Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 24 April 2014
Three St. Clair County Women Indicted for Theft of Government Social Security BenefitsRead the Press Release
Follow @SDILNewsStephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced the return of indictments by a Federal Grand Jury sitting in East St. Louis, Illinois, against three St. Clair County women alleging that they defrauded the Social Security Administration.
Lashonda Russell, 38, of Cahokia, Amber Dawn Adams, 33, of Fayetteville, and Tara Star Johndrow, 28, of Belleville, were indicted separately on April 23, 2014, on charges of Theft of Government Funds, which carry potential penalties of up to 10 years of imprisonment, fines of up to $250,000, and up to 3 years of supervised release to follow any period of incarceration.
The indictment against Russell alleged that between September of 2006 and March of 2013, she received more than $50,134 by falsely claiming and receiving Supplemental Social Security Income payments for a child that did not live with her and she did not support during the time frame alleged in the indictment.
The indictment against Adams alleges that between March of 2008 and August of 2012, she falsely claimed and received more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when the child did not live her and she did not support the child during the time frame alleged in the indictment.
The indictment against Johndrow, alleges that between August of 2010 and August of 2012, she received $14,500 in Supplemental Social Security Payments from the Social Security Administration, when she falsely claimed to the government agency that she did not work during the time frame alleged.
Note: Any person charged is presumed innocent until proven guilty beyond a reasonable doubt. No person is required to prove their innocence.
Note that there may not always be supplemental materials like the Adobe Acrobat .pdf file below.
The investigation was conducted by the Social Security Administration, Office of the Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Three Police Officers Plead Guilty to Accepting Bribes to Protect Drug DealsRead the Press Release
ATLANTA - Six defendants, including three former police officers, pleaded guilty this week in federal court to accepting thousands of dollars in cash payments to provide protection during staged drug deals which were part of a federal undercover operation.
“The audacity of police officers protecting drug deals is shocking,” said United States Attorney Sally Quillian Yates. “For these police officers, protecting and serving our citizens was little more than a slogan, and their brazen actions are unacceptable. Brave and honest law enforcement officers go to work every day to keep us safe, expecting their colleagues to serve the community unselfishly. Instead, these officers put greed before all else.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption investigations, particularly those involving law enforcement officers, remain one of the FBI’s top criminal investigative priorities. The FBI extends its gratitude to its ATF partners for highlighting the corruption aspect of its case early on which allowed the FBI to dedicate its investigative resources accordingly.”
“These defendants took an oath to uphold the law and protect the citizens,” said ATF Acting Special Agent in Charge Ray Brown. “Instead they betrayed the community they swore to protect. Officers like these unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement. The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”
According to United States Attorney Yates, the charges and other information presented in court: The undercover operation arose out of an ATF investigation of an Atlanta, Ga., area street and drug gang in August 2011. During the investigation, ATF agents learned from an individual associated with the gang that police officers were involved in protecting the gang’s criminal operations, including drug trafficking crimes. That individual could not specifically identify the officers but provided investigators with the officers’ nicknames. Shortly after the investigation began, three individuals who have pleaded guilty, Shannon Bass, Jerry Mannery, and Elizabeth Coss, none of whom were police officers, provided officers’ names to a police informant and told the informant that the officers would provide security for drug deals in exchange for cash.
The public corruption investigation, conducted by FBI and ATF agents, lead to the indictment of ten law enforcement officers. Three of the indicted officers have pleaded guilty. They are: former Stone Mountain Police Officer Denoris Carter, 43, of Lithonia, Ga., former DeKalb County Police Officers Dennis Duren, 33, of Atlanta, Ga., and Dorian Williams, 25, of Stone Mountain., Ga. All three officers were fired after their arrests in February 2013 and are no longer police officers.
In addition to the officers, three others pleaded guilty to their roles in the scheme: Shannon Bass, 39, of Atlanta, Ga., Elizabeth Coss, 36, also of Atlanta; and Jerry B. Mannery, 39, of Tucker, Ga.
Between April and September 2012, former Stone Mountain Police Department Officer Denoris Carter, working together with Jerry Mannery, provided protection for what he and Mannery believed were five separate transactions in the metro Atlanta, area which involved multiple kilograms of cocaine. For all five transactions, Carter was on duty and dressed in his police uniform. During one transaction, he drove up in his marked patrol vehicle, got out and walked through the parking lot to keep watch over the purported drug deal. During the final transaction, Carter was on foot and wore a gun on his belt. Denoris Carter pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal.
Between October 2011 and November 2011, former DeKalb County Police Officer Dennis Duren, working together with Shannon Bass, provided protection for what he and Bass believed were four separate drug deals in the Atlanta area. During the transactions, Duren who was on duty, armed and in uniform, stood watch over the immediate area surrounding the undercover transaction. Dennis Duren pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal. Bass pleaded guilty to attempted distribution of cocaine.
Between January and February 2013, former DeKalb County Police Officer Dorian Williams, working together with Mannery and Bass, provided protection for what he believed to be three drug deals involving multiple kilograms of cocaine. On each occasion, Williams was in uniform and carrying a gun. He used his marked police vehicle to patrol the parking lots where the deals took place. Williams admitted that he specifically protected the drug deals from interference from legitimate police officers. Dorian Williams pleaded guilty to one count of attempted distribution and one count of extortion by accepting a bribe to use his position as a police officer to facilitate a deal. Mannery pleaded guilty to conspiring with the police officers to distribute cocaine.
Elizabeth Coss pleaded guilty to attempted distribution of cocaine for her role in working with former MARTA police officer Marquez Holmes, to provide security for a drug deal in August 2012.
The Court will likely sentence the defendants this summer.
This case is being investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim S. Dammers and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Three Chicago Men Indicted for Their Alleged Roles in A Series of Armed Robberies of 10 Retail Businesses in Chicago and SuburbsRead the Press Release
CHICAGO — Three Chicago men are facing federal charges for their alleged roles in a series of armed robberies of various retail businesses in Chicago and several suburbs late last year and early this year, federal law enforcement officials announced today. The indictments charge nine armed robberies and an attempted armed robbery of gas stations, convenience stores, jewelry stores, and others businesses in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette between October 2013 and February this year.
Two defendants, TYREE CRAIG, 29, and JACOBI PICKETT, 21, were charged together in a 13-count indictment returned by a federal grand jury yesterday. They were each charged with one count of robbery conspiracy, eight counts of robbery, two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon-in-possession of a firearm.
Craig was also charged with JARRYL WILLIAMS, 42, in a separate four-count federal indictment involving the Jan. 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Rd., in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon-in-possession of a firearm with a partially obliterated serial number.
Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.
According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:
Dunkin Donuts, 3910 West Touhy Ave., Lincolnwood, on Oct. 20, 2013;
Phillips 66 gas station, 1234 Sheridan Rd., North Chicago, on Oct. 21, 2013;
Shell gas station, 9600 Crawford Ave., Skokie, on Oct. 21, 2013;
Shell gas station, 3 East Algonquin Rd., Arlington Heights, on Oct. 31, 2013;
Marathon gas station, 242 Waukegan Rd., Glenview, on Oct. 31, 2013;
Shell gas station, 5055 Touhy Ave., Skokie, on Nov. 30, 2013; and
Seven-Eleven, 500 Skokie Blvd., Wilmette, on Nov. 30, 2013.
Craig alone was also charged with the Dec. 13, 2013, robbery of Ted’s Jewelers, 5334 South Archer Ave., Chicago, while Pickett alone was charged with the Feb. 19, 2014, robbery of EZ Pawn store, 4080 Southwest Hwy., Hometown, in which jewelry valued at approximately $73,000 was stolen.
According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry, and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.
The investigation is continuing.
Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon-in-possession charges. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictments were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The case was investigated by the FBI’s Safe Streets Task Force, which is comprised of the FBI and the Chicago Police Department. The police departments in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette also assisted in the investigation, as well as the Illinois State Police.
The government is being represented by Assistant U.S. Attorneys Lindsay Jenkins and Angel Krull.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Craig/Pickett Indict.
Craig/Williams Indict.Tax Preparer Sentenced in Manhattan Federal Court to 102 Months in Prison for Filing False Tax Returns and Aggravated Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAHAMADOU DAFFE, a tax preparer in Queens, New York, was sentenced today in Manhattan federal court to 102 months in prison for his participation in a conspiracy to steal government funds, theft of government funds, conspiracy to file false claims, wire fraud, and aggravated identity theft in connection with the preparation and filing of nearly 1,000 false income tax returns submitted online using stolen identities. DAFFE was also sentenced today in connection with his participation in a conspiracy to steal government funds, theft of government funds, and conspiracy to file false claims in connection with his use of stolen children’s identities to claim false dependents on his clients’ income tax returns. DAFFE was found guilty in January 2014 after a one-week trial before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “Tax preparer Mahamadou Daffe orchestrated schemes to file false returns on behalf of his clients and used stolen identities to deceive the IRS, all for his own unjust enrichment. His unscrupulous practices and flagrant violation of the law have now been justly punished.”
According to the Indictment, as well as evidence presented at DAFFE’s trial:
From 2008 through January 2013, DAFFE engaged in two separate schemes to defraud the Internal Revenue Service (“IRS”). DAFFE filed false tax returns for his tax preparation clients, in which he caused those clients to claim as dependents children who were in fact total strangers to them, and whose identities DAFFE stole. In exchange, DAFFE collected $1,000 per return.
In another scheme, during the same time frame, DAFFE used stolen identities to file hundreds of false tax returns, supported by bogus Forms W-2, through an online tax preparation service intended for use by individual taxpayers. He then funneled the resulting refunds into numerous bank accounts he controlled—accounts in his own name, the names of co-conspirators, and the names of aliases DAFFE and his co-conspirators used. DAFFE’s crimes resulted in a loss to the IRS of more than $1.5 million, during which he attempted to steal more than $4.5 million from the Government.
In addition to the prison term DAFFE, 31, of Queens, New York, was also sentenced to three years of supervised release.
Mr. Bharara praised the investigative work of the Internal Revenue Service, Criminal Investigation, and thanked the IRS for its assistance.
This case is being handled by the Office’s General Crimes Section. Assistant U.S. Attorneys Carolina A. Fornos and Sarah E. McCallum are in charge of the prosecution.
Tampa Woman Sentenced to More Than 6 Years in Prison for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Tiki Simone Dennis to six years and two months in federal prison for tax fraud and aggravated identity theft. The court also ordered Dennis to pay $222,767.00 in restitution to the Internal Revenue Service. As part of her sentence, the court also entered a money judgment in the amount of $222,767.00, which constitutes the proceeds from the tax fraud. Dennis pleaded guilty on January13, 2014.
