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10 June 2014
Two Charged with Leading a Conspiracy to Defraud and Extort Spanish-Speaking Consumers Through Fraudulent Call CentersRead the Press Release
A grand jury in Miami, Florida, indicted two individuals and two corporations for allegedly operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida and U.S. Postal Inspector in Charge Ronald Verrochio of the Miami Office made the announcement.
Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were charged with conspiracy, mail and wire fraud and extortion. Two Miami-based corporate entities – Angeluz Florida Corporation and Angeluz Miami, LLC – were charged with the same offenses.
“The Department of Justice is committed to fighting consumer fraud,” said Assistant Attorney General Delery. “Threats, misrepresentations and other predatory tactics used to rip off consumers will not be tolerated.”
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Ferrer. “In this case, the defendants are alleged to have targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division, Consumer Protection Branch, to protect our consumers from fraud.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten our citizens and defraud them of their hard earned money, no matter what country they are operating from,” said U.S. Postal Inspector in Charge Verrochio.
According to allegations in the indictment, the defendants’ employees in Peru, using Internet-based telephone calls, lied to Spanish-speaking victims in the U.S. about fines they owed and lawsuits that would be brought against the victims. Peruvian callers threatened the victims and falsely told each victim that he or she had wrongfully failed to receive a delivery of products. The callers went on to claim, again falsely, that the victims owed thousands of dollars in fines. In reality, the victims had never ordered these products and no attempts to deliver products to the victims had been made.
The indictment alleges that Luzula’s and Rodriguez Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation, forfeiture of property or harm to their credit scores. Although consumers typically objected that they did not order or refuse delivery of any products, thousands still agreed to pay the fees due to these threats. The indictment alleges that a phone room in Miami collected the fees.
Luzula and Rodriguez Cuya originally were charged by criminal complaint and arrested on Jan. 10, 2013. They have remained incarcerated since their arrests.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case is being prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch.Three Kansans Indicted for Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Kan., residents were indicted by a federal grand jury today for the armed robbery of an Excelsior Springs, Mo., bank.
Virginia Lynn Spencer, 28, her brother, Charles Ralph Spencer, 24, and Steven Dale Robinson, 22, all of Kansas City, Kan., were charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Virginia Spencer and Steven Robinson on May 27, 2014, and a federal criminal complaint that was filed against Charles Spencer on May 29, 2014. All three defendants remain detained in federal custody.
Virginia and Charles Spencer and Robinson are each charged in one count of aiding and abetting each other to steal $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014. Virginia and Charles Spencer are also charged together with one count of aiding and abetting each other to brandish a firearm during the robbery.
According to an affidavit filed in support of the original federal criminal complaint, Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer allegedly stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. They ordered bank employees to sit on the floor, the affidavit says, then Virginia Spencer dove on top of the middle lobby teller counter and began opening the tellers drawers in search of money. Spencer pulled herself over the counter and went behind the teller counter, the affidavit says, before jumping back over the counter while holding a bag.
Both robbers ran from the bank, according to the affidavit, with Virginia Spencer saying, “Have a nice day” on her way out.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. She saw Robinson sitting in the driver’s seat of a Grand Marquis that was backed in near the bank’s front doors at an angle, the affidavit says. The two robbers ran out of the bank’s front doors and got into the vehicle. The vehicle quickly left the Bank Midwest parking lot, narrowly missing the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. A pursuit followed, and the robbers’ vehicle crashed near Kings Highway and Dam Road in Liberty, Mo. Virginia Spencer and Robinson were arrested at the scene and Charles Spencer was hospitalized as a result of the crash.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.Tax Preparer Pleads Guilty to Stealing More Than $228,000Read the Press Release
LAREDO, Texas – Michelle A. Morin has entered a plea of guilty to aiding and assisting in the preparation of false and fraudulent income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (IRS-CI). Morin owned and operated Discount Tax Service, a Laredo-based tax preparation business, and has admitted to causing more than $228,000 in tax loss to the government.
Between tax years 2007 - 2010, Morin aided and assisted in the preparation of fraudulent returns by willfully placing false items on tax returns she prepared for clients knowing they were not entitled to claim them. Such claims included false Schedule A itemized deductions, false Schedule C business losses and false Form 5695 residential energy credits in addition to gifts to charity, job expenses and miscellaneous deductions. Morin also, in certain instances, improperly directed portions of taxpayer tax refunds into her personal bank account.
As part of her plea today, Morin admitted fraudulently claiming a false Schedule C loss in the amount of $83,184.00 for a non-existent online business on a on a taxpayer’s 2009 tax return. Morin also fraudulently reported $2,000 in residential energy credits that she knew the taxpayer was not entitled to claim. Subsequently, Morin improperly directed $2,000 of the false refund to her personal account.
U.S. Magistrate Judge Scott Hacker presided over the plea today. Sentencing will be set at a later date before U.S. District Judge George Kazen. At that time, Morin faces up to three years in federal prison and a possible $250,000 fine.
She was permitted to remain on bond pending that hearing.
This case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Sanjeev Bhasker.
Tax Preparer and Evader Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KENNETH ZITO, 51, of Wethersfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to three years of probation, the first 10 months of which ZITO must serve in home confinement, for evading the payment of taxes on more than $200,000 in income. ZITO also was ordered to pay a fine of $6,350 and to perform 300 hours of community service.
According to court documents and statements made in court, ZITO worked at Daniel Zito Financial Services, a South Windsor commercial financial services firm owned by ZITO’s father, where ZITO prepared tax returns for individuals and businesses. Although ZITO and his father worked together, they submitted client tax returns separately. Between 2007 and 2009, ZITO cashed checks he received from clients as payment for his services, but did not deposit the checks or declare them on his federal income tax return. As a result, ZITO did not report $219,759.32 in income during that three-year period, and failed to pay $59,621 in federal income tax.
Prior to his sentencing, ZITO paid $124,241 in back taxes, interest and penalties.
On March 18, 2014, ZITO pleaded guilty to one count of tax evasion.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney David J. Sheldon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Stamford Man Sentenced to Federal Prison for Running Fraudulent Computer Networking Parts SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for fraudulently obtaining hundreds of computer networking parts from Cisco Systems, Inc.
According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases “Alan Johnston” of Opex Solutions, “Kyle Booker” of KLB Networks, “Steve Jones” of SHO Networks, “Robert Johnson” of Adaptations, and “Paul Smith” of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich.
STANLAND sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective parts to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco. The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.
The investigation revealed that STANLAND spent some of the money he stole at various high-end restaurants in Fairfield County and New York.
STANLAND was ordered to make full restitution to Cisco.
On January 22, 2014, STANLAND waived his right to indictment and pleaded guilty to one count of mail fraud.
This case was investigated by the Federal Bureau of Investigation and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]South Laredo Trafficking Group IndictedRead the Press Release
LAREDO, Texas – A total of 24 alleged members of a cocaine, crack and marijuana trafficking group have been arrested and charged with multiple violations of federal law, announced United States Attorney Kenneth Magidson along with Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA). A 25th defendant was also taken into custody and charged by criminal complaint. The defendants are all residents of Laredo.
The indictment was returned under seal April 29, 2014, and unsealed upon the arrest of each defendant today. They are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga tomorrow.
According to the indictment, the drug trafficking organization was allegedly responsible for distributing cocaine, crack and marijuana throughout the Laredo area, maintaining a drug premises and utilizing minors to distribute the narcotics. The indictment alleges the conspiracy spanned from January 2012 through April 2014.
“DEA and our federal, state and local law enforcement partners are working together to have a positive impact at the local level,” said Arabit. “Together, we are taking these drug dealers off the streets and depriving them of the opportunity to further engage in criminal activity which has adversely affected the quality of life in this region. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer.”
Rafael Melendez aka “Chon,” 18, was charged in the criminal complaint with possession with intent to distribute cocaine.
Those charged in the indictment as part of the conspiracy and taken into custody today include:
Adan Melendez aka “12,” 38
Gerardo Melendez aka “Jerry,” 31
Rafael Andres Melendez aka “Lito,” 42
Mario Alberto Melendez, 34
Mario Alberto Gutierrez aka “Chito,” 38
Roberto Daniel Perez aka “Danny,” 36
Adan Melendez Jr. aka “Vivi,” 20
Jesus Rosendo Garcia-Melendez aka “Goldy,” 21
Juan Jose Melendez aka “Pelon,” 31
Maria Guadalupe Melendez aka “Wawi,” 39
Maria Del Rosario Melendez aka “Chayo,” 44
Manuel Hernandez aka “Lolo,” 19
Alejandro Reyes aka “Keiko,” 31
Rene Gabriel Gonzalez aka “Beast,” 46
Carlos Alberto Acosta aka “Pinni,” 36
Jorge Armando Perez, 34
Hertor Manuel Cavazos, 26
Pedro Omar Garza-Cadena, 31
Oscar Sanchez-Avila, 24
Arturo Garcia, 21
Luis Felipe Melendez aka “3,” 22
Julio Eduardo Almazan Jr., 22
Jose Juan Sosa, 19
Jesus Ramirez aka “Playboy,” 19The indictment remains sealed as to those charged but not as yet in custody.
If convicted of the conspiracy, they each face a minimum of five and up to 40 years in federal prison as well as a possible $5 million fine.
Adan Melendez and Hernandez are also charged with possession of a firearm in furtherance of a drug trafficking offense and face a potential sentence of up to life imprisonment, upon conviction.
The indictment also charges Adan Melendez, Rafael Andres Melendez and Roberto Perez with conspiracy to launder monetary instruments along with Mario Gutierrez and Sanchez-Avila who were also indicted for laundering monetary instruments. Each of those convictions carry a maximum 20-year sentence and a possible $500,000 fine.
Adan Melendez and Maria Guadalupe Melendez will further face a potential 20-year sentence and another $500,000 fine if convicted of maintaining a drug-involved premises.
The remaining counts charge multiple defendants with varying criminal violations, to include possession with intent to distribute cocaine, crack or marijuana, employment or use of persons under 18 years of age in drug operations and/or use of a communication facility in a controlled substance violation. Upon conviction, those charges carry varying terms of imprisonment, up to a maximum of 40 years in federal prison and fines up to $1 million.
