysis of the increasing volume of cross-border transactions.”
The Merger Working Group presented a report detailing agencies’ experiences with international enforcement cooperation that will inform the development of ICN guidance on effective cooperation. This initiative furthers the working group’s mission to promote the adoption of best practices in the design and operation of merger review laws.
To further the Unilateral Conduct Working Group’s mission to promote convergence toward sound enforcement of laws governing conduct by firms with substantial market power, the working group presented new recommended practices for predatory pricing investigations at the conference. Deputy Assistant Attorney General Renata B. Hesse of the department’s Antitrust Division participated in the working group’s plenary discussion of how agencies characterize and pursue unilateral conduct enforcement.
The Agency Effectiveness Working Group, co-chaired by the FTC, addresses competition agency strategy, planning, operations, and investigative tools and procedures. An ongoing working group project on agency investigative process aims to identify investigative procedures that promote fair and informed enforcement actions. Paul O’Brien, International Counsel at the FTC, moderated a plenary session on agency procedures focused on investigative transparency and engagement. This year, the working group also produced a report on confidentiality protections that underscored common approaches to these practices.
The Advocacy Working Group presented a set of recommended practices on competition assessment, the exercise of evaluating the effects on competition of a proposed or existing law, regulation or policy. The ICN recommendations extend and complement work by the Organisation for Economic Co-operation and Development (OECD) in its Competition Assessment Toolkit, and advance the working group’s goal to promote the development of practical tools and guidance to improve the effectiveness of competition agencies’ competition advocacy activities.
The Moroccan Competition Council led a special project devoted to the treatment of state-owned enterprises under competition law.
The ICN was created in October 2001, when the Department of Justice and the FTC joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now comprises 128 member agencies from 115 jurisdictions.
More resources are available on the ICN website.Illegal Alien Receives Time-Served SentenceRead the Press Release
On April 22, 2014, in federal court in Williamsport, Juan Bartolome Mora, age 34, a Mexican citizen arrested in Montour County in January 2014 and charged with illegal re-entry into the United States in February 2014 and held in custody for 102 days, was sentenced to time-served by U.S. District Court Judge Matthew W. Brann.
The case was prosecuted by Assistant U.S. Attorney William C. Simmers.
Heroin Dealer Endangering Children Sentenced to an Additional 3 Years in PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II today sentenced Damion Rashaad Carder (36, Cocoa) to 3 years in federal prison for violating his supervised release. Carder was under supervision of the court as a result of a cocaine conviction in 2006. Carder was found guilty of violating his supervised release on March 11, 2014. On April 17, 2014, U.S. District Judge Charlene Edwards Honeywell sentenced Carder in another federal drug case. He was sentenced to 18 years and 9 months in federal prison for possession with the intent to distribute and distribution of heroin. Judge Antoon ordered that the 3-year sentence be served consecutive to the 18-year sentence.
According to court documents and statements made during the sentencing hearing, Carder was on supervised release as a result of his 2006 conviction in federal court for possession with the intent to distribute cocaine. Despite being under supervision, Carder sold heroin from his home, which was approximately one block away from the Joe Lee Smith Park and Recreation Center, which has a children’s playground, baseball field, basketball court, gymnasium, and community center. Carder would deal heroin when the Center was open. After thinking he was going to be arrested by law enforcement, Carder placed two firearms and ammunition in a car with two children, approximately 8 and 10 years old, and told the driver to leave the area. Law enforcement stopped the driver and recovered the firearms shortly before arresting Carder with more than 200 grams of heroin.
This case was investigated by the Drug Enforcement Administration and Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Vincent A. Citro.
Hartford Crack Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEROME WILLINGHAM, 32, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 70 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in the summer of 2012, in response to a series of shootings in the area of Bond Street and Franklin Avenue in Hartford, the FBI’s Northern Connecticut Violent Crimes Task Force began an investigation targeting gang and narcotics activity in that area. In October 2012, investigators began to make controlled purchases of multi-gram quantities of crack cocaine from Joshua Suarez, also known as “Tizzo.” WILLINGHAM was subsequently identified as Suarez’s source for crack cocaine.
WILLINGHAM has been detained since his arrest on April 28, 2013. On December 16, 2013, he pleaded guilty to one count of conspiracy to distribute cocaine base (“crack cocaine”).
WILLINGHAM has prior felony convictions, and previously served more than seven years in state custody for criminal possession of a firearm.
The sentence in this case was enhanced after Judge Shea found that WILLINGHAM, in advance of his sentencing, had submitted a forged letter to the U.S. Probation Office purporting to confirm his participation in an apprenticeship program. The letter was submitted to corroborate WILLINGHAM’s assertion that he sold drugs because he had three children and needed to support them, and that he was involved in an ironworker’s apprenticeship program for which he was not receiving compensation. WILLINGHAM never participated in the apprenticeship program.
Suarez has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Gibsonton Woman Pleads Guilty to Aggravated Identity Theft Relating to Fraudulent Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Bernadette Demps today pleaded guilty to aggravated identity theft. She faces a mandatory minimum of two years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in 2011, Demps received more than $43,000 in income tax refund checks into a business bank account which she controlled. All of these deposits were in the names of other individuals. The direct deposits were all the result of fraudulent tax returns, which had been filed a short time earlier with the IRS, using the names and personal identification information related to those persons. Demps withdrew the funds from her account almost immediately, either via ATM cash withdrawals or other means.
This case was investigated by the Internal Revenue Service-Criminal Investigation, with the assistance of the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
German Company Ordered to Pay $1.25 Million After Failing to Report Hazardous Condition on A Cargo Ship in the Port of Long BeachRead the Press Release
LOS ANGELES – A German company has been sentenced to pay a $1 million fine and another $250,000 to support environmental causes after pleading guilty to two felony environmental charges related to a cargo ship that entered the Port of Long Beach last year with an open crack in its hull that may have caused oil to leak into the port.
The company – Herm. Dauelsberg GmbH & Co. KG – pleaded guilty yesterday morning and was sentenced immediately by United States District Judge George H. Wu. The company pleaded guilty to a felony count of failing to maintain accurate records relating to the overboard disposal of fuel oil and to a felony count of failing to report a hazardous condition aboard the M/V Bellavia to the United States Coast Guard.
This case was initiated after four members of the M/V Bellavia crew provided significant information to the United States Coast Guard, including pictures and videos of discharges from a fuel tank into the ocean. Using a federal law that allows a federal judge to award up to half of any criminal fine to “whistleblowers” who provide information concerning certain environmental crimes aboard vessels, Judge Wu ordered that the four crewmembers receive a total of $500,000 from the fine amount.
The M/V Bellavia is a 960-foot-long, Panamax-size ship that normally transports cargo between European, Central American and North American ports. In 2011, the M/V Bellavia sustained cracks in the ship’s hull while transiting through the Panama Canal. On an unknown number of occasions over the past three years, the hull cracks opened to such an extent that seawater could enter one of the ship’s fuel tanks. As a result of the damage, bunker fuel – a heavy, thick fuel oil – could have been released from the fuel tank into the sea.
Herm. Dauelsberg admitted that the M/V Bellavia hit the side of the Panama Canal again last September and sustained a crack that passed through the ship’s hull into a fuel tank. The company also admitted that, after sustaining the crack, the ship’s crew used one of the ship’s pumps to discharge nearly 120,000 gallons of oil-contaminated seawater from the ship’s fuel tank directly into the ocean. That discharge was not done using the ship’s oil-water separator, which is supposed to be used to filter oil out of water that is pumped overboard. The ship’s crew then failed to properly record the discharge in the ship’s records and did not disclose it to the Coast Guard, both of which are required by federal law, when the ship arrived in the Port of Long Beach in October 2013. In addition, the company admitted that it failed to notify the Coast Guard about the hazardous condition aboard the M/V Bellavia, namely, the crack that passed through the ship’s hull into the fuel tank.
After accepting the guilty pleas, Judge Wu sentenced the company to the statutory maximum fine of $1 million and ordered the company to make an additional community service payment of $250,000 to the Channel Islands Natural Resources Protection Fund, which is administered by the National Park Foundation. The community service payment will be used to fund environmental projects, enforcement efforts, and initiatives designed for the enforcement of environmental and public safety regulations.