According to court documents, from an unknown date prior to January 6, 2011, through and including May 18, 2011, Dennis used stolen identities to electronically file more than 116 fraudulent federal income tax returns in order to obtain refunds to which she was not entitled. The value of the refunds that would have resulted from 116 of the returns fraudulently filed by Dennis totaled approximately $364,113. Although some of these returns were rejected by the IRS, 67 of them were accepted. The IRS paid out approximately $176,984 in tax refunds to debit cards under Dennis’s control. In addition, Dennis provided information to a co-conspirator who filed an additional 36 2010 tax returns requesting approximately $65,659. IRS accepted 25 of these returns and paid out $45,783 in tax refunds to debit cards under the control of Dennis. Altogether, the total number of fraudulent 2010 federal income tax returns that Dennis is responsible for filing or having filed is more than 152, requesting at least $429,772 in refunds. The total amount paid out on those requests to debit cards controlled by Dennis was at least $222,767.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney and Senior Litigation Counsel, Donald L. Hansen.
St. Petersburg Armed Career Criminal Sentenced to 15 YearsRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Martin E. Lyons (46, St. Petersburg) to 15 years in federal prison for being a convicted felon in possession of ammunition. Lyons pleaded guilty on December 12, 2013.
According to court documents, Lyons has multiple prior felony convictions for armed robbery and burglary. In July 2013, he sold Hydrocodone and crack cocaine to an undercover St. Petersburg Police Department detective, on multiple occasions. After advising the undercover detective that he could procure additional narcotics and firearms, Lyons sold him a loaded handgun and prescription pills. As a previously convicted felon, Lyons was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
St. Louis Man Sentenced for Robbery of Cahokia Gas StationRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsA St. Louis man, Carvin G. Brooks, 33, was sentenced on April 24, 2014, for Interference of Commerce by Robbery (Hobbs Act Robbery), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois. Brooks, was sentenced to a term of 120 months in federal prison, to be followed by a three (3) year term of supervised release, fined $300, and ordered to pay a $100 special assessment.
The Honorable Judge Michael J. Reagan sentenced Brooks to over twice the prison term recommended by the United States Sentencing Commission Guidelines Manual. This manual provides a guideline to the parties in a federal case as to what an appropriate sentence should be in a particular type of case. It does not, however, account for all of the factors relevant to a particular defendant or to a particular case. In this case, the United States successfully presented argument, as well as evidence, to show that a sentence within the advisory guideline range was not appropriate because, among other things, Brooks had extensive prior criminal conduct, the brutality of the robbery, and the likelihood that Brooks would continue to commit crimes when released from prison.
“This sentence was well deserved by a violent person who preyed upon the public. Although he was not armed, Brooks struck terror into this innocent victim. I will always fight for maximum sentences on behalf of the victims of violent crime.” said United States Attorney Wigginton.
Specifically, evidence showed that, prior to this robbery in Illinois, Brooks committed five prior violent crimes in Missouri. Evidence was introduced that Brooks stole a purse from an individual, striking her in the chest and knocking her down on April 1, 2003. The very next day, he broke into the home of another individual and threatened that individual with a knife during the course of the residential burglary. On April 12, 2003, Brooks’ crime spree continued when he committed two additional residential burglaries, threatening the individual in each with a knife. That same day, he followed another individual up to her front porch and robbed her. Brooks’ crime spree ended that day. On April 29, 2004, all of the cases were consolidated, and Brooks was sentenced to 15 years’ imprisonment in the Missouri Department of Corrections. Brooks was released on parole on November 1, 2011, but had his parole revoked on October 24, 2013, because of the commission of this offense.
On October 9, 2013, Brooks came to Cahokia, Illinois, and robbed the BP Station of $300. During the robbery, Brooks punched the female clerk several times in the head with a closed fist. She had to receive medical treatment for the injuries she sustained. The victim, who was approximately one foot shorter and approximately 75 pounds lighter than Brooks, testified at sentencing. She cried on the stand while recounting the brutal beating she withstood. Finally, among other factors, Judge Reagan noted that, because Brooks committed this robbery while on parole for the Missouri offenses, he showed a lack of respect for the law, and was likely to commit crimes in the future.
A tip from Crimestoppers led to Brooks’ arrest. This case was investigated by the Cahokia Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
St. Ignatius Rancher Pleads Guilty to Damaging Wetland on Flathead Reservation Brent PowellRead the Press Release
The United States Attorney's Office announced that St. Ignatius area rancher, Brent Powell, 54, pled guilty today in federal court in Missoula to violating the federal Clean Water Act by damaging a wetland on the Flathead Indian Reservation. Powell faces a possible 1 year in prison and a $25,000 per day fine.
In an Offer of Proof, the prosecutor told the Court that Powell operates B.P. Cattle Company on property that includes a wetland complex bordering Sabine Creek and Mission Creek in Lake County, Montana, which are waters of the United States. These wetlands also lie within the Flathead Indian Reservation.
Through investigative interviews and a check of tribal records, the Environmental Protection Agency Criminal Investigation Division (EPA-CID) established that in 2004, Powell failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, known as an 87A (ALCO), before he performed work in wetlands along Pistol Creek. As a result of the 2004 Clean Water Act 404 violations, the United States Army Corps of Engineers issued Powell a cease and desist order for the activities on Pistol Creek and Powell was required to remediate the area.
Undeterred, in 2010, Powell again dredged several channels on his property in an effort to drain the wetlands and extend his agricultural land along the Sabine and Mission Creeks. The dredged material was cast off beside the channels and remained within the wetland area. As a result of the work, heavy sediment was observed in the manmade channels, and cloudy water was observed flowing into Sabine Creek from manmade channels.
EPA-CID conducted interviews and reviewed documents that show Powell again failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, before he performed work along Sabine Creek.
In March 2010, the United States Army Corp of Engineers, EPA-CID, and Flathead tribal environmental specialists participated in an on-site inspection of the disturbed wetland area; they described the disturbance of wetland and riparian vegetation as very extensive. The disturbance of the wetland area includes approximately seven different areas in which soil was dredged from the wetland area and side-casted along the trenches into waters of the United States.
U.S. Attorney Mike Cotter lauded the work of EPA-CID, the Army Corps of Engineers and the environmental specialists of the Flathead Tribe, "The cooperative effort by federal and Tribal environmental enforcement agencies in this case resulted in a criminal violation of environmental laws being successfully prosecuted. This kind of prosecution sends the strong message that we will aggressively protect the waters and wetlands of Montana that all of us enjoy and upon which a healthy environment depends."
Shady Spring Woman Sentenced for Selling OxycodoneRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that Phyllis Morris, age 38, was sentenced today in Beckley, West Virginia, by United States District Court Judge Irene C. Berger to one year in federal prison. Morris previously plead guilty in January of 2014, to distributing oxycodone, a powerful and addictive prescription pain killer. Morris admitted that in March of 2013, she sold oxycodone pills to a confidential informant who was working with the Beckley Police Department Drug Unit. The drug deal took place at a restaurant/bar in Shady Spring, West Virginia.
The case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Sentencing for April 17 - 23, 2014Read the Press Release
Eugene Velarde, 48, of Denver, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 23, 2014, for conspiracy to possess with intent to distribute, and to distribute, 687 grams of methamphetamine. Velarde was arrested in Denver, Colorado. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,900.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Joshua Guidry, 35, of Denver, Colorado was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 22, 2014, for conspiracy to possess with intent to distribute, and to distribute, 134 grams of methamphetamine. Guidry was arrested in Denver, Colorado. He received 57 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Pablo Vargas-Adame, 33, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 21, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, between 1.5 and 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and on two counts of distribution of methamphetamine and aiding and abetting. Vargas-Adame was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, was ordered to pay a $300.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Tabitha Overgard, 37, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 21, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Overgard was arrested in Cheyenne, Wyoming. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay
a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.Austin D. Anderson, 19, of Wheatland, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 21, 2014, for possession of stolen firearms. Anderson was arrested in Rawlins, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Austin Tuft, 34, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 18, 2014, for production of child pornography. Tuft was arrested in Rock Springs, Wyoming. He received 264 months imprisonment, to be followed by a life-time term of supervised release, and was ordered to pay a $2,900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Donald Shaw, Sr., 57, of Apple Valley, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Shaw was arrested in Rock Springs, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Sentences Imposed for Charleston West Side Heroin and Crack DealersRead the Press Release
Charleston, W.Va. – Defendants Deandre Coleman, 22, and Jamaal Davis, 23, were sentenced today by U.S. District Judge John T. Copenhaver, Jr., to five years of probation. Coleman previously pled guilty on January 21, 2014, admitting that on July 9, 2013, he sold a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”), cocaine base, also known as “crack”, for $100.00 at his Roane Street residence. Davis, who also pled guilty on January 2, 2104, admitted that he sold heroin for $180.00 to the same informant at Coleman’s Roane Street residence on June 13, 2013.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Seminole Man Sentenced to More Than 20 Years in Federal Prison for Child Pornography OffensesRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Michael J. Charniak (50, Seminole) to 21 years and 10 months in federal prison for transporting and receiving child pornography over the Internet. Charniak was also ordered to serve a lifetime term of supervised release, following his incarceration, and to register as a sex offender. The sentence was imposed consecutive to the 15-year sentence Charniak is currently serving in the Florida Department of Corrections for a 2009 sexual battery conviction. Charniak pleaded guilty to the federal offense on January 23, 2014.
According to court documents, Charniak traded numerous videos and images of child pornography from multiple email addresses between 2002 and 2009. In October 2009, law enforcement executed a federal search warrant at Charniak’s residence. During an interview, he confessed to downloading and transporting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pinellas County Sheriff’s Office (PCSO). It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another 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.usdoj.gov/psc.
Radford Man Sentenced for Operating Ponzi SchemeRead the Press Release
ROANOKE, VIRGINIA – A Radford, Va., man who bilked investors out of more than $620,000 with promises of high interest returns on investments in his company, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke to federal fraud charges.
Charles G. Shomo, 63, of Radford, Va., previously pled guilty to three counts of mail fraud, two counts of securities fraud and one count of money laundering. The defendant entered his guilty pleas today without the benefit of a plea agreement. Today in District Court, Shomo was sentenced to 42 months in federal prison.
“Mr. Shomo stole the life savings of dozens of his customers, many of them elderly,” United States Attorney Timothy J. Heaphy said today. “While he is required to provide restitution, Mr. Shomo cannot restore the lost sense of trust that he stole from his victims.”
This case is the result of a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, and the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe, Rockbridge counties, the City of Pulaski and the Pearisburg Police Department.
