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9 June 2014
Buffalo Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Donovan Devost, 21, of Buffalo, N.Y., who was convicted of bank robbery, was sentenced to 92 months in prison by U.S. District Court Judge Richard J. Arcara.
The sentencing is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that the defendant robbed the First Niagara Bank, located at 529 Elmwood Avenue in Buffalo, on April 31, 2013. Devost then robbed the First Niagara Bank, located at 805 Main Street in Buffalo, on June 19, 2013, and the KeyBank, located at 2318 Delaware Avenue in Buffalo, on June 21, 2013. The defendant passed notes to the bank tellers indicating he possessed a firearm and demanded money.Brunswick, Georgia Woman Sentenced to 16 Years in Prison for Defrauding Medicaid of over $4 MillionRead the Press Release
BRUNSWICK, GA – Schella Logan Hope, 47, of Brunswick, Georgia, who was previously convicted by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a multi-million dollar Medicaid fraud conspiracy, was sentenced last month to 16 years in prison. The sentence was imposed by the Honorable Lisa Godbey Wood, Chief Judge for the United States District Court for the Southern District of Georgia, who also presided over Hope’s trial.
According to the evidence presented at trial and at sentencing, Hope was a licensed dietician who ran a business located in Brunswick, Georgia, known as Hope Nutritional Services. From 2005 through 2011, Hope misappropriated the identities of thousands of needy children between the ages of 0 and 5 that were enrolled in Head Start programs located throughout the state of Georgia. Once Hope obtained the identities of these children, she fabricated patient files, falsified prescriptions from doctors, and submitted $4 million worth of bogus claims to Medicaid for nutritional services that were not provided. The evidence further showed that Hope used the money she stole from Medicaid to pay for luxury automobiles, designer clothing, and luxury vacations, among other things.
In November 2013, after four days of testimony, a federal jury convicted Hope of 58 counts of conspiracy, health care fraud, aggravated identity theft and money laundering. Upon her convictions for these offenses, Chief Judge Wood remanded Hope to the custody of the United States Marshals.
United States Attorney Edward J. Tarver stated, “Medicaid and other federal programs cannot continue to sustain the enormous burden caused by phony business people like this defendant who work to defraud the United States Government. Vigorous and aggressive enforcement and prosecution is the only response that will help to ensure that these important programs remain available to provide needed assistance. The Department of Justice and this U. S. Attorney’s Office are committed to safeguarding federal health care programs from fraud and abuse and holding those who steal from the American taxpayers responsible for their crimes.”“Committing Medicaid fraud on any level is egregious behavior,” said Derrick L. Jackson, Special Agent in Charge of the U. S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Today’s sentence demonstrates that when you use programs such as Head Start to facilitate your fraud even further, you will, indeed, pay the piper.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing handed down in this case reflects the severity of the crimes committed. Funds destined for the many federal programs, to include that of Medicaid, are for those who truly need them and not for the personal gains of such individuals as Ms. Hope. The FBI will continue to provide extensive investigative resources toward the protection of these much needed federally funded programs.”
Georgia Attorney General Sam Olens said, “Not only did Schella Hope cheat the Medicaid program out of millions of dollars, she stole the identities of the very children she was supposed to be helping. I am pleased that Judge Lisa Godbey Wood has handed down a sentence that fits the crime. My office will continue to work with the U. S. Attorney’s Office to aggressively prosecute those who defraud Georgia Medicaid.”
In addition to the sentence of imprisonment, Chief Judge Wood ordered that Hope pay more than $4 million in restitution to Medicaid, and serve 3 years of supervised release upon completion of the sentence of imprisonment. Mr. Tarver noted that there is no parole in the federal system.
The conviction and sentence of Hope resulted from a joint investigation by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; Georgia’s Department of Community Health; and Georgia Attorney General’s Medicaid Fraud Control Unit.
Assistant United States Attorneys Brian T. Rafferty and Assistant Attorney General Robin Daitch prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Brunswick Women Pleads Guilty to Federal Program and Tax FraudRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Stacey
A. Backman, 41, of Brunswick, Maine, pled guilty in U.S. District Court to federal program and tax fraud charges.According to court records, the defendant was a fund accountant at Coastal Enterprises, Inc. (CEI). CEI is a private, nonprofit, charitable Community Development Corporation and
Community Development Financial Institution based in Wiscasset, Maine that received more than $10,000 in federal funds each year. From 2010 to January 2014, the defendant embezzled over $300,000 from CEI and failed to report the embezzled income on her federal income tax returns. CEI learned of the embezzlement in January 2014 and terminated the defendant’s employment.The defendant faces up to 10 years in prison and a $250,000 fine on the federal program fraud charge and up to 3 years in prison and a $100,000 fine on the federal tax fraud charge. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General (OIG); the Internal Revenue Service – Criminal Investigations Division; the
U.S. Department of Agriculture, OIG; and the Wiscasset Police Department.Broward County Resident Sentenced in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Regina James, 39, of Fort Lauderdale, was sentenced for her participation in a check cashing and stolen identity scheme. James was sentenced to 66 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution of $650,617.00.