This case is the result of an investigation by the United States Coast Guard’s Marine Safety Office, the Coast Guard Investigative Service, and the United States Environmental Protection Agency’s Criminal Investigation Division.
Release No. 14-052
Four Defendants Charged in Wire Fraud ConspiracyRead the Press Release
ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been indicted by a federal grand jury on charges of defrauding and conspiring to defraud Home Depot.
“These defendants are charged with participating in a scheme to defraud Home Depot over a period of several years, in ten states that span as far north as Kentucky and North Carolina, all the way south to Florida and west to Texas,” said United States Attorney Sally Quillian Yates.
“The Secret Service has established a long history of protecting the American consumer and private industry from various types of prepaid and credit card fraud. This case illustrates not just the significance of an aggressive and cutting edge approach to combat this type of fraud, but also illustrates the importance of partnerships with state and local law enforcement agencies in protecting our nation’s electronic financial payment systems,” said Reginald Moore, Special Agent in Charge of the United States Secret Service in Atlanta.
According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected items for purchase. Prior to purchasing the items, they covered the UPC labels on high-priced merchandise with UPC labels they removed from lower-priced merchandise, a practice known as “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price.
After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label. Hatcher, Lynch, and Oliver then returned the fraudulently purchased merchandise to Home Depot without a receipt, in order to obtain refund credit cards in the amount of the actual, and higher, retail price of the merchandise. Hatcher, Lynch, and Oliver then sold the refund credit cards to Freeman in exchange for cash in an amount less than the face value of the refund credit cards. Defendant Freeman used the fraudulently obtained refund credit cards to purchase merchandise from Home Depot, which he used to stock inventory in two retail stores that he owns and operates in Atlanta, Ga., known as “Bargain Wholesale.”
Robert Lee Hatcher III, 31, of Atlanta, Ga., Willie Dewayne Lynch, 29, of Atlanta, Ga., have been arraigned before U.S. Magistrate Judge Justin S. Anand. Arthur James Freeman, 53, of Atlanta, Ga., is scheduled to be arraigned on Friday April 25, 2014, before Judge Anand. Andrew Oliver, 61, of Stone Mountain, Ga., is still at large.
This case is being investigated by Special Agents of the United States Secret Service, with the assistance of criminal investigators from the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, the Atlanta Police Department, and Corporate Investigators with The Home Depot, Inc.Assistant United States Attorneys Teresa D. Hoyt and Jeffrey W. Davis are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.Former Office Manager at Red Creek Municipal Utility District Is Sentenced to 21 Months in Federal Prison for Embezzling Funds from DistrictRead the Press Release
LUBBOCK, Texas — A San Angelo, Texas, woman, who worked for a water utility service company in unincorporated Tom Green County was sentenced for embezzling approximately $43,000 from her employer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melissa Manda Herrera, 38, was sentenced yesterday by U.S. District Judge Sam R. Cummings to 21 months in federal prison and ordered to pay $85,790 in restitution, following her guilty plea in December 2013 to one count of theft concerning federally funded programs. Judge Cummings remanded her into the custody of the U.S. Marshal.
Herrera worked as the Office Manager of the Red Creek Municipal Utility District from April 2003 through February 2012. The District, which receives federal financial assistance from the U.S. Department of Agriculture, was established in 1992 to provide water utility services to its customers. It is overseen by an elected, uncompensated board of directors and it contracts with Concho Rural Water Corporation to manage the District’s water distribution system, conduct monthly readings of customers’ meters and maintain the District’s customer billing records, which includes preparing and mailing monthly bills and posting customer payments based on information provided by the District’s Office Manager. The District employs only one person – the part-time Office Manager.
As part of her duties, Herrera was responsible for establishing customer accounts, handling customer payment issues and collecting all customer payments. Herrera admitted that while she was Office Manager for the District, she did not include all customer payments in the daily deposits made at the bank, and in fact, kept customers’ cash payments for her own benefit.
The FBI, Tom Green County Sheriff’s Office and San Angelo Police Department investigated. Assistant U.S. Attorney Ann Roberts led the prosecution.
Former EBay Exec Charged with Insider TradingRead the Press Release
PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, was charged today by information with securities fraud, announced United States Attorney Zane David Memeger. According to the information, Saridakis, a senior executive at GSI Commerce, Inc. (“GSIC”), provided material, non-public information regarding eBay’s pending acquisition of GSIC.
It is further alleged that on March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to CW1 that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?” CW1 replied, “no, but it’s cheap.” This response led Saridakis to tell CW1 “you should.” CW1 responded with “ok,” to which Saridakis replied, “soon.” According to the information. on March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000. On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages. Saridakis allegedly also shared the same material non-public information with family members and his neighbor.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.
U.S. Attorney Memeger credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation. He also thanked Scott Friestad, an associate director in the U.S. Securities and Exchange Commission’s (“SEC”) Washington DC office. Saridakis and others have been charged in a parallel civil matter by the SEC.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Columbus Police Detective Sentenced to 57 Months in Prison for Drug CrimeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Former Columbus Police Detective Stevie Billups, 48, of Columbus was sentenced to serve 57 months in prison for crimes he committed through his involvement with a local drug dealer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Karen Huey, Director of Enforcement for the Ohio Casino Control Commission, and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Judge Graham also fined Billups $10,000 and ordered him to serve three years of supervised release after he completes his prison sentence.
Billups pleaded guilty on November 22, 2013 to one count of attempted possession with intent to distribute heroin. According to a document the government filed with the court prior to today’s sentencing, in 2013 Billups provided armed protection for two transactions involving drugs while he was a Columbus Police officer.
Billups began his relationship with a drug dealer when Billups began laundering money for the drug dealer by cashing in chips which helped the drug dealer avoid transaction reporting requirements at the Hollywood Casino in Columbus.
According to court documents, Billups asked the drug dealer to “get him in the game.” Billups’ query led to the June 28th and July 17th drug stings by the FBI, whereby Billups protected the drug dealer in the pickup of purported drug money. He later provided protection for the drug dealer during a transaction which Billups believed involved the distribution of heroin. Billups provided protection during the second transaction while he was on duty, armed with his service weapon, and in a Columbus Division of Police unmarked detective vehicle. Billups received a total of $5,000 in exchange for providing protection to the drug dealer during these transactions.
“Public confidence in our police to ‘do the right thing’ is undermined with each case of police corruption,” Assistant U.S. Attorney Doug Squires told the court. “It is a police officer’s duty to uphold the law and protect the public…. Billups’ intent to aid and further the problems that heroin has brought to our communities for his own profit indicates the serious nature of this offense.”
“Using a police officer’s badge and gun to commit crime is a particularly disturbing threat to the community,” stated SAC Kevin Cornelius. “This case highlights the fact that local, state, and federal agencies are working together to root out corruption and bring to justice those who betray the public’s trust.”
“Ohio Casino Control Commission and its gaming agents are committed to working with our federal and local law enforcement partners to investigate criminal activity occurring at the casinos,” said Karen Huey. “The Commission will not tolerate money laundering or drug dealing at any of Ohio’s casinos.”
U.S. Attorney Stewart praised the cooperative investigation by the Ohio Casino Control Commission and the FBI’s Central Ohio Public Corruption Task Force which includes agents from the FBI and the Ohio Bureau of Criminal Investigation (BCI).Mr. Stewart commended the Columbus Division of Police and Police Chief Kim Jacobs for the cooperation they provided during the course of this investigation and thanked the Homeland Security Investigations Bulk Cash Smuggling Task Force for helping initiate this investigation. The Bulk Cash Smuggling Task Force includes agents with Homeland Security Investigations and detectives with the Columbus Police Department, Franklin County Sheriff’s Office and the Ohio State Highway Patrol. Stewart also acknowledged Assistant United States Attorneys Doug Squires and David DeVillers, who prosecuted the case.
# # #Florida Woman Sentenced in $24 Million Dollar Mortgage Fraud CaseRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Elsy Alvarez, 64, of Miramar, Florida, who was convicted of wire fraud affecting a financial institution, was sentenced to 18 months in prison and ordered to pay restitution totaling $415,282.28 by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Alvarez was an employee of the Federal Guaranty Mortgage Company based in Florida, and was responsible for preparing loan packages and forwarding the documents to investor financial institutions. In legal transactions, financial institutions purchase loans originated by mortgage companies, allowing the mortgage company to receive immediate payment, and the financial institution the interest paid over time.