The Organized Crime Drug Enforcement Task Force investigation was conducted by the Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Smith County Woman Guilty of Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A 44-year-old Whitehouse, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kristi Isom pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, in September 2011, Isom solicited an individual to intentionally set fire to and burn a residence on East FM 344 in Whitehouse, Texas. Isom admitted that she advised the individual of the general habits of the inhabitants of the home so that the individual could set the house on fire while it was unoccupied. After the residence was set on fire and burned, the owner of the residence filed a claim for insurance proceeds due to damage cause by the fire. Isom was listed as a co-owner on the insurance policy and admitted that she endorsed a check drawn on the account of “The Hartford Large Loss Organization” in the amount of $2,500. This check was one of several that were deposited, sent and delivered by mail. The total claim paid was $89,950. A federal grand jury returned an indictment on Dec. 18, 2013 charging Isom with federal violations.
Isom faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Texas Department of Public Safety, Criminal Investigation Division, the Smith County Sheriff’s Office, Smith County Fire Marshal, U.S. Postal Inspector’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Sioux Falls Man Sentenced on Tax ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Willful Failure to Collect or Pay Over Tax from October 1, 2007, through December 31, 2007, was sentenced on June 9, 2014, by U.S. District Judge Karen E. Schreier.
Jared Adrian, age 46, was sentenced to 11 months of imprisonment, 1 year of supervised release, restitution in the amount of $357,542.70, and a $100 special assessment to the Federal Crime Victims Fund.
Adrian was indicted by a federal grand jury on December 3, 2013, for 15 counts of Willful Failure to Collect or Pay Over Tax, and 5 counts of Willful Failure to File Tax Return. On March 19, 2014, he pled guilty to one count of Willful Failure to Collect or Pay Over Tax.
“The sentence today should serve as a lesson to anyone thinking of evading their tax obligations,” said U.S. Attorney Brendan Johnson. “Not only will Jared Adrian have to pay everything he owes, plus penalties and interest, but now he’s a convicted felon serving a prison term.”
As part of his plea agreement, Adrian admitted that he owned and operated Jared Adrian Sod. Between April 2006 and April 2010, he avoided paying employment taxes by referring to his workers as “independent contractors” or “contract laborers” when in reality they were functioning as employees. This practice resulted in him willfully failing to account for and pay over employment taxes totaling more than $115,000. Also, Adrian admitted that for each year from 2005 to 2009, he failed to file personal income tax returns with the IRS, despite earning income. He admitted that he owes income taxes of $242,051, exclusive of penalties and interest.
“In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said Kelly R. Jackson, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge. “Business owners, including Jared Adrian, have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the IRS. Assistant U.S. Attorneys Kevin Koliner and Ann Hoffman prosecuted the case.
Adrian is allowed to self-report to the U.S. Marshals Service no later than June 30, 2014.
Seven People from Knox and Adair Counties Indicted on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO –These seven people have been arrested on an indictment for their alleged participation in a methamphetamine conspiracy beginning as early as 2009 and continuing until 2013, in Knox and Adair Counties. They are expected to appear in federal court this week.
JONATHAN R. PREBE; JESSICA A. RUDD; and JERRY E. DAVIS, all of Edina, MO, were indicted on one felony count each of conspiracy to possess pseudoephedrine for the manufacture of methamphetamine and possession of pseudoephedrine for the manufacture of methamphetamine.
BILLY J. REARDON, Quincy, IL, SARAH S. BAKER, Brashear, MO, ASHLEY N. REARDON, Quincy, IL, and ANGEL RYAN, Woodstock, IL, were each indicted on one felony count of possession of pseudoephedrine for the manufacture of methamphetamine.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol’s Division of Drug & Crime Control - Narcotics/Vice Unit and the Knox and Adair County Sheriff’s Offices. Assistant United States Attorney John Mantovani is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
SORNA Offender Sentenced to 48 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — Joseph Higgins, 35, most recently of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 48 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Higgins was convicted in the Circuit Court for the State of Oregon for Union County in June 2000 of rape and sodomy and was sentenced to 75 months on each count, to run concurrently. He was also required to register as a sex offender, a requirement that he acknowledged when he was released from custody in May 2012. On November 9, 2012, Higgins registered as a sex offender with the LaGrande Police Department in Oregon.
In January 2012, Higgins moved to Texas. He failed to advise the State of Oregon of the move and he failed to register in Texas as a sex offender, as required by the Sex Offender Registration Notification Act (SORNA). The Wichita Falls Police Department issued an arrest warrant for Higgins on May 15, 2013, charging him with failing to comply with registration requirements, and he was arrested the following day.
Higgins admitted he knew he was a sex offender, and he knew of his duty to register. He admitted he had been convicted of raping a 13-year-old victim.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Wichita Falls Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Ringleader Pleads Guilty to Million Dollar Bank Fraud Conducted in California and Nevada CasinosRead the Press Release
United States Attorney Laura E. Duffy announced today that Ara Keshishyan pleaded guilty to leading and organizing a 14-defendant conspiracy to steal more than $1 million from Citibank using cash advance kiosks in a dozen casinos from Southern California to Las Vegas.
Keshishyan presided over a conspiracy to exploit a gap in Citibank’s electronic transaction security protocols in order to overdraw more than 20 Citibank accounts by tens of thousands of dollars each. The scheme worked as follows: Keshishyan recruited conspirators to open Citibank checking accounts that Keshishyan would fund with “seed” money that would form the basis for future fraudulent withdrawals. Keshishyan and his various conspirators then traveled to casinos in Southern California and Nevada, including the Morongo, Pechanga, San Manuel, Agua Caliente, Chukchansi, and Spa Resort casinos in California; the Tropicana, Wynn, Bicycle, and Whiskey Pete’s casinos in Las Vegas, Nevada; and Harrah’s in Laughlin, Nevada. Once inside the casino, Keshishyan instructed the conspirator how to conduct identical, fraudulent withdrawals at cash advance kiosks within a short time window in order to circumvent Citibank security protocols. Keshishyan’s technique exploited a glitch that allowed his conspirators to withdraw several times the amount of seed money deposited into the accounts. In one case, Keshishyan and one of the co-conspirators were able to withdraw 10 times the amount of money deposited into one of the accounts opened in furtherance of the fraud. The conspirators were careful to keep their deposits and withdrawals under $10,000 (typically between $9,000 and $10,000) in order to avoid federal transaction reporting requirements.
As part of his guilty plea today, Keshishyan admitted that, using these methods, he and his co-conspirators stole more than $1 million from Citibank between June 2009 and January 2010. Keshishyan further admitted that, as the organizer of the conspiracy, he personally took a cut of every fraudulent withdrawal that he directed.
United States Attorney Duffy said, “This is an example of a class of cyber-fraud that burdens our financial system and results in a higher cost of doing business for American consumers. Along with our agency partners, my office is committed to detecting and prosecuting these schemes in whatever form they take.”
FBI Special Agent in Charge Daphne Hearn commented, “While advancements in technology have created a world of accessibility to users and a convenience for consumers, they have also left room for cyber criminals to exploit even the smallest of loopholes. The FBI will continue to use our investigative expertise in cyber and financial crimes to pursue those who illegally abuse our financial system for their own personal gain.”
Keshishyan is the 13th defendant to plead guilty in the case. The lone remaining charged defendant is a fugitive. Several of Keshishyan’s codefendants have already been sentenced to prison time and have been ordered to pay restitution for their roles in the scheme. Keshishyan is scheduled to be sentenced by Judge Janis L. Sammartino on September 12, 2014 at 9:00 a.m. His guilty plea is subject to acceptance by Judge Sammartino.
DEFENDANT Case Number: Ara Keshishyan Age 31 Filmore, CA - Sentencing hearing set for September 12, 2014, before Judge Sammartino. Ara Harutyunyan Age 32 Glendale, CA- Sentence: imprisonment for 12 months and one day; supervised release for three years; restitution of $307,161
Artur Harutyunyan Age 26 Glendale, CA- Sentence: imprisonment for 12 months and one day; supervised release for three years; restitution of $307,161
Vahe Asatrian Age 31 North Hollywood, CA- Sentence: imprisonment for 12 months; supervised release for three years; restitution of $307,161
Sarkis Mooshidian Age 39 Burbank, CA- Sentence: probation for five years; restitution of $66,500
Levon Karamyan Age 60 FUGITIVEThe charges and allegations contained in the Indictment are merely accusations, and this defendant is considered innocent unless and until proven guilty.
Migran Yamalyan Age 32 Winnetka, CA- Sentencing hearing set for June 20, 2014, before Judge Sammartino
Seryozha Harutyunyan Age 61 Glendale, CA- Sentence: imprisonment for six months; supervised release for three years; restitution of $106,370
Lianna Avetisyan Age 26 North Hollywood, CA- Sentencing hearing set for August 22, 2014, before Judge Sammartino
Ashot Oganisyan Age 32 Mission Hills, CA- Sentencing hearing set for June 27, 2014, before Judge Sammartino.
Ovsep Sarafyan Age 35 North Hollywood, CA- Sentence: imprisonment for one month; home detention for seven months; supervised release for three years; restitution of $85,924
Daniel J. Thomas Age 58 Huntington Beach, CA- Sentence: probation for five years; restitution of $65,260
Hilda Hakverdyan Age 55 Glendale, CA- Sentence: probation for five years; restitution of $105,960
Asatur Asatryan Age 35 Pasadena, CA- Sentencing hearing set for August 15, 2014, before Judge Sammartino
CHARGESConspiracy to Commit Bank Fraud – Title 18, U.S.C., Section 371 (all defendants)
INVESTIGATING AGENCY
Maximum penalty: five years’ imprisonment and $250,000 fineFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Pinellas Man Found Guilty of Attempted Use of Weapon of Mass DestructionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Sami Osmakac (27, Pinellas Park) guilty of attempted use of weapons of mass destruction and possession of a fully automatic firearm. Osmakac faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for October 7, 2014.
“The jury’s verdict in this case represents another victory in our fight against terrorism, which remains our top priority,” said U.S. Attorney A. Lee Bentley, III. “Our success here is due in part to assistance from the Muslim community, which brought the defendant’s extremist views to the attention of law enforcement.”
Osmakac was indicted on February 2, 2012.