Regina James previously pled guilty in three cases. In one case, she pled guilty to one count of theft of public money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). In the second case, she pled guilty to conspiracy to steal, receive, and retain money and things of value of the United States and to forge endorsements on and cash treasury checks, receipt and retention of things of value of the United States, and aggravated identity theft. In the third case, she pled guilty to identity theft, in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, Wilson and Kate Lau owned a check cashing store called American Quick Cash (AQC). The Laus were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities. James was one of the seven “middle men” who brought the fraudulently obtained U.S. Treasury checks to AQC. James also brought fake Florida driver’s licenses in the names of the individuals on the checks that she cashed at AQC. James was charged 15% to cash the fraudulent checks, but Lau subsequently increased the fee to 50%. James received the stolen checks from another person and gave 40% of the amount of the check to that individual, and kept 10% for herself.
From January 2010 through June 2011, the total amount of U.S. Treasury checks cashed by James at AQC is approximately $650,617. The number of victims involved is greater than 50, but fewer than 250.
On July 20, 2012, Wilson Lau, 75, and his wife, Kate Yuee Lau, 54, formerly of Coral Springs, were sentenced before U.S. District Judge Robert Scola. Wilson Lau was sentenced to 84 months in prison, to be followed by three years of supervised release. Kate Yuee Lau was sentenced to 24 months in prison, to be followed by three years of supervised release.
In a separate investigation, James and co-defendants, Ronald Walker, 36, of Fort Lauderdale, Aaron Taylor, 30, of Lauderhill, and James Burch, 36, of Coral Springs, sold $75,108.79 in fraudulently obtained tax refund checks and 609 people’s identifying information. On May 30, 2014, Walker was sentenced to 94 months in prison. On May 16, 2014, Taylor was sentenced to 54 months in prison and Burch was sentenced to 36 months in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI, the Secret Service, and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Alicia E. Shick and Marc Osborne.
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.
Brooke County Men Charged with Possession of Stolen FirearmsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorWHEELING, WEST VIRGINIA – Two Brooke County men have been charged with the illegal possession of firearms, according to United States Attorney William J. Ihlenfeld, II.
Ian K. SAUNDERS, 34 and Mark CAMPBELL, 22, both of Follansbee, W. Va. were each indicted on one count of “Unlawful Drug User and Addict in Possession of a Firearm” and one count of “Possession of a Stolen Firearm.” The Indictment alleges that both men are addicted to heroin and came into possession of the stolen firearms in January of 2014.
Each count carries a penalty of up to 10 years in prison.
This case is being investigated by officers and agents from the Bureau of Alcohol, Tobacco and Firearms (ATF), the Brooke County Sheriff’s Department and the Weirton Police Department. Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government.
In other indictments returned by the Wheeling Grand Jury:
• Wilbur W. BARR, 22 of Wheeling, W. Va., was charged with one count each of “Unlawful Drug User and Addict in Possession of a Firearm”, “Possession of a Stolen Firearm”, and “Possession of a Firearm with an Obliterated Serial Number.” BARR is alleged to be addicted to methamphetamine.
This case is being investigated by the ATF and the Ohio Valley Drug and Violent Crime Task Force. AUSA Vogrin is prosecuting the case for the government, and BARR faces up to twenty five years in prison
• Christopher N. GRAHAM, 37 of Jodie, W. Va., was charged with one count of “Prohibited Person in Possession of a Firearm.” GRAHAM has a previous felony conviction in the State of Arizona for Burglary. He faces up to 10 years in prison.
This case is being investigated by the Ohio County Sheriff’s Department and the ATF. AUSA Vogrin is prosecuting the case for the government.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant. The charges contained in the Indictments are merely accusations, and each defendant is presumed innocent unless and until proven guilty.
Barge Captain and Marine Company Convicted in Fatal 2005 Explosion That Discharged Slurry Oil in Chicago CanalRead the Press Release
CHICAGO — The captain of a petroleum barge that exploded in 2005, resulting in the death of a crew member, and the company that owned and operated the vessel were convicted today on federal charges of felony maritime negligence and causing thousands of gallons of oil to pollute the Chicago Sanitary and Ship Canal. The defendants, DENNIS MICHAEL EGAN and EGAN MARINE CORP., were found guilty following a bench trial that was conducted intermittently since last September in U.S. District Court.
Egan, 35, of Topeka, Ill., and formerly of Lemont, and Egan Marine, of Lemont, were each convicted of one count of negligent manslaughter of a seaman and one count of oil pollution of a navigable waterway. The verdict was delivered in an oral ruling from the bench by U.S. District Judge James Zagel, who heard closing arguments on Friday, concluding 13 nonconsecutive days of trial.
Judge Zagel tentatively set sentencing for Sept. 24.
The negligent manslaughter count against Dennis Egan carries a maximum sentence of 10 years in prison and a $250,000 fine, and the same count against Egan Marine carries a maximum penalty of five years’ probation and a $500,000 fine. The misdemeanor oil pollution count carries a maximum penalty against Dennis Egan of a year in prison and a $100,000 fine, while Egan Marine faces a maximum sentence of a year’s probation and a $200,000 fine. Both defendants face a minimum fine of $2,500 on the pollution count. Restitution is mandatory. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Neal R. Marzloff, Special Agent-in-Charge of the U.S. Coast Guard Investigative Service, Central Region in Cleveland; and Randall Ashe, Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Chicago.
According to the evidence at trial and court records, on Jan. 19, 2005, a fully-loaded Egan Marine tank barge, known as the EMC-423, being pushed by the tow boat Lisa E, was transporting approximately 600,000 gallons of clarified slurry oil (CSO) from the ExxonMobil Oil Corp. refinery near Joliet to the Ameropan Oil Corp. facility near the canal and California Avenue in Chicago. CSO is a byproduct of petroleum refining that can also be used as fuel, among other uses. About 4:40 p.m., just after clearing the Cicero Avenue Bridge and heading northeast parallel to the I-55 Stevenson Expressway, a large explosion erupted on the barge. As a result, the EMC-423 sank, discharging thousands of gallons of the combustible heavy oil into the canal. Immediately after the blast, crewman Alexander Oliva, 29, who had been aboard the barge, was determined to be missing. His body was recovered from the canal near Laramie Avenue on Feb. 4, 2005.
Judge Zagel ruled that Oliva’s death resulted from the explosion and the negligence that created the explosion. Egan Marine and its employees negligently vented combustible vapors from the cargo hold of the barge to the deck of the vessel, causing an explosion hazard. Oliva was using a propane-fueled open flame from a handheld “rosebud torch” to heat a cargo pump on the barge deck. CSO hardens in cold temperatures, requiring the cargo pump to be heated to offload the oil at its destination. The use of an open flame to heat the pump near the vented vapors caused the explosion and, ultimately, Oliva’s death, the destruction of the barge, and the oil pollution of the canal.
Dennis Egan was the captain and pilot of the Lisa E and the EMC-423 barge, which had no crew, self-propulsion or navigation system of its own. Dennis Egan was negligent and inattentive to his duties on the vessels by allowing an open flame to be used on the deck of the EMC-423, which was loaded with 599,424 gallons of the slurry oil. Egan Marine, which owned both vessels, was negligent in allowing the use of the open flame aboard the barge, resulting in the explosion and Oliva’s death.
“Without question it is against Coast Guard regulations, the standard of care, and is downright reckless, to employ the use of a propane torch on top of 600,000 gallons of a petroleum by-product,” the government claimed in closing argument brief.
Both Dennis Egan and Egan Marine violated the oil pollution provisions of the federal Clean Water Act by negligently causing the discharge of thousands of gallons of oil into the canal, which is a navigable U.S. waterway.
The government is being represented by Assistant U.S. Attorneys Timothy Chapman and Matthew Hiller and Special Assistant U.S. Attorney Crissy Pellegrin, of the U.S. EPA’s Office of Regional Counsel for Region 5 in Chicago.
Baltimore Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Prostituted a 14 Year Old Female
Baltimore, Maryland - Eric Evans, age 35, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
On May 29, 2014, co-defendant Kenneth Ronald Robinson, age 52, of Baltimore, pleaded guilty to the same charge. Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore; Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore; pleaded guilty on May 22, 21 and 19, 2014, respectively, to using the Internet to promote a minor to engage in prostitution.
According to the guilty pleas, on the evening of June 17, 2013, Maryland Child Exploitation Task Force members recovered a 14 year old girl from a motel on Joppa Road in Baltimore. The victim was located after law enforcement viewed a picture of her on a known Internet web site that advertises for prostitution, and called the number on the advertisement. Undercover officers made a “date” for prostitution with victim, which led them to her location.
Subsequent interviews of the victim revealed that at Robinson’s direction, the victim had been staying with Crawford and Judy and had been performing commercial sex acts from that hotel for approximately four days. At Robinson’s request, Crawford took sexually explicit pictures of the victim using Clark’s cell phone. Crawford and Judy posted those photos in ads on a website. Judy used the prostitution earnings of both the minor victim and Crawford to pay for the ads. A subsequent search of Clark’s cell phone revealed that it contained photos of both the victim and Crawford used on the website’s sex ads. At Robinson’s direction, Clark transported the victim to motels, stores and restaurants in the Towson, Maryland area. One of the motel rooms used by the victim, Crawford, and Judy was registered to Clark.
The victim also advised that Robinson introduced her to Evans so that she could engage in prostitution at Evans’ direction. The victim told law enforcement that Evans posted sex ads for the victim on a website using photos he had taken of the victim. The victim also stated that Evans kept the money she earned from prostitution. At least one of the victim’s sex ads was posted on June 7, 2013 from an address used by a motel in Towson where records show that Evans had paid for a room from June 3 to 8, 2013.
Evans and the government have agreed that if the Court accepts his plea, he will be sentenced to between 120 and 140 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Evans on September 9, 2014 at 3:00 p.m.
Robinson faces a minimum of 10 years and up to life in prison at his sentencing on September 11, 2014 at 3:30 p.m. Crawford, Clark, and Judy each face a maximum sentence of five years in prison. Judge Bennett scheduled sentencing for Crawford and Clark on August 14, 2014 at 10:00 a.m. and 3:00 p.m., respectively; and for Judy on August 21, 2014, at 3:00 p.m. Robinson, Clark and Judy remain detained. Crawford is released under the supervision of U.S. Pretrial Services.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao, P. Michael Cunningham and Rachel M. Yasser, who are prosecuting the case.
Attorney General Holder Suggests New Proposal to Boost Voting Access for American Indians and Alaska NativesRead the Press Release
In a new step to boost voting access for American Indians and Alaska Natives, Attorney General Eric Holder today suggested the idea of requiring state and local election administrators whose territory includes tribal lands to place at least one polling site in a location chosen by the tribal government. Attorney General Holder said the Justice Department would begin consulting with tribal authorities about the concept, and following consultations, would seek to cooperate with Congress on enacting the potential proposal.
Attorney General Holder said action was necessary to confront the range of factors that have contributed to the reduced voting access experienced by American Indians and Alaska Natives. Those factors include inaccessible polling places in tribal areas, English-only ballots for areas with limited English proficiency, and "precinct realignment" practices that attempt to combine geographically isolated Native communities.
“These conditions are not only unacceptable, they’re outrageous,” said Attorney General Holder. "As a nation, we cannot, and we will not, simply stand by as the voices of Native Americans are shut out of the democratic process. I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.”
Attorney General Holder made the remarks in his weekly video message, which was posted on the Justice Department’s website.
Later today, Associate Attorney General Tony West will expand on this announcement in his remarks at the National Congress of American Indian Mid-year Conference in Anchorage, Alaska. In his remarks, Associate Attorney General West will denounce the use of discriminatory practices used to prevent certain groups from participating in the voting process and further discuss the need to take critical next steps to tackle disenfranchisement among Indian Americans and Alaska Natives.
“Our proposal would give American Indian and Alaska Native voters a right that most other citizens take for granted: a polling place in their community where they can cast a ballot and receive voter assistance to make sure their vote will be counted,” Associate Attorney General West will say in his remarks. “We take this step because voting is a legal right we guarantee to our citizens. We do it because it is right. And we do it because our shared history compels no less.”
The complete text of Attorney General Holder’s video message is copied below:
“At every level of our nation’s Department of Justice, my colleagues and I are firmly committed to protecting the voting rights of every eligible American. Unfortunately, when it comes to exercising this fundamental right, many individuals and communities face significant obstacles. And this is particularly true among American Indian and Alaska Native populations.
“All too often, tribal communities must contend with inaccessible polling places, reduced voting hours – and even requirements for mail-in, English-only ballots in places with low literacy rates and limited English proficiency. In some areas in Alaska, for example, state election officials have engaged in “precinct realignment” practices that combine two or more geographically isolated Native communities that are accessible to one another only by air or boat. For some voters, this means that casting a ballot would require them to cross a body of water or a mountain range that’s impassable on a snowy November Election Day.
“