During the scheme, the defendant signed multiple loan documents using multiple names. Alvarez forwarded these documents to multiple investor financial institutions, one of which was M&T Bank. The defendant knew that by sending the loan documents to multiple financial institutions, a single property had multiple loans in the name of multiple persons, a fact which was not disclosed to the financial institutions. The proceeds of the fraudulent loans were subsequently wired into the account of a company associated with the Federal Guaranty Mortgage Company.
As a result of the defendant's actions, M&T Bank was one of nine financial institutions to suffer a loss. The parties estimated that the total fraud scheme amounted to approximately $24,000,000.
Frank Garcia, the owner of Federal Guaranty Mortgage Company, has also been convicted in this case and is awaiting sentencing.
This law enforcement action is part of President Barack Obama=s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Firearms Dealer Sentenced to 26 Months in Prison for Conspiracy and Tax EvasionRead the Press Release
On April 21, 2014, in federal court in Williamsport, Chief U.S. District Judge Christopher C. Conner sentenced Frank C. Lowe, age 57, a Williamsport resident, to 26 months in prison. Lowe pled guilty in April 2013 to conspiracy and tax evasion. Lowe’s co-conspirator, Christopher Haupt, pled guilty last week to a conspiracy charge.
Lowe was ordered to report to prison on May 28. The case was prosecuted by Assistant U.S. Attorney Wayne P. Samuelson. The investigation was conducted by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS-Criminal Investigations.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on April 9, 2014:
Kevin Becerril, 19, of South Bend, Indiana, was charged in a one count Indictment with felon in possession of a firearm.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Jerome White, 24, of South Bend, Indiana, was charged in a three count Indictment with one count of possession with intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of firearm(s).These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Employee Appears in Court After Being Indicted for Scheme to Defraud GovernmentRead the Press Release
DENVER – Jaycee L. Collier, age 29, of Aurora, Colorado, was indicted by a federal grand jury in Denver on April 8, 2014 on charges of wire fraud and bribery of a public official in connection with a military recruiting program. Collier received a summons to appear in U.S. District Court in Denver today, April 25, 2014. He made his initial appearance, where he was advised of his rights and the charges pending against him. He was then released on a $10,000 unsecured bond. He is scheduled to return to court on Wednesday, April 30, 2014 at 10:00 a.m. for arraignment.
According to the indictment, the United States Army Reserve (USAR), located at Fort Bragg, North Carolina, had a contract with Document & Packaging Brokers, Inc. (“Docupak”) to administer a program called the Army Reserve Recruiting Assistance Program (AR-RAP). The AR-RAP offered monetary incentives in the form of recruiting referral bonuses to Army Reserve soldiers, known as Recruiting Assistants (RAs), for encouraging others to join the Army Reserves. The recruiting assistants were required to enroll and complete an online training course. At the conclusion of the training, the RAs would establish an online account to record their nominations of others for enlistment. An RA could receive up to $2,000 for each successful nomination.
Collier was employed as a civilian employee with the Department of Defense at the Military Entrance Processing Station (MEPS) in Denver. In his position as a Lead Human Resources Division Assistant (HRA), Collier was responsible for handling enlistment packets for new recruits joining the USAR and processed through the Denver office. As such, Collier was ineligible to participate in the AR-RAP program.
Between March 10, 2009 and July 25, 2012, Collier knowingly devised a scheme to defraud the USAR by means of materially false and fraudulent pretenses. Specifically, he obtained or caused to be obtained the user names and passwords for eligible RAs so that Collier could enter nominations into those RAs accounts and share in the AR-RAP bonus money. Over the time period alleged, Collier was involved in the nomination of over 65 recruits into the AR-RAP Program.
Approximately $125,000 in fraudulent referral bonuses were wired from Docupak to the RAs’ bank accounts. In most instances, the RAs would pay Collier on average $500 as a kickback for each successful nomination. In total, the indictment alleges that Collier personally received over $28,000 in payments from the RAs for fraudulent nominations.Collier faces five counts of wire fraud. If convicted, he faces not more than 20 years in federal prison, and up to a $250,000 fine, per count. He also faces 13 counts of bribery of a public official. If convicted, he faces not more than 15 years in federal prison, and up to a $250,000 fine, or three times the monetary thing of value, whichever is greater, per count.
This case was investigated by the U.S. Army Criminal Investigation Division and the Defense Criminal Investigative Service.
Collier is being prosecuted by Assistant U.S. Attorney Martha Paluch.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Federal and Local Partners Announce Charges in Child Exploitation CaseRead the Press Release
NORRISTOWN – A fourth man was charged federally, yesterday, in a case involving sex with a minor who was exploited. Mark Wilczopolski, 22, of Birdsboro, PA, is one of four men charged federally and locally. Two additional men are charged by the Montgomery County District Attorney’s Office. In a joint press conference with Montgomery County District Attorney Risa Ferman, United States Attorney Zane David Memeger, today, announced the indictment against Wilczopolski, a/k/a “Wilco,” who is charged federally with using the Internet to entice a minor to engage in sexual conduct, receipt of child pornography and possession of child pornography. Wilczopolski will also be prosecuted, on local charges, by the Montgomery County District Attorney’s office. Wilczopolski is expected to make an initial appearance today in magistrate court.
Charged in related federal indictments are: Christopher Steele, a/k/a “Mike Dozor,” 33, of Newark, DE, who was indicted on March 6, 2014, for use of an internet to entice a minor to engage in sexual conduct, interstate travel with intent to engage in illicit sexual conduct with a minor, and receipt of child pornography; Matthew Krapf, 43, of Collegeville, PA, who was indicted on January 23, 2014, on 10 counts, each, of using or inducing a child to pose for child pornography, use of the Internet to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography; and Jason Scott Becktold, a/k/a “Scotty,” 42, of Oklahoma City, Oklahoma, who was indicted on January 23, 2014, on four counts, each, of using or inducing a child to pose for child pornography, and use of the internet to entice a minor to engage in sexual conduct. The four men, and two others, were initially charged by the Montgomery County District Attorney. The cases listed here were adopted for federal prosecution.
According to the indictments, each of the defendants had contact, via the Internet, with Minor #1 and enticed Minor #1 to engage in sexual conduct and transmit it over the Internet. Krapf also traveled to meet Minor #1 for the purpose of having sexual intercourse, and is charged with doing the same with four other minor boys. In one instance, defendant Krapf traveled to meet Minor #1 and brought Minor #2 with him for the purpose of all three having sexual intercourse, which defendant Krapf videotaped and photographed, and then transmitted to others over the Internet.
According to Becktold’s indictment, Becktold induced Minor #1 to engage in sexual activity with himself and with other Minors, record video of the activity and transmit the video to him via the Internet. Becktold also induced Minor #1 to place a concealed recording device in a locker room to record other minor boys in various states of dress and undress.
Defendant Steele, according to his indictment, traveled from the state of Delaware to Pennsylvania for the purpose of engaging in sex with Minor #1 and enticed Minor #1 to engage in sexual activity over the Internet.
“The internet continues to provide child predators with access to children who cannot appreciate the tremendous physical and mental dangers they face at the hands of criminals who prey on children for sex,” said Memeger. “In order to combat this far too common threat, federal, state and local law enforcement partners must work together to bring those who victimize our children to justice.”
“The greatest responsibility of law enforcement is to protect our most vulnerable citizens,” said Ferman. “Keeping children safe is our number one priority. This case highlights the dangers our children face when communicating with strangers online. An unfortunate reality of our world is there are adults willing to manipulate and exploit vulnerable youth for their own base motives. Working together, the Limerick Township Police Department, the Montgomery County District Attorney’s Office, and the Department of Homeland Security and the United States Attorney's Office for the Eastern District of Pennsylvania have taken six alleged child predators off the street. I commend and thank our law enforcement partners for the strong collaboration and cooperation that allowed us to stop these acts of abuse against vulnerable kids.”