All total, Shomo obtained approximately $620,000 from over thirty victims, most of who were over the age of 65 and residing in the Western district of Virginia.
According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.
It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.
Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $620,000 in proceeds from the sale of P&G promissory notes to investors.
Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States.
Previously Deported Mexican National Charged with Passport Fraud, Aggravated ID Theft, Drug and Firearm OffenseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count superseding indictment today against Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, adding charges of possessing methamphetamine and cocaine with intent to distribute, and unlawfully possessing a firearm, United States Attorney Benjamin B. Wagner announced. On December 19, 2013, Huerta was indicted for making false statements in connection with applications for United States passports and aggravated identity theft.
According to court documents, on July 30, 2012, Huerta filed an application for a U.S. passport, falsely stating that his name was Jose Manuel Ventura Ruiz and that he was born in Puerto Rico. In fact, Huerta is an alien who was previously deported to Mexico. In October 2012, Huerta again falsely stated that his name was Jose Manuel Ventura Ruiz, this time in connection with an application for a U.S. passport for a minor.
According to court documents, in January 2014, when law enforcement agents executed search warrants at Huerta’s home, they discovered methamphetamine and cocaine packaged in plastic bags, scales, and a handgun.
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Nirav Desai is prosecuting the case.
Huerta is in custody on the pending charges and will be arraigned on the superseding indictment on May 30, 2014.
If convicted, Huerta faces the following maximum sentences: for either passport fraud offense — 10 years in prison and a $250,000 fine; for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the cocaine-related offense — 20 years in prison and a $1 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pinedale, N.M., Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Ramsey Litzin, 20, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., pleaded guilty this morning to a felony information charging him with involuntary manslaughter.
Litzin was arrested on Nov. 15, 2013, on a criminal complaint alleging that he killed a 27-year-old Navajo man by stabbing him to death in the early hours of Nov. 12, 2013, in Pine Dale, N.M., which is located within the Navajo Indian Reservation. Court filings reflect that Litzin was intoxicated when he killed the victim during a physical altercation between the two men.
During today’s plea hearing, Litzin pleaded guilty to an involuntary manslaughter charge and admitted killing the victim by stabbing him with a knife. In his plea agreement, Litzin admitted that he armed himself with a knife prior to a physical fight with the victim and stabbed the victim approximately 23 times with the intention of causing the victim to sustain serious bodily injury and knowing his actions could result in the victim’s death. Although most of the stab wounds were superficial, at least three stab wounds contributed to the victim’s death. Litzin stated that he was angry, intoxicated and had been struck by the victim when he stabbed the victim to death.
Litzin has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Litzin faces a statutory maximum penalty of eight years in federal prison.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Pine Bluff Couple Sentenced for Theft of Government Property from the NCTRRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lee Anne Branch and Kyle Branch, both 41 of White Hall, Arkansas appeared before United States District Judge D. P. Marshall, Jr. to be sentenced for theft of government property. Judge Marshall sentenced Lee Anne Branch to 30 months’ imprisonment to be followed by 3 years’ supervised release. Kyle Branch was sentenced to 20 months in prison followed by 3 years’ supervised release. Judge Marshall also ordered the Branches to pay $248,535 to the NCTR.
On November 21, 2013, the Branches waived indictment and pled to an Information charging them with one count of theft of government property. When entering their pleas, the Branches admitted that they voluntarily, intentionally and knowingly stole items of value that belonged to the United States with the intent to deprive the owner of the use or benefit of the items taken. At the time of their plea, they also agreed to forfeit all interests in all property that was used to commit their theft and any proceeds of their sale of government property including a 1998 Baja Outlaw Boat with a Mercruiser motor and SPRS Trailer. When pronouncing the sentence for the Branches, the Judge stated that he took into consideration Kyle’s medical condition, namely cancer. Judge Marshall recommended that Kyle be placed in a medical facility close to Central Arkansas. Lee Anne was ordered to report to the Bureau of Prisons June 9, 2014, and Kyle was given until September 30, 2014 to report.
The charge was the result of a scheme to steal property that was being transferred from the Pine Bluff Arsenal (PBA) as they were breaking down buildings and equipment associated with the chemical weapons destruction. Lee Anne Branch was employed at the National Center for Toxicological Research (NCTR). She was in charge of property and the process of obtaining property from other federal agencies. Lee Ann stole the transferred property, by personally picking up pallets of items from the PBA in a box truck. The truck would be driven to a private storage unit she rented in White Hall instead of taking them to the NCTR and entering them into the NCTR inventory. Kyle Branch then sold the stolen items from the storage unit through multiple means including sales on eBay and Craig’s List.
A third defendant, Travis Love Donald, age 38, of Sherwood, also pled guilty on November 21, 2013, to the theft of government property charged in the Information. He is scheduled to be sentenced by United States District Judge D.P. Marshall, Jr. on May 22, 2014.
The United States Attorney acknowledges the valuable assistance of the Little Rock Field Office of the Federal Bureau of Investigation, U.S. Army CID, NCTR, and the Jefferson County Sheriff’s Office for their dedication to this investigation. Assistant United States Attorney Edward Walker prosecuted this case for the United States.
Philadelphia Business Owner and Associate Charged in Murder-For-Hire Plot That Involved Atlantic City ShootingRead the Press Release
CAMDEN, N.J. – Two Philadelphia men are scheduled to appear in court today on charges of conspiracy, murder for hire and aiding and abetting the use of a firearm related to a shooting in Atlantic City, N.J., last year, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 63, and Jerome Johnson, 45, will have their initial court appearances before U.S. District Judge Joseph H. Rodriguez in Camden federal court. They were each charged in an indictment – returned by a federal grand jury on April 2, 2014, and unsealed today – with conspiring with Ronald Walker, 48, of Philadelphia, and Alvin Matthews, 46, of Brookhaven, Pa., to shoot and kill an individual in Atlantic City, N.J., on Nov. 30, 2013. Johnson was also charged with transporting a firearm for use during the commission of a felony, transferring a firearm for use in a crime of violence and being a previously convicted felon in possession of a firearm.
According to documents filed in this case and statements made in court:
Galati owned and operated American Collision & Automotive Center (American Collision) in Philadelphia. At various times, Johnson has worked there for Galati. Prior to June 2013, Galati allegedly began saying he was going to kill a person identified as “Victim One.” In June 2013, Galati, members of Galati’s family and associates of Galati had dinner with Victim One at a restaurant in Northfield, N.J. During dinner, Galati took Victim One into the kitchen and threatened to kill him.Galati and Johnson allegedly approached Walker and Matthews and asked them to kill Victim One in a way that would not implicate Galati. Galati promised to pay Walker and Matthews to shoot and kill Victim One.
Galati provided Walker and Matthews with several addresses associated with Victim One, including an address in the vicinity of Broad and Snyder streets in Philadelphia. In November 2013, in an attempt to find and kill Victim One, Johnson took Walker and another individual to Victim One’s home in Philadelphia. Finding the home empty, the other individual broke into Victim One’s home and vandalized it while Walker waited outside.
On Nov. 29, 2013, Johnson gave Matthews a Colt .25 caliber semi-automatic handgun. The next day, Johnson telephoned Walker and Matthews and arranged to meet them. At some point Galati called Johnson and told him that Victim One was in New Jersey. Johnson drove Walker and Matthews to Atlantic City and told them if there was a woman with Victim One, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the handgun he received from Johnson the day before. Johnson then dropped Walker and Matthews off around the corner from Victim One’s home.
When Victim One and a woman came out of a house, Walker and Matthews approached them and Walker shot Victim One with the Colt .25 caliber semi-automatic handgun, striking Victim One multiple times. The victim survived the shooting.
The count of conspiracy to commit murder for hire (Count 1) and the murder-for-hire count (Count 3) each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to possess and use a firearm during a crime of violence (Count 2) carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of aiding and abetting the possession and use of firearm during a crime of violence (Count 4) carries a mandatory minimum consecutive prison sentence of 10 years and maximum of life and a $250,000 fine.
The additional counts with which Johnson is charged, knowingly transporting a firearm for use during the commission of a felony (Count 5), knowingly transferring a firearm for use in a crime of violence (Count 6) and being a previously convicted felon in possession of a firearm (Count 7), each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
On March 17, 2014, Matthews and Walker pleaded guilty before U.S. District Judge Joseph H. Rodriguez to a three-count information charging them with conspiracy to use interstate commerce facilities in the commission of a murder for hire; use of a firearm, and aiding and abetting the use of a firearm, in furtherance of a crime of violence, and with being a previously convicted felon in possession of a firearm. Matthews’ and Walker’s sentencings are schedule for June 30, 2014.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the ATF, under the direction of Special Agent in Charge Robin Shoemaker; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation the case. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.
14-143
Defense counsel:
Galati: Anthony Voci Esq. Philadelphia
Johnson: TBDGalati, Ronald, and Johnson, Jerome Indictment
Parkville Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland pleaded guilty today to sex trafficking of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in January 2013, Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution. He offered a finder’s fee to young prostitutes if they found additional girls to prostitute for them.
Hubert took explicit photos of girls which he posted on internet websites that hosted ads for prostitution. He provided a residence in Parkville to host “in-call” local prostitution. He also instructed the girls on how to use a phone application to communicate with prospective customers and avoid detection by law enforcement.
Hubert sought a 19-year-old associate to work for him as a prostitute beginning in December 2012. Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution for him. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in the Parkville house, and on at least seven occasions at other locations, as directed by Hubert.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos taken by Hubert, although Hubert never paid her the promised fee. He did, however, use these photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.As part of his plea agreement, Hubert must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for August 1, 2014 at 2:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Officefor their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.
Pair Sentenced for Their Roles in $4.4 Million False Income Tax Refund Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service announced the sentence that was handed down by U.S. District Judge Gregory L. Frost.
On April 4, 2014 Jose Luis Martinez, 47, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
According to court documents, during 2010 and 2011 Martinez and Silie jointly owned and operated San Isidro Cargo in Columbus. San Isidro Cargo was registered with the U.S. Treasury Department as a Money Service Business to provide services such as check-cashing, wire transfers, tax-preparation, notary services, and title services among others.
Martinez operated San Isidro Cargo without a check-casher’s license knowing that one was required by the Ohio Revised Code. Martinez used San Isidro Cargo to assist co-conspirators, primarily located in New York and New Jersey, in carrying out the income tax refund scheme which came to be known as “Operation Mass Mail.”
This scheme involved the mass filing of hundreds of false income tax returns with Social Security Numbers and identifying information of residents of Puerto Rico. The false income tax returns contained fictitious information including employee wages and employee withholding. The false income tax returns were accompanied by counterfeit Forms W-2 that used, without legal authority, the names and Employer Identification Numbers of legitimate U.S. businesses. The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York. Many of the income tax refund checks shared the same street address, but different apartment numbers, making it easier for co-conspirators to collect the checks from one location. The checks were collected by corrupt letter carriers and apartment managers or by other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The conspirators then used couriers to travel to other states, including Ohio, to cash the checks at various check-cashing services, including San Isidro Cargo.
Martinez and Silie knew the U.S. Treasury checks they received from persons from New York and New Jersey stemmed from fictitious income tax returns. Martinez and Silie also knew the endorsements on the checks were forged. Martinez allowed one individual to cash bulk quantities of sizable income tax refund checks bearing the names of others and addresses located primarily in New York. Silie made several over the counter cash withdrawals and provided these funds to co-conspirators. Martinez and Silie received and retained copies of hundreds of counterfeit driver’s licenses from co-conspirators in order to conceal the fraudulent nature of the scheme.
Everyone involved in the scheme, from the income tax return preparer to the check-casher, was paid a cut of the fraudulent income tax refund. Martinez charged a fee of seven to eight percent of check’s face value. This fee was a premium for the conversion of the ill-gotten checks, and was well above the three percent fee permitted by Ohio Revised Code for the cashing of government checks, and the two percent fee charged to legitimate customers.
After San Isidro Cargo’s bank accounts were closed by the bank, Martinez continued the scheme by recruiting others to cash the fraudulent checks on their own bank accounts.
From February 2010 through February 2011, Martinez, Silie and others assisted in the conversion and laundering of approximately 696 fraudulently obtained U.S. Treasury checks totaling $4,415,492.58. During 2010, Martinez, Silie and others conducted bank withdrawals in excess of $4 million from San Isidro Cargo’s business accounts.
A third person, Suheidy A. Warner, 30, of Columbus, was also charged in this case in an April 2013 indictment alleging one count of conspiracy to defraud the IRS by filing false claims for federal income tax refunds, one count of conspiracy to commit money laundering, four counts of aggravated identity theft and 25 counts of converting U.S. monies to her own use. Warner is currently a fugitive.
“These defendants systematically defrauded the government and the taxpaying public and these sentences demonstrate our unwavering commitment to protecting the interests of law-abiding taxpayers,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We will continue to partner with the U.S. Attorney’s Office and U.S. Postal Inspection Service in investigating the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
These cases were prosecuted by Assistant United States Attorney Daniel Brown and they were investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
# # #Owner of Baton Rouge Pharmacy Pleads Guilty <br /> for Directing $2.2 Million Health Care Fraud SchemeRead the Press Release
The owner of a Louisiana pharmacy pleaded guilty today for directing a $2.2 million Medicare fraud scheme to repackage and redistribute prescription medications.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Interim U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
Mona Patrice Carter, 47, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of health care fraud. Sentencing will be determined at a later date.
Carter admitted that she owned and operated Community Pharmacy 1, a Baton Rouge pharmacy. From 2007 through December 2013, Carter paid employees of Community Pharmacy clients, including nursing homes and mental health facilities, to collect and return unused prescription drugs. When these drugs were returned to Community Pharmacy, Carter directed her employees to re-package them. Community Pharmacy then re-distributed these drugs as if they were new and billed Medicare as if they were being distributed for the first time – effectively billing Medicare twice for the same medications.
Carter admitted that from January 2008 through February 2013, she caused $2,245,515 in fraudulent billings to Medicare for prescription medications.
The case was investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. This case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Operator of 18 Chinese-Language Child Pornography Websites Sentenced to 210 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that YONG WANG was sentenced today in Manhattan federal court to 210 months in prison for advertising in connection with the sexual exploitation of children through 18 Chinese-language child pornography websites he owned and operated. WANG pled guilty in May 2013 and was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Yong Wang will be punished – with a loss of his liberty – for earning a living at the expense of innocent children by operating a vast network of illicit child pornography websites from the comfort of his home. Those who conduct businesses that capitalize on the sexual exploitation of children should understand that this Office and its law enforcement partners have no tolerance for such operations and are actively working to shut them down.”
According to documents filed in Manhattan federal court and statements made in related court proceedings:
WANG maintained 18 Chinese-language websites out of his apartment in Flushing, New York. Members of the websites could access numerous links to an extensive child pornography collection that included images and videos of children exposing their genitals, engaging in sexually explicit conduct with adults, and in sadistic and/or masochistic depictions. To access the websites, individuals had to purchase a “VIP membership” or accumulate a certain number of points. WANG charged customers $25 for a quarterly membership and $100 for a lifetime membership. Undercover FBI agents registered for a VIP membership with WANG and gained access to one of the websites entitled - in Chinese - “Empire of the Young and Innocent Fragrances.” On the website, users were directed to different forums with links that were titled with descriptive names, such as “Young Young Empire,” “Young Girl Beauty Photos Military Region,” “Young Boy Movie Zone,” and “Exclusive Quality Young Girl Photos Set.” WANG made in excess of $700,000 in connection with his operation of these websites.
In addition to the prison term, WANG, 28, a citizen of China who resided in Flushing, New York, was ordered to pay $750,000 in forfeiture, representing the proceeds he obtained from operating the child pornography websites, and a $250,000 fine.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the Chinese Ministry of Public Security for their cooperation and assistance.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Rosemary Nidiry is in charge of the prosecution and Assistant U.S. Attorney Alexander Wilson is in charge of the forfeiture aspects of the case.
New York City Employee Charged in Manhattan Federal Court with Medicaid FraudRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Mark G. Peters, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of AKIM MURRAY, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration (“HRA”), for Medicaid fraud. The Complaint alleges that MURRAY, an HRA Eligibility Specialist whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have hundreds of thousands of dollars’ worth of checks issued to his friends and criminal associates, who in turn gave him a substantial cut of the proceeds. MURRAY was taken into custody this morning, and is expected to be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Bharara said: “Akim Murray was supposed to make sure that Medicaid benefits went to people eligible for the program. Instead, as alleged, Murray abused his position as a New York City employee and diverted hundreds of thousands of dollars earmarked for people in need to line his own pockets and those of his friends. Such abuses cannot and will not be tolerated by this Office and our law enforcement partners.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged in the complaint, Murray used his position as an HRA Eligibility Specialist to profit off of a system designed to help those in financial distress obtain medical assistance. Health care fraud increases costs for everyone, wastes tax dollars, and destroys the integrity of our health care system. The FBI, along with our federal, state and local law enforcement partners, is committed to investigating this type of fraud and hold accountable those who take advantage of our government health care programs.”
DOI Commissioner Peters said: “This public servant used Medicaid benefits as a treasure trove to enrich himself and his cohorts, creating an intricate criminal network of kickbacks, according to the charges. This investigation shows that gaming the system to siphon public funds away from eligible individuals will only lead to arrest.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
Medicaid is a federally-funded program designed to provide low-income families with affordable health care. The New York City Human Resources Administration oversees the program and processes applications from New York City residents. Under Medicaid, individuals who successfully apply for Medicaid coverage can be reimbursed for eligible expenses submitted in the approximately three-month period prior to the application (“Pre-Enrollment Services”). In order to be reimbursed for Pre-Enrollment Services, the successful Medicaid applicant requesting reimbursement must provide proof that he or she made eligible health care payments out of pocket before applying for Medicaid. City employees known as Eligibility Specialists, working for HRA’s Medicaid Reimbursement Unit, receive and process requests for reimbursement using a computer system, and make recommendations for HRA supervisors as to whether a request should be approved.
From at least July 2009 until September 2010, MURRAY, an HRA Eligibility Specialist, exploited loopholes in HRA’s computer systems to both recommend and then separately approve the issuance of Medicaid reimbursement checks without meaningful oversight. MURRAY used the personal identifying information of his co-conspirators to create and unilaterally approve requests for reimbursement checks in their names. When the checks were sent to his friends and other associates, MURRAY demanded that they cash the checks and give him between 50-70% of the proceeds. MURRAY approved hundreds of thousands of dollars in Medicaid reimbursement requests without proper oversight.
MURRAY, 52, of New York, New York, is charged with one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud, which carry maximum sentences of 20 years, 20 years, and 10 years in prison, respectively. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the DOI and the FBI’s Health Care Fraud Task Force for their work in this investigation, which he noted is ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Akim Murray Complaint
New Mexico Man Charged with Federal Hate Crime for Threats Against BusinesswomanRead the Press Release
A federal grand jury returned a two-count indictment against John W. Ng, 58, of Albuquerque, New Mexico, charging him with hate crime offenses related to anti-Semitic threats he made against a Jewish woman who owns and operates the Nosh Jewish Delicatessen and Bakery in Albuquerque.
Ng was arrested by the FBI on March 7, 2014, based on a criminal complaint alleging that he interfered with the victim’s federally protected rights by threatening the victim and interfering with her business because of her religion and because she owned a Jewish restaurant. According to the indictment, on Jan. 22, 2014, and Feb. 8, 2014, Ng allegedly posted threatening, anti-Semitic notes on the door of the victim’s business. One of the notes allegedly read, “TO: The [racial slur] who should die.” Another allegedly read, “FROM: The one you scarred for life scumbags [;] TO: The [racial slur] who will die like rats.”
Ng was arrested by the FBI on March 7, 2014. He remains in federal custody pending completion of a psychiatric competency and dangerousness examination.
An indictment merely establishes probable cause, and Ng is presumed innocent unless proven guilty. Each count carries a maximum statutory penalty of one year in prison.
This matter was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico and Trial Attorney Angie Cha of the U.S. Department of Justice’s Civil Rights Division.
New London Man Sentenced to 30 Months in Prison for Distributing HeroinRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EMMANUEL BLANCO BALBUENA, also known as “Manny,” 29, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 30 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. Court-authorized wiretaps and physical surveillance revealed that BALBUENA regularly purchased distribution quantities of heroin from Capellan Maldonado and then sold the drug to his own customers in New London and Norwich.
BALBUENA has been detained since his arrest on April 3, 2013. On January 6, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Maldonado has pleaded guilty and 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]New Jersey Doctors Sentenced to Five Years in Prison in Online Pill Mill CaseRead the Press Release
A New Jersey doctor was sentenced to five years in prison for this role in a multi-state drug conspiracy that sent millions of dollars of highly addictive prescription painkillers across the country, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
U.S. District Judge Solomon Oliver sentenced Dr. Terence Sasaki to 60 months in prison and ordered him to pay $59,133 in restitution. Sasaki was convicted on charges of conspiracy to distribute controlled substances and conspiracy to launder money.
Thirteen people have now been sentenced for their roles in the drug conspiracy, including doctors, pharmacists, a call-center manager and others.
“This is one of the more egregious pill mill cases we have ever come across,” Dettelbach said. “Prescription drug abuse is a major problem. Whether it is an Internet-based pill mill or a local dentist handing out prescriptions, we are committed to stopping those who illegally distribute drugs.”
Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation said: “This is an important victory for the citizens of Northern Ohio. These individuals not only fueled the prescription drug problem in Northern Ohio, but they supported addiction in several parts of the country. As a result of this joint investigative effort, not only are numerous criminals in prison for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
Pharmacist Vinesh Darji was sentenced last year to nearly five years in prison for his conviction on conspiracy to distribute controlled substances.
Audrey Barbara Rovedo was sentenced last year to more than six years in prison for convictions on conspiracy to distribute controlled substances and conspiracy to launder money.
Rovedo, a manager at Delta Health, is 65 and lived in Jacksonville, Fla. Sasaki, 42, lives in Jersey City, N.J. and Darji, 43, lived in Tampa, Fla., according to public records.
James Hazelwood in 2012 was sentenced to more than eight years in prison and ordered to pay $3.8 million in restitution.
Hazelwood, 44, of Cumming, Ga., previously pleaded guilty to engaging in a continuing criminal enterprise for his role in operating a company that illegally distributed millions of pills of prescription painkillers, including hydrocodone and alprazolam, to drug addicts and recreational drug users who had no medical reason for receiving the pills.
Hazelwood operated USMeds, LLC and later, American Health Alternatives. Hazelwood, through both companies, worked with pharmacists and pharmacies who supplied drugs to the organization, which Hazelwood then distributed to people who contacted him through the companies’ web sites or call centers, according to court documents.
Hazelwood controlled most aspects of the drug trafficking organization. He set up and maintained web sites, including usmedsovernight.com, verybestmeds.com and mydoctorconsultonline.com, to solicit customers to buy hydrocodone and other pills without valid prescriptions, according to court documents.
The transactions were nothing more than illegal customer-dictated drug orders that bore the electronic or handwritten signature and DEA registration number of a doctor. Customer, not doctors, selected the type of controlled substance, quantity and strength to be “prescribed.” Customers paid for their “consultation” and pills up front, via credit card, and medical insurance was not accepted. Doctors signing the drug orders did not physically examine customers or even meet them face-to-face. Instead, after selecting the drug he or she wanted, the customer filled out a brief online questionnaire, the customer had a short “telephone consultation” and the prescription was issued. The conspiring pharmacies then shipped the drugs via FedEx to thousands of customers across the country, according to court records.
In addition to soliciting customers via its web site, Hazelwood’s organization also advertised on billboards in bathroom stalls at bars and nightclubs, at a music festival in Miami and internet banner ads, among other means, according to court documents.
Because of the makeup of his customer base, the Hazelwood drug trafficking organization charged its customers a price that was multiple times higher than the retail cost of the drugs it provided. The group generally charged $300 for 90 tablets of hydrocodone, plus a $55 “consult” fee, according to court documents.
The activity took place between 2005 and 2009, according to court documents.
This case was prosecuted by Assistant United States Attorneys Rebecca Lutzko and Edward Feran following an investigation by the Drug Enforcement Administration, the Internal Revenue Service and the Medina County Drug Enforcement Task Force.
The cooperation of the U.S. Attorney’s offices in Jacksonville, Florida; Tampa, Florida, Atlanta; Puerto Rico, New Orleans and New York City was instrumental in the arrests, searches and initial court appearances in this case.
New Haven Man Sentenced to 66 Months in Federal Prison for Drug Offense, Violating Supervised ReleaseRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that MARVIN OGMAN, 37, of New Haven was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment for violating the terms and conditions of his supervised release from a previous federal conviction. Earlier this month, OGMAN was sentenced to 36 months of imprisonment for using a telephone to facilitate a drug trafficking offense. The sentences will run consecutively.
In December 2005, MARVIN OGMAN was sentenced in federal court to 95 months of imprisonment, followed by six years of supervised release, for his role in a narcotics distribution conspiracy. He was released from federal prison in May 2011.
On April 9, 2012, a grand jury returned an indictment charging MARVIN OGMAN and 17 other individuals with narcotics distribution and related offenses stemming from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. Two additional individuals were later charged in the case. During the investigation, MARVIN OGMAN was identified over a court-authorized wiretap arranging crack cocaine transactions with his nephew, Donald Ogman, who has been identified in court proceedings as the alleged leader of the Grape Street Crips.
On December 22, 2012, MARVIN OGMAN pleaded guilty to one count of using a telephone to facilitate a drug trafficking offense. On April 11, 2014, in Bridgeport, Senior U.S. District Judge Warren W. Eginton sentenced MARVIN OGMAN to 36 months of imprisonment.
Today, Chief Judge Hall ordered MARVIN OGMAN to serve a four-year term of supervised release after serving an effective sentence of 66 months of imprisonment.
Donald Ogman has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mountain City Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Two individuals involved in a methamphetamine conspiracy were sentenced on Apr. 23, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge. Stacy T. Snyder, 44, of Mountain City, Tenn., was sentenced to serve 108 months in federal prison, to be followed by four years of supervised release. Billy E. Hartness, 35, of Mountain City, Tenn., was sentenced to serve 211 months in federal prison, to be followed by four years of supervised release. There is no parole in the federal system.
These individuals, along with 18 others, were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. All have been adjudicated guilty and have either been sentenced or will be sentenced later this year. The charges stem from a lengthy investigation spanning from August 2006 to May 2013 involving a conspiracy to obtain pseudoephedrine and other products needed to manufacture methamphetamine from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed in the Eastern District of Tennessee.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine and Pharmaceutical Task Force, and the DEA. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Mexican National Sentenced to Nine Years in Federal Prison for Trafficking Methamphetamine in San Juan CountyRead the Press Release
ALBUQUERQUE – Pricilo Garcia-Jimenez, 41, a Mexican national from Oaxaca, Mexico, was sentenced this afternoon to 108 months in federal prison for his methamphetamine trafficking conviction. Garcia-Jimenez will be deported after he completes his prison sentence. The sentence was announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Lt. Neil Haws, Director of the HIDTA Region II Narcotics Task Force.
Garcia-Jimenez, an undocumented alien illegally present in the United States, was arrested on May 22, 2012, on a criminal complaint alleging methamphetamine trafficking charges. In July 2012, a five-count indictment was filed charging Garcia-Jimenez with distributing methamphetamine in San Juan County, N.M., on five separate occasions between Nov. 2011 and April 2012.
On Aug. 29, 2013, Garcia-Jimenez pled guilty to five methamphetamine distribution charges. In his plea agreement, Garcia-Jimenez admitted distributing methamphetamine to an undercover officer on five separate occasions between Nov. 2011 and April 2012. Specifically, Garcia Jimenez admitted distributing 69.4 grams of methamphetamine to the undercover agent on Nov. 30, 2011. Garcia-Jimenez also admitted distributing more than five grams of methamphetamine to the undercover agent on Feb. 23, 2012, March 28, 2012, April 5, 2012 and April 29, 2012. He further admitted distributing methamphetamine to others on Sept. 29, 2011, Oct. 19, 2011, Nov. 2, 2011 and Nov. 17, 2011.
This case was investigated by the Albuquerque office of HSI and the HIDTA Region II Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Member of Cherry Hill Group ‘Little Spelman’ Pleads Guilty to Racketeering Conspiracy, Including Drug Dealing and Two MurdersRead the Press Release
Shootings and Murders Attributed to Rival Drug Gangs
Baltimore, Maryland – Davon Martin, age 25, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Davon MARTIN was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana. From 2009 to 2011, Martin, along with another member of Little Spelman, operated a crack cocaine distribution “shop” out of an apartment located on Round Road. Martin and others sold at least two kilograms of crack cocaine from the apartment on Round Road. On at least one occasion, while in possession of a firearm, Martin robbed an individual who had sold him some bad cocaine. Martin admitted he has also committed other robberies related to his drug distribution.Martin admitted that on January 20, 2011, he shot and killed Rhidell Price, a member of a rival group operating in Cherry Hill known as “Up Da Hill,” in the rear of 2900 Denham Circle. After receiving a call that Price was in the area, Martin and an associate drove down to Denham Circle where Rhidell Price was getting out of a vehicle parked on the street. Martin got out of his vehicle and began shooting at Price, chasing after Price and ultimately killing him. Martin killed Price in retaliation for Martin and another Little Spelman member being shot at by Up Da Hill members a few days earlier.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. During the murder, Martin was wearing a black jacket and a black mask which he discarded in a nearby dumpster on Clay Street. Both the mask and jacket were recovered by police from the dumpster. The DNA recovered from both the face mask and the jacket matched Martin’s DNA. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, another Little Spelman associate, and the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for July 18, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting the case.
Melbourne Man Sentenced to 50 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Alan Gregory Ender (58, Melbourne) to 50 years in federal prison for production and possession of child pornography. He was also ordered to serve a life term of supervised release and ordered to comply with Sex Offender Registration and Notification. He pleaded guilty to the charges on November 14, 2013.
According to court documents, this investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in downloading child pornography. Law enforcement determined the location of the IP address and interviewed Ender. Ender admitted to downloading and possessing child pornography for a period of two to three years. He also admitted to producing child pornography. In order to produce the child pornography, Ender lured two six-year old neighborhood girls to his home with candy. He then took explicit photographs of the girls on his bed.
Following the execution of a search warrant, Ender’s computers and cameras were seized and searched. A forensic examination of the computer revealed 151 image files and 1 movie file depicting pornographic images of the two young girls, which Ender produced using his cameras. The forensic examination further revealed an additional 477 movie files and 102 image files of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement, Orlando Regional Operations Center. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This 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, 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.
Maryland Man Sentenced for<br /> Defrauding Thousands of Homeowners in $4 Million<br /> Nationwide Home Loan Modification ScamRead the Press Release
A Maryland man was sentenced today to serve one year and a day in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Brian Kelly, 37, of Forest Hill, was sentenced by U.S. District Court Judge Rya W. Zobel of the District of Massachusetts and ordered to serve three years of supervised release following his prison term. Restitution will be determined at a later date.
Kelly pleaded guilty on May 2, 2013, to one count of conspiracy, nine counts of mail fraud and nine counts of wire fraud.
According to court records, Kelly and others, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE $400 to $2,000 in up-front fees in exchange for HOPE’s help obtaining federally funded home loan modifications. Kelly was one of HOPE’s more successful salespeople, receiving approximately $24,000 after arranging fraudulent home loan modifications totaling approximately $180,000.
Also according to court documents, the conspirators misrepresented that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to court documents, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were convicted after trial and were each sentenced on Feb. 20, 2014, to serve 84 months in prison. A third co-defendant, Vernell Burris, Jr., 54, of Coconut Creek, Fla, pleaded guilty and was sentenced on Feb. 25, 2014, to serve a year and a day in prison.
The case was investigated by SIGTARP and is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’s Computer Crimes Unit.Maryland Man Sentenced to More Than 10 Years in Prison for Federal Narcotics Conspiracy Charge-Defendant Also Must Forfeit Two Vehicles and over $20,000-Read the Press Release
WASHINGTON - Ralph Terry, 42, of Germantown, Md., was sentenced today to 10 years and 10 months in prison for his role in a conspiracy to distribute cocaine and crack cocaine in the Washington, D.C. area, announced U.S. Attorney Ronald C. Machen Jr.
Terry pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to distribute and possess with intent to distribute cocaine and cocaine base, also known as crack. The plea, which called for a sentence of 100 to 151 months of incarceration, was approved by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Terry will be placed on three years of supervised release.
According to the evidence presented at the plea hearing, during the fall of 2012, Terry conspired with others to distribute and possess with intent to distribute in the District of Columbia and its surrounding areas, cocaine and cocaine base, also known as crack.
This investigation arose on the evening of Nov. 29, 2012, in Northeast Washington. At that time, officers with the Metropolitan Police Department (MPD) conducted a search at Second and Adams Streets NE of the GMC Yukon driven and owned by Terry. During the course of that search, officers recovered, among other items, over 40 grams of crack cocaine and $17,391. The recovered money was proceeds of Terry’s narcotics trafficking activities.
On Dec. 11, 2012, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, a search warrant was executed at Terry’s residence in Maryland. Law enforcement recovered, among other items, $2,830 in cash and the key to an Oldsmobile Cutlass, located at the residence. A search warrant was subsequently executed on the Oldsmobile, and inside that vehicle, law enforcement recovered over 170 grams of crack cocaine, over 245 grams of powder cocaine, and digital scales. The money was proceeds of the narcotics activities.
As part of his plea agreement, Terry agreed to the forfeiture of the GMC Yukon, the Oldsmobile, the $17,391 recovered on Nov. 29, 2012, and the $2,830 seized on Dec. 11, 2012.
In announcing the sentence, U.S. Attorney Machen praised the efforts of the members of the Metropolitan Police Department and the actions of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, who investigated this case. U.S. Attorney Machen also commended the efforts of Assistant U.S. Attorney Opher Shweiki, who prosecuted the case, and Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture aspects of the investigation.
14-098Maryland Man Sentenced for Defrauding Thousands of Homeowners in $4 Million Nationwide Home Loan Modification ScamRead the Press Release
BOSTON – A Maryland man was sentenced today to serve one year and a day in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Brian Kelly, 37, of Forest Hill, Md., was sentenced by U.S. District Court Judge Rya W. Zobel of the District of Massachusetts and ordered to serve three years of supervised release following his prison term. Restitution will be determined at a later date.
Kelly pleaded guilty on May 2, 2013, to one count of conspiracy, nine counts of mail fraud and nine counts of wire fraud.
According to court records, Kelly and others, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE $400 to $2,000 in up-front fees in exchange for HOPE’s help obtaining federally funded home loan modifications. Kelly was one of HOPE’s more successful salespeople, receiving approximately $24,000 after arranging fraudulent home loan modifications totaling approximately $180,000.
Also according to court documents, the conspirators misrepresented that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to court documents, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were convicted after trial and were each sentenced on Feb. 20, 2014, to serve 84 months in prison. A third co-defendant, Vernell Burris, Jr., 54, of Coconut Creek, Fla, pleaded guilty and was sentenced on Feb. 25, 2014, to serve a year and a day in prison.
The case was investigated by SIGTARP and is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’s Computer Crimes Unit.Long Island Pediatrician Pleads Guilty to Child Sexual ExploitationRead the Press Release
Earlier today, Rakesh K. Punn, a licensed medical doctor and pediatrician, pleaded guilty to child sexual exploitation. Today’s plea took place before United States District Judge Joanna Seybert. At sentencing, Punn faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“We trust doctors – especially pediatricians – to care for our children. The defendant took advantage of that trust in the most egregious manner,” stated United States Attorney Lynch. “He took advantage of children who came to him for medical help. In doing so, he not only violated the criminal law, but betrayed his oath as a licensed physician to do no harm.” Ms. Lynch thanked the Federal Bureau of Investigation, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (“CEOS”) and High Technology Investigative Unit (“HTIU”) for their joint investigation leading up to this case.
According to previous court filings, between September 6, 2007 and January 21, 2008, Punn sexually exploited three minor pediatric patients, under the guise of medical treatment, at his home-office in Bethpage, New York, and recorded the activities. Punn also submitted fraudulent insurance claims for the purported treatment of those three children and three other pediatric patients, when, in fact, the purported treatments had not been conducted for any medically accepted purpose, but rather, solely for the sexual gratification of the defendant.
Nassau County law enforcement authorities initially arrested Punn on July 15, 2010, and subsequently filed an indictment that charged Punn with multiple counts of violating New York State sexual abuse and fraud laws, based on his conduct, which allegedly included recording sexually explicit activity involving his minor patients during their visits to his office, located in his home in Bethpage, New York. Those charges remain pending. On January 4, 2012, a federal indictment was filed that charged Punn with sexual exploitation of children and health care fraud. Punn has remained in custody since his initial arrest.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and 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 government’s case is being prosecuted by Eastern District of New York Assistant United States Attorney Allen L. Bode and Department of Justice Trial Attorney Amy Larson.
The Defendant:
RAKESH K. PUNN
Age: 56
Bethpage, New York
E.D.N.Y. Docket No. 12-CR-0011(JS)
Liberty Couple Sentenced for $2.7 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife were sentenced in federal court today for a nearly $2.7 million embezzlement and check kiting scheme and for filing a false tax return.
Laura Dejong, 55, and her husband, Craig Dejong, 56, both of Liberty, were sentenced in separate appearances before U.S. District Judge Dean Whipple. Laura Dejong was sentenced to 10 years in federal prison without parole. She was taken into custody immediately after today’s hearing. Craig Dejong was sentenced to two years and six months in federal prison without parole. The court also ordered the Dejongs to pay a total of $3,300,718 in restitution to their victims, including $2,679,227 to Kansas City Screw Products, Inc., $482,711 to the Internal Revenue Service and $138,780 to two financial institutions.
On June 18, 2013, Laura Dejong pleaded guilty to one count of mail fraud and both of the Dejongs pleaded guilty to one count of filing a false tax return.
Laura Dejong admitted that she embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, forged checks drawn on two company bank accounts.
Laura Dejong also engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kiting began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011. The total loss from the check kite to Central Bank was $97,015.
According to court documents, significant gambling activity was identified for the Dejongs, totaling approximately $4.5 million from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
As part of their pleas, the Dejongs signed a stipulation forfeiting their home in Liberty and all of the above-listed property. The forfeited funds will be used to provide restitution to the victims of their crimes.
The Dejongs admitted that they filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.Law Enforcement Officer and Three Others Sentenced to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Corey A. Coley, Sr. to seven years and three months in federal prison for conspiracy, wire fraud, and aggravated identity theft. Coley was a Probation Officer for the Florida Department of Juvenile Justice. As part of his sentence, the court also entered a money judgment in the amount of $671,022.99, the proceeds of the charged criminal conduct. Coley pleaded guilty on January 15, 2014.
Coley’s co-conspirators, Albert E. Moore, Jr., Tigi Moore, and Mattie Philon previously pleaded guilty and were sentenced for their roles in this case. Albert Moore, Jr. was sentenced to 6 years and 3 months’ imprisonment. Tigi Moore, who worked as a data integrity specialist at Tampa General Hospital, was sentenced to 4 years in federal prison. Philon was sentenced to 2 years’ imprisonment for her part in the scheme.
According to court documents, the co-conspirators engaged in a scheme to defraud the government by submitting fraudulent tax returns and then using the resulting tax refunds for their own benefit and the benefit of others. Coley obtained identities used in the scheme from the information in the records of his former employer, the Florida Department of Juvenile Justice. Tigi Moore also obtained identities used in the scheme from the information in the records of her former employer, Tampa General Hospital. In total, the conspirators received $671,022.99 of fraudulently obtained tax refunds and filed fraudulent returns requesting more than $1.8 million of tax refunds.
"Mr. Coley misused his position as a Juvenile Probation Officer to steal identities of people. These stolen identities were then used to file false tax returns in their names. Coley's brazen abuse of trust is reprehensible and inexcusable," said James D. Robnett, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. "Coley's sentence today to 87 months in federal prison holds Mr. Coley accountable for his criminal actions. Individuals such as Albert Moore, Tigi Moore and Mattie Philon who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law. IRS-Criminal Investigation and its partners in the Tampa Bay Alliance, will continue to investigate those individuals is perpetrate this criminal conduct."
This case was investigated by the Internal Revenue Service, Criminal Investigation, and the Hillsborough County Sheriff's Office. It was being prosecuted by Assistant United States Attorney Sara C. Sweeney.
Kicking Woman Sentenced to High End of Guidelines for Residential BurglaryRead the Press Release
The United States Attorney's Office announced that KYLE KANE KICKING WOMAN, 26, of Browning, Montana, was sentenced to a term of 24 months imprisonment, three years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on April 24, 2014, before U.S. District Judge Brian M. Morris.
KICKING WOMAN was sentenced in connection with his January 8, 2013, guilty plea to burglary. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that KICKING WOMAN and Michael Bad Old Man entered a residence in Browning, Montana. Occupants of the house were sleeping, and KICKING WOMAN and Michael Bad Old Man assaulted the occupants.
At sentencing, Weldon stated, "It is actions like this that destroy an individual's sense of safety and security. Residents on the Blackfeet Indian Reservation and in Montana deserve far better."
The District Court sentenced KICKING WOMAN to 24 months of imprisonment, with three years of supervised release to follow. For the same offense, Michael Bad Old Man was previously sentenced to 27 months imprisonment, with three years of supervised release to follow.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that KICKING WOMAN will likely serve all of the time imposed by the court. In the federal system, KICKING WOMAN does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation.
Kansas City, Kan., Man SentencedFor Failing to Register as Sex OffenderRead the Press Release
KANSAS CITY, KAN. – A man who has been living in Kansas City, Kan., was sentenced Wednesday to two years in federal prison for failing to register as a sex offender, U.S. Attorney Barry Grissom said. His sentence will be followed by 10 years on supervised release.
Bryan Shuck, 32, Kansas City, Kan., pleaded guilty to one count of failure to register under the federal Sex Offender Registration and Notification Act. In his plea, he admitted that he was convicted on a charge of deviate sexual assault on July 27, 2004, in Shelby County, Mo. He later registered at an address in Missouri. In May 2013, investigators determined that he was living and working in Kansas City, Kan., without registering in Kansas.
Grissom commended the U.S. Marshals Service, the Wyandotte County Sheriff’s Office, the Kansas Bureau of Investigation and Assistant U.S. Attorney Kim Martin for their work on the case.
Justice Department and Bazaarvoice Inc. Agree on Remedy<br /> to Address Bazaarvoice’s Illegal Acquisition of PowerReviewsRead the Press Release
The Department of Justice and Bazaarvoice Inc. have agreed on a remedy that will address Bazaarvoice’s illegal acquisition of PowerReviews Inc. by requiring Bazaarvoice to divest the assets it acquired from PowerReviews and adhere to other requirements to fully restore competition in the provision of online product ratings and reviews platforms.
On Jan. 8, 2014, the U.S. District Court for the Northern District of California in San Francisco ruled that Bazaarvoice violated Section 7 of the Clayton Act when it acquired PowerReviews, its only serious competitor. Today’s proposed remedy, if approved by the court, will resolve the department’s competitive concerns associated with Bazaarvoice’s acquisition of PowerReviews.
“As a result of today’s agreement, Bazaarvoice will remedy the harm caused by its unlawful acquisition of PowerReviews,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “In addition, Bazaarvoice has agreed to meaningful additional measures that will allow a divestiture buyer to quickly achieve the competitive position that PowerReviews would have occupied today, absent the unlawful transaction.”
The proposed remedy requires Bazaarvoice to sell all of the PowerReviews assets to a divestiture buyer and contains other provisions to compensate for the deterioration of PowerReviews’ competitive position that occurred as a result of the transaction. Under the terms of the agreement, Bazaarvoice is required to provide syndication services to the divestiture buyer for four years, allowing the divestiture buyer to build its customer base and develop its own syndication network. Bazaarvoice is required to waive breach of contract claims against its customers, allowing them to switch to the divestiture buyer without penalty. Bazaarvoice is also required to waive trade-secret restrictions for any of its employees who are hired by the divestiture buyer, enabling the buyer to leverage Bazaarvoice’s post-merger research and development efforts.
Additionally, the agreement provides for the appointment of a trustee to oversee the divestiture process and to monitor Bazaarvoice’s compliance with its other obligations under the proposed remedy.
Bazaarvoice’s acquisition of PowerReviews was not required to be reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which requires companies to notify and provide information to the department and the Federal Trade Commission before consummating certain acquisitions. The department began its investigation shortly after the transaction closed.
On Jan. 10, 2013, the department filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of California in San Francisco against Bazaarvoice. The department alleged that Bazaarvoice’s June 2012 acquisition of PowerReviews eliminated the company’s only significant rival, in violation of the antitrust laws.
The department’s trial against Bazaarvoice, conducted by Judge William H. Orrick III, began on Sept. 23, 2013. The trial lasted three weeks, with closing arguments taking place on Oct. 15, 2013. On Jan. 8, 2014, the court found that Bazaarvoice violated Section 7 of the Clayton Act by acquiring its primary rival, PowerReviews.
The proposed remedy, along with the department’s competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed remedy within 60-days of its publication to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., 7th Floor, Washington, D.C. 20530. These comments will be published either in the Federal Register or, with the permission of the court, will be posted electronically on the department’s website. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.Justice Department Settles Immigration-Related Discrimination Claim Against Supermarket ChainRead the Press Release
The Justice Department reached an agreement today with Mexico Foods LLC, aka El Rancho Corp., a supermarket chain based in Garland, Texas, resolving claims that the company engaged in discrimination during the employment eligibility verification process in violation of the Immigration and Nationality Act (INA).
The department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services. The investigation revealed that El Rancho required lawful permanent residents to present a new employment eligibility document after being hired when their Permanent Resident cards expired, even though the Form I-9 and E-Verify rules prohibit this practice because lawful permanent residents have permanent work authorization in the United States, even after their Permanent Resident cards expire. The investigation also uncovered evidence that El Rancho routinely requested a specific work authority document from lawful permanent residents during the initial employment eligibility verification process even though under the law employees are allowed to choose what documents to present. The department found that El Rancho’s discriminatory practices were based on employees’ citizenship status.
Under the settlement agreement, El Rancho must pay $43,000 in civil penalties, undergo training on the antidiscrimination provision of the INA and submit to monitoring for a period of 18 months, during which the department may review the company’s employment eligibility verification practices.
“The Justice Department is committed to ensuring that work-authorized immigrants do not face discrimination in employment,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud El Rancho for cooperating with the department and taking immediate action to correct its employment eligibility verification practices.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation . This matter was handled by OSC Trial Attorney Richard Crespo and OSC Equal Opportunity Specialist Joann Sazama. For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired) or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status or national origin, or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Announces Joseph F. Klimavicz as<br /> New Chief Information OfficerRead the Press Release
The Department of Justice today announced that Joseph F. Klimavicz will become its new chief information officer (CIO), arriving in late May. Klimavicz will provide leadership and oversight of the department’s information technology programs and services in support of the department’s technology-intensive law enforcement mission.
Klimavicz will replace Luke McCormack, who left the department in November 2013. Kevin Deeley, deputy CIO, has served as acting CIO since McCormack’s departure. Deeley will continue to serve as deputy CIO.
“Joe has the leadership and technical skills needed to oversee the Justice Department’s information management and technology programs,” said Deputy Attorney General James M. Cole. “Joe is well positioned to lead the department’s efforts to continue to enhance our cyber security protections and our law enforcement sharing programs. As acting CIO, Kevin has ensured that the department’s overall information technology efforts have remained on track and that our cyber security programs have remained strong. I want to thank him for his leadership during this time of transition.”
The Office of the CIO provides strategic direction, management services and oversight to cross-component information technology efforts, and provides IT infrastructure services such as telecommunications, desktop and data center services and IT security.
Prior to joining the department, Klimavicz was the CIO of the National Oceanic and Atmospheric Administration (NOAA) at the Department of Commerce since January 2007. In that capacity, he was responsible for all aspects of the acquisition, management and use of NOAA’s information technology resources, to include NOAA’s high performance computing and communications infrastructure. During his tenure at NOAA, he strengthened the agency’s cyber security posture, consolidated and expanded high performance computing and modernized a variety of business systems.
Klimavicz served as deputy CIO for the National Geospatial-Intelligence Agency from December 2003 to January 2007. While there, he managed the design, implementation and operation of the information technology infrastructure. Klimavicz has served in various roles in the Department of Defense, including director of the Enterprise Services Office and Chief, Infrastructure Operations and Support Division for the National Imagery and Mapping Agency.
He received a U.S. Presidential Rank Award for Distinguished Executive Service for his outstanding efforts in information technology in 2012. Klimavicz received Bachelor of Science and Master of Engineering degrees from Virginia Polytechnic Institute and State University in 1983 and 1988, respectively.Jury Convicts Turkish National of Resisting DeportationRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced that a federal jury found Erdinc Coskun, 43, of Turkey, guilty yesterday, of two counts of preventing or hampering his deportation from the United States. United States District Judge Dee D. Drell presided over the trial.
Following the two-day trial, the jury found Coskun guilty after deliberating for eight minutes. Based on witness testimony and documents admitted into evidence, it was shown that Coskun refused to leave the United States on April 2, 2013 and May 1, 2013. Both times Immigration and Customs Enforcement agents brought Coskun to the Alexandria International Airport and attempted to put him on a commercial flight, and each time he refused to comply with the agents. After the refusals, he was returned to incarceration.
Coskun faces four years in prison and a $250,000 fine for each count of preventing or hampering his deportation from the United States. Sentencing is set for August 1, 2014.
Immigration and Customs Enforcement – Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Jamestown Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Boris Aguayo-Matos, 35, of Jamestown, N.Y., who was convicted of conspiracy to possess with intent to distribute one kilogram or more of heroin and possession of a firearm in relation to drug trafficking activities, was sentenced to 121 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on March 17, 2011, based on information obtained through a wiretap investigation, the defendant was arrested in Celeron, N.Y. by with the Chautauqua County Sheriff’s Department deputies. At the time of his arrest, deputies seized approximately a ½ kilogram of heroin and two firearms.
During a subsequent search of the defendant’s residence and other locations, deputies also seized additional quantities of heroin, cocaine, firearms, vehicles and approximately $300,000 in United States currency.
Aguayo-Matos was one of eight defendants arrested in this heroin trafficking investigation. All defendants have been convicted.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff’s Lieutenant David Bentley, the Chautauqua County Sheriff’s Department, under the direction of Sheriff Joseph Gerace, and the Jamestown Police Department, under the direction of Harry Snellings.
Iranian Man Charged in Fraudulent Scheme Involving Kodak SoftwareRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Navid Salehvaziri, 32, of Tehran, Iran, was arrested and charged by criminal complaint with devising a fraudulent scheme to sell pirated copies of sophisticated printing software owned by Kodak worth hundreds of thousands of dollars. The defendant was arrested in Virginia, and appeared today before a United States Magistrate Judge in Virginia to answer the charge, which carries a maximum sentence 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Salehvaziri established a website, “KodakPrinergy.com,” to offer for sale unauthorized, pirated copies of Kodak Prinergy Evo software. The software contains proprietary “computer to plate” technology, and is used in commercial printing applications. In an undercover operation, the Federal Bureau of Investigation arranged to purchase a copy of the software from the defendant for $1500. The software received by the FBI was not an authorized copy, and Kodak’s regular security and access control features were disabled. It was determined by Kodak to be a full-featured version of its Prinergy Evo technology worth approximately $345,000.
Salehvaziri was arrested in Virginia, and appeared today before a U.S. Magistrate Judge. The defendant will appear in Rochester Federal Court at a later date.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation.
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.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong on April 22, 2014 and entering pleas of Not Guilty were:
- DUSTIN JAY STEELE, a 31-year-old resident of Great Falls, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm during a drug crime, possession of a stolen firearm and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, STEELE faces life imprisonment, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Great Falls Police Department and the Russell Country Drug Task Force. PACER Case Reference: 14-26
Appearing before U.S. Magistrate Lynch in Missoula on April 23, 2014 and entering pleas of Not Guilty were:
- LLOYD NICKLE, a 48-year-old resident of Minot, North Dakota appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of them most serious charges contained in the indictment, NICKLE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-23
Appearing before U.S. Magistrate Lynch in Missoula on April 24, 2014 and entering pleas of Not Guilty were:
- BRIAN DAVID BAUER, a 26-year old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, BAUER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
- JULIA SHANI BENTON, a 30 year-old-resident of Bozeman, appeared on charges of conspiracy to distribute heroin, possession with intent to distribute heroin and distribution of heroin. If convicted of the most serious charges contained in the indictment, BENTON faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-11
- FRANCIS BERCAW, a 63-year-old resident of Roanoke Rapids, North Carolina, appeared on charges of aiding or advising a false tax return. If convicted of the most serious charges contained in the indictment, BERCAW faces 3 years imprisonment, $250,000 in fines and 1 year supervised release. The case was investigated by the IRS - Criminal Investigation Division. PACER Case Reference: 14-07
- CHELLE CAUDLE, a 45-year-old resident of Gaston, North Carolina, appeared on charges of aiding or advising a false tax return. If convicted of the most serious charges contained in the indictment, CAUDLE faces 3 years imprisonment, $250,000 in fines and 1 year supervised release. The case was investigated by the IRS - Criminal Investigation Division. PACER Case Reference: 14-07
- MICHAEL HERBERT JOHNSON, a 26-year-old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, JOHNSON faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
- AUSTIN DAVID LAWRENCE, a 21-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin; possession with intent to distribute heroin and distribution of heroin. If convicted of the most serious charges contained in the indictment, LAWRENCE, faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-12
- TELLY LOPEZ PAYNE, a 37-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin, possession with intent to distribute heroin, conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, PAYNE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-13
- BRANDT JONATHAN MILLER, a 29-year old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, MILLER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Individual Indicted for Wire Fraud, Money Laundering and Aggravated Identity TheftRead the Press Release
SAN JUAN, PR – On April 24, a federal grand jury returned a 18-count indictment charging Miguel A. Merced-Torres for the use of interstate wired communications to commit fraud and money laundering, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. The investigation was conducted by the Federal Bureau of Investigation and the United States Secret Service.
Merced-Torres was the incorporator and resident agent of MM Technology Wireless Group, a corporation registered with the Puerto Rico State Department since June 9, 2009. From on or about July, 2006, to on or about February, 2013, the defendant devised a scheme and artifice to defraud other persons, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.Through the scheme and artifice to defraud, Merced-Torres obtained money from investors by falsely representing himself as a representative of the Federal Communications Commission, hereinafter “FCC.” Merced-Torres falsely promised said investors that they were going to receive financial benefits and profits from their investments in cellular tower administration contracts. The defendant and his coconspirators would convince victims to invest money by falsely representing that the FCC was actively seeking individuals to invest money in exchange for the FCC’s issuance of cellular tower administration contracts, which would render considerable profit for the investors.
When victims began to inquire about delays in signing the cellular tower administration contracts, and after some victims requested the return of their money, Merced-Torres would have emails sent from an email account he had created, “[email protected],” falsely representing that the emails were sent by FCC officials. The e-mails provided false reasons for the delays in signing the cellular tower administration contracts, such as: 1) problems with the security clearance of investors and subsequent investigations by the FBI; 2) inadvertent notification of incorrect dates for the signing of contracts; 3) alleged electoral bans for signing contracts within the first 10 days of each month; 4) serious car accident involving the alleged FCC interim program administrator, who remained in a coma and connected to life-support machinery; among others.
As part of the manner and means of the conspiracy, the defendant would make partial payment of money to victims, under the representation that the money was a loan to the victim to ease his or her financial hardship caused by the delays, and under the understanding that said money would have to be paid back to the FCC prior to signing the contracts.
Merced-Torres requested and received bank wire transfers totaling the sum of $2,611,461.48 from victim “J.M.,” for the purpose of investing in the fraudulent scheme. He also received $2,369,678.00 in deposits from five other victims. In addition, on or about July 2008, the defendant informed victim “R.C.” of a vehicle he wanted to lease, a 2007 BMW 750i. Merced-Torres asked “R.C.” to purchase the vehicle for him, and indicated that the transaction and car payments would be credited towards the investment amounts owed by “R.C.” Between, September 2008 and February 2013, “R.C.” made car payments totaling $39,823.80 in benefit of the defendant.
The defendant is also charged with four counts of money laundering, in that he did knowingly engage and attempt to engage in monetary transactions by and through a financial institution, affecting interstate or foreign commerce, in criminally derived property of a value between $20,000 and $100,000, such property having been derived from a specified unlawful activity, that is, wire fraud.
Counts 14-18 charge Merced-Torres with aggravated identity theft. The defendant did knowingly transfer, possess, and use, without lawful authority, a means of identification of another person, that is, names and unique email addresses of other persons during and in relation to wire fraud violations.
Miguel Merced-Torres is facing a money judgment of $9,089,777.37. He is also facing a forfeiture allegation of: a land lot located at Turabo Ward in the municipality of Caguas; a residential apartment located at Islabella Condominium in Caguas; a land lot located at Tomas de Castro Ward in Caguas; an apartment at Villas del Mar Condominium in the municipality of Cabo Rojo; a land lot located at La Serranía Urbanization in Caguas; a lot located in Turabo Gardens Urbanization in Caguas; a land lot located at Tejas Ward in the municipality of Las Piedras; a land lot located in San Lorenzo Valley Urbanization in the municipality of San Lorenzo; and a house located on Calle Rufo Ramirez, Barrio Celada, in the municipality of Gurabo.
“The U.S. Attorney’s Office is committed to prosecuting financial crimes and protecting the citizens of Puerto Rico. The joint efforts of the FBI and the Secret Service lead to the arrest of this individual, who no longer will be able to defraud investors,” said United States Attorney Rosa Emilia Rodríguez-Vélez.
The case is being prosecuted by Assistant U.S. Attorney Justin R. Martin. The maximum penalties are up to 20 years for the wire fraud charges, up to 20 years for the money laundering charges and two mandatory consecutive years for each aggravated identity theft charge. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Idaho Man Pleads Guilty to Embezzlement of Public FundsRead the Press Release
BOISE – Randolph Louis Deyton, 46, of Boise, Idaho, pleaded guilty today in United States District Court to embezzlement of public funds, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, between 2002 and August 2011, the defendant was employed by the United States government. Starting in approximately 2006, the defendant was responsible for the Work Based Learning Program (WBL). In this position, he maintained a bank account for Job Corps participants. On December 5, 2011, the United States Forest Service determined the bank account maintained by the defendant was overdrawn. It was further determined that the account was overdrawn due to a withdrawal by the defendant in the amount of $6,500.00. On March 20, 2012, the defendant admitted that on or about August 23, 2011, he withdrew $6,528.00 from the WBL bank account. He admitted to misapplying the funds to his own personal use. A subsequent investigation determined that on or about December 21, 2010, the defendant used the debit card from the WBL bank account to purchase money orders of approximately $3,229.89.
Sentencing is set for July 14, 2014 before the Honorable Edward J. Lodge in Boise. Embezzlement of public funds is punishable by a maximum of ten years imprisonment, three years of supervised release and a fine of $250,000.
The case was investigated by the United States Department of Agriculture, Forest Service, Law Enforcement and Investigations division.
Idaho Man Indicted for Distributing Child PornographyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Charles Keith Rolfe (60, Heyburn, Idaho) with distribution of child pornography. If convicted, Rolfe faces a mandatory minimum of 5 years, up to a maximum penalty of 20 years in federal prison. The indictment also notifies Rolfe that the United States intends to forfeit two cells phones which are alleged to have been used in the commission of his crimes.
According to the indictment and criminal complaint, in the summer of 2013, Rolfe began an online correspondence with an Orlando man. The two men discussed their mutual interest in child pornography and began trading images of child pornography via their cell phones. In October 2013, federal agents arrested the Orlando man for production, distribution, receipt, and possession of child pornography, and took over the man’s online identities. In January 2014, posing as the Orlando man, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began communicating with Rolfe via a Mobile Messaging Application (MMA). On February 28, 2014, as charged in the indictment, Rolfe sent an undercover agent images of child pornography through the MMA. Rolfe also wrote to the undercover agents about attempting to molest a young child. On April 2, 2014, federal agents arrested Rolfe in Idaho and transported him to the Middle District of Florida.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
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 (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.justice.gov/psc.
Hidalgo Drug Trafficker Gets Life in Federal PrisonRead the Press Release
McALLEN, Texas – Daniel Nunez, 38, of Hidalgo, has been ordered to prison for life following his conviction for conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to transport and attempt to transport monetary instruments to Mexico to promote drug trafficking, United States Attorney Kenneth Magidson announced today. Nunez pleaded guilty Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Randy Crane handed down the sentence and noted that this was a significant drug trafficking conspiracy over a long period of time.
Nunez had been involved in an organization that had crossed marijuana into the United States from Mexico. They would arrange to cross marijuana from Mexico through the Rio Grande River in the Military Highway area, and transport it to stash locations in Edinburg and Hargill. From there, the marijuana would be taken to another stash location where it would be loaded onto tractor trailers for further distribution in the Dallas area as well as Panama City and Orlando, Fla., and Steele, Ala. areas.
Nunez also arranged to transport the proceeds of his drug-trafficking organization from various locations in Florida back to Hidalgo County, and from there, transport it into Mexico.
According to previous court records, the exploits of Nunez were celebrated in narco-corridos that were posted to YouTube entitled “Corridos De Arranque” that sung of “El Patron y El Comandante,” “El Comandanta y Su Gente,” “El Guero y su Clicka,” “El Reinocertonte (M-50)”and El-M-3.
Several others have been charged and convicted with sentences so far ranging from more than two years to nearly 18 years in prison.
Nunez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigations leading to the criminal charges were conducted in McAllen, Panama City, Orlando and Steele. This Organized Crime Drug Enforcement Task Force investigation was led by Homeland Security Investigations, FBI and Internal Revenue Service - Criminal Investigation. These cases are being prosecuted by Assistant United States Attorney Patricia Profit.Hartville Man Sentenced to 14 Years in Prison for Enticement and Child PornographyRead the Press Release
Mark A. Steffee, 43, of Hartville, Ohio, was sentenced to 14 years in prison after previously being found guilty of enticement and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Steffee used a computer connected to the Internet to attempt to persuade, induce, entice and coerce a 14-year-old girl to engage in illegal sexual activity with him. This took place from September 2005 through December 1, 2005, and again from on or about March 5, 2013, through on or about March 27, 2013, according to court documents.
Steffee also possessed a computer that contained child pornography, according to court documements.
The case was prosecuted by Assistant U.S. Attorney Michael A Sullivan following an investigation by the United States Secret Service, the Ohio Internet Crimes Against Children Task Force and the Hartville Police Department.