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Wednesday 23 April 2014
Waterbury Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESUS F. GONZALEZ, SR., 37, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 180 months of imprisonment, followed by a lifetime of supervised release, for producing child pornography.
According to court documents and statements made in court, GONZALEZ had sexual intercourse with a minor female victim on several occasions between approximately February 2012 and August 2012. On approximately August 9, 2012, GONZALEZ used his cell phone to take multiple pictures of the victim, naked, in sexually explicit positions. GONZALEZ then maintained the pictures on his phone. The victim was approximately 14 years old at the time the sexually explicit pictures were taken.
On February 3, 2014, GONZALEZ pleaded guilty in federal court to one count of production of child pornography. GONZALEZ has been detained in state custody since his arrest on August 11, 2012 on related state charges.
This matter was investigated by the Waterbury Police Department, the Federal Bureau of Investigation, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation.
The case was being prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles L. Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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[email protected]Virgin Islands Water and Power Authority Signs Agreement That Will Bring It into Compliance with the Clean Air ActRead the Press Release
Under an agreement announced today by the U.S Environmental Protection Agency and the U.S. Department of Justice, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with air pollution control requirements in the federal Clean Air Act at its Estate Richmond Generating Facility located on St. Croix, U.S. Virgin Islands. These air pollution control requirements help reduce emissions of nitrogen oxides (NOx) and particulate matter (PM) that can cause serious respiratory health effects. These pollutants are linked to serious health problems, including asthma, lung and heart disease.
The United States found that the facility violated limits on nitrogen oxides and particulate matter. This agreement is expected to reduce nitrogen oxides emissions by approximately 115 tons per year. The agreement is expected to reduce particulate matter emissions by approximately three tons per year.
“Residents will breathe cleaner air as a result of this agreement to reduce air pollution emissions and bring VIWAPA into compliance with the nation’s Clean Air Act,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department and our partners at EPA are committed to addressing large sources of pollution to ensure the maximum positive impact on public health and the environment.”
“This legal agreement will go a long way toward reducing air pollution in St. Croix and beyond,” said EPA Regional Administrator Judith A. Enck. “EPA is committed to protecting communities on St. Croix that are threatened by air pollution.”Under the EPA’s air permit requirements, large industrial facilities that make modifications that increase air pollution emissions must install best available control technology. VIWAPA operates with a permit that requires it to use the best available control technology to control emissions of NOx and PM. EPA found that VIWAPA had not properly operated nor maintained its water to fuel injection pollution control system during various times from October 2005 through December 2012.
The facility also failed to meet the particulate matter emissions limit during testing of emissions from its stacks and failed to conduct continuous monitoring to ensure compliance with its limits. The EPA found that the facility violated its limits for NOx and PM. VIWAPA also did not keep proper records.
Under the agreement, VIWAPA will continue its work to:
- Properly operate and maintain the water to fuel injection pollution control system;
- Develop and maintain an inventory of spare parts for the facility’s water to fuel injection system and emission monitoring equipment;
- Test and properly operate a “real-time” emission monitoring system to ensure compliance with air pollution limits;
- Conduct quality assurance testing of air monitoring systems;
- Conduct stack tests to demonstrate compliance with the Clean Air Act; and
- Employ an independent third party to develop protocols, enable proper operation of the air pollution monitoring systems, train staff and audit its compliance for three years.
The EPA has worked with VIWAPA over the past several years to address its violations and operations at the St. Croix facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the facility. It replaced its data system, significantly repaired at least one unit and began purchasing better quality fuel. To date, VIWAPA has spent approximately $4 million to come into compliance with pollution control requirements and will spend at least $2 million a year to maintain compliance. VIWAPA will also pay a $700,000 penalty.
The consent decree was lodged in the U.S. District Court for the District of the Virgin Islands. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent_Decrees.html
To learn more about air issues in EPA Region 2, please visit: www.epa.gov/region02/air/.
Union City, N.J., Man Admits Operating Supposed Charity as Illegal Bank, Falsifying TaxesRead the Press Release
NEWARK, N.J. - A Union City, N.J., man who operated a supposed charitable organization, or “gemach,” admitted today that he ran it as an unchartered bank, accepting millions of dollars in deposits – including nearly $1 million of his own money – which he shielded from state or federal regulation, U.S. Attorney Paul J. Fishman announced.
Moshe Schwartz, 33, a/k/a “David Schwartz” or “Gedalya David Schwartz,” pleaded guilty to two counts of an information: operating an unchartered bank and aiding and assisting in the filing of a false 2007 tax return. Schwartz entered his guilty plea before Judge Jose L. Linares in Newark federal court.
According to the information and statements made in court:
Schwartz operated Gemach Shefa Chaim (GSC), purportedly to provide interest-free loans to needy members of the Sanz community in Union City. During his guilty plea proceeding, Schwartz admitted he operated GSC as a bank, with millions of dollars in deposits and more than 350 client accounts by July 2009.
To operate a bank in the United States, a bank is required to obtain a charter from the United States or the state in which the bank operates. Chartered banks are subject to oversight, regulation, and periodic review by federal and state authorities. Neither Schwartz nor GSC had such a charter.
Schwartz admitted that, in operating GSC as a bank, he accepted deposits and credited clients’ accounts, wrote checks from GSC as directed by clients, made transfers between accounts, disbursed client funds upon request, negotiated GSC checks presented by persons other than the named payees, conducted wire transfers, provided clients with receipts of transactions, charged clients a fee for bounced checks and provided overdraft notices to clients. Schwartz also admitted that he opened and maintained various bank accounts at financial institutions in or around North Jersey in the name of GSC and used those institutions to deposit client funds, negotiate checks, provide clients with GSC checks and conduct wire transfers. Because client funds were deposited into and commingled within GSC’s bank accounts at financial institutions, the funds could only be traced back to GSC, thereby concealing the true ownership, nature and source of the funds. Many clients were thus able to use their GSC accounts to engage in suspicious and, at times, illegal activities, including evading federal taxes and money laundering.
Schwartz also admitted that he provided false and fraudulent information to his tax preparer in Union City concerning his income for tax year 2007, falsely representing that his income was $24,475 when it was approximately $208,845. Schwartz admitted that he used his own GSC account and a false identity to conceal his income and assets from the IRS, causing a $74,889 tax loss.
The banking offense to which Schwartz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The tax offense to which Schwartz pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Schwartz is scheduled to be sentenced on July 30, 2014.
GSC bank accounts were seized in July 2009 and approximately $500,000 was ultimately forfeited. The accounts had been used by Moshe Altman, 44, Itzak Friedlander, 46, and Shimon Haber, 38, to launder proceeds that cooperating witness Solomon Dwek, 41, had purported to be the proceeds of illegal activities. Altman pleaded guilty in December 2010, to, among other things, conspiring to launder monetary instruments and was sentenced in March 2011 to 41 months in prison. Friedlander pleaded guilty in April 2010 to conspiracy to launder monetary instruments and was sentenced in April 2011 to 24 months in prison. Haber pleaded guilty to the same charge in January 2010 and was sentenced in May 2010 to five months in prison.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea; as well as the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Federal Deposit Insurance Corporation-Office of Inspector General, under the direction of Special Agent in Charge A. Derek Evans; and the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, for their assistance.
The government is represented by Assistant U.S. Attorneys Maureen Nakly of the U.S. Attorney’s Special Prosecutions Division and Frances C. Bajada of the office’s Criminal Division.14-142
Defense counsel: Ricardo Solano Esq., Newark
Schwartz, Moshe Information
Three Sentenced on Federal Drug ChargesRead the Press Release
Jackson, Miss – Three individuals were sentenced on Tuesday, April 23, by U.S. District Judge Carlton W. Reeves in connection with an extensive narcotics investigation, dubbed “Operation Brusha”, which targeted illegal narcotics distribution in Scott County, Mississippi, announced U.S. Attorney Gregory K. Davis.
Marlon Faber, 39, of Gardina, California, was sentenced to 87 months in federal prison followed by five years of supervised release. He previously pled guilty to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
Fredrick Stowers, 59, of Forest, Mississippi, was sentenced to 42 months in federal prison followed by three years of supervised release. He previously pled guilty to conspiracy to possess with intent to distribute methamphetamine.
Arthur Wayne Townsend, 56, of Forest, Mississippi, was sentenced to 30 months in federal prison followed by three years of supervised release. He previously pled guilty to possession with intent to distribute methamphetamine.
As a result of Operation Brusha, seventeen defendants have been convicted of trafficking methamphetamine with a purity of over 92% into the Brusha community in Scott County, Mississippi from California, Texas and elsewhere. Multiple kilograms of methamphetamine and over five firearms were seized during the Operation which was conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and the Mississippi Bureau of Narcotics with assistance from the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Three Men Sentenced for CounterfeitingRead the Press Release
United States Attorney Brendan V. Johnson announced that three men who were indicted by a federal grand jury on September 17, 2013, for Passing and Making Counterfeit United States Currency have been sentenced.
Zane Blake Goodbeau, age 59, of Kimball, South Dakota, was indicted on the charge of Making Counterfeit United States Currency. He pled guilty to the charge on January 9, 2014. He was sentenced on March 31, 2014, to 17.5 months in custody, to be served concurrent to his state court sentence.