“HSI hereby puts child predators on notice: there is no refuge for child sexual predators who believe they can pursue their perverse behavior with impunity online; they cannot escape justice and there will be serious consequences for their actions,” said HSI Philadelphia Assistant Special Agent- in-Charge William Walker. “HSI will continue to diligently work with our partners at the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Montgomery District Attorney’s Office and other local, state, federal and international law enforcement agencies to combat the sexual exploitation of children.”All four defendants are in federal custody. Matthew Krapf is scheduled for trial on May 19, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 15 years in prison with a maximum sentence of life.
Christopher Steele is scheduled for trial on June 2, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
Jason Scott Becktold is scheduled for trial on September 15, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
Mark Wilczopolski is scheduled for an initial appearance this afternoon in federal court. If convicted of all charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
The cases were investigated by the Limerick Township Police, Montgomery County Detectives, and Immigration and Customs Enforcement Homeland Security Investigations. The federal cases are being prosecuted by Assistant United States Attorney Michelle Rotella.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, 215-861-8525Facebook Fraudster SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Allen Weintraub, 48, of Boynton Beach, was sentenced yesterday by U.S. District Judge Donald Graham to 111 months in prison, three years of supervised release, ordered to forfeit $140,280.47, and pay the same amount in restitution to two victims of a scheme to sell Facebook shares.
In February 2014, Weintraub pled guilty to two counts of mail fraud. According to an agreed factual proffer, in February 2012, Weintraub, using an alias, steered potential investors seeking to purchase pre-IPO stock of Facebook, to the website of Private Stock Transfer, Inc. by posting a response on www.quora.com. In that post, Weintraub claimed that he had purchased Facebook stock from Private Stock Transfer, Inc. When victims went to the website and sought information on purchasing Facebook stock, Weintraub responded representing that Private Stock Transfer Inc. had thousands of Facebook shares available for purchase. He directed that various forms be completed which represented that victims were purchasing shares described as “Facebook Inc. by and through PST Investment III, Inc. Class A shares on a one for one conversion basis.” PST Investment III, Inc. was another company associated with Weintraub. After the victims sent payment to Weintraub’s bank accounts, Weintraub issued and mailed stock certificates for PST Investment III shares which would convert to Facebook shares on a one for one basis once Facebook went public. In reality, neither Weintraub nor Private Stock Transfer, Inc. had any Facebook shares. The two victims were defrauded a total of $414,000.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Elmira Man Indicted for Production of Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a four-count indictment charging Shannon Lewis, 40, of Elmira, N.Y., with producing images of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years, a fine of $250,000 or both.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendant videotaped a child engaged in sexually explicit conduct. Specifically, Lewis is charged with filming the child while he and another adult male abused the child.
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.
The indictment was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and Investigators with the Elmira Police Department, under the direction of Chief Michael Robertson.
East St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn April 23, 2014, Derek M. McCaster, a forty-six year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, Illinois, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. McCaster is scheduled for sentencing on August 8, 2014. He faces a term of imprisonment of up to ten (10) years, a fine up to $250,000, or both, and a term of supervised release up to (5) years, and a mandatory special assessment of $100.
The violation occurred between December 13, 2012 and December 27, 2013. McCaster was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA) because he was convicted of Sexual Assault in the Second Degree and Attempted Forcible Rape on February 6, 1995, in Cape Girardeau, Missouri. He last registered as a sex offender in Cuyahoga County, Ohio, on December 12, 2012. Shortly thereafter, he moved to Illinois. McCaster was arrested on December 27, 2013, in St. Clair County, Illinois, stemming from Burglary and Forgery charges of a check theft incident that occurred in October 2013. McCaster admitted to being aware of his requirements to register in Illinois and to update his registration in Ohio upon his move to Illinois in December 2012, but not having done either.
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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the St. Clair County Sheriff’s Department. Assistant United States Attorney Daniel T. Kapsak prosecuted the case.
District Man Sentenced to 28 Years in Prison for Murder of Taxi Driver and Assault of Two Police OfficersDefendant Fired at Officers, Forcibly Entered Apartment in Hopes of Evading CaptureRead the Press Release
WASHINGTON – Ercell D. Overton, 33, of Washington, D.C., was sentenced today to 28 years in prison on charges stemming from the fatal shooting of a taxicab driver and a subsequent shoot-out with police, U.S. Attorney Ronald C. Machen Jr. announced.
Overton pled guilty in February 2014, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed for the slaying of Solomon J. Okoroh and two counts of felony assault on a police officer while armed. The plea agreement was approved by the Honorable Russell F. Canan, who sentenced Overton this morning. Upon completion of his prison term, Overton will be placed on five years of supervised release.
According to the government’s evidence, at approximately 3 a.m. on June 4, 2013, three officers from the Metropolitan Police Department (MPD) were in a police vehicle and on patrol in the Adams Morgan area of Northwest Washington when they heard the sound of a single gunshot. Moments later, the officers observed a speeding Ford Explorer, “Classic Cab” taxi pass their location. The taxicab headed south in the 2300 block of Ontario Road NW, where it crashed into a parked car. As the taxicab passed by the police vehicle, officers observed a muzzle flash and heard the sound of a second gunshot from inside the passenger compartment of the taxi.
Upon impact, officers observed an unarmed man flee from the rear passenger side of the taxi. Two of the officers exited the police vehicle and apprehended the fleeing man without incident after a brief pursuit by foot.
Overton, on foot, then appeared behind the police vehicle and pointed a pistol toward the third officer, who was at the driver’s wheel. That officer exited the vehicle and took cover. Overton then ran behind the fence line of a house in the 2300 block of Ontario Road NW and discharged his weapon in the direction of two of the three police officers, who returned fire. Overton then forcibly entered a basement apartment on the block in an attempt to evade capture. MPD officers subsequently gained entry into the apartment and apprehended Overton and recovered a semi-automatic pistol in close proximity to Overton.
The taxi driver was later identified as Mr. Okoroh, 59, of Glenarden, Md. Mr. Okoroh suffered two fatal gunshot wounds to his back. He was taken to a hospital, where he died about two hours after the shooting. Prior to his death, he provided detectives assigned to the case a physical description of his assailant, which matched that of Overton.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the MPD, including members of the Third District and Homicide Branch. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kwasi Fields. Finally, he commended the work of Assistant U.S Attorney George Pace, who prosecuted the matter.
14-099Department of Justice and the Office of the Director of National Intelligence Announce the Publication of Additional Foreign Intelligence Surveillance Court Filings, Opinions and Orders Regarding Collection Under Section 501 of the Foreign Intelligence...Read the Press Release
WASHINGTON—On January 3, 2014, the Director of National Intelligence declassified and disclosed publically that the U.S. government had filed an application with the Foreign Intelligence Surveillance Court seeking renewal of the authority to collect telephony metadata in bulk, and that, the FISC renewed that authority. The Office of the Director National Intelligence also announced that the Administration was undertaking a declassification review of the FISC's January 3 primary order. On February 12, 2014, and following a declassification review by the Executive Branch, the FISC released in redacted form the previously classified January 3 primary order it had issued in Docket Number BR 14-01, along with a number of other documents.
On January 22, 2014, following service of a Section 215 production order issued to it by the FISC in Docket Number BR 14-01, a provider petitioned the Court to "vacate, modify, or reaffirm" the production order in light of the Memorandum Opinion issued by the United States District Court for the District of Columbia in Klayman, et al., v. Obama, et al., No. 13-cv-0851 on December 16, 2013. That Memorandum Opinion held, in the context of ruling on a motion for preliminary injunction, that the plaintiffs were likely to succeed on their claim that the NSA Section 215 program authorized by orders of the FISC violated the Fourth Amendment.
On March 20, 2014, the FISC issued an Opinion and Order addressing the provider's petition. The FISC held that the district court's opinion in Klayman was unpersuasive, concluded that it provided no basis for vacating the production order, and held that Smith v. Maryland, 442 U.S. 735 (1979) is the controlling precedent. Accordingly, the FISC reaffirmed its production order and directed continued compliance on the part of the provider.
Following the completion of FISC-ordered declassification reviews by the Executive Branch, today the FISC released in redacted form the previously classified January 22, 2014, provider petition; a January 23, 2014, Scheduling Order; a February 12, 2014, Response of the United States to the provider petition; a March 20, 2014, Opinion and Order signed by the Honorable Rosemary M. Collyer, and an April 11, 2014, order. These documents are available at the FISC's website, www.uscourts.gov and on the Department of Justice’s website, www.justice.gov.