According to testimony and evidence presented at trial, on January 7, 2012, Osmakac attempted to use weapons of mass destruction, including a car bomb, grenades, and a suicide explosive, at two locations in the Tampa Bay area. Specifically, his intended targets were MacDinton’s Irish Pub, in the South Howard area of Tampa, and the Hard Rock Casino, in Tampa. Additionally, on January 7, 2012, Osmakac possessed a machinegun without the firearm being registered to him on the National Firearm Registration and Transfer Record.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney and Trial Attorney Clement McGovern from the National Security Division at the Department of Justice.
Peach Springs Man Sentenced to 19.5 Years in Prison for Aggravated Sexual AbuseRead the Press Release
PHOENIX – On June 9, 2014, Raphael James Kaska, 54, of Peach Springs, Ariz., a member of the Yavapai-Apache Nation, was sentenced by U.S. District Judge G. Murray Snow to 235 months in prison, followed by a term of lifetime supervised release. Kaska pleaded guilty to aggravated sexual abuse.
According to the plea agreement, in February 2012, Kaska used force to engage in a sexual act with the minor victim. The offense happened on the Hualapai Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8141-PCT-GMS
RELEASE NUMBER: 2014-034_KaskaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Parker Man Sentenced to Federal Prisonfor Abusive Sexual Contact with A MinorRead the Press Release
PHOENIX – On June 9, 2014, Roberto Aguilar-Ramirez, 52, of Parker, Ariz., was sentenced by U.S. District Judge Roslyn O. Silver to 168 months in prison, followed by a term of lifetime supervised release. Aguilar-Ramirez pleaded guilty to abusive sexual contact with a minor.
According to the plea agreement, on or between September 2007 and November 2009, Aguilar-Ramirez, a foster father, had engaged in sexual contact with the minor victim, who was a member of the Colorado River Indian Tribes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0922-PHX-ROS
RELEASE NUMBER: 2012-033_ Aguilar-RamirezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Oxford Man Pleads Guilty to Filing A FalseTax Return & Role in Conspiracy to File False Tax ReturnsRead the Press Release
Randal Bellestri of Oxford, Michigan, owner of Odyssey, Inc. a Lake Orion, MI corporation, pleaded guilty yesterday to one count each of filing false tax returns and conspiring to file false tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Bellestri, 57, entered the guilty plea before U.S. District Judge Arthur J. Tarnow.
According to court records, Odyssey, Inc. produces machine tools for the aviation industry. Beginning in 2000 and continuing until about 2009, Bellestri had an agreement with an employee at Odyssey regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Bellestri authorized the employee to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Bellestri and the employee. By accepting only cash for the sale of the scrap, Bellestri was able to conceal the receipt of the cash from Odyssey, Inc. as well as the Internal Revenue Service. Bellestri did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Bellestri’s failure to report these cash proceeds for the 2005 through 2008 tax years caused his income to be understated by approximately $2,155,000.
“Every American has a duty to pay their fair share of taxes. IRS-Criminal Investigation will continue to direct its efforts at those individuals who willfully and intentionally violate this known legal duty,” said Acting Special Agent in Charge Carolyn Weber.
Bellestri’s sentencing is set for September 16, 2014. The conspiracy charge carries a maximum term of imprisonment of five years and/or a fine of $250,000. The filing a false tax return charge carries a maximum term of imprisonment of three years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.
Ohio Man Indicted on Heroin Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorWHEELING, WEST VIRGINIA – An Ohio man has been indicted on charges of distributing heroin in Marshall County, according to United States Attorney William J. Ihlenfeld, II.
Lionel Jacquel “Kilo” HOLLINGSWORTH, 25 year old, of Marietta, OH, has been charged with two counts of “Distribution of Heroin”, one count of “Interstate Travel in Aid to a Racketeering Enterprise” and one count of “Use of a Telephone to Facilitate the Distribution of Heroin.”
HOLLINGSWORTH is alleged to have sold heroin in Moundsville, W. Va. on two occasions in November and December of 2013 to a confidential informant. He faces up to 20 years in prison for each distribution charge, up to 5 years in prison on the racketeering charge and up to 4 years in prison on the telephone count.
This case is being investigated by the Marshall County Drug Task Force, which includes officers and agents from the Glen Dale Police Department, the Marshall County Sheriff’s Department, the Moundsville Police Department, and the U.S. Drug Enforcement Administration.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nigerian Man Admits Role in Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian man today admitted his role in a computer hacking and identity theft scheme that defrauded vendors of nearly $1 million of office products after “phishing” e-mail login information from government employees, New Jersey U.S. Attorney Paul J. Fishman announced.
Abiodun Adejohn, a/k/a “James Williams,” a/k/a “Olawale Adeyemi,” a/k/a “Abiodun Ade John,” a/k/a “Abiodun Ade-John,” 30, of Nigeria, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of wire fraud conspiracy.
According to documents filed in this case and statements made in court: The scheme employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency (EPA). Employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Adejohn and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, in the employees’ names from vendors who were authorized to do business with U.S. government agencies. Adejohn and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to overseas locations controlled by Adejohn and his conspirators. Once the orders were received in Nigeria, Adejohn and his conspirators sold the toner cartridges to another individual on the black market for profit.
Adejohn was arrested in Arizona on Sept. 24, 2013, and has been detained since his arrest.
The wire fraud conspiracy to which Adejohn pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.
U.S. Attorney Fishman credited special agents of the EPA Office of Inspector General (OIG), under the direction of Special Agent in Charge Thomas Muskett; General Services Administration OIG, under the direction of Special Agent in Charge Paul Walton; Department of Commerce OIG, under the direction of Todd J. Zinser; Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen, of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-210Defense counsel: John Yauch Esq., Assistant Federal Public Defender
Adejohn, Abiodun Information
Newark, N.J., Man Pleads Guilty to Multiple CarjackingsRead the Press Release
NEWARK, N.J. - A Newark man today admitted his role in three gunpoint carjackings and an attempted carjacking within a one-week period and to firing his gun during one of the robberies, U.S. Attorney Paul J. Fishman announced.
Corey Thermitus, 22, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime.
According to documents filed in this case and statements made in court:
On Dec. 21, 2012, Thermitus was a passenger in a car that had stopped on a street in the Ironbound section of Newark. Thermitus and several other men exited the car and approached two people standing next to a Toyota Corolla that had just parked. Thermitus brandished a gun at the victims, while another man searched the victims and took the keys to the Toyota Corolla. Once the men had the keys, Thermitus and the other men fled the scene in both vehicles.
He also admitted that on Dec. 26, 2012, he and another man were in the area of 6th Avenue and N. 9th Street in Newark, when they approached a Nissan Altima. Thermitus approached the passenger side of the vehicle, where one of the victims was seated, and attempted to open the door, but the victim resisted and attempted to hold the door closed. Thermitus then told an accomplice to shoot a second victim who was standing next to the car. In response, both victims stepped away from the Nissan Altima and the other man fled the area in the vehicle.
Thermitus admitted that on Dec. 28, 2012, he took a Honda Accord at gunpoint from a victim who was seated in the car in the driveway of a Newark residence. Once the victim got out of the car, Thermitus and two other men fled the area in the Honda Accord. Approximately one hour later, the three men traveled to Midland Place in Newark in the carjacked Accord, where he and one of the other men attempted to carjack a Nissan Pathfinder at gunpoint. Thermitus and another man approached the Nissan Pathfinder while one of the victims in the vehicle was parking it in the garage of a residence. Thermitus pointed a gun at the victim and demanded the victim get out of the vehicle. The victim resisted and drove down the driveway and down the street to escape the carjacking attempt. Moments later, the victim returned to the residence to find Thermitus and the other two men attempting to escape in the carjacked Honda Accord. When another person came outside of one of the residences on the street to check on the commotion, Thermitus fired a shot at the person. The three men fled the scene in the carjacked Honda Accord. No one was injured in the attack.
Each carjacking and attempted carjacking charge carries a maximum potential penalty of 15 years in prison. The discharge of a firearm in furtherance of a violent crime charge carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison, which must be consecutive to any term imposed on the underlying carjacking offenses. Each charge carries a statutory maximum fine equal to the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense. Thermitus must also pay restitution to the carjacking victims. Sentencing is scheduled for Sept. 10, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Sheilah A. Coley and Chief Ivonne Roman, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the
Organized Crimes/Gangs Unit in Newark.14-209
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Thermitus, Corey Information
Newark Man Admits Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark, N.J., man today admitted committing six armed robberies of Newark convenience stores – including the same grocery store twice within a week, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 27, of Newark, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with six counts of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
From June 30, 2012, through Sept. 15, 2012, McRae entered convenience stores in Newark on six different occasions and robbed the store clerks at gunpoint. During the Sept. 15, 2012, robbery he discharged one round from a handgun as he exited the store. He was apprehended by the Newark Police Department later that morning.
Each of the Hobbs Act robbery charges carries a maximum sentence of up to 20 years in prison and a fine of up to $250,000. The charge of discharging a firearm in furtherance of a crime of violence carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine up to $250,000. The sentence on the discharging of the firearm will run consecutively to the sentence for the six robberies. Sentencing is scheduled for Sept. 15, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Newark Police Department for their contribution to the investigation.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
McRae, Larry Information
New York Man Charged with Selling Illegal Dietary Supplements OnlineRead the Press Release
ATLANTA - Chenhsin Chan, a/k/a Paul Chan has been arraigned on federal charges of mail fraud, the introduction into interstate commerce of adulterated food, the knowing distribution of a listed chemical, and money laundering.
“Chan is charged with marketing and selling dietary supplements that he knew contained ephedrine which the FDA has determined creates unreasonable risks when used for dieting,” said United States Attorney Sally Quillian Yates. “By putting those unsafe products on the market, he put his customers at risk of illness. Public safety is our priority. We will protect our citizens and the marketplace through criminal prosecution, if necessary.”
According to United States Attorney Yates, the charges, and other information presented in court: Chenhsin Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com.
From at least July 2005 through August 2012, Chan allegedly marketed and sold dietary supplements on his websites that contained ephedrine alkaloids. In April 2004, the United States Food and Drug Administration (“FDA”) published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated food because they present an unreasonable risk of illness or injury. Chan was allegedly warned by FDA investigators in June 2005 that it was illegal to sell dietary supplements containing ephedrine, but he continued to do so.
Chan’s websites allegedly made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.” These false claims were allegedly designed to lure customers into believing that it was legal to purchase dietary supplements containing ephedrine, when it was not. During the period of the scheme, Chan allegedly sold over $4.3 million in dietary supplements that were adulterated with ephedrine, including to customers in the Northern District of Georgia.
Chan is also charged with money laundering for using proceeds from the alleged mail fraud scheme to purchase real property in New York for over $1 million in cash and a 2012 Mercedes Benz for over $50,000 in cash. The indictment seeks criminal forfeiture of, among other things, the same real property and Mercedes Benz, as well as a 2005 Lamborghini Gallardo and over $666,000 in cash.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Food and Drug Administration Office of Criminal Investigations.
Assistant United States Attorneys Steven D. Grimberg and Michael J. Brown 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/.
Monroe Man Sentenced to Almost 4 Years on Federal Drug ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Paul
Ford, 33, of Monroe, Maine, was sentenced yesterday in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 46 months in prison and 5 years of supervised release for conspiracy to manufacture marijuana and manufacturing marijuana. Ford pleaded guilty to the offenses on
May 7, 2013.According to court records, from approximately 2006 until November of 2011, the defendant and other family members operated a large and sophisticated indoor marijuana growing operation out of the defendant’s parents’ home in Monroe, Maine. The defendant also operated a separate indoor marijuana growing operation at his residence in Swanville, Maine.
The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of
Alcohol Tobacco and Firearms, the Waldo County Sheriff’s Office and the Maine State Police.Mercer County, N.J., Woman Admits Paying Bribes and Engaging in FraudRead the Press Release
TRENTON, N.J. – A Mercer County, N.J., woman today admitted paying bribes to a former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Donna Doremus, 46, of Hopewell, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper in Trenton federal court to three counts of a four-count information charging her with one count of bribing a public official, one count of conspiracy to defraud the United States and two counts of making and subscribing to false federal tax returns.
According to documents filed in this case and statements made in court:
The bribes were paid in connection with VA contracts awarded to companies Doremus owned. She also admitted to a conspiracy to defraud the United States by falsely representing that one of her companies was owned and controlled by a service-disabled veteran.
From 2007 to July 2012, Doremus paid approximately $671,000 in bribes to a former VA official, Jarod Machinga, 44, also of Hopewell, in connection with VA contracts awarded to three companies she owned and controlled. In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga directed more than $6 million of VA construction projects to Doremus’ companies.
One of Doremus’s companies, Tyro General Construction (Tyro), entered into a service-disabled, veteran-owned small business contract with the VA. Congress has established a program whereby certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. Doremus conspired with Machinga to falsely represent to the VA that Tyro was a service-disabled, veteran-owned small business so that Tyro could improperly obtain a lucrative construction contract from the VA. Machinga then used his official position and influence at the VA to award such a contract to Tyro. In total, Tyro was paid more than $3 million by the VA in connection with this service-disabled veteran-owned contract.
Doremus also engaged in a tax crime. For tax years 2009 and 2010, she intentionally falsely reported on her federal tax returns that certain of the bribe payments she made to Machinga, as well as certain of her personal expenditures, were her companies’ business expenses. As a result, she failed to pay $250,374 in federal income taxes that she owed the IRS.
On Sept.18, 2013, Machinga pleaded guilty before Judge Cooper in connection with his accepting kickbacks from Doremus and engaging in a scheme to defraud the VA. He is awaiting sentencing.
The bribery count to which Doremus pleaded guilty carries a maximum potential penalty of 15 years in prison and a fine of the greater of $250,000; twice the gross pecuniary loss or gain; or three times the value of the bribe paid. The conspiracy to defraud the United States count to which Doremus pleaded guilty carries a maximum potential penalty of five years in prison and a fine equal to the greatest of $250,000 or twice the pecuniary gain or loss. The false tax return count to which Doremus pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 22, 2014.
U.S. Attorney Fishman praised special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their work leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
14-208Defense counsel: Michael A. Caudo Esq., Philadelphia, Pa.
Doremus, Donna Information
Manhattan U.S. Attorney Announces Arrest of Reality Television Cast Member for Failing to Pay over $1 Million in Child SupportRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General (“HHS-OIG”), announced the unsealing of a criminal Complaint against STEVEN JORDAN, a/k/a “Stevie Jordan,” a/k/a “Stevie J,” a cast member on a reality television show, for failing to pay over $1 million in child support obligations with respect to two children. JORDAN was arrested last night at his residence in Atlanta and is expected to be presented today in federal court in the Northern District of Georgia.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Steven Jordan failed to pay over $1 million in child support even while earning substantial income from his participation in a reality television show. By choosing to use the money for himself, rather than to pay his child support obligations, Jordan not only violated court orders, but committed a federal crime for which he will now be held responsible.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “When individuals conduct themselves the way Steven Jordan is alleged to have done, it is an insult to those parents who struggle each day to fulfill their financial responsibilities to their children. The investigation of such offenses will continue by this office not only to hold accountable those parents who refuse to pay child support obligations, but to deter parents who may consider dodging their obligations in the future.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Beginning in or about 1999, pursuant to an order of the New York County Family Court, STEVEN JORDAN was required to pay a minimum of $6,608 per month in child support for his two children. JORDAN’s child support obligation was increased in 2011 to a total of $8,557 per month. JORDAN has failed to pay over $1,107,412 in child support.
During the period in which JORDAN failed to satisfy his child support obligations, JORDAN was generating substantial income. Beginning in or about October 2012, for example, JORDAN became employed as a cast member on a reality television show for which he was paid approximately $27,000 per month. From January 2013 through August 2013, JORDAN received at least $193,000 for his work on the reality television show. Yet, during that same period, JORDAN did not make a single voluntary child support payment, and had a total of just $18,566 garnished and applied towards his child support obligations. From 2003 through 2013, JORDAN also received approximately $105,000 in royalties from a company that pays royalties to musicians.
JORDAN, 40, of Atlanta, Georgia, is charged with one count of failing to pay child support, which carries a maximum sentence of two years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of HHS-OIG for their assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew DeFilippis 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. Steven Jordan Complaint 14 Mag 1209
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Daniel Ariza-Garcia, to 10 years in federal prison, followed by 5 years of supervised release. Mr. Ariza-Garcia pled guilty to conspiracy to distribute methamphetamine on February 25, 2014. Ariza-Garcia had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska areas for several months. After his arrest, a search of Ariza-Garcia’s apartment uncovered nearly $40,000.00 in cash and 9.6 pounds of methamphetamine. Ariza-Garcia is expected to be deported to his native Mexico after serving his prison sentence. This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Man Sentenced to 16 Months for Social Security FraudRead the Press Release
Ronnie Lee Johnson, a/k/a "Ronnie Lee Durham," and "Ronnie Paul Johnson," 51, of Alexandria, Virginia and formerly of Feasterville, Pennsylvania, was sentenced today to 16 months in prison, announced United States Attorney Zane David Memeger. The defendant previously pled guilty to five counts of Social Security Fraud in connection with his use of a stolen Social Security number and date of birth. The defendant, who stole the victim’s Social Security number while working as a Database Administrator in the Eastern District of Pennsylvania, used the stolen Social Security number and date of birth to open bank accounts, obtain a debit card, and obtain employment. The defendant also obtained four driver’s licenses over a period of approximately three years in four different states, and also obtained two passports by altering his appearance and applying for one under the name Ronnie Johnson, and the other under the name Ronnie Durham.
In addition to the 16 month prison sentence, the defendant was ordered to pay a $3,000 fine, and to serve 3 years of supervised release following his prison term.
The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department; and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.Release.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Linneus Man Sentenced to 10 Years for Child Pornography PossessionRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ronald
H. Trecartin, 31, of Linneus, Maine, was sentenced yesterday in U.S. District Court in Bangor to 10 years in prison and 20 years of supervised release for possession of child pornography. He pled guilty on November 6, 2013.According to court records, in May 2012, a law enforcement agent learned that videos containing child pornography were being shared over a file sharing network from a computer located at Trecartin’s residence in Linneus. On September 26, 2012, agents executed a search warrant at the residence and seized two laptop computers and other media and electronic devices belonging to Trecartin. A forensic examination of the items seized revealed that three contained child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.League City Registered Sex Offender Gets Significant Sentence for Multiple Child Pornography ConvictionsRead the Press Release
GALVESTON, Texas – Donald Post, of League City, 69, has been ordered to prison for 40 years following his convictions of production and distribution of child pornography involving a four-year-old minor female as well as possession of child pornography, announced United States Attorney Kenneth Magidson. Post pleaded guilty March 5, 2014.
Today, U.S. Circuit Judge Gregg Costa sitting in designation, handed Post a sentence of 480 months for each of the distribution and production charges as well as 240 months for possession of child pornography. The sentences will be served concurrently for a total 40-year federal sentence.
Post was arrested Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
Post has admitted to photographing a four-year-old female victim in lewd and lascivious poses and then distributing these images via the Internet. He also authored a document that chronicled his activities with this victim. The account of the incident is incredibly graphic and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
Post will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Urges U.S. Sentencing Commission to Make Certain Individuals Incarcerated for Drug Offenses Retroactively Eligible for Reduced SentencesRead the Press Release
WASHINGTON—Attorney General Eric Holder announced Tuesday that the Justice Department would formally support a proposal under consideration by the U.S. Sentencing Commission to allow certain individuals serving time in federal prison for nonviolent drug offenses to be eligible for reduced sentences.
The Commission—which sets the guidelines for sentences imposed on federal criminal defendants—approved a proposal in April to lower, by two levels, the base offense associated with various drug quantities involved in drug trafficking crimes. Next month, the Commission will vote on whether the change, which is estimated to reduce the average sentence by 23 months, should be applied retroactively to individuals who are already in prison.
The department is proposing that the Commission make the revised guidelines retroactive for individuals who lack significant criminal histories and whose offenses did not include aggravating factors, such as the possession of a dangerous weapon or the use of violence. This approach is consistent with the department’s overall criminal justice reform efforts, which seek to reserve the harshest penalties for the most serious criminals who pose the greatest threat to public safety.
“Under the department’s proposal, if your offense was nonviolent, did not involve a weapon, and you do not have a significant criminal history, then you would be eligible to apply for a reduced sentence in accordance with the new rules approved by the Commission in April,” Holder said. “Not everyone in prison for a drug-related offense would be eligible. Nor would everyone who is eligible be guaranteed a reduced sentence. But this proposal strikes the best balance between protecting public safety and addressing the overcrowding of our prison system that has been exacerbated by unnecessarily long sentences.”The department’s position in favor of applying the revised guidelines retrospectively in some cases was conveyed Tuesday during a formal hearing of the Commission. Sally Yates, the U.S. Attorney for the Northern District of Georgia, and Bureau of Prisons Director Charles Samuels testified on behalf of the department.
“We believe that the federal drug sentencing structure in place before the amendment resulted in unnecessarily long sentences for some offenders that has resulted in significant prison overcrowding, and that imprisonment terms for those sentenced pursuant to the old guideline should be moderated to the extent possible consistent with other policy considerations,” Yates said. Under the plan supported by the department, Yates added, “retroactivity would be available to a class of non-violent offenders who have limited criminal history and did not possess or use a weapon, and thus will apply only to the category of drug offender who warrants a less severe sentence and who also poses the least risk of reoffending.”
The department’s proposal calls for retroactivity to be applied to defendants in Criminal History Categories I and II who did not receive (1) a mandatory minimum sentence for a firearms offense pursuant to 18 U.S.C. § 924(c); (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1. (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1.Jefferson County Man Guilty of Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 44-year-old Port Arthur, Texas man has pleaded guilty to federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., pleaded guilty to tax evasion today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, for the calendar year 2009, Victor failed to disclose all of his taxable income resulting in a tax loss of approximately $25,935.58. Victor was indicted by a federal grand jury on Apr. 2, 2014.
Victor faces up to 5 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Illinois State Rep. Derrick Smith Convicted of Taking $7,000 BribeRead the Press Release
CHICAGO — Illinois State Rep. DERRICK SMITH (10th District) was convicted today on federal corruption charges for accepting a $7,000 cash bribe in March 2012 to write an official letter of support for a daycare center that he believed was seeking a state grant as part of an undercover investigation. Smith was found guilty by a jury that began deliberating Monday afternoon following a trial that began on May 28.
Smith, 50, of Chicago, was convicted of one count each of bribery and attempted extortion. No sentencing date was immediately set. A status hearing was set for Sept. 23 before U.S. District Judge Sharon Johnson Coleman. Bribery carries a maximum sentence of 10 years in prison and attempted extortion carries a maximum of 20 years, and both counts carry a $250,000 maximum fine. The court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence at trial, a confidential source identified as “Pete,” who worked on Smith's political campaigns and who, unbeknownst to Smith, was cooperating with the FBI, had numerous conversations with Smith about helping a fictional daycare owner obtain a purported state grant in exchange for a cash bribe. On March 2, 2012, Smith provided “Pete” with an official letter of support for the daycare owner to obtain a $50,000 Early Childhood Construction Grant from the state’s Capital Development Board. In return, during a recorded meeting on March 10, 2012, “Pete” gave Smith $7,000 cash, purportedly from the fictional daycare owner.
In March 2011, Smith was appointed state representative for the 10th District, which covers portions of Chicago=s near west and near northwest sides. He was campaigning for his General Assembly seat in the March 20, 2012, primary election when he was arrested on March 13, 2012. Despite being impeached, he was elected to his seat in November 2012 while the charges were pending, but he became a lame duck this past February when he lost his primary bid for re-election.
Trial evidence showed that “Pete” approached the agents in December 2011 and said that that Smith was willing to trade political and non-political favors for money. During multiple recorded in-person meetings and telephone calls beginning Jan. 24, 2012, Smith agreed to write a letter of support for the purported grant application in exchange for a $7,000 bribe. On Jan. 26, 2012, Smith and “Pete” toured the daycare facility and Smith was given information about its purported expansion plans.
Throughout February 2012, Smith and “Pete” had multiple conversations in which “Pete” told Smith that the daycare was applying for an Early Childhood Construction Grant. During those recorded conversations, Smith agreed to provide a letter of support in exchange for the daycare owner’s payment of $7,000. In late February 2012, Smith directed “Pete” to have the daycare owner draft a letter for Smith to sign, and law enforcement sent a draft letter of support to Smith’s office via email. On March 2, 2012, “Pete” retrieved the letter, which was signed by Smith on his official letterhead and was addressed to the Illinois Capital Development Board.
During early March 2012, Smith told “Pete” that he wanted payment from the daycare owner, and Smith rejected payment by cashier’s check because he did not want any trace of the money. Smith told “Pete” that he wanted the $7,000 in cash, and agreed to give “Pete” $2,000 for arranging the deal. On March 10, 2012, “Pete” met with Smith in Smith’s vehicle and “Pete” counted out the $7,000 ― all in $100 bills ― for Smith during their recorded meeting.
Smith did not report receipt of the cash on his Illinois campaign finance reports. After he was arrested, Smith admitted to agents that he had accepted $7,000 in exchange for the letter of support and, accompanied by agents, he retrieved $2,500 from beneath a chest at the foot of his bed at his home and returned that money to the agents.
The verdict was 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 government is being represented by Assistant U.S. Attorneys Marsha A. McClellan and Michael T. Donovan.
INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHSRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice INTERPOL Washington FOR IMMEDIATE RELEASE Tuesday, June 10, 2014INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHS
WASHINGTON - During the week of May 26th, INTERPOL President Mireille Ballestrazzi visited the U.S. where she conducted several meetings with high ranking U.S. law enforcement officials. One of the highlights of Mrs. Ballestrazzi's visit was her meeting with DHS Secretary Jeh Johnson that took place on Tuesday, May 27th. In attendance at their meeting was INTERPOL Vice President of the Americas Region Alan Bersin, INTERPOL Washington Director Shawn A. Bray, and members of Mr. Johnson's cabinet. They discussed ideas and opportunities for continued collaboration between INTERPOL and the U.S. Department of Homeland Security. Mrs. Ballestrazzi is the first-ever elected female to hold the position of INTERPOL President. Along with her title of INTERPOL President, she also serves as the Central Director of the French Judicial Police.
ICE Investigation Leads to Indictment of Crescent Man on Child Porn ChargesRead the Press Release
PITTSBURGH - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment named Mark A. Chasey, 49, of Crescent, Pa., as the sole defendant.
According to the indictment, on or about Nov. 2, 2012, Nov. 4, 2012, and Nov. 5, 2012, Chasey knowingly received visual depictions of minors engaged in sexually explicit conduct by computer. The indictment further alleges that from in and around November of 2012, and continuing until in and around October of 2013, Chasey knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 70 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The United States Department of Homeland Security Investigations, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gwinnett College Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney's Office for the Northern District of Georgia has reached a settlement agreement with Gwinnett College to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by not allowing an individual who has HIV to fully participate in its programs and classes.
“Despite years of education regarding HIV and AIDS, many people still encounter discrimination based on the stigma of this disability,” said United States Attorney Sally Quillian Yates. “Our office will continue to devote resources to fight injustices for people with HIV.”The settlement resolves allegations arising from a complaint filed with the United States Attorney's Office that Gwinnett College would not allow an individual with HIV to participate in its Medical Assistant Program.
The Complainant applied for admission as a student in the Medical Assistant Program at Gwinnett College. As part of the enrollment process, Gwinnett College was informed that the Complainant has HIV. The College accepted the Complainant into the Program, and the Complainant successfully completed one quarter of courses. Only then did Gwinnett College tell the Complainant she could not continue in the program’s Medical Assistant Program because she was a safety risk to others. As a result of being forced from the Program of her choosing, the Complainant left Gwinnett College. Gwinnett College fully cooperated with the United States Attorney's Office to resolve the complaint.
Gwinnett College has agreed to make changes to its enrollment process, including removing questions related to HIV/AIDS on its application. The College has also agreed to draft new policies and procedures indicating that it does not discriminate against applicants or students on the basis of disability, including HIV. Based on the Agreement, Gwinnett College will conduct ADA training for all its employees, with a focus on HIV‑related discrimination. The College has also agreed to pay $23,000 to repay a portion of Complainant’s student loans, and compensate her for emotional distress, pain and suffering.
Title III of the ADA prohibits places of public accommodations, such as Gwinnett College, from excluding people with disabilities, including people with HIV, from participating in or benefitting from the goods, services, facilities, privileges, advantages, or accommodations.
Assistant United States Attorney Aileen Bell Hughes represented the United States in this matter.
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/.Greenville Man Receives More Than 19-year Prison Term in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced MICHAEL ANTHONY COWARD, 28, of Greenville, North Carolina, to 235 months imprisonment followed by 20 years supervised release. The court also imposed a $5,000 fine.
On May 15, 2013, a Federal Grand Jury returned a Criminal Indictment charging COWARD. On February 10, 2014, COWARD pled guilty to distributing child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2).
According to the investigation, in late September, 2011, law enforcement initiated an investigation after an undercover agent identified a computer advertising to share what was suspected to be files of child pornography through a peer-to-peer sharing program. In October, 2011, the undercover agent downloaded 105 still images and 15 videos containing child pornography from the identified computer. Using the Internet Protocol (IP) address, the subscriber was identified and a search warrant was obtained and executed at COWARD’s residence. Forensic examination of the computer belonging to COWARD revealed that 31,531 images of child pornography had been received and stored on the computer.
Additionally, COWARD has been convicted in state court for Second Degree Sexual Exploitation of a Minor and Indecent Liberties with a Child in December, 2012.
The criminal investigation of this case was conducted by the Greenville Police Department, the Pitt County Sheriff’s Office and ICAC Unit of the NCSBI. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Grandson of Naval Historian Charged with Stealing Historical Records Relating to His GrandfatherRead the Press Release
Baltimore, Maryland - A criminal complaint was filed late yesterday under seal charging Samuel L. Morison, age 69, of Crofton, Maryland, with theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison. Morison was arrested today. The complaint was unsealed at his initial appearance held earlier today in U.S. District Court in Baltimore. Morison was released under the supervision of U.S. Pretrial Services. One of the conditions of his release is that he is prohibited from visiting libraries and archives without prior court approval.
According to the affidavit filed in support of the criminal complaint, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop and sell them using eBay. On May 12, 2014, special agents assigned to the Archival Recovery Team (ART) with the National Archives and Records Administration reviewed the historical records being offered for sale through eBay. The records were determined to belong to the Naval History and Heritage Command, Operation Archives Branch, Naval Historical Center (Navy Archives), and to be the property of the U.S. government.
The affidavit alleges that on May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Navy Archives from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.” Morison was never given authority to remove the records from the Navy Archives.
Morison faces a maximum sentence of 10 years in prison for theft of government property.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised NCIS and NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.
Four Springfield-area Men Indicted for Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Springfield, Mo., area men were indicted by a federal grand jury today for stealing 21 handguns from an Ozark, Mo., pawn shop.
Daryl Bradley Maples, 27, Corey Lynn Downard, 32, and Matthew James Oakley, 23, all of Springfield, Mo., and Michael Cameron Heston, 25, of Republic, Mo., were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Maples, Downard, Heston and Oakley aided and abetted each other to illegally enter Sutton Gun and Pawn, a licensed firearms dealer located at 3994 N. 20th St., Ozark, Mo., and steal 21 handguns on Dec. 21, 2012.
Maples is also charged with being a felon in possession of firearms and ammunition. The indictment alleges that Maples, having been convicted of a felony crime, was in possession of an F.N. 9 mm pistol, a Colt Canada .38-caliber revolver and assorted ammunition on Dec. 26, 2012. Maples is also charged with selling two stolen firearms – a Rossi .38-caliber revolver and a Smith & Wesson .357-caliber revolver – on Dec. 21, 2012.
Downard is also charged with being a felon in possession of firearms. The indictment alleges that Downard, having been convicted of a felony crime, was in possession of two Beretta .40-caliber pistols on Dec. 21, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.Four Sentenced in Dillon-Based Prescription Drug RingRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Tracey Lee Rowell, age 41, of Latta, Bobby Lee Scott, age 29, of Dillon, Denise Locklear, 35, of Latta, and Lakisha Marie Clark, age 28, of Dillon, were sentenced today in federal court in Columbia, South Carolina, for participating in a Conspiracy to Distribute Oxycodone, a violation of 21 U.S.C. § 846. Chief United States District Judge Terry L. Wooten of Columbia sentenced Rowell, the ringleader, to twenty years imprisonment; Scott to seventy months imprisonment; Locklear to 37 months imprisonment; and Clark to two years imprisonment.
Evidence presented at the change of plea hearing established that Rowell was the leader of a prescription forgery ring. The drug of choice was Roxicodone, a brand name for Oxycodone, which is a highly addictive painkiller. Rowell provided forged prescriptions to co-conspirators, who then had the prescriptions filled in pharmacies in South and North Carolina. They would then provide the pills to Rowell, who used some and sold the rest. Rowell also shared some of the pills with others in the conspiracy for their personal use. The typical prescription was for 120 pills; the total conspiracy involved almost 42,000. Each tablet had a street value of $20 to $25.
The case was investigated by the newly formed Tactical Diversion Squad of the Drug Enforcement Administration. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.#####
Former Teller Pleads Guilty to Embezzling from Lawrence Credit UnionRead the Press Release
TOPEKA, KAN. – A former teller with a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $81,000, U.S. Attorney Barry Grissom said.
Christi Marie Hout, 38, Lawrence, Kan., pleaded guilty to one count of theft of credit union funds. In her plea, she admitted the crime occurred while she was a teller with Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She wrote checks on her personal account, and her husband’s business account, and made ATM debits when there were insufficient funds in the accounts to cover the transactions. She used credit union funds to pay personal expenses and she knew that the credit union manager was covering up the thefts.
Sentencing will be set at a later time. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000.
Co-defendant Karolyn J. Stattelman, 42, Topeka Kan., former manager of the credit union, is charged with one count of theft of credit union funds. She is set for a change of plea hearing June 17.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.Former Rabobank Trader Pleads Guilty for Scheme to Manipulate Yen LiborRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.
“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.
“Today, a former Rabobank trader has pleaded guilty to participating in a scheme to manipulate the global benchmark interest rate LIBOR to benefit Rabobank’s trading positions,” said Assistant Attorney General Caldwell. “This was the ultimate inside job. As alleged, traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage. Takayuki Yagami is the ninth person charged by the Justice Department in connection with the industry-wide LIBOR investigation, and we are determined to pursue other individuals and institutions who engaged in this crime.”
“Today’s guilty plea is a significant step forward in the LIBOR investigation and demonstrates the Department’s firm commitment to individual accountability,” said Deputy Assistant Attorney General Snyder. “We will continue to pursue aggressively other individuals involved in this or other illegal schemes that undermine free and fair financial markets.”
“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s guilty plea further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”
According to court documents, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
Yagami admitted to conspiring with Paul Robson, of the United Kingdom, Paul Thompson, of Australia, and Tetsuya Motomura, of Japan. Robson, Thompson and Motomura were charged with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud in a fifteen-count indictment returned by a federal grand jury in the Southern District of New York on April 28, 2014. All four are former employees of Rabobank.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013 and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to allegations in the information and indictment, the four defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders; and Yagami worked as a senior trader at Rabobank’s Money Market/FX Forwards desks in Tokyo and elsewhere in Asia. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.
Robson, Thompson, Motomura and Yagami each entered into derivatives contracts containing Yen LIBOR as a price component . The profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
As alleged in court filings, from about May 2006 to at least January 2011, the four defendants and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant, including Yagami, and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts. Thompson, Motomura and Yagami (described in the indictment as Trader-R) made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges.
For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “wehre do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Yagami replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Yagami asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
The indictment alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high 1-month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email to Yagami that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. Tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.Former Chief Executive Officer of Investment Advisory Firm Sentenced in Manhattan Federal Court for Fraud and Obstruction of JusticeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that JOSEPH LOMBARDO, the founder and former chief executive officer of Prim Capital Corporation (“Prim”), was sentenced today to 18 months in prison for mail fraud and conspiracy to obstruct justice, arising from his scheme to defraud the National Basketball Players Association (“NBPA”) through the use of a fraudulent contract worth more than $2 million to Prim. LOMBARDO also attempted to obstruct a grand jury investigation of that fraudulent contract, including by testifying falsely and asking others to testify falsely in the grand jury. LOMBARDO, who was arrested in April 2013, along with Carolyn Kaufman, the then-chief compliance officer of Prim, pled guilty in November 2013 before U.S. District Judge Jesse M. Furman, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Not only did Joseph Lombardo attempt to steal millions of dollars from the National Basketball Players Association, he then tried to cover it up by creating an entirely fake agreement and asking others to lie for him under oath. Today’s sentence closes out Lombardo’s season of scam.”
According to the Complaint, Indictment, previously filed documents, and evidence presented at the trial of Kaufman:
Prim was founded by LOMBARDO. From 2001 until 2013, Prim was the primary outside investment advisory firm entrusted with the NBPA’s investments and finances. In that capacity, Prim performed various services for the NBPA, including assisting with the management of up to $250 million of the NBPA’s assets, reviewing the investments of individual NBA players, and conducting financial seminars for NBA players.
In the spring of 2012, as part of a U.S. Department of Labor (“DOL”) investigation, Prim was served with a grand jury subpoena requesting, among other things, copies of all agreements between Prim and the NBPA. In response, Prim produced a copy of a 2005 contract between the NBPA and Prim, under which Prim’s fee was $350,000 per year. That was the only contract that Prim produced at the time.
Several months later, in January 2013, after Prim learned that a law firm’s review of the NBPA was going to be made public in the near future, Prim produced to the DOL a previously undisclosed contract with the NBPA (the “Purported 2011 Contract”). Prim’s fee under this contract was $602,000 per year for a five-year term, for a total of $3,010,000. The Purported 2011 Contract also contained a provision indicating that it could not be cancelled for any reason by the NBPA. The Purported 2011 Contract was supposedly signed in March 2011 by LOMBARDO, Gary Hall, who was the former NBPA General Counsel, and another NBPA employee.
An investigation revealed that Hall’s signature was not authentic, and that the Purported 2011 Contract was actually created at Prim months after the death of Gary Hall. LOMBARDO had arranged for the creation of a signature stamp capable of stamping the signature “Gary A. Hall,” and used the stamp to falsify Hall’s signature months after his death.
In addition, the investigation revealed that LOMBARDO and Kaufman had agreed and attempted to obstruct a grand jury investigation. During the course of the investigation, both LOMBARDO and Kaufman appeared before the grand jury and provided false and misleading testimony. Kaufman testified, among other things, that she had not spoken with anyone regarding her testimony prior to testifying. However, in a recorded conversation prior to appearing before the grand jury, LOMBARDO gave her specific instructions on how to answer questions before the grand jury, and said that his “life is in [her] hands.” Kaufman also testified that she learned in March 2011 that the Purported 2011 Contract had been executed that same month. But the Purported 2011 Contract had not been fraudulently created until at least nine months later. In another recorded conversation, LOMBARDO instructed another individual that, if he provided certain false information to the grand jury about the creation of the fraudulent contract, “[w]e’re home free.” In a third recorded conversation, LOMBARDO instructed another individual to provide false information and said, “It’s important that we didn’t doctor this document up, okay?”
In addition to the prison term, LOMBARDO, 73, of Gates Mills, Ohio, was sentenced to three years of supervised release. He was also ordered to pay a $10,000 fine and a $200 special assessment.
LOMBARDO’s co-defendant Carolyn Kaufman was convicted of all counts against her—conspiracy to obstruct justice, obstruction of justice, and perjury—after an approximately two-week trial in December 2013. On May 21, 2014, Kaufman was sentenced by Judge Furman to three years’ probation with a special condition of six months’ home confinement, and was ordered to pay a $25,000 fine and a $300 special assessment, and to perform 500 hours of community service.
Mr. Bharara praised the outstanding work of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor, Office of Labor-Management Standards.
This case is being handled by the Public Corruption Unit of the U.S. Attorney’s Office. Assistant United States Attorneys Daniel C. Richenthal and Paul M. Krieger are in charge of the prosecution.
Former Barbour County Sheriff Sentenced to PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorELKINS, WEST VIRGINIA – The former Sheriff of Barbour County, West Virginia, was sentenced to prison today for scheming to defraud an insurance company, according to United States Attorney William J. Ihlenfeld, II.
John W. Hawkins, 48 years of age, of Philippi, West Virginia, was ordered to serve 12 months and 1 day in prison as a result of his felony conviction for “Mail Fraud” in February. Hawkins, who resigned from his position as Barbour County Sheriff when he entered his guilty plea four months ago, will self-report to prison on in July. He must also make full restitution.
Hawkins admitted to staging an automobile accident in April of 2013 and then conspiring to fabricate a report for submission to Nationwide Insurance Company so that his claim would be approved. Hawkins agreed that he used the United States Mail to make a fraudulent claim in the amount of $8,262.65, which was paid to him by Nationwide last year.
United States Attorney Ihlenfeld and Assistant United States Attorney John C. Parr prosecuted the case on behalf of the government.
The case was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation and the West Virginia State Police led the inquiry into Hawkins. Assistance was provided by the West Virginia Insurance Commission, Fraud Investigations Division.
Chief U.S. District Judge John Preston Bailey imposed a sentence above the advisory sentencing guideline range. Judge Bailey cited the betrayal of trust by Hawkins to the citizens of Barbour County as a reason for the increase sentence.
Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (855-982-3337), or to send an email to [email protected].
Farrell Man Pleads Guilty to Gun Charge, Sentence Will Be Served Consecutive to State Jail TimeRead the Press Release
PITTSBURGH - A resident of Farrell, Pa., pleaded guilty in federal court to a charge of brandishing a firearm during and in relation to drug trafficking, United States Attorney David J. Hickton announced today.
Jashaad Coleman, 20, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill. The plea agreement entered into in this case calls for a stipulated sentence of seven years, to be served consecutively to the 4-year to 11-year sentence Coleman is currently serving in Pennsylvania state custody for a firearm and robbery conviction.
In connection with the guilty plea, the Court was advised that in the early morning hours of July 31, 2012, a vehicle carrying two individuals known to be associated with drug trafficking was stopped by officers employed by the Southwest Mercer County Regional Police Department. Coleman knew that this vehicle was carrying a quantity of crack cocaine for distribution, and upon learning that this vehicle had been subject to a traffic stop, he rode to the scene of the stop. There, Coleman pulled out a 9mm firearm, which he discharged towards the officers, with the goal of distracting the officers from the vehicle that they had stopped. Law enforcement took cover, and both the occupants of the vehicle and the crack cocaine were not recovered by the police.
In February, 2013, Coleman was tried before a Mercer County jury for unauthorized possession of a firearm as it related to the abovementioned shooting. Coleman was acquitted of this crime. Federal charges were then brought resulting in the guilty plea to the federal firearms charge.
Judge Cohill scheduled sentencing for Sept. 16, 2014, at 2:30 p.m.
Pending sentencing, the court detained Coleman pursuant to the 4-year to 11-year sentence Coleman is currently is serving in the State of Pennsylvania.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jashaad Coleman.
Dos Personas Fueron Acusadas de Encabezar una Conspiración para Defraudar y Extorsionar a Consumidores de Habla Hispana por Medio de Centros de Llamadas FraudulentosRead the Press Release
WASHINGTON - Un gran jurado en Miami, Florida, acusó formalmente a dos individuos y dos empresas por supuestamente operar centros de llamadas en Perú que mintieron y amenazaron a víctimas de habla hispana para que pagaran cargos de resolución fraudulentos.
El Secretario de Justicia Auxiliar Stuart F. Delery de la División Civil del Departamento de Justicia, el Fiscal federal Wilfredo A. Ferrer del Distrito Sur de Florida y el Inspector Postal de EE.UU. a Cargo Ronald Verrochio de la Oficina de Miami realizaron el anuncio.
María Luzula, de Miami, y Juan Alejandro Rodríguez Cuya, de Lima, Perú, fueron acusados de conspiración, fraude postal y telegráfico y extorsión. Dos sociedades con sede en Miami – Angeluz Florida Corporation y Angeluz Miami, LLC – fueron acusadas de los mismos delitos.
"El Departamento de Justicia se compromete a combatir el fraude contra consumidores", señaló el Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia Stuart F. Delery. "No se tolerarán las amenazas, declaraciones falsas y otras tácticas predatorias utilizadas para estafar a consumidores".
"El fraude contra el consumidor que apunta a una población específica es vergonzoso", señaló el Fiscal Federal Ferrer. "En este caso, se alega que los demandados tomaron como blanco a consumidores de habla hispana y los amenazaron falsamente con arresto, deportación, confiscación de propiedad o daño a sus puntajes de crédito cuando los consumidores se negaron a realizar un acuerdo por productos que no fueron entregados ni pedidos. Dichas tácticas son intolerables. La Fiscalía Federal se empeña en proteger a nuestros consumidores contra el fraude, unida a la Oficina de Protección al Consumidor de la División Civil del Departamento de Justicia".
"El Servicio de Inspección Postal de EE.UU. seguirá investigando y persiguiendo enérgicamente a quienes amenacen a nuestros ciudadanos y les estafen su dinero ganado con trabajo arduo, independientemente del país desde el que operen", dijo el Inspector Postal de EE.UU. a Cargo Verrochio.
De acuerdo con los alegatos en la acusación formal, los empleados de los demandados en Perú, por medio del uso de llamadas telefónicas vía Internet, mintieron a víctimas de habla hispana en EE.UU. acerca de multas que debían y demandas judiciales que se iniciarían contra las víctimas. Los llamantes peruanos amenazaron a las víctimas y le dijeron falsamente a cada víctima que él o ella se negaron indebidamente a recibir un envío de productos. Los llamantes alegaron, también falsamente, que las víctimas debían miles de dólares en multas. En realidad, las víctimas nunca habían pedidos los productos y no se había realizado ningún intento de entregar productos a las víctimas.
La acusación formal alega que los empleados de Luzula y Rodríguez Cuya alegaron que los consumidores podrían resolver las multas si pagaban de inmediato un "cargo de resolución". Se les dijo a los consumidores que disputaron los cargos de resolución que, si no pagaban, podrían ser objeto de arresto, deportación, confiscación de propiedad o que sus puntajes de crédito podrían verse perjudicados. A pesar de que, en general, los consumidores objetaron que no pidieron ni rechazaron el envío de ningún producto, miles de consumidores aceptaron pagar los cargos debido a estas amenazas. La acusación formal alega que una sala telefónica en Miami cobraba los cargos.
Luzula y Rodríguez Cuya fueron acusados originalmente por medio de demanda penal y arrestados el 10 de enero de 2013. Permanecen encarcelados desde sus arrestos.
Los cargos en la acusación formal son meros alegatos, y se supone que los demandados son inocentes hasta que se pruebe lo contrario.
El Secretario de Justicia Auxiliar Delery elogió al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso. Están a cargo del enjuiciamiento del caso el Abogado Litigante Phil Toomajian y el Director Auxiliar Richard Goldberg de la Oficina de Protección del Consumidor de la División Civil del Departamento de Justicia.
Department of Justice Reaches Landmark Agreement to Improve Missoula County Attorney’s Office’s Response to Reports of Sexual AssaultRead the Press Release
The Department of Justice announced today that it has reached a comprehensive agreement with the Missoula County Attorney’s Office, as well as Missoula County, Montana, and the Montana Attorney General’s Office, to resolve the department’s investigation of alleged gender bias in the prosecution of sexual assaults by the Missoula County Attorney’s Office (MCAO). Under this first-of-its-kind agreement, MCAO and the county agree to take a number of significant steps to improve MCAO’s response to allegations of sexual assault and eliminate discrimination and gender bias. This agreement completes the Civil Rights Division’s investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault.
"This historic agreement will fundamentally transform the way in which the Missoula County Attorney's Office responds to sexual assault allegations," said Attorney General Eric Holder. "By taking key steps and implementing robust new safeguards to eliminate gender bias, improve communication and prosecution techniques, and increase support for victims, county law enforcement officials will strengthen their ability to combat sexual assault crimes, increase public safety, and protect those who are victimized. This action marks a critical step forward in the Justice Department's comprehensive efforts to ensure the safety and civil rights of all people across the country. And it is my hope that these remedies can serve as a model for the resolution of other cases moving forward."
Under the agreement, the MCAO will take the following steps, which will address gender bias in MCAO’s response to sexual assault and help to restore community confidence in the criminal justice system:
· Develop and implement sexual assault policies and training for prosecutors, including supervisors;
· Improve treatment of individuals who report sexual assault, including in-person interviews and improved communication;
· Use prosecution techniques that have been shown to result in better sexual assault investigations, through improved communication with law enforcement and victims, use of investigators, closer supervision of the development of cases, hiring an in-house victim coordinator, and the use of expert witnesses;
· Improve communication and coordination with other Missoula stakeholders regarding sexual assault response, including through public outreach and collaboration with the Missoula Police Department in conducting, and analyzing the results of, a victim witness survey; and
· Improve the tracking and sharing of data regarding sexual assault prosecutions, so that MCAO has a broader picture of what it is doing and can better identify any general concerns or necessary improvements.
Montana Attorney General Tim Fox, who has oversight authority over all Montana County Attorneys, has agreed to monitor the implementation of these measures, review sexual assault cases MCAO declines to prosecute, and retain a technical advisor, Anne Munch. Munch is a former sex crimes prosecutor and one of the country’s foremost experts in the subject area. As technical advisor, Munch will provide training to MCAO, advise the Montana Attorney General regarding policies, and make recommendations and provide reports regarding implementation that will be made publicly available, alongside the quarterly reports the Attorney General’s office will also publicly disseminate.
“Sexual assault is a crime that is all too pervasive and that has devastating consequences,” said Acting Assistant Attorney General for Civil Rights, Jocelyn Samuels. “Today’s agreement completes a plan for comprehensive reform at every stage of the law enforcement response, from the handling of complaints of assault by the University of Montana, through the investigation of crimes by the Missoula Police Department, to the prosecution of those crimes by the County Attorney. This holistic approach will enable the Missoula community to improve women’s safety and ensure respect for their civil rights.”
“Over the past year, the City of Missoula, the University of Montana, and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said Michael Cotter, United States Attorney for Montana. “We are delighted that the Missoula County Attorney has agreed to partner with them and to work cooperatively with the Justice Department to improve the safety of women in Missoula.”
Today’s agreement resolves the last outstanding component of the department’s multi-pronged investigation, launched in May of 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University’s Office of Public Safety (OPS), the Missoula Police Department (MPD) and MCAO. In May of 2013, the department entered into agreements with the university, OPS and MPD to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The implementation of those agreements has already improved these parties’ response to sexual assaults.
As part of today’s agreement, Missoula’s County Attorney will dismiss with prejudice the declaratory judgment action filed on behalf of the county attorney against the department in February of 2014. The department has agreed not to file suit regarding its allegations, outlined in a February 2014 letter of findings, that the MCAO’s response to sexual assault violated federal law.
The agreement, as well as a description of the Department of Justice’s work regarding sexual assault in Missoula, Montana, will be available at: http://www.justice.gov/crt/about/spl/ .
Columbia, S.C. Attorney Pleads Guilty to Making A False Statement to A Federal AgentRead the Press Release
COLUMBIA, S.C. – Joenathan Shelly Chaplin, an attorney in Columbia, S.C. appeared in federal court today before U.S. District Judge Margaret B. Seymour and pleaded guilty to making a false statement to a federal agent, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) which overseas South Carolina, and Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, Chaplin, 47, admitted to knowingly and willfully making a materially false, fictitious, and fraudulent statement and representation to the government. Specifically, court documents indicate, Chaplin told a special agent from the Department of Treasury that he was not aware of the reporting requirements of Form 8300. Form 8300 (“Report of Cash Payments Over $10,000 Received in a Trade or Business”) must be filed with the IRS if a person or business has received over $10,000 in one transaction or a series of related transactions while conducting their trade or business.
Chaplin has been released on bond. At sentencing, he faces a maximum prison term of five years, a $250,000 fine, or both. A sentencing date has not yet been set.
The case was investigated by IRS-CI, DEA and ATF. The prosecution is being handled for the government by Assistant U.S. Attorney Jill Westmoreland Rose of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
City of San Jacinto, California, Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced a settlement with the city of San Jacinto, California, that resolves a lawsuit alleging disability discrimination filed in the U.S. District Court for the Central District of California. Under the settlement, San Jacinto has changed its laws to comply with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). In addition, the city has agreed to pay a total of $746,599 in compensatory damages to housing providers and former residents with disabilities, including private plaintiffs’ attorneys’ fees and costs, as well as a $10,000 civil penalty to the United States. The settlement is subject to court approval.
The Justice Department’s complaint, which was filed in November 2012, alleged that San Jacinto violated the FHA and the ADA by enacting an ordinance intended to exclude unlicensed and some licensed homes for persons with disabilities from the city, and by targeting homes for persons with disabilities for enforcement of the ordinance and other local laws.
“Municipalities and other governmental entities cannot violate federal civil rights statutes by hiding behind intentionally discriminatory laws designed to appear neutral on their face,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “No American should be denied his or her rights, subjected to harassment or excluded from our communities because of a disability. We commend the city for working cooperatively to resolve this matter and to enact legislation to safeguard the fair housing rights of its residents with disabilities.”
The city’s enforcement efforts included an early morning sweep of unlicensed group homes for persons with disabilities by city officials in November 2008, including the city attorney and representatives of the city’s Code Enforcement and Public Works Departments, as well as armed and uniformed law enforcement officers of the Riverside County Sheriff’s Department acting as agents for the city. The officials arrived at the homes unannounced and without warrants and interrogated the residents from a prepared questionnaire targeted to persons with mental disabilities. The questions included whether the residents were or ever had been drug addicts or alcoholics; whether they suffered from any form of mental illness, and if so, what type; whether they were taking “psych” medications, and if so, what kind; whether they or other residents were currently using illegal drugs or alcohol; whether they were on parole or probation; and whether they were registered sex offenders.
“Federal laws protect the fair housing rights of all people, and no local zoning or harassment can change that,” said the U.S. Department of Housing and Urban Development (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity Dave Ziaya. “HUD and the Department of Justice remain committed to ensuring that everyone has access to housing free of discrimination, including people with disabilities.”
The case arose as a result of complaints filed with HUD by two providers of housing for persons with disabilities in the city. HUD investigated the complaints and referred them to the Justice Department, which conducted an investigation pursuant to the Attorney General’s independent authority under the FHA and the ADA.
The department’s lawsuit is being resolved together with a lawsuit filed by the two HUD complainants and a third individual whose case was consolidated with that of the United States. The settlement prohibits the city from imposing restrictions on housing for persons with disabilities that are not imposed on housing for an equal or greater number of persons without disabilities. This includes numerical occupancy limits on group housing for unrelated persons with disabilities that are more restrictive than numerical occupancy limits for families or other unrelated persons.
As part of the agreement, the city adopted an ordinance that creates a new zoning classification, “Group Home for Persons with Disabilities,” and under the ordinance, such homes are permitted use in all residential zones. The city also revised its process for providing persons with disabilities exceptions to its zoning and land use requirements to comport with the FHA and the ADA. The agreement also requires the city to pay for fair housing training of its officials, including council members and law enforcement officers employed by the Riverside County Sheriff’s Department; maintain records relating to future proposals for housing for persons with disabilities; and submit periodic compliance reports to the department for a period of five years.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title II of the ADA prohibits governments from discriminating on the basis of disability in administering their zoning laws. More information on the obligation of city and county governments not to discriminate on the basis of disability is available on the department’s website . Individuals who believe that they may have been victims of housing discrimination may call the housing discrimination tip line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-896-7743.
Citizen of India Sentenced to Prison for Emailing Rape ThreatRead the Press Release
PITTSBURGH - A citizen of India, has been sentenced in federal court to 18 months incarceration on his conviction of violating federal law, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Karthikeyan Natarajan, 27, of La Jolla, Calif.
According to information presented to the court, on April 5, 2013, Natarajan willfully transmitted a threat via interstate commerce to injure the person of another, that is, he sent a threat via computer electronic communications to an individual threatening to rape her.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and Carnegie Mellon Police Department for the investigation leading to the successful prosecution of Natarajan.
Cicero Man Charged with Mailing Fake Anthrax/ricin LettersRead the Press Release
SYRACUSE, NEW YORK - This morning, agents from the Federal Bureau of Investigation, Syracuse Office, and the United States Postal Inspection Service, arrested BRIAN DANIEL NORTON, age 59, of Cicero, New York, on federal felony charges of mailing threatening communications and transmitting false information and hoaxes in violation of 18 U.S.C. §876(c) and 1038(a), respectively, according to United States Attorney Richard S. Hartunian.
The charges relate to conduct by Norton in mailing 21 threatening letters containing white powder, alleged to be either anthrax or ricin to various addresses in the Syracuse, New York area and elsewhere beginning in about 1997 and continuing through 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
Norton made an initial appearance in U.S. District Court in Syracuse before the Hon. David E. Peebles today. If convicted, Norton faces a maximum possible sentence of ten years incarceration. He is being detained pending a detention hearing scheduled for Monday, June 16th at 11am.
The case is being investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Child Pornographer Sentenced to 10 Years in PrisonRead the Press Release
A Spring Valley college student was sentenced by U.S. District Judge Marilyn Huff today to 10 years in prison in connection with child pornography charges.
Anthony Michael Gonzales, 23, pleaded guilty in December 2013 to a single count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct. He was also sentenced to five years of supervised release and ordered to pay $5,000 in restitution to a victim and register as a sex offender upon release from prison.
According to a complaint, from October 2011 through March of 2012, agents with Homeland Security Investigations identified an Internet Protocol address on a peer-to-peer file sharing program that was trading in files suspected of containing child pornography. The agents tracked the Internet Protocol address to Gonzales’ residence, which was located in Spring Valley, California.
In May 2012, the agents executed a search warrant on the residence and seized Gonzales’ laptop computer, which had the user name “Metatron.” A forensic examination uncovered approximately 170 videos and 22,300 images suspected of containing child pornography. On review of a sampling of at least 883 of the thousands of images, agents determined six of those images included bondage of children.
There also were images involving children who appeared to be under two years old. One DVD had approximately 100 images of child pornography. At the time of his subsequent arrest, Gonzales was a 23-year-old student who possessed a thumb drive that also contain additional images of child pornography.
DEFENDANT Case Number: 13CR3108-H Anthony Michael Gonzales Spring Valley, CA CHARGESCount 4 – Title 18, United States Code, Section 2252(a)(2) Receipt of Images of Minors Engaged in Sexually Explicit Conduct. Maximum penalties: Five year mandatory minimum, 20 year maximum, restitution, $250,000 fine
INVESTIGATING AGENCYU.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Bridgeport Police Officers Plead Guilty to Federal Civil Rights ChargeRead the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that Bridgeport Police officers ELSON MORALES, 42, and JOSEPH LAWLOR, 41, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to violating an individual’s civil rights by using unreasonable force during the course of an arrest.
According to court documents and statements made in court, on May 20, 2011, officers MORALES and LAWLOR engaged in a pursuit of a van driven by an individual who was suspected of having a firearm and had failed to submit to a traffic stop. After the pursuit, the individual was apprehended in Beardsley Park in Bridgeport. MORALES used his department-issued Taser to incapacitate the individual during the course of his apprehension. Despite the fact the individual was effectively incapacitated by the initial use of the Taser, MORALES deployed the Taser a second time and LAWLOR kicked the individual several times.
“The use of unreasonable force during an arrest is not only a clear violation of an individual’s civil rights, but also gravely undermines the community’s trust in law enforcement,” stated U.S. Attorney Daly. “The overwhelming majority of officers in the Bridgeport Police Department are public servants who dedicate their lives to protecting the public. However, any law enforcement officer who crosses the line during an arrest risks federal prosecution.”
U.S. Attorney Daly stated that the investigation is ongoing.
“Today’s guilty pleas are such an important reminder to those of us who are sworn to uphold the law, that we are not above the law,” stated FBI Special Agent in Charge Ferrick. “Law enforcement officers of this state, and beyond, should rightfully be held to a high standard. Morales and Lawlor’s actions three years ago profoundly undermined that standard and the public’s faith in law enforcement to protect and to serve. It is an absolute honor and privilege to serve a community and the good men and women of the Bridgeport Police Department know that, where so many have served with both pride and distinction.”
MORALES and LAWLOR each pleaded guilty to one count of deprivation of rights under color of law, a charge that carries a maximum term of imprisonment of one year and a fine of up to $100,000.
Judge Meyer scheduled sentencing for September 2, 2014.
As part of their plea agreements, MORALES and LAWLOR have agreed to resign from the Bridgeport Police Department and not seek employment as a police or peace office during any period of supervision.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and David E. Novick.
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U.S. ATTORNEY'S OFFICE
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