John Patrick Laubach, age 42, of Kimball, was indicted for Passing and Making Counterfeit United States Currency. He pled guilty to the charge, and was sentenced on April 7, 2014, to 9 months in custody.
Chaz Thomas Stewart, age 20, of Yorba Linda, California, was indicted on the charges of Passing, Possessing and Making Counterfeit United States Currency. Stewart pled guilty to Possessing Counterfeit United States Currency on January 29, 2014, and was sentenced on April 21, 2014. Stewart was sentenced to 2 months in custody, to be served concurrent to his state sentence.
All three defendants were also ordered to repay $360 in restitution to the victims, and they were all remanded to the custody of the U.S. Marshals Service.
In August of 2013, Laubach and Goodbeau made counterfeit currency using printing materials they kept in a camper at Kimball, and then distributed it to various businesses in the Chamberlain and Kimball areas. During that same time, Stewart possessed a $50 Federal Reserve note that he knew was counterfeit and he tried to pass the bill at an area restaurant.
The investigation was conducted by the Chamberlain Police Department and the U.S. Secret Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Three Hendry County Women Indicted for Conspiracy, Theft of Government Funds and Identity TheftRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the arrest and unsealing of a fifteen-count indictment charging Roeshell Denise Williams, Sheree Peterson, and Yajaira Crespo, all of Clewiston, Florida, with conspiracy to make false claims to the U.S. Department of the Treasury for payment, and to embezzle and steal government funds. In addition, all three are charged with theft of government funds and aggravated identity theft. Specifically, Williams is charged with one count of conspiracy and four counts of theft of government funds. Peterson is charged with one count of conspiracy, one count of theft of government funds and six counts of aggravated identity theft, and Crespo is charged with one count of conspiracy, two counts of theft of government funds and one count of aggravated identity theft. If convicted, they face a maximum penalty of 5 years in federal prison for each count of conspiracy and up to 10 years’ imprisonment on each of the theft of government funds counts. They also face 2 years in prison for the aggravated identity theft charges, to be served consecutive to the other sentences imposed. The indictment also notifies Williams, Peterson and Crespo that the United States intends to forfeit any assets which are alleged to be traceable to proceeds of the offenses.
According to the indictment, between January 2012 and September 2012, Williams, Peterson and Crespo allegedly conspired with each other, and others, to file fraudulent tax returns in the names of individuals who did not authorize Williams, Peterson or Crespo to do so. The refunds from the fraudulent tax returns were then deposited into bank accounts controlled by Williams, Peterson or Crespo. The three then converted the funds for their personal use.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
St. Charles Parish Man, Chad Michael Hotard, Sentenced to 15 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
CHAD MICHAEL HOTARD, age 28, a resident of Luling, Louisiana, was sentenced today by U.S. District Court Judge H. Ginger Berrigan, arising from his conviction for two counts of production and one count of distribution of child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, HOTARD knowingly employed, used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct in order to produce child pornography on two separate occasions, December 13, 2012 and March 12, 2013. In addition, HOTARD distributed digital images and computer images of a minor engaging in sexually explicit conduct on March 13, 2013. HOTARD has been in federal custody since his arrest on April 15, 2013.
HOTARD was sentenced by Judge Berrigan to 15 years’ imprisonment, to be followed by a term of supervised release of 15 years. In addition, he will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the St. Charles Parish Sheriff’s Office and prosecution of this case was handled by Fraud Unit Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
Soldier at Ft. Riley Pleads GuiltyTo False Statement to Social Security AdministrationRead the Press Release
KANSAS CITY, KAN. – A Ft. Riley man has pleaded guilty to making false material statements to the Social Security Administration, U.S. Attorney Barry Grissom said. The defendant agreed to pay $71,734 in restitution to the SSA and an additional $250 to the United States Treasury for a stimulus payment he was not entitled to receive.
James Scott Nickerson, 37, Ft. Riley, Kan., pleaded guilty Tuesday to one count of making a false official statement to a federal agency. In his plea, he admitted he was paid a total of $71,734 in disability benefits by the Social Security Administration that he was not eligible to receive. Beginning in October 2009, Nickerson applied for disability benefits under the Wounded Warrior Program. He claimed he was unable to work because of “organic mental disorders” he developed while serving a deployment in Iraq.
While receiving disability benefits, he worked full time for the Army doing various duties, including serving as a platoon sergeant while he claimed to be disabled. He also supervised other soldiers during this period. Nickerson attempted to conceal his actual work activity from SSA by claiming he worked no more than 20 hours a week. On three separate occasions, the defendant completed Work Activity Reports, documents used by SSA to determine if a beneficiary is eligible for disability benefits. On each of these occasions he was asked to identify his supervisors so that SSA could verify his work activity. On all three occasions, he identified persons other than his supervisors. In the plea agreement, the defendant admitted that on a Work Activity Report he completed on Sept. 6, 2010, he falsely reported to SSA that one of his subordinates was his supervisor. He admitted that this was a false material statement to a federal agency.Sentencing is set for September 8, 2014. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Office of the Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.
Shiprock Man Pleads Guilty to Federal Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Alvert Miller, 39, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a second degree murder charge. Under the terms of his plea agreement, Miller will be sentenced to 72 months in federal followed by a term of supervised release to be determined by the court.
Miller was arrested on May 1, 2013, based on a criminal complaint charging him with involuntary manslaughter for killing a 53-year-old Navajo man and driving under the influence of intoxicating liquor on April 27, 2013. Miller subsequently was indicted on May 29, 2013, and charged with second degree murder.According to court filings, on April 27, 2013, Miller was intoxicated when he lost control of the truck he was driving, causing a rollover collision on U.S. Highway 491 near Littlewater, N.M., which is located within the Navajo Indian Reservation. When the truck rolled over, the initial impact was on the passenger side of the vehicle, causing the victim, who was a passenger in Miller’s truck, to be ejected. The victim died upon impact as a result of blunt force trauma to the face and head. On April 29, 2013, during an interview with a tribal police investigator, Miller admitted that the rollover occurred because he was driving while intoxicated and fell asleep at the wheel.
During today’s plea hearing, Miller pleaded guilty to the indictment charging him with second degree murder and admitted killing the victim while driving under the influence of alcohol. In his plea agreement, Miller acknowledged that he knew based on his prior convictions for driving under the influence of alcohol that his conduct imperiled the lives of others.
Miller has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback.
Shiloh Man Pleads Guilty to Possession of Pipe BombsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Justin A. Vangilder, 21, of Shiloh, Illinois, pled guilty today in federal district court in East St. Louis to an Indictment charging him with three counts of Possession of an Unregistered Firearm/Explosive Bomb.
A Stipulation of Facts filed by the parties in conjunction with the plea states that on October 3, 2013, law enforcement agents received information from a Cooperating Witness that Vangilder possessed several pipe bombs at his residence in Shiloh. Based upon this information, agents went to Vangilder’s residence and spoke with Vangilder, who admitted possessing three pipe bombs and also admitted that he knew that possession of such pipe bombs was illegal.
Vangilder consented to a search of his residence, wherein agents located three pipe bombs – two of which had plastic casings, while the third had a metal casing. Each bomb contained a fuse, explosive material, birdshot, and nails. Each such bomb was capable of exploding by detonation from the attached fuse. Vangilder made each of the pipe bombs on previous occasions and therefore knew of components of each bomb, and knew that each bomb was capable of explosion by detonation from the attached fuse.
The maximum penalties that can be imposed for each count are ten years in prison, a $250,000 fine, or both, three years of supervised release, and a $100 special assessment.
Sentencing is set for August 1, 2014, in federal district court in East St. Louis.
The case was investigated by members of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Sex Offender Sentenced for Failing to RegisterRead the Press Release
POCATELLO — Tyler Zane Clem, 21, of North Little Rock, Arkansas, was sentenced yesterday in United States District Court to 18 months in prison followed by five years of supervised release for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Clem was indicted by a federal grand Jury in Pocatello on August 28, 2013, and entered his guilty plea on January 29, 2014.
According to the plea agreement, Clem was convicted in June 2012 of sexual assault in the second degree in Arkansas and required to register as a sex offender. Clem left a half-way house in North Little Rock, Arkansas, on June 28, 2013, and eventually traveled to Pocatello, Idaho, where he was arrested on August 9, 2013. Although Clem had registered as a sex offender when living in Arkansas, he failed to update his registry after leaving the half-way house and did not register in Idaho after his arrival, as is required by law.
The case was investigated by the U.S. Marshals Service, with the assistance of the Pocatello Police Department.
Seville Man Charged with Mail Fraud Related to $185,000 SchemeRead the Press Release
David A. Riedel, age 53, of Seville, Ohio, is accused of committing mail fraud as part of a $185,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The one-count criminal information filed today alleges that on approximately 53 occasions, from September 2010 to July 2012, Riedel, for the purpose of executing a scheme to defraud, Riedel caused checks to be sent and delivered by the United States Postal Service. Specifically, the information alleges that while Riedel was employed by Avanti Trucking, he applied for a United States Post Office Box and falsely identified it as the address for a company that provided hauling services to Avanti Trucking. Riedel submitted approximately 50 fraudulent invoices to Avanti Trucking, claiming that the company had performed work for Avanti Trucking. In fact, and as Riedel then well knew, that company had stopped providing hauling services for Avanti Trucking in April 2010.