S, OPINIONS AND ORDERS REGARDING COLLECTION UNDER SECTION 501 OF THE FOREIGN INTELLIGENCE SURVEILLANCE ACTRelated Materials:
BR14-01 Opinion and Order
BR14-01 Order Regarding Unsealing
BR14-01 Order
BR14-01 Petition
BR14-01 Response
BR14-01 Scheduling OrderDelmar Drug Dealer Sentenced to Five Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Jesse Hotton, age 35, of Delmar, Maryland today to five years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and members of the Wicomico County Narcotics Task Force: Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Wicomico County Sheriff Michael A. Lewis, Salisbury Police Chief Barbara, Chief Michael Phillips of the Fruitland Police Department Department and Wicomico County State’s Attorney Matthew Maciarello..
According to his plea agreement, Hotton conspired with Ranson Chandler, Tyson Hobson and Floyd Sykes to distribute and possess with intent to distribute large quantities of crack and powder cocaine. During their investigation, DEA and the Wicomico County Narcotics Task Force overheard Hotton on many occasions transacting drug deals on his cell phone. For example, in September 2012, Hotton was overheard saying that he just got a kilogram of cocaine and was going to cook up half or so of the powder into crack. Also that month, Hotton was overheard agreeing to sell two ounces of cocaine for $3,000.Hotton admitted that it was foreseeable that he and his co-conspirators distributed more than 280 grams of crack cocaine and more than 500 grams of powder cocaine from June 2012 to November 28, 2012.
Maryland residents Ranson Chandler, Jr., age 37, of Salisbury; Tyson Gabriel Hobson, Sr., age 37, of Princess Anne; and Floyd Lee Sykes, age 35, of Quantico, previously pleaded guilty to their participation in the conspiracy. Judge Hollander sentenced Chandler to 123 months in prison and Sykes to 46 months in prison. Hobson awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.Danville Resident Charged in Money Laundering SchemeRead the Press Release
OAKLAND – Anthony Keslinke was indicted by a federal grand jury yesterday and charged with money laundering, announced U.S. Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
The Indictment alleges that between August of 2013 and February of 2014, Keslinke met with an undercover agent on multiple occasions purporting to be a drug dealer. On five separate occasions, Keslinke accepted a total of $550,000 from the undercover agent. In an attempt to conceal the true source of the funds, Keslinke repeatedly deposited the money received from the undercover agent into business bank accounts under Keslinke's control. Keslinke then attempted to launder the money by wiring it from his business bank accounts to an account controlled by the undercover agent. During the investigation, Keslinke routinely kept 8-10% of the money provided to him from the undercover agent as a fee for his services.
Keslinke was arrested on Feb. 10, 2014, at his residence in Danville, Calif. According to the Indictment, that same day, agents seized over $320,000 in cash from Keslinke’s residence and approximately $1.4 million from bank accounts under his control. Keslinke is currently out of custody on a $450,000, bond pending trial. Keslinke’s next court appearance is on June 5, 2014, at 9:30 a.m. in front of the Honorable Kandis A. Westmore, Magistrate Court Judge in Oakland for arraignment on the Indictment.
The maximum statutory penalty for each count of money laundering alleged in the indictment is 20 years imprisonment.
Assistant U.S. Attorney Aaron Wegner is prosecuting the case with the assistance of Jeanne Carstensen. The prosecution is the result of an investigation by the Drug Enforcement Administration and Internal Revenue Service. The Contra Costa Sheriff’s Office and Livermore Police Department have also provided assistance during the investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Anthony Keslinke must be presumed innocent unless and until proven guilty.
(Keslinke indictment )
(Keslinke affidavit redacted )
Continuum Healthcare Executives and 8 Others Charged with Kickback ConspiracyRead the Press Release
HOUSTON – Jeffery Parsons, of Crockett, and David Edson, of Palm Harbor, Fla., have been charged in a 13-count indictment alleging a conspiracy to pay kickbacks to several area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson today. Edson, 65, and Parsons, 55, were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC.
The indictment also charges personal care home owners Aretha Johnson, 61, of Sweeny; Inger Michelle Pace, 51, James Bobino, 44, Mary Browning, 66, Cheryl Waller, 68, all of Houston; Deborah Davis, 51, of Atlanta, Ga.; and patient advocates Earnestine Johnson, 55, and Ronald Turner, 53, both also of Houston.
The indictment, returned under seal Thursday, April 17, 2014, was partially unsealed upon the arrest of Edson yesterday in Palm Harbor, Fla. He made his initial appearance before a U.S. magistrate Judge in Florida, while Davis made hers before a U.S. magistrate Judge in Georgia. Parsons and the remaining defendants were arrested yesterday and appeared before U.S. Magistrate Judge George Hanks in Houston. With the exception of Pace, who was temporarily ordered into custody pending a detention hearing set for Monday morning, all were released upon posting bond.
The indictment alleges Edson and Parsons ran Continuum, which owned and operated three community mental health centers in the greater Houston Area. They allegedly billed Medicare and Medicaid for mental health services which were unnecessary, and, in some cases, not even provided. According to the indictment, Edson and Parsons directed kickbacks to be paid to numerous area personal care home owners and patient advocates in exchange for the referral of Medicare patients to Continuum.
All defendants are charged with conspiring to solicit or receive kickbacks in connection with a federal benefit program.
Edson, Parsons and Aretha Johnson are also charged with money laundering for engaging in monetary transactions in criminally derived property greater than $10,000 from proceeds of the conspiracy to pay and receive kickbacks. According to the allegations in the indictment, Edson and Parsons caused Continuum to bill $173 million to the Medicare and Medicaid programs for patients obtained as the result of illegal kickbacks paid to the personal care home owners and patient advocates. Medicare and Medicaid paid Continuum a total of $69.4 million.
Conspiracy to solicit or receive kickbacks and soliciting or receiving kickbacks each carries a maximum penalty of five years in a federal prison, upon conviction, while money laundering carries a maximum penalty of 10 years. The convictions also carry as possible punishment a maximum $250,000 fine.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Department of Health and Human Services-Office of Inspector General, Texas Attorney General's Office - Medicaid Fraud Control Unit, Internal Revenue Service- Criminal Investigation and the Railroad Retirement Board-Office of Inspector General. This case will be prosecuted by Assistant United States Attorney (AUSA) Al Balboni and Special AUSA Adrienne Frazior.
A defendant is presumed innocent unless and until convicted through due process of law.Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsChristopher S. Brown, 32, of Xenia, IL, was indicted on April 8, 2014, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from August 2012, until on or about November 20, 2013, in Clay County, Brown conspired and agreed with others to knowingly and intentionally manufacture methamphetamine. Count 2 charges that from August 5, 2012, to on or about November 5, 2013, Brown knowingly and intentionally possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
With respect to Count 1, Brown faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years. With respect to Count 2, Brown faces up to 20 years imprisonment, up to $250,000 fine, and supervised release of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Catholic Priest Sentenced to 3 Years in Prison for Possessing Pornographic Images of BoysRead the Press Release
PITTSBURGH - A Catholic priest has been sentenced in federal court to 36 months in prison, followed by 12 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on David Dzermejko, 65, of Braddock, Pa.
According to information presented to the court, Dzermejko, a Catholic priest, possessed on Jan. 11, 2013, in excess of 100 photographs in computer graphics files, depicting the sexual exploitation of pubescent and prepubescent boys. The child pornography was found on various computers and computer-related equipment taken from Dzermejko’s former residence in Pittsburgh, Pa., following the execution of a search warrant.
Dzermejko had been viewing child pornography for more than 10 years, had acquired the images on-line from various websites, and had traveled on numerous occasions to Thailand where he engaged in sexual encounters with teen boys, some of whom he thereafter maintained an on-line relationship.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Detectives of the Allegheny County District Attorney’s Office, and other officers of the Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Dzermejko.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cass County Resident Sentenced to 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 25, 2014, Franklin D. Schmidt, Jr, a 49 year-old resident of Atlantic, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to 120 months in prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, announced U.S. Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Schmidt to serve five years of supervised release following the period of imprisonment.
On April 26, 2013, Schmidt obtained methamphetamine from his South Omaha source and was stopped by law enforcement before he could distribute it in and around Cass County, Iowa. The investigation revealed that Schmidt was also responsible for distribution of marijuana along with methamphetamine.
On December 5, 2013, Schmidt pled guilty to the charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, which resulted from an investigation by law enforcement into the transportation and distribution of methamphetamine from South Omaha, Nebraska to Cass County, Iowa.
The investigation was conducted by the Cass County Sheriff’s Office, the Atlantic, Iowa, Police Department and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Cantwell Man Pleads Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Cantwell man entered pleas of guilty in federal court today in Anchorage, for two counts of trafficking in narcotics.
Randall Dion Frank, 52, of Cantwell, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that he conspired to violate federal drug trafficking laws, and attempted to possess methamphetamine with the intent to distribute it.
According to the facts presented in court by Assistant U. S. Attorney Stephen Cooper to support the guilty pleas, last September Frank and accomplice Russell Miller received a parcel containing about one pound of 99% pure methamphetamine for redistribution to others in Alaska. Drug Enforcement Administration agents had information that the parcel contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Frank and Miller at Miller’s residence in Cantwell as they were in the act of opening the parcel. Investigation revealed that the parcel was the latest in a series of shipments of methamphetamine that Miller received from sources in Arizona during several months before their arrest. Miller shared portions of these shipments with Frank. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $50,000, or $100,000 if the drugs were diluted before resale. The value of the additional drugs shipped into Alaska before the arrest would be several times this amount.
The judge set sentencing proceedings for July 23, 2014 at 9:00 a.m., in Anchorage. Frank and Miller have been ordered detained in custody pending the sentencing.
Ms. Loeffler commends the agents of the Drug Enforcement Administration the State of Alaska Drug Task Force officers cooperating with DEA, for the investigation of this case.
Cahokia Man Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsA Cahokia man was sentenced on April 24, 2014, on a three-count superseding indictment charging Production of Child Pornography (Count 1), Receipt of Child Pornography (Count 2), and Possession of Child Pornography (Count 3), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Charles E. Hicks, 24, was sentenced to a total term of 180 months in federal prison, to be followed by a 10 year term of supervised release. In addition, upon his release from prison, Hicks must register as a sex offender as a condition of his supervised release. Finally, Hicks agreed to pay $500 in restitution to each of the victims in the “Vicky” and “J_Blonde” child pornography series. Hicks has been detained (held without bond) since he was found guilty by a jury on March 14, 2013.
“Anyone who thinks these cases are merely about people looking at dirty pictures should read about how the child victims of this severe physical and psychological abuse suffer each and every day for the rest of their lives. My office will continue to seek appropriate prison sentences for those who would abuse children.” noted United States Attorney Wigginton.
The investigation that led to the offenses for which Hicks was ultimately sentenced began on January 14, 2011, when an undercover operation conducted by a member of the United States Secret Service=s Southern Illinois Cyber Crime Unit identified a computer that was offering to share images and videos of child pornography. The agent downloaded three images of child pornography from this computer, and later obtained a subpoena to identify the subscriber information related to this computer. The subscriber information identified Hicks’ residence as the location of the computer from which the images of child pornography were downloaded. Agents obtained a federal search warrant to search the residence. Hicks was not at home, but the agents were able to make contact with him at his mother’s house in Belleville, Illinois. While speaking with him, agents learned that Hicks had two computers stored at his mother’s residence, one of them a HP Pavilion desktop computer. Hicks gave written consent to search both computers. A forensic preview at the scene revealed images of child pornography on the HP computer.
Hicks eventually admitted that he had been downloading child pornography for about two to three years, but that he only did so in the hope that law enforcement officers would track him down so they could find the person making the images available.
A forensic examination performed on the HP Pavilion desktop computer revealed 159 images and 130 video files of child pornography were present on this computer, and that the forensic evidence was consistent with Hicks as the person who downloaded and possessed the images. It also revealed that on April 3, 2008, Hicks downloaded several image and video files from LimeWire that he knew contained child pornography.
The investigation also revealed that, on August 1, 2008, Hicks took two pornographic photographs of TH knowing that he/she was 16 years old at the time. One of the photographs depicted Hicks engaged in sexual intercourse with the minor. The other photograph was of the lascivious display of the minor=s genitals.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Illinois State Police and United States Secret Service=s Southern Illinois Cyber Crime Unit. The case was assigned to Assistant United States Attorney Angela Scott.
Brooklyn Man Charged with Passing Counterfeit BillsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a felony information has been filed against Ketsy Devis, age 24, of Brooklyn, New York. The information charges Devis with conspiracy to pass counterfeit federal reserve notes at various locations throughout the Middle District of Pennsylvania and elsewhere.
Devis could be imprisoned for a statutory maximum term of imprisonment of 5 years and fines in the amount of $250,000.
The case was jointly investigated by Special Agent Jason Wolfson of the United States Secret Service and the Dickson City Police Department.Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 5 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Brandon Glover Sentenced to over 6 Years in Prison for Distributing Methamphetamine in HavreRead the Press Release
The United States Attorney's Office announced that on April 24, 2014, in Great Falls, BRANDON WAYNE GLOVER, 31, of Havre, was sentenced to a term of 80 months' imprisonment to be followed by five years of supervised release by U.S. District Judge Brian M. Morris. Glover was sentenced following his January 9, 2014, guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Jessica Betley told the Court that Havre law enforcement began the investigation into Brandon Glover's suspected drug activities in early 2010, when a witness told the officers that she had purchased ten grams of methamphetamine directly from the defendant. In February 2011, agents made undercover drug purchases from Glover. The investigation established that Glover often traveled to Billings to pick up methamphetamine. On one occasion, an informant observed Glover with approximately 100 baggies, each of which contained one gram of methamphetamine, packaged for sale.
Numerous witnesses told law enforcement they regularly purchased a half gram to a gram of methamphetamine from Glover and other witnesses would have testified that Glover recruited them to sell methamphetamine for him. From the year 2010, until at least October 2011, Glover possessed with the intent to distribute, at a minimum, over 50 grams of a substance containing a detectable amount of methamphetamine.
This investigation was conducted by the Havre Police Department and the Tri-Agency Task Force.
Beckley Man Sentenced to Five Years in Federal Prison for ArsonRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Antonio LeJune Wade, 30, of Beckley, West Virginia, was sentenced to five years in federal prison for setting fire to the steps from his girlfriend’s apartment. Wade admitted that he intentionally set the fire following an argument with his girlfriend and knowing that the stairs were the only means of exit from the apartment. Wade’s girlfriend and her young son were in the apartment located on Sixth Avenue in Charleston, at the time the fire was set. Wade pleaded guilty in January of 2014 to the charge of malicious destruction by fire. United States District Court Judge John T. Copenhaver, Jr. imposed the sentence.
The Charleston Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Blaire L. Malkin handled the prosecution.
Arizona Systems Administrator Sentenced for Sabotaging Ex-Employer’s Cloud-Computing ServerRead the Press Release
ALEXANDRIA, Va. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., was sentenced today to 33 months in prison, followed by 3 years of supervised release, for intentionally causing damage to a protected computer.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Wolberg pleaded guilty on January 6, 2014. According to court documents, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia. After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business. From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server. As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours. Wolberg caused hundreds of thousands of dollars of damage as a result.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Alien Smuggler Gets More Than 16 Years for Deadly CrashRead the Press Release
CORPUS CHRISTI, Texas - Mexican National Manuel Rendon-Lucas, 19, has been ordered to federal prison and must pay nearly $3 million in restitution for his involvement in a deadly single vehicle accident that occurred in Brooks County in Novemeber 2013, announced United States Attorney Kenneth Magidson. Rendon-Lucas pleaded guilty March 21, 2014, to conspiracy to transport illegal aliens causing serious bodily injury.
Today, Senior U.S. District Judge Janis Graham Jack handed the teenager a sentence of 200 months of federal imprisonment to be followed by three years of supervised release. Rendon-Lucas was also ordered to pay more than $2.65 million in restitution. In handing down the sentence, the judge noted she had never seen such an egregious case.
The charges stem from a Nov. 23, 2013, single vehicle accident in Brooks County that killed five and injured 10, including Rendon-Lucas, who was driving. All of the vehicle’s occupants were determined to be undocumented aliens from Mexico, Honduras, El Salvador, Ecuador and Nicaragua.On that date, while attempting to flee from law enforcement officers at a high rate of speed, the vehicle hit a construction barrier and begin to swerve out of control. As the vehicle began to skid, it exited the roadway and struck a curb with its left front tire causing the vehicle to become airborne. The front left portion of the vehicle then struck a tree at a high rate of speed. Five occupants were pronounced dead on the scene, including a brush guide who had assisted in smuggling the undocumented aliens. Several of the survivors sustained spinal fractures during the accident and remain paralyzed.
In federal custody since his arrest, Rendon-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charge stems from an investigation by Homeland Security Investigations, Border Patrol, Falfurrias Police Department, Brooks County Sheriff’s Department and Texas Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Alabama Man Sentenced for Tax Fraud and Identity TheftRead the Press Release
Nakia Jackson, of Montgomery, Alabama, was sentenced to serve 87 months in prison today for conspiring to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).
According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns. Jackson recruited a bank employee, LaQuanta Clayton, to assist him in depositing the false income tax refunds into various bank accounts. He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him. In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.
In addition, Jackson was ordered to serve three years of supervised release and pay $212,856 in restitution.
IRS-Criminal Investigation agents investigated this case and Trial Attorneys Charles M. Edgar Jr. and Michael Boteler for the Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Thursday 24 April 2014
“Investment Advisory Firm” Owner Sentenced to Federal PrisonRead the Press Release
GALVESTON – Kimberly Fontenot, a Brazoria County resident, has been ordered to federal prison following her conviction of defrauding clients of her so-called investment advisory firm, Stellar Grants Inc., announced United States Attorney Kenneth Magidson. Fontenot, 53, entered a plea of guilty Thursday, Dec. 5, 2013.
Today, U.S. District Judge Gregg Costa cited the need for the sentence to reflect the seriousness of the offense and to deter criminal conduct and ultimately handed Fontenot a total sentence of 37 months to be immediately followed by three years of supervised release. She was further ordered to pay a $115,115 in restitution. In handing down the sentence, Judge Costa further noted there were more than 20 victims affected by the complex wire fraud and identity fraud scheme.
As outlined in documents filed with the court and admitted by Fontenot at the time of her plea, from at least January through December 2012, Fontenot lured potential clients by falsely claiming to know numerous wealthy investors located throughout the U.S. She offered access to these wealthy investors, whom she called her “angel investors,” to potential Stellar Grants clients in exchange for money. Specifically, Fontenot misrepresented that in exchange for money, she could put Stellar Grants clients in contact with the “angel investors” and would help them seek investments from the angel investors.
In addition to claiming personal and business relationships with them, Fontenot used the web-based email services Yahoo.com and Gmail.com to create fake email accounts in the names of the investors. She used these accounts to send emails to Stellar Grants clients, making it seem as if the emails were coming to and from the “angel investors” when, in reality, they were coming from Fontenot.Fontenot also hired a voice actor to impersonate the “angel investors” or their representatives during telephone calls with Stellar Grants clients. She also instructed the actor how to act and what to say during the calls. Fontenot then held fake conference calls in which she pretended to represent the Stellar Grants client and the voice actor pretended to be the angel investor or a representative of the angel investor, all in an attempt to justify the consulting fees paid by the Stellar Grants clients.
To avoid detection, Fontenot arranged for Stellar Grants clients or their representatives to sign “Master Consulting Agreements.” These agreements included a penalty clause which imposed heavy financial penalties if the clients contacted any of the angel investors.
Fontenotwas permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Waterford Man Sentenced to 17 Years in Prison for Possesing Firearms Stolen in Burglary SpreeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK MISSINO, also known as “Mark Houston” and “Mark Serano,” 46, formerly of Waterford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 204 months of imprisonment, followed by five years of supervised release, for stealing and possessing numerous firearms.
According to court documents and statements made in court, in November 2010, MISSINO and Bernard McAllister possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 2010, MISSINO had been convicted of multiple felony offenses in Connecticut and Florida, including convictions for larceny, burglary, robbery, grand theft and escape. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
MISSINO and McAllister have been detained since November 18, 2010, when they were arrested in Massachusetts. On January 30, 2014, MISSINO pleaded guilty to one count of possession of firearms by a previously convicted felon. McAllister pleaded guilty to the same charge on June 6, 2013.
MISSINO and McAllister also pleaded guilty in state court to several charges related to the series of residential burglaries.
Judge Underhill recommended that MISSINO’s 204-month federal sentence run concurrently with his state sentence. MISSINO is scheduled to be sentenced in state court on April 30, at which time he is expected to receive a sentence of 40 years, execution suspended after 25 years.
On March 21, 2014, McAllister was sentenced in federal court to 108 months of imprisonment, concurrently with a state sentence of 25 years, execution suspended after 16 years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]U.S. Seeks to Recover over $700,000 in Kleptocracy Proceeds of Former South Korean President Chun Doo-hwanRead the Press Release
The Department of Justice filed a civil forfeiture complaint in the U.S. District Court for the Central District of California seeking to recover more than $700,000 in alleged corruption proceeds of Chun Doo-hwan, the former president of the Republic of Korea.
These monies were seized in February 2014 from the sale of a house located in Newport Beach, Calif., which President Chun’s son, Chun Jae Yong, had purchased in 2005 with proceeds allegedly traceable to his father’s corruption. The United States is working with the Republic of Korea’s Supreme Prosecutor’s Office, the Ministry of Justice and the Seoul Central District Prosecutor’s Office to forfeit these corruption proceeds.
The announcement was made by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Division and Assistant Director John G. Connolly of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Office of International Affairs.
“While serving as Korea’s president, Chun Doo-hwan betrayed the Korean people by taking over $200 million in bribes, some of which his family members then illegally laundered into the United States,” said Acting Assistant Attorney General O’Neil. “Through the department’s Kleptocracy Initiative, we are making crystal clear that the United States will not tolerate the use of its financial system by corrupt foreign officials – or their relatives – to harbor their ill-gotten gains.”
“The U.S. will not be a safe repository for assets misappropriated by corrupt foreign leaders,” said FBI Assistant Director in Charge Lewis. “The FBI is committed to working with foreign and domestic partners to identify and return those assets to the legitimate owners, in this case the people of the Republic of Korea.”
“This most recent seizure is part of an ongoing effort by HSI to identify and seize illegal assets in the United States obtained by corrupt foreign leaders who use our country as a safe haven to conceal the illicit proceeds of their crimes,” said HSI Assistant Director Connolly. “HSI special agents in our 67 offices in 48 countries will continue to work with our domestic offices as well as international law enforcement partners to hold these individuals accountable by denying them the enjoyment of their ill-gotten gains.”
As alleged in the forfeiture complaint, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies. President Chun and his relatives laundered some of these corruption proceeds through a web of nominees and shell companies in both Korea and the United States.
Through close cooperation between U.S. and Korean law enforcement and prosecution authorities, the $721,951 sought for forfeiture was identified and seized when President Chun’s relatives sold a home in Newport Beach that previously had been purchased with the laundered proceeds of President Chun’s corruption.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] .
The investigation was conducted jointly by the FBI’s Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division and the West Covina Resident Agency of the Los Angeles Division and HSI Attaché Seoul, with assistance from HSI Miami. The case is being prosecuted by Trial Attorney Woo S. Lee of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs.U.S. Attorney Booth Goodwin, Greenbrier Sheriff Jan Cahill to Host Prescription Drug Take-back Kickoff FridayRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin and the Greenbrier County Sheriff’s Department will host a National Prescription Drug Take-Back kickoff event on Friday, April 25, 2014, at 11:00 a.m. at the Greenbrier County Courthouse located at 200 North Court Street in Lewisburg, West Virginia.
Friday’s kickoff event will promote awareness of the eighth National Prescription Drug Take-Back Day, which will be held Saturday, April 26, 2014. As part of West Virginia’s participation in the prescription drug collection effort, the U.S. Drug Enforcement Administration and other partners will collect expired, unused and unwanted prescription drugs at several designated drop-off sites throughout the state on April 26, 2014 from 10 a.m. until 2 p.m. Past take-back events have collected a total of more than 13 tons of unwanted prescription drugs in West Virginia and 1,733 tons nationwide. For a complete list of collection locations, please visit: www.dea.gov.
PRESCRIPTION DRUG TAKE-BACK KICKOFF EVENT – Greenbrier County Courthouse
WHO: United States Attorney Booth Goodwin
Sheriff Jan Cahill, Greenbrier County Sheriff’s Department
WHERE:
Greenbrier County Courthouse (Lobby)
200 North Court Street
Lewisburg, WV
WHEN: Friday, April 25, 2014 at 11:00 a.m.Two Savannah Men Charged with Conspiring to Deal in Counterfeit CurrencyRead the Press Release
Savannah, GA – Henry Grady Wall, 35, and James Wesley Kelly, 55, both from Savannah, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this month for allegedly conspiring to deal in counterfeit $50 bills. The indictment alleges that both Wall and Kelly knowingly used counterfeit notes to purchase money orders at a grocery store in Port Wentworth, Georgia.
Both Wall and Kelly were arraigned yesterday in before U. S. Magistrate Judge G.R. Smith on a charge of conspiracy. The conspiracy charge carries a maximum prison sentence of 5 years, and a maximum fine of $250,000. Wall was charged separately with dealing and passing counterfeit currency. Each of those charges carries a 20-year maximum prison sentence. United States Attorney Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The ongoing investigation of this case is being conducted by Special Agents with the United States Secret Service. Assistant United States Attorney T. Shane Mayes is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Two San Gabriel Valley Men Who Participated in ‘Black Market Peso Exchange’ That Moved Money Out of U.S. Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – Two men and the South El Monte import-export company they used to move millions of dollars linked to illegal activity from the United States to Mexico were sentenced today for operating an unlicensed money transmitting business. The three defendants received large sums of cash – often hidden in duffel bags – and they worked with “peso brokers” in Mexico to illegally convert the dollars to pesos.
The three defendants sentenced today by United States District Judge John A. Kronstadt are:Peace & Rich Import, Inc., a wholesale distributor of silk flowers and other goods, which was sentenced to pay a $75,000 fine and to be on probation for four years with stringent conditions;
Chaur Hwan “Kenny” Lin, 67, of Temple City, the president and co-owner of Peace & Rich, who was sentenced to one year in federal prison and ordered to pay a $6,000 fine; and
Antonio Pareja, 54, of San Gabriel, the manager of Peace & Rich, who was sentenced to one year and one day in prison.
Judge Kronstadt also ordered Peace & Rich and Lin to forfeit more than $2 million of funds related to the crime.
Lin and Pareja ran Peace & Rich as an informal money transfer system that was involved in the transfer of money outside of the conventional financial institutions system. An investigation by the Drug Enforcement Administration in Los Angeles determined that Lin and Pareja used Peace & Rich to receive large amounts of cash derived from illegal activity. The cash – as much as hundreds of thousands of dollars – was typically delivered by couriers working in conjunction with a peso broker in Mexico.
In a Black Market Peso Exchange scheme, a peso broker works with an individual engaged in illegal activity, such as a drug trafficker, who has United States currency in the United States that he needs to bring to Mexico and convert to pesos. The peso broker finds business owners in Mexico who buy goods from vendors in the United States, such as Peace & Rich, and need dollars to pay for those goods. The peso broker arranges for the illegally obtained dollars in the United States to be delivered to the United States-based vendors, such as Peace & Rich, where they are used to pay for the goods purchased by the Mexico based customers. Once the goods are shipped to Mexico and sold by the Mexico based business owner for pesos, the pesos are turned over to the peso broker, who then pays the drug trafficker in Mexico.
Peace & Rich took in large amounts of cash and conducted transactions without being registered as a money transmitting business and without filing Currency Transaction Reports (CTRs), which are required when a business accepts cash payments of more than $10,000. Lin and Pareja disbursed cash as directed by a peso broker in Mexico to couriers for delivery to other United States based businesses on behalf of their Mexico based customers. Additionally, Lin “structured” cash deposits – or, made a series of deposits that were less than $10,000 – to avoid the filing of CTRs by the financial institutions where the deposits were made.
Release No. 14-050
Two Arrested in Richford on Gun and Drug ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two men were arrested on Tuesday on gun and drug charges. Larry Garrow, 26, of Richford, Vermont, was arrested and charged with stealing firearms from a federally licensed firearms dealer in Hardwick, Vermont. Albert Torres-Morales, 29, of Richford, was arrested and charged with distribution of cocaine on January 2, 2014, and possessing with the intent to distribute heroin on April 22, 2014. Garrow and Morales appeared in federal court on April 23, 2014, for initial appearances. Both men were ordered temporarily detained pending detention hearings on April 25, 2014. If convicted, Garrow faces a maximum possible penalty of ten years in prison. Morales faces a possible penalty of 20 years in prison.
According to court documents, on or about April 19, 2014, the Rite Way Sports Shop in Hardwick, Vermont was burglarized and 32 firearms were stolen. Larry Garrow, assisted by a female, broke into the Rite Way and stole the firearms. Information later revealed that Garrow kept some of those guns and gave the remaining guns to a person known as "Junior" in exchange for money and drugs. Junior has been identified as Albert Torres-Morales. Law enforcement arrested Garrow on April 22, 2014 based on a tip and other information provided to the police. Morales was arrested on that same date for drug charges stemming from an ongoing drug investigation.
On April 23, 2014, one of Garrow's family members turned in eleven of the stolen guns to the police. The remaining guns have not been located and law enforcement is seeking any information relating to the location of these stolen firearms. If you have any information about these crimes, please call your local police department or the Crimestoppers Tip Line at 864-6666 or Toll Free at 1-800-427-8477.
The U.S. Attorney emphasized that the charges against Garrow and Morales are only accusations and that the defendants are presumed innocent until and unless proven guilty.This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Hardwick Police Department, the FBI, and the U.S. Border Patrol.
Assistant U.S. Attorneys Kevin Doyle and Wendy L. Fuller are handling the prosecution of these cases. Garrow is represented by Jordana M. Levine, Esq. Morales is represented by Federal Public Defender Michael Desautels, Esq.Tucson Man Sentenced to 297 Months in Prison for Producing Child PornographyRead the Press Release
TUCSON, Ariz. – On April 23, 2014, Lance Robert Fries, 43, of Tucson, was sentenced by U.S. District Judge Jennifer G. Zipps to 297 months imprisonment as a result of his guilty plea on Oct. 2, 2013, to two counts of production of child pornographyFries’ term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
Fries was indicted on Jan. 30, 2013, by a federal Grand Jury after an investigation revealed that Fries sexually abused a toddler multiple times, and allowed the abuse to be watched by others via webcam over the internet. Videos memorializing the abuse were discovered in two separate child exploitation investigations involving other defendants in Oregon and Florida.
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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by U.S. Immigration Enforcement (ICE), Homeland Security Investigations, Tucson. The prosecution was handled by Carmen F. Corbin and Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-13-0146-TUC-JGZ
RELEASE NUMBER: 2014-024_Fries
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Tiffany G. Bremner Sentenced for Theft of Government FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on April 24, 2014, before U.S. District Judge Brian M. Morris, TIFFANY G. BREMNER was sentenced to a term of:
Prison: 15 months
Supervised Release: 3 years
Bremner, of Browning, Montana, was sentenced in connection with her guilty plea to Theft of Government Funds. The Court also ordered that she pay restitution in the amount of $58,702.00.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Bremner, age 31, applied for United States Department of Agriculture and Department of Health and Human Services benefits from approximately February 2002 through June 2009.
During that period, Bremner was required to represent the accurate composition of her
Despite not maintaining custody of her son during the majority of this period, Bremner misrepresented that she had physical custody of them. The appropriate agencies relied on these misrepresentations in determining the eligibility and amounts of her benefits. As a result of her misrepresentations, Bremner obtained approximately $58,700.00 in benefits.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Bremner will likely serve all of the time imposed by the court. In the federal system, Bremner does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the Office of Inspector General for the United States Department of Agriculture.