According to the information, Riedel received approximately $185,000 from Avanti Trucking through his fraudulent scheme. Due to the losses caused by Riedel’s conduct, Avanti Trucking was forced to liquidate its assets in 2013 and is no longer in operation.
This case is being prosecuted by Assistant United States Attorney Chelsea S. Rice following an investigation by the United States Postal Inspection Service.
A criminal information is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Schuylkill County Firm and Chief Officer Charged with Shipping Machinery to Iran in Violation of U.S. Export License RequirementsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, today announced that a Criminal Information has been filed against a Schuylkill County firm and its Chief Officer, charging them with conspiracy to evade export reporting requirements and with attempting to smuggle to Iran a lathe machine in violation of U.S. export regulations.
Charged in the Criminal Information were Hetran, Inc., an engineering and manufacturing plant in Orwigsburg, Pennsylvania and its Chief Executive Officer, Helmut Oertmann. At the same time, an indictment was unsealed that had previously been voted by a federal grand jury in Harrisburg in December 2012 against three Iranians and two Iranian firms connected with the criminal scheme:
Mujahid Ali
Khosrow Kasraei
Reza Ghoreishi
FIMCO FZE
Crescent International Trade and Services FZEAlso charged was Suniel Malhotra, an Indian national, an overseas sales representative for Hetran, Inc.
According to U.S. Attorney Peter Smith, Hetran allegedly manufactured a horizontal lathe, also described as a bar peeling machine (“peeler”), valued at more than $800,000 and weighing in excess of 50,000 pounds. A horizontal lathe, or peeling machine, is used in the production of high grade steel or "bright steel", a product used, among other things, in the manufacture of automobile and aircraft parts.
On or about June 2009, Hetran was allegedly contacted by representatives of FIMCO, an Iranian company with offices in Iran and the United Arab Emirates, and Crescent International, an affiliated company based in Dubai in the United Arab Emirates. FIMCO allegedly wanted to purchase the peeler. During negotiations, it became apparent that the peeler was intended for shipment to Iran. American companies are forbidden to ship “dual use” items (such as the peeler) to Iran without first obtaining a license from the U.S. Department of Commerce. Aware that it was unlikely that such a license would be granted, Hetran, Helmut Oertmann and other co-conspirators agreed to falsely state on the shipping documents that the end-user of the peeler was Crescent International in Dubai.
On June 17, 2012, Hetranallegedlycaused the peeling machine to be shipped to Dubai in the United Arab Emirates, fraudulently listing Crescent International in Dubai as the end-user, knowing that the shipment was ultimately being sent to Iran in violation of federal law.
Hetran is charged with conspiring to violate the export laws of the United States, and is subject to a sentence of up to $1,000,000. Helmut Oertmann, charged with attempting to smuggle goods from the United States to Iran, faces a potential penalty of up to 10 years imprisonment, a fine of up to $250,000 and up to 5 years supervised release. The Iranian and Indian defendants are charged with conspiring to violate and with attempting to violate the export laws of the United States, each carrying potential penalties of up to 10 years imprisonment, a fine of up to $250,000 and up to 5 years supervised release for the individual defendants and a $1,000,000 fine for each corporate defendant.
The case was investigated by the Office of Export Enforcement of the U.S. Department of Commerce. The prosecution is being coordinated by Assistant U.S. Attorney Christy Fawcett and Senior Litigation Counsel Gordon Zubrod and is being overseen by the National Security Division of the U.S. Department of Justice.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Russellville Man Indicted for Illegal Firearms, MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Russellville, Mo., man was indicted by a federal grand jury today for being an illegal alien in possession of firearms and for possessing methamphetamine with the intent to distribute.
Emmanuel Guillen, 21, a citizen of Mexico residing in Russellville, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Guillen, an illegal alien, was in possession of 21 firearms on March 20, 2014. Guillen is also charged with possessing methamphetamine with the intent to distribute.
Guillen was arrested on March 20, 2014. Law enforcement officers executed a search warrant at Guillen’s residence on that day. Officers found methamphetamine in a white box on the shelf of a bedroom closet and in a vehicle parked in the driveway. They found 21 firearms, including semi-automatic pistols, shotguns and rifles, in the house and in vehicles. Officers also found $2,504 in Guillen’s wallet and $13,168 in a safe in the bedroom closet.
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 Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Rochester Man Pleads Guilty to Wire FraudRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that David Hoffman, 40, of Rochester, N.Y., pleaded guilty before the U.S. District Judge Charles J. Siragusa, to wire fraud. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between June 2008 and September 2008, the defendant operated an auto dealership. Hoffman applied for financing from an automotive financing company, Dealer Services Corporation (DSC) for an inventory of vehicles. After receiving the financing, the defendant then applied for an obtained financing for the exact same vehicles already financed by DSC from another financing company, Automotive Finance Corporation (AFC).
Hoffman received over $166,000 in duplicate financing based on the fraudulent scheme for approximately 13 vehicles.
Sentencing is scheduled for July 30, 2014, at 10:45 a.m. before Judge Siragusa.
The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation.Rhode Island Business Owner, Wife and Company Indicted for Allegedly Marketing and Selling Unapproved Remedies for Cancer Mitigation and Treatment, Tax EvasionRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Tuesday returned a twenty-four count indictment alleging that a Portsmouth, R.I., business, its owner and his wife marketed and sold in excess of $2,000,000 dollars worth of products not approved by the federal Food and Drug Administration (FDA) as cancer mitigation and treatment options, announced United States Attorney Peter F. Neronha, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division, Mark Dragonetti, Special Agent in Charge, FDA Office of Criminal Investigations, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
According to the indictment, it is alleged that Daniel Chapter One, a Portsmouth, R.I., based company, its owner, James Feijo, and his wife Patricia Feijo, engaged in the marketing and in the sale and distribution of unapproved health products and supplements 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA. Additionally, the indictment alleges that the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were allegedly marketed and sold through various websites, in-store advertisements, a call center, on the Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, it is alleged that from 2006 through 2011, James Feijo falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. It is alleged that during that time, James Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld; through 2011, Daniel Chapter One paid employees through checks written out to cash; and that James Feijo, for at least sixteen quarters, failed to collect, account for and pay over employment taxes due the United States.
In addition, as charged in the indictment, it is alleged that for at least two years James Feijo failed to file individual tax returns with the IRS.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The defendants will be summoned by the U.S. District Court in Providence for arraignment on a date yet to be determined.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly of the District of Rhode Island and Trial Attorney Jessica N. Moran of the Justice Department’s Tax Division.
The matter was investigated by members of the Rhode Island FDA Task Force from the North Providence and East Providence, R.I., Police Departments, R.I. State Police and R.I. National Guard, and by IRS- Criminal Investigation.
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Contact: 401-709-5357
[email protected]Priest and Parish Administrator Charged with Stealing from Troy ChurchRead the Press Release
A Catholic priest and a parish administrator were indicted for stealing almost $700,000 from St. Thomas More Church in Troy during an eight-year period, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Division.
Charged were Edward Belczak, 69, of Troy, and Janice Verschuren, 67, of Bloomfield Hills.
The five-count indictment alleges that between 2004 and 2012, Belczak and Verschuren stole money and diverted funds from St. Thomas More Church and the Archdiocese of Detroit for their unjust enrichment, then concealed their criminal acts by creating or verifying false financial reports that were submitted to the Archdiocese. Charges in the indictment include mail fraud, wire fraud and conspiracy.
The indictment alleges that Belczak, assisted by Verschuren, used the proceeds of their illegal conduct in a number of ways, including:
• Diverting to their own use nearly $500,000 donated or bequeathed by parishioners to St. Thomas More Church,
• Using almost $110,000 stolen from the church to pay closing costs on the sale of Verschuren’s condominium in Palm Beach, Florida, to Belczak,
• Diverting to their personal bank accounts more than $26,000 in commissions paid to St. Thomas More Travel Group, and
• Diverting to themselves more than $33,000 owed to St. Thomas More Church by Diocesan Publications.
To conceal the theft and diversion of money, Belczak approved false financial reports that were submitted to the Archdiocese of Detroit. The reports underreported the amount of the parish’s operating receipts.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
United States Attorney McQuade thanked the agents of the FBI and the Troy Police Department for their investigation of the case. It is being prosecuted by Assistant United States Attorneys Cynthia Oberg, Frances Carlson, and Adriana Dydell.Prescription Drug Take-Back to be held Saturday, April 26, 2014Read the Press Release
Montgomery, Alabama - On April 26 from 10 a.m. to 2 p.m., local law enforcement and the Drug Enforcement Administration (DEA) will give the public its eighth opportunity in three years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Citizens are encouraged to bring their prescription pills to a disposal site, but they should note that the DEA cannot accept liquids, needles, or “sharps,” only pills or patches. The service is free and anonymous, there will be no questions asked. To locate a disposal site near you, go to www.deadiversion.usdoj.gov
Citizens may also ask their local police departments and sheriff’s offices for disposal locations. The DEA may be able to locate convenient disposal sites for you by calling 1-800-882-9539.
Last October, Americans turned in 324 tons (over 647,000 pounds) of prescription drugs at over 4,114 sites operated by the DEA and its thousands of state and local law enforcement partners. When those results are combined with the seven previous Take Back events, DEA and its partners have taken in over 3.4 million pounds—more than 1,700 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash— pose potential safety and health hazards.
“This Take Back day is one way that citizens can help combat the growing threat of prescription drugs,” stated U.S. Attorney Beck. “We ask all of our citizens to use this day to help make their homes a safer place for their family and friends.”
“Take Back is an important step in ridding our country of lethal, illegal drugs,” stated DEA Assistant Special Agent in Charge Clay Morris. “The amount of drugs that we have disposed of in the past speaks volumes about the need to develop a convenient way to rid homes of unwanted or expired prescription drugs. Until such laws are passed, Law Enforcement is the only entity citizens can legally and safely dispose of these drugs.”
The DEA is in the process of approving new regulations that implement the Safe and Responsible Drug Disposal Act of 2010, which amends the Controlled Substances Act to allow an “ultimate user” (that is, a patient or their family member or pet owner) of controlled substance medications to dispose of them by delivering them to entities authorized by the Attorney General to accept them. The Act also allows the Attorney General to authorize long term care facilities to dispose of their residents’ controlled substances in certain instances.
Each collection site will be supervised by a law enforcement officer due to the involvement of controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Porcupine Man Sentenced for Assault on A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man convicted of Assault on a Federal Officer was sentenced on April 17, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Troy Brave, age 39, was sentenced to 1 year of unsupervised probation and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Brave was indicted on June 18, 2013, by a federal grand jury for assaulting an officer employed by the Oglala Sioux Tribe Department of Public Safety on November 11, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Pine Ridge Woman Sentenced for Stealing Money OrdersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Larceny was sentenced on April 18, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Bennita Feather Earring, age 48, was sentenced to time served, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund and $1500 in restitution.
In March 2012, at Pine Ridge, Feather Earring and another person took three money orders belonging to someone else, arranged to have them cashed, and kept part of the money for herself.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Physician Charged with 210 Counts of Health Care Fraud and Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA – Ona M. Colasante, 57, a physician from Gainesville, Florida, surrendered yesterday on charges contained in a federal indictment. U.S. Attorney Pamela C. Marsh announced the grand jury charges, which include 199 counts of health care fraud, three counts of introduction or delivery of misbranded drugs, three counts of introduction or delivery of unapproved new drugs, and five counts of money laundering.
According to the indictment, Colasante owned and operated a medical business known as the Hawthorne Medical Center in Hawthorne, Florida, from approximately 1998 until March 2009, and the Colasante Clinic on NW 16th Avenue in Gainesville, Florida, from approximately January 2010 until January 2013. During her operation of these medical businesses, Colasante is charged with having submitted or caused to be submitted fraudulent claims to health care benefit programs for medically unnecessary tests and procedures and medical services not rendered or provided, and thereafter receiving reimbursement for the fraudulent claims. These programs included Medicare, Medicaid, and Blue Cross Blue Shield of Florida. It is further alleged that while operating the Clinic, Colasante used some of the proceeds from the fraudulent health care claims to purchase non-FDA-approved drugs and devices from pharmacies located outside the United States. According to the indictment, Colasante then submitted or caused to be submitted fraudulent claims to health care benefit programs for the administration of the non-FDA-approved drugs. It is further alleged that the non-FDA-approved drugs were being administered to patients of the Colasante Clinic without their knowledge or consent.
Colasante made her initial appearance on the charges before U.S. Magistrate Judge Gary R. Jones at the U.S. District Courthouse in Gainesville yesterday. The trial is scheduled for June 17, 2014, before U.S. District Judge Mark E. Walker at the U.S. District Courthouse in Gainesville.
If convicted of charges in the filed indictment, Colasante faces a term of up to 10 years imprisonment for each of the health care fraud counts, up to three years imprisonment for each of the FDA violations, and up to 10 years imprisonment for each of the money laundering counts. She also faces fines and forfeiture of assets on each count.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt in a court of law.
This indictment is the result of a joint investigation conducted by the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Internal Revenue Service-Criminal Investigation; Florida Attorney General Pam Bondi’s Medicaid Fraud Control Unit; and the Food and Drug Administration. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.Perrysburg Man Sentenced to 25 Years in Prison for Child Pornography CrimesRead the Press Release
A Perrysburg man was sentenced to 25 years in prison for child pornography crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Andrew B. Palm, 34, was found guilty last year of one count each of receit of child pornography and production of child pornography.
The defendant's Sandalwood Road home is also subject to forfeiture.
This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Guillermo J. Rojas following an investigation by United States Immigration and Customs Enforcement’s Homeland Security Investigations and the Perrysburg Police Department.
Pennsylvania Firm and Chief Officer Charged with Shipping Machinery to Iran in Violation of U.S. Export License RequirementsRead the Press Release
A criminal information has been filed against a Pennsylvania firm and its chief officer, charging them with conspiracy to evade export reporting requirements and with attempting to smuggle to Iran a lathe machine in violation of U.S. export regulations. The announcement was made today by the U.S. Attorney Peter J. Smith for the Middle District of Pennsylvania.
Charged in the Criminal Information were Hetran Inc., an engineering and manufacturing plant in Orwigsburg, Pa., and its chief executive officer, Helmut Oertmann. At the same time, an indictment was unsealed that had previously been voted by a federal grand jury in Harrisburg in December 2012 against three Iranians and two Iranian firms connected with the criminal scheme: Mujahid Ali, Khosrow Kasraei, Reza Ghoreishi, FIMCO FZE, and Crescent International Trade and Services FZE.
Also charged was Suniel Malhotra, an Indian national, an overseas sales representative for Hetran Inc.
According to U.S. Attorney Peter Smith, Hetran allegedly manufactured a horizontal lathe, also described as a bar peeling machine (peeler), valued at more than $800,000 and weighing in excess of 50,000 pounds. A horizontal lathe, or peeling machine, is used in the production of high grade steel or bright steel,” a product used, among other things, in the manufacture of automobile and aircraft parts.
On or about June 2009, Hetran was allegedly contacted by representatives of FIMCO, an Iranian company with offices in Iran and the United Arab Emirates, and Crescent International, an affiliated company based in Dubai in the United Arab Emirates.FIMCO allegedly wanted to purchase the peeler.During negotiations, it became apparent that the peeler was intended for shipment to Iran.American companies are forbidden to ship “dual use” items (such as the peeler) to Iran without first obtaining a license from the U.S. Department of Commerce.Aware that it was unlikely that such a license would be granted, Hetran, Helmut Oertmann and other co-conspirators agreed to falsely state on the shipping documents that the end-user of the peeler was Crescent International in Dubai.
On June 17, 2012, Hetranallegedlycaused the peeling machine to be shipped to Dubai in the United Arab Emirates, fraudulently listing Crescent International in Dubai as the end-user, knowing that the shipment was ultimately being sent to Iran in violation of federal law.
Hetran is charged with conspiring to violate the export laws of the United States, and is subject to a sentence of up to $1,000,000.Helmut Oertmann, charged with attempting to smuggle goods from the United States to Iran, faces a potential penalty of up to 10 years imprisonment, a fine of up to $250,000 and up to 5 years supervised release.The Iranian and Indian defendants are charged with conspiring to violate and with attempting to violate the export laws of the United States, each carrying potential penalties of up to 10 years imprisonment, a fine of up to $250,000 and up to 5 years supervised release for the individual defendants and a $1,000,000 fine for each corporate defendant.
The case was investigated by the Office of Export Enforcement of the U.S. Department of Commerce.The prosecution is being coordinated by Assistant U.S. Attorney Christy Fawcett and Senior Litigation Counsel Gordon Zubrod and is being overseen by the National Security Division of the U.S. Department of Justice.
Indictments and criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Pearl River Man Sentenced to Ten Years in PrisonFor the Illegal Distribution of Oxymorphone Causing the Overdose Death of Two Young MenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration (“DEA”), announced that CRAIG OLEKSOWICZ was sentenced today by U.S. District Judge Edgardo Ramos in Manhattan federal court to 120 months’ imprisonment. OLEKSOWICZ’s criminal conduct, for which he was sentenced, included illegally distributing oxymorphone, a Schedule II controlled substance, the use of which caused the July 2011 and October 2011 deaths of another individual, two young men in Pearl River, New York.
U.S. Attorney Bharara stated: “The illegal distribution of highly-addictive and dangerous prescription pills is the fastest-growing drug problem in the country. Painkillers that Craig Oleksowicz illegally dealt led to the overdose death of two young men. Today’s sentence of ten years in prison for Oleksowicz’s crimes shows how seriously this Office takes this public health epidemic.”
According to the Information, to which OLEKSOWICZ pled guilty, statements made during the plea and sentencing proceedings or associated court filings:
OLEKSOWICZ, 38, of Pearl River, New York, used worker’s compensation benefits to pay for prescriptions of oxymorphone, codeine, methadone, and other medications. Between at least February 2011 and October 2011, OLEKSOWICZ and others regularly distributed OLEKSOWICZ’s prescription oxymorphone pills for profit. Oyxmorphone is a powerful painkiller with a high potential for addiction and abuse, and its improper use may lead to fatality. Indeed, in July 2011 and in October 2011, the use of oxymorphone pills supplied by OLEKSOWICZ caused the overdose death of two young men, aged 20 and 21, respectively, both residents of Pearl River. In the months following those deaths, OLEKSOWICZ continued his illegal distribution of pills, selling codeine, methadone, and Valium pills for profit on at least four separate occasions in February 2012.
Mr. Bharara praised the investigative efforts of the DEA, the Westchester County Department of Public Safety, the Rockland County Drug Task Force, and the Orangetown Police Department.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Christopher J. DiMase and Abigail Kurland are in charge of the prosecution.
Pasco County School Employee Arrested on Child Pornography ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Kenneth Dempsey (52, Port Richey) has been charged in a criminal complaint with receipt and possession of child pornography. If convicted, Dempsey faces a mandatory minimum sentence of 5 years, up to a maximum of 20 years in federal prison. Dempsey was arrested on April 21, 2014 and made his initial appearance before U.S. Magistrate Judge Mark A. Pizzo. A bond hearing is scheduled for April 24, 2014, at 2:00 p.m.
According to the criminal complaint, between August 2013 and April 2014, Dempsey used the Internet to send and receive multiple images of child pornography from his residence.
A criminal complaint is merely an informal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Pasco County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Over $56.6 Million Forfeited in E-Gold Accounts Involved in Criminal OffensesRead the Press Release
More Than $20 Million Returned to Bona Fide Account Holders
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander ordered yesterday the forfeiture of $45,816,817.84, the remaining value of over $86.3 million in e-gold, Ltd. (EGL ) accounts seized by the government in 2011. In 2012, Judge Hollander ordered the forfeiture of over $10.8 million in the EGL accounts, bringing the total amount forfeited to over $56.6 million. Judge Hollander also ordered the return of $295,642 to bona fide account holders who were able to verify their ownership of the accounts. Judge Hollander had previously ordered the return of over $19,947,313.91 to identified account holders.
The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy Michalko of the United States Secret Service - Washington Field Office.
U.S. Attorney Rosenstein said, “Civil forfeiture allows the government to recover the proceeds of criminal activity, while assuring that the due process rights of any lawful owners are fully protected.”
EGL was in the business of exchanging traditional forms of currency for precious metals held in electronic form, known as e-metals or e-gold, and settling payer-initiated transfers of e-metals from one customer account to another. In 2008, EGL pled guilty in the District of Columbia to money laundering and operating an unlicensed money transmitting business. EGL sold precious metals in electronic form to provide customers with a means of transferring value from one customer account to another while maintaining anonymity, knowing that at least some of the funds were involved in criminal activities. Non-traditional money transmitting businesses such as EGL are frequently used by criminals to transfer money because they are not as closely regulated as banks and other traditional financial institutions. For that reason, they must be licensed by the state in which they operate and register with the Department of the Treasury.In 2011, the government filed a civil forfeiture action in the District of Maryland against the value of the e-gold accounts, totaling more than $86.3 million, and sent notice of the right to contest the forfeiture to the registered account holders. Some of the account holders who received the notice responded that they were the victims of identity theft and had no connection to EGL.
As part of its plea agreement, EGL identified 12,869 customer e-metal accounts that contained funds derived from a variety of criminal offenses including child pornography, credit card fraud, identity theft, investment fraud and the sale of stolen or non-existent goods on the internet. In 2012, Judge Hollander ordered the forfeiture of more than $10.8 million, the value of those accounts. Judge Hollander also ordered that that $12,287 be returned to 22 claimants from those identified accounts, whose claims the government did not contest.
The government then sought the forfeiture of the remainder of the $86.3 million as property involved in EGL’s criminal offenses, but it agreed to exempt from forfeiture any money claimed by bona fide account holders. The money forfeited yesterday represents the balance of the funds involved in the criminal offenses that was not claimed by account holders, bringing the total forfeited to the government to over $56.6 million.
Digital currencies are generally marketed as offering global acceptance without the need for conversion between national currencies, and are valued at fluctuating rates tied to the price of a particular precious metal, especially gold. Digital currency is used for on-line commerce or for funds transfers between individuals for private purposes. In general, an EGL customer opened an e-gold account, and then could use the internet to transfer the value in the account to any other EGL customer anonymously and instantaneously anywhere in the world. The recipient could then redeem the e-gold for any national currency. Because of the ease with which customers could purchase and transfer e-gold anonymously, outside of the regulated traditional banking system, trading in e-gold became popular among persons looking for a way of laundering criminal proceeds. In particular, e-gold was widely accepted as a means of transacting credit card and identification fraud, high yield investment programs and other investment scams, and child exploitation, but was not widely accepted by large or mainstream vendors.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service Washington and Orlando Field Offices and the SCIRS-SS Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Stefan Cassella, who handled the civil forfeiture for the government.
Office Manager Charged with Embezzling from EmployerRead the Press Release
PITTSBURGH - A resident of Springdale, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of theft from an employee benefit plan, United States Attorney David J. Hickton announced today.
The one-count indictment named Jennifer Gent, 39, as the sole defendant.
According to the indictment, during a two-year period while she was employed as the office manager for the Journeyman-Apprentice Training Fund (JATF) for the Sheet Metal Industry of Western Pennsylvania, Gent embezzled from her employer by writing and cashing approximately $30,297.70 in unauthorized JATF checks.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards and the Employee Benefit Security Administration 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.
Nashville Man Indicted for Mailing Threats to Employee at Covington Area FactoryRead the Press Release
Memphis, TN – Daniel Puckett, 58, of Nashville, TN, was indicted today by a federal grand jury in Memphis on one count of sending threatening interstate communications via the U.S. Postal Service, announced U.S. Attorney Edward L. Stanton III.
According to the facts of the indictment, on August 9, 2013, Puckett knowingly and willfully mailed an envelope addressed to an employee of Unilever, 2000 U.S. Highway 51, Covington, TN 38019. The letter was mailed from the State of Kentucky. Inside the envelope was a publication of the “Torch,” “Summer 2013, Issue 208.” This publication was circulated by Thomas Robb, national director of the “Knights Party.”
The said publication contained a threat to harm and injure the named employee at Unilever and his family. Specifically, on the front of the publication was hand printed, “we have space for you and your family under a big oak tree!”
On another page of the publication, it was represented that the employee of Unilever was not a member of the “Knights,” but wanted to attend the “National Klan Congress.” If convicted on the sole count of the indictment, Puckett faces up to five years in federal prison and a fine of up to $250,000; however, if the incident is judged to be a hate crime, federal sentencing guidelines allow the penalties to be enhanced.
This case was investigated by the United States Postal Inspection Service. First Assistant U.S. Attorney Larry Laurenzi is representing the government.
U.S. Attorney Edward L. Stanton III established a dedicated Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.Moberly Man Indicted for CounterfeitingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Moberly, Mo., man was indicted by a federal grand jury today for possessing and passing counterfeit $50 bills.
Kevin Glenn McCuiston, 37, of Moberly, was charged in a two-count indictment returned by a federal grand jury in Jefferson City. Today’s superseding indictment replaces a Feb. 12, 2014, federal indictment that contained one count of possessing counterfeit $50 bills.
Today’s indictment contains the original allegation that McCuiston was in possession of 49 counterfeit $50 bills on Dec. 6, 2013. McCuiston is also charged with passing four counterfeit $50 bills and five counterfeit $10 bills on Dec. 2, 2013.
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 Lauren Kummerer. It was investigated by the U.S. Secret Service and the Missouri State Highway Patrol.Mitten Rock, N.M., Woman Pleads Guilty to Federal Involuntary Manslaugher ChargeRead the Press Release
ALBUQUERQUE – Patricia Benally, 36, an enrolled member of the Navajo Nation who resides in Mitten Rock, N.M., pleaded guilty this morning to an indictment charging her with involuntary manslaughter under a plea agreement with the U.S. Attorney’s Office.
Benally was arrested on Feb. 5, 2014, on a criminal complaint charging her with involuntary manslaughter of a four-year-old Navajo child on the Navajo Indian Reservation. Benally was charged by indictment for involuntary manslaughter on Feb. 26, 2014.
According to court filings, Benally was intoxicated when the vehicle she was driving was involved in a rollover collision near mile marker 72 on U.S. Highway 491 south of Shiprock, N.M. The victim was one of five passengers, four of whom were young children, in Benally’s vehicle at the time of the collision. Benally’s blood alcohol content was .237 shortly after the collision.
During today’s plea hearing, Benally admitted killing the victim while driving under the influence of alcohol. According to the plea agreement, Benally was driving intoxicated at a high rate of speed when she fell to sleep and lost control of the vehicle, causing it to roll over and crash. The victim was killed as a result of the crash.
Benally has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Benally faces a statutory maximum penalty of eight years in federal prison.
The case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Mission Man Charged with First Degree Burglary and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Tyler Red Eagle, age 22, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and up to $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 2, 2013, at Soldier Creek, Red Eagle and other defendants unlawfully entered and remained in two residences and assaulted a victim in one of the residences with a metal object which resulted in serious bodily injury.
The charge is merely an accusation and Red Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Red Eagle was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for June 3, 2014.
Mexican National Admits Growing Marijuana on Public LandsRead the Press Release
BOISE — Gilberto Duran-Contreras, 51, a Mexican national, pleaded guilty yesterday in federal court to unlawfully manufacturing more than 1,000 marijuana plants, and damage to government land, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
According to the plea agreement, on September 15, 2013, law enforcement officers arrested Duran-Contreras on Hwy 21 near Lowman, a few miles from an outdoor marijuana growing operation on Little Beaver Creek in the Boise National Forest. A few days earlier, his co-defendants Marcos Solano-Farias, Jose Misael Ayala-Talavera, and Carlos Cerda-Carpio, were arrested in a related outdoor marijuana growing operation with 1,411 live plants on Rabbit Creek. The three co-defendants have already pleaded guilty. Duran-Contreras admitted he had worked in the growing operation on Little Beaver Creek where law enforcement officers had removed 5,463 marijuana plants. According to the plea agreements, investigators found and seized two semi-automatic handguns, and an AK-47 type rifle at the Rabbit Creek camp. Firearms had also been present at the Little Beaver Creek camp. At both locations, investigators found several hundred marijuana plants that had already been harvested from the 2013 growing operation. Law enforcement officers have located and eradicated all live marijuana plants from these growing operations.
Co-defendant Mariah Villasenor-Rodriguez recently pleaded guilty to possession of more than 100 kilos of processed marijuana at her premises in Caldwell. She is the wife of lead co-defendant, Juan Pablo Villasenor-Villa, who is set for trial on July 21, 2014.
All defendants were indicted by a federal grand jury on October 9, 2013, on charges of conspiracy to manufacture and distribute marijuana, possession of firearms in furtherance of drug trafficking, and injury to federal public lands. Duran-Contreras will be sentenced on July 8, 2014. The four co-defendants who have previously pleaded guilty are set for sentencing on May 14-15, 2014.
The charge of manufacturing more than 1,000 marijuana plants carries a penalty of not less than ten years and up to life in prison, a maximum fine of $10 million, and five years of supervised release. The charge of injury to government property is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. Possession of more than 100 kg is punishable by not less than five years and up to 25 years in prison, a maximum fine of $5 million and up to three years of supervised release.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes.” Olson noted that Duran-Contreras is the tenth defendant in 2014 to plead guilty or be sentenced in Idaho on federal drug trafficking charges that also involved the unlawful use, possession or sale of firearms. “Drugs and guns are a dangerous and often violent combination,” Olson said. “Today’s guilty pleas demonstrate that federal gun laws are carefully targeted at those who use or possess firearms for unlawful purposes.”
The case is the result of a joint investigation result of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Man Sentenced to 30 Years in Prison for Brutal Manslaughter of Another Man on Nevada Indian Colony in December 2011Read the Press Release
RENO, Nev. – A man who killed another man with a shotgun on the Battle Mountain Indian Colony in Lander County, Nev., in December 2011 was sentenced on April 21, 2014, to 30 years in federal prison, announced United States Attorney Daniel G. Bogden.
Daniel James Draper, 48, who was convicted by a jury in January 2014 of voluntary manslaughter and use of a firearm during a crime of violence causing death, was sentenced by U.S. District Judge Robert C. Jones. The sentence was the maximum allowed under federal law for those offenses.
“The 30-year prison sentence imposed against defendant Draper cannot bring Linford Dick back or undo any of the violent criminal acts inflicted upon him,” said United States Attorney Bogden. “Hopefully, the verdicts and sentence provides some measure of justice to the victim, his family, and the Battle Mountain Indian Colony community. We will continue our outreach and law enforcement efforts in an attempt to make our tribal communities safe.”
The case was investigated by the FBI, the Bureau of Indian Affairs, the Lander County Sheriff’s Office, and the Battle Mountain Indian Colony Police Department, and prosecuted by Assistant United States Attorneys Megan Rachow and William R. Reed
According to the court records, on Dec. 20, 2011, at approximately 1:00 a.m., Draper smashed a front window and entered a home on the Indian Colony, and shot and killed the victim, Linford Dick. Draper also used the shotgun to strike and beat the victim in the head. Two other women and a child were in the home at the time.Lower Brule Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Daniel Berry, age 25, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2012, and January 31, 2012, Berry knowingly engaged in and attempted to engage in a sexual act with the victim, who had not attained the age of 16 years old.
The charge is merely an accusation and Berry is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Berry was released on bond pending trial. A trial date has not been set.
Long-Time Nigerian Fugitive Convicted of Importing Heroin into the U.S.Read the Press Release
HOUSTON - Koyode Lawrence aka “papa,” who recruited college students in Nigeria to transport heroin into the U.S., has pleaded guilty to conspiracy to import a controlled substance, announced United States Attorney Kenneth Magidson.
The investigation was initiated Feb. 18, 2001, following the arrests of two co-defendants at Bush Intercontinental Airport (IAH) as they attempted to internally smuggle 1498 grams of heroin into the country from Nigeria. Both men were determined to be working for Lawrence, 45, of Lagos, Nigeria.
Lawrence headed the organization in which couriers would swallow heroin filled pellets in Nigeria, enter the U.S. and expel the pellets upon arrival at their final destination.
Lawrence recruited carriers who had dual U.S. and Nigerian citizenship because Lawrence believed them to be less suspicious. Generally, most were born in the U.S. when their parents were attending school and moved back to Nigeria while still children. Most of the carriers were recruited while attending college in Nigeria.
Individuals called “strikers” recruited potential couriers and brought them to Lawrence’s house in Lagos, where they were tested for their internal smuggling ability. Some of the couriers required extensive training to develop the ability to swallow between 700 and 800 grams of heroin filled pellets at a time. The couriers were paid between $6,000 and $15,000 per trip.
Lawrence accompanied carriers to a hotel in Ghana where they were given the heroin pellets to swallow. The carriers usually then flew from Ghana to Amsterdam and then to an international airport in the U.S., frequently arriving at IAH. Upon arrival, they were met by a manager who would escort them back to an apartment in Chicago, where they were instructed to expel the pellets. Carriers would often stay in Chicago for several days until arrangements could be made for their return.
Between March 2000 and November 2002, 14 heroin arrests were subsequently linked to Lawrence with multiple historical runs further attributed to him. Throughout the conspiracy, the Lawrence organization is responsible for importing at least 29 kilograms of heroin into the U.S. from Nigeria.
Lawrence fought his extradition from Nigeria for nearly 10 years and was finally brought to the U.S. in the latter part of 2013.
U.S. District Judge Nancy F. Atlas accepted the plea today and has set sentencing for July 9, 2014, at which time Lawrence faces a mandatory minimum of 10 years and up to life imprisonment as well as a potential $5 million fine. He will remain in custody pending that hearing.
The investigation leading up to the charges was conducted by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorney Stuart A. Burns is prosecuting the case.
Kingston Man Pleads Guilty to Federal Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Michael Hughes, age 32, of Kingston, Pennsylvania, pleaded guilty to a charge of possession of marijuana, a controlled substance, with intent to distribute yesterday before Senior U.S. District Judge Edwin M. Kosik in Scranton. The offense occurred in April 2013 when Kingston Police officers, with the assistance of ATF agents initiated a traffic stop on Hughes based on an outstanding warrant. During the search of the vehicle, investigators located a quantity of marijuana. Hughes was charged in a criminal information filed on April 4, 2014.
This case was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kingston Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine, and a 3 year term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Kansas Man Sentenced for Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas man was sentenced in federal court today for an attempted bank robbery in Trimble, Mo., that was foiled when he was shot by a bank employee before leading law enforcement officers on a high-speed chase.
Michael S. Oliva, 36, of Kansas, was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole.
On Nov. 25, 2014, Oliva pleaded guilty to attempted bank robbery.
Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, on March 1, 2013. Oliva pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. According to court documents, the employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
Another bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva, striking him in the jaw. Oliva fled from the bank, jumped in his car and left; no money was taken during the attempted robbery.
According to court documents, after Oliva left the bank, the first employee got up from the floor and saw him staggering behind a nearby building. She called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.KCK Man Sentenced to 15 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for illegally possessing two firearms.
Gregory E. Mitchell, 41, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Mitchell was sentenced as an armed career criminal due to his prior felony convictions.
On Dec. 10, 2013, Mitchell pleaded guilty to being a felon in possession of firearms. Mitchell admitted that he was in possession of a Smith & Wesson .38-caliber revolver and a Taurus .38-caliber revolver with an obliterated serial number. Mitchell also pleaded guilty to being in possession of a firearm with an obliterated serial number.
Mitchell was arrested on July 8, 2013, when his vehicle was stopped by Kansas City police officers. Mitchell was wearing a shoulder holster that contained the loaded Taurus revolver. The Smith & Wesson revolver was found in his vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mitchell has two prior felony convictions for burglary and two prior felony convictions for robbery.
This case is being prosecuted by Assistant U.S. Attorney Justin Davids. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Japanese Automotive Parts Manufacturer Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
Showa Corp., an automotive parts manufacturer based in Saitama, Japan, has agreed to plead guilty and to pay a $19.9 million criminal fine for its role in a conspiracy to fix prices and rig bids for pinion-assist type electric powered steering assemblies installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Southern District of Ohio in Cincinnati, Showa engaged in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of, certain pinion-assist type electric powered steering assemblies sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the criminal fine, Showa has agreed to cooperate with the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea marks the 27th time a company has been held accountable for fixing prices on parts used to manufacture cars in the United States,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners remain committed to prosecuting illegal cartels that harm U.S. consumers and businesses.”
According to the charge, Showa and its co-conspirators carried out the conspiracy through meetings, conversations and communications in which they discussed and agreed upon bids and price quotations on pinion-assist type electric powered steering assemblies to be submitted to Honda. Showa then submitted quotations in accordance with those agreements and sold pinion-assist type electric powered steering assemblies at collusive and noncompetitive prices. Showa and its co-conspirators monitored adherence to the agreed-upon bid-rigging and price-fixing scheme. The conspirators kept their conduct secret by using code names and meeting at remote locations, among other things. Showa’s involvement in the conspiracy lasted from at least as early as 2007 until as late as September 2012.
Showa manufactures and sells pinion-assist type electric powered steering assemblies. These devices provide power to the steering gear pinion shaft from electric motors to assist the driver to more easily steer the automobile. Pinion-assist type electric powered steering assemblies include an electronic control unit and link the steering wheel to the tires but do not include the column, intermediate shaft, steering wheel or tires.
Including Showa, 27 companies and 24 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.3 billion in criminal fines.
Showa Corp. is charged with price fixing and bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office with assistance from the U.S. Attorney’s Office for the Southern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cincinnati Field Office at 513-421-4310.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong in Great Falls on April 18, 2014 and entering pleas of Not Guilty were:
- LLIAM MICHAEL LANCASTER, a 31-year-old resident of Louisville, Kentucky, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, LANCASTER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference: 14-03
- SUS PIMENTAL-LOPEZ, 22, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, PIMENTAL-LOPEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 13-24
Appearing before U.S. Magistrate Ostby in Billings on April 21, 2014 and entering pleas of Not Guilty were:
- RRY DALE HILL, a 62-year-old resident of Billings, appeared on charges of being a felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, HILL faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-45
- DD JAMES NESIUS, a 33-year-old resident of Wheatland, Wyoming, appeared on charges of possession of stolen firearms. If convicted of the charge contained in the indictment, NESIUS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-11
Appearing before U.S. Magistrate Ostby in Billings on April 22, 2014 and entering pleas of Not Guilty were:
- VID LEE BARNARD, JR. a 43-year-old resident of Billings appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, BARNARD faces life imprisonment, $10,000,000 in fines and 5 years imprisonment. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- VID LEE GOFFENA, a 46-year-old resident of Roundup, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RSTA ELAINE GOFFENA, a 38-year-old resident of Roundup, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RARDO LOPEZ MARTINEZ, a 38-year-old resident of Los Angeles, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, MARTINEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- DY WILLIAM SIMPSON, a 25-year-old resident of Taft, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, SIMPSON faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RIO ALBERT VILLEGAS, a 32-year-old resident of Los Angeles, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, VILLEGAS faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed Charging Pennsylvania Man and Two Additional Individuals with Conspiracy to Illegally Export Restricted Chemical Laboratory Equipment to SyriaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement announced today the unsealing of an indictment charging three individuals, including Ahmad Feras Diri, age 39, of London, United Kingdom, Harold Rinko, age 72, of Hallstead, Susquehanna County, Pennsylvania, and Moawea Deri, age 36, a Syrian citizen, and a firm with which Ahmad Feras Diri and Moawea Deri were associated, for their alleged involvement in a conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria, in violation of federal law.
The indictment alleges that federal legislation and export controls seek to shut down the supply chain used by the Syrian state to support terrorism and to develop and proliferate weapons of mass destruction, including chemical weapons. Pursuant to regulations of the U.S. Department of Commerce’s Export Administration, a license is required to export goods and services from the United States to Syria, other than limited and certain categories of humanitarian food and medicine.
According to U.S. Attorney Peter Smith, the indictment, returned by a Scranton grand jury on November 20, 2012, and sealed until today, charges the three individuals and the company with criminal conspiracy, wire fraud, illegal export of goods, money laundering, and false statements.
According to Homeland Security Investigations Philadelphia Special Agent in Charge (SAC) John Kelleghan, Commerce Department Office of Export Enforcement New York Field Office SAC Sidney Simon, and the United States Attorney’s Office, Ahmad Feras Diri was arrested by the Metropolitan Police in London on March 14, 2013, and is facing extradition to the United States in connection with the charges in the Middle District of Pennsylvania. Harold Rinko, of Hallstead, Pennsylvania, previously waived arraignment on the sealed indictment. The government has also filed a plea agreement with Rinko which is subject to the approval of the Court. Rinko, the owner-operator of Global Parts Supply, was allegedly engaged in the export business. Ahmad Feras Diri and Moawea Deri are brothers in the business of purchasing and transferring goods from the United States to Syria through a firm known as d-Deri Contracting & Trading. Moawea Deri, remains at large, and is considered a fugitive.
The indictment alleges that, from 2003 until the date of the indictment, the three men conspired to export items from the United States through third party countries to customers in Syria, without the required U.S. Commerce Department licenses.
According to the indictment, the conspirators prepared false invoices which undervalued and mislabeled the goods being purchased and listed false information as to the identity and geographic location of the purchasers of the goods. The indictment alleges that the items were to be shipped from the United States to Jordan, the United Arab Emirates and the United Kingdom, and thereafter transshipped to Syria.
According to the indictment the items allegedly included: a portable gas scanner used for detection of chemical warfare agents by civil defense, military, police and border control agencies; a handheld instrument for field detection and classification of chemical warfare agents and toxic industrial chemicals; a laboratory source for detection of chemical warfare agents and toxic industrial chemicals in research, public safety and industrial environments, a rubber mask for civil defense against chemicals and gases; a meter used to measure chemicals and their composition; flowmeters for measuring gas streams; a stirrer for mixing and testing liquid chemical compounds; industrial engines for use in oil and gas field operations; and a device used to accurately locate buried pipelines.
The case was investigated by HSI in partnership with the Department of Commerce, Office of Export Enforcement. “HSI will use all resources at its disposal to prevent sensitive and restricted technology from being exported to Syria though the black market,” said SAC Kelleghan. “No good comes of illegal exports to Syria during this time of gross misgovernment and civil strife, and HSI will do all in its power as the principal enforcer of export controls to ensure that sensitive technology doesn’t fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, along with our law enforcement counterparts in the United Kingdom, who helped us make this complex investigation a success.”
Special Agent In-Charge Simon cited the close cooperation of Federal law enforcement agencies throughout the case. “I commend our colleagues from HSI and the United Kingdom, and the U.S. Attorney’s Office, for their outstanding work with the Commerce Department on this case. Our special agents work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that threatens our national security. OEE will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations,” he said.
The case is assigned to Assistant U.S. Attorney Todd K. Hinkley and Mariclaire Rourke, Trial Attorney with the Department of Justice, National Security Division, Counterespionage Section.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Four Defendants Sentenced in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Brandon Johnson, 29, of Miami Gardens, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Ronald Gustave, 36, of Miami, and Marie Eleazard, a/k/a “Fanfan,” 32, of Miami were sentenced for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity.
Johnson was sentenced yesterday to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution. Dorvil was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution. Gustave was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution. Eleazard was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution. Each of the defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Co-defendants Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, Corey Williams, 30, of Miami Gardens, and Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, each previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, 1028A(a)(1). Dukens Eleazard is scheduled to be sentenced on April 29, 2014; St Fleur and Harrell are scheduled to be sentenced on May 9, 2014; Williams is scheduled to be sentenced on May 21, 2014; and Cartwright is scheduled to be sentenced on July 7, 2014.
Co-defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted by a federal jury in Miami on March 5, 2014. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola. Specifically, the defendants were convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of Title 18, United States Code, Section 371; two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax return of which the IRS paid out approximately $14 million. Defendant Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Hall Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
POCATELLO – Arriyon Meeks-Ortiz, 34, of Fort Hall, Idaho, was sentenced yesterday in United States District Court to 40 months in prison, followed by three years of supervised release for possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on May 15, 2013, Fort Hall Police officers responded to a residence on the Fort Hall Indian Reservation. Meeks-Ortiz was observed to be holding what appeared to be a small bat or club. After being instructed by officers to leave the residence, Meeks-Ortiz tossed the object into a bedroom. Officers subsequently located an Iver Johnson 12-gauge shotgun with a barrel less than 18” in length on the bed in the bedroom. During an interview with law enforcement, Meeks-Ortiz said that he purchased the sawed-off shotgun in its altered condition for $100 and kept it underneath his trailer.
The case was investigated by the Fort Hall Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Officer at Roxbury Correctional Institution Sentenced for Assaulting InmateRead the Press Release
U.S. District Judge James K. Bredar sentenced Michael Morgan, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., to serve 30 months in prison for depriving an inmate of his civil rights. Morgan and other RCI officers from three different shifts assaulted Kenneth Davis, an inmate, in March 2008, in retaliation for a prior incident in which Davis struck an officer.
Morgan pleaded guilty on Jan. 10, 2013, to deprivation of rights under color of law. According to court documents filed in connection with his guilty plea, Morgan acknowledged that after he heard officers yelling at Davis for having previously hit an officer, he kicked Davis in the groin and then watched another officer kick Davis. Morgan also admitted that he tried to cover up his involvement in the assault by providing false testimony during an administrative hearing on June 17, 2008.
“The defendant participated in one of the series of assaults suffered by Mr. Davis, and then he lied to cover up his involvement,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The defendant’s actions run completely counter to the responsibilities and trust given to correctional officers. The Justice Department will continue to vigorously prosecute those officers who, like this defendant, commit a crime under color of law.”
To date, 16 current or former officers at RCI have been convicted in connection with the series of assaults that Kenneth Davis suffered on March 8-9, 2008. Four former officers still await sentencing by U.S. District Judge James K. Bredar.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Former Lafollette Attorney Sentenced for Federal Tax OffenseRead the Press Release
KNOXVILLE, Tenn. – Johnny V. Dunaway, 66, of Lafollette, Tenn., was sentenced on Apr. 23, 2014, by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 12 months in prison. Dunaway was also ordered to pay restitution to the Internal Revenue Service (IRS) for unpaid taxes and interest.
In December 2013, Dunaway pleaded guilty to a one-count information charging him with filing a false tax return for the 2008 tax year. In conjunction with his guilty plea, Dunaway admitted that his 2008 return failed to declare truthfully the business income that he had received from his law practice. In the course of its investigation, the IRS determined that Dunaway had also falsely reported his income taxes for the 2006, 2007 and 2009 tax years.
For most of his career as an attorney, Dunaway practiced law in Lafollette, Tenn. As a result of his federal tax offense, Dunaway consented to disbarment in October 2013.
This conviction is the result of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Former JBLM Soldier Sentenced to 17 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
A former Army soldier and Marine was sentenced Monday to 17 years in prison and a lifetime of supervised release for production and distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. ARRON D. BURTON, pleaded guilty in January 2014, admitting that he made and distributed a video of his molestation of a three-year-old child. U.S. District Judge Benjamin H. Settle imposed the sentence.
According to the plea agreement, BURTON was living at Joint Base Lewis-McChord (JBLM) in late 2012, when he came to the attention of law enforcement because of the child pornography he distributed via the internet. Search warrants were executed on BURTON’s computers, and analysis showed more than 100 images and 27 videos of child pornography.
Following his release from prison, BURTON will be required to register as a sex offender.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Houston Police Officer IndictedRead the Press Release
HOUSTON – Former Houston Police Department (HPD) officer Marcos E. Carrion, 36, has surrendered to authorities, announced United States Attorney Kenneth Magidson today.
Carrion was charged in a sealed indictment, returned April 16, 2014. It was unsealed as Carrion turned himself into authorities this morning. He is expected to make his initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 2:00 p.m. today.
Carrion is charged with conspiring with others to possess with the intent to distribute five or more kilograms of cocaine from mid-2013 through April 2014.
Carrion, a five-year HPD veteran, had recently resigned from his position.
If convicted, he faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine.
The charges are the result of a six-month investigation by the Drug Enforcement Administration with the assistance of HPD and the FBI. The case will be prosecuted by Assistant United States Attorneys Mark E. Donnelly and Shelley J. Hicks.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Director Pleads Guilty to Stealing $300,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a program that provided a home for disabled persons in Higginsville, Mo., pleaded guilty in federal court today to embezzling more than $300,000 from the organization.
Terri Arlene Marr, 51, of Warrensburg, pleaded guilty before U.S. District Judge Dean Whipple to two counts of theft in connection with a health care benefit program.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
By pleading guilty today, Marr admitted that she used PAL credit cards to pay personal expenses. Marr also made payments on her personal credit cards out of the PAL bank account from 2001 through 2013.
Marr also admitted that, from 2001 through 2013, she issued payroll checks to an individual who was not an employee of PAL. These payroll checks total approximately $186,038.
Under the terms of today’s plea agreement, Marr must pay restitution to PAL for the total amount of the loss, not limited to the amounts set forth in the indictment and the two counts of conviction. If the parties are unable to agree to a loss figure, the court will decide the matter by a preponderance of the evidence.
Marr must forfeit to the government a money judgment of $327,544, which represents the proceeds of the offenses.
Under federal statutes, Marr is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.
Five Plead Guilty to Theft from Union FundRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that five individuals pleaded guilty today to theft from an employee benefit plan. James McCall (32, Orange City), Ian Chase Dove (26, Orange City), Jason Wesson (37, Deltona), Michael Giesinger (36, Deltona), and Shane Riley (31, Deland) each face a maximum penalty of 5 years in federal prison. The sentencing hearings are scheduled for July 16, 2014.
According to court documents, Angela Deleon worked at Advance Administration, Inc. (AAI), which was the third-party administrator of an employee benefit plan for the Ironworkers Local 808. As the third-party administrator for the Ironworkers Local 808 Annuity Fund, AAI was responsible for processing members’ payment applications, paying the Fund’s bills, and speaking with union members. Deleon’s duties at AAI included data entry and the processing of payments.
Over a period of about fourteen months, Deleon wrote forty-six checks from the Fund, totaling over $427,000, to individuals who were not members of the Local 808 or participants in the Fund, including McCall, Dove, Wesson, Giesinger, and Riley. All five cashed the checks provided to them by Deleon and, in most cases, split the stolen proceeds with Deleon.
Deleon was previously sentenced to two years in federal prison for her participation in these crimes, ordered to pay $594,000 in restitution to the Ironworkers Local 808 Annuity Fund, and sentenced to a one-year term of supervision, following her incarceration. The restitution amount includes more than $427,000 that Deleon stole from the Fund, plus the amounts spent by the Fund to audit and reconstruct the records that were impacted by the scheme.
Four other individuals have been charged by indictment with conspiracy and theft from an employee benefit plan. Three of those individuals, Brandon Alfonso (28, Orange City), Marta Blackmer (70, Orange City), and Phillip Simmons (50, Orange City), are scheduled to begin trial in June 2014. Another, Jason Ferrari (33, Orange City), has not yet been arrested. If convicted, these defendants face a maximum penalty of 5 years in federal prison for each count.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Charged in Identity Theft Scheme with Thousands of VictimsRead the Press Release
ERIE, Pa. - Five individuals from around the United States have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The 13-count superseding indictment, returned on April 8, 2014, named:
- Doherty Kushimo, 52, of Providence, Rhode Island;
- Saburi Adeyemi, 56, of Memphis, Tennessee;
- Abiodun Bakre, 49, Ozone Park, New York;
- Adetunji Gbadegeshi, 57, of Queens, New York; and
- Adebola Mejule, 54, of Hempstead, New York, as defendants.
“We are making significant progress in our efforts to uncover identity fraud and protect citizens from criminals who steal their personal information and steal their money,” stated U.S. Attorney Hickton. “We have dismantled a massive stolen identity ring that involved thousands of victims and tens of millions of dollars in losses.”
“Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation, and perhaps one of our most intense challenges,” according to IRS-CI Special Agent in Charge Akeia Conner. “Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”
“The use of the Internet for criminal purposes is one of the most critical challenges facing the FBI and law enforcement in general,” added Patrick Fallon, Asst. Special Agent in Charge of the FBI. “In order to combat Internet fraud, it is essential for law enforcement officers not only to understand and use the Internet, but also to join forces. This case illustrates the benefits of law enforcement and private industry, around the world, working together in partnership on computer crime investigations.”
According to the superseding indictment presented to the court, the five defendants conspired to commit wire fraud by submitting fraudulent federal tax returns in the names of individuals whose identities the conspirators stole. The conspirators then opened bank accounts using other stolen identities and used those accounts as repositories for their fraudulently obtained federal tax refunds. The conspirators obtained stolen identity information on the Internet and then traded that information among themselves using email accounts and other means of communication. All told, the indictment alleges that approximately $21 million in fraudulent tax refunds was sought from the IRS by the conspirators, causing the IRS to pay approximately $10 million in fraudulent refunds.
The law provides for a maximum total sentence of 20 years in prison for Saburi Adeyemi, Adetunji Gbadegeshi and Adebola Mejule. Doherty Kushimo faces 38 years in prison and Abiodun Bakre faces 36 years in prison. All five defendants are subject to a maximum fine of $250,000 or twice the amount of loss to the victims. 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 defendants.
For more information about identity theft, please visit www.irs.gov or www.justice.gov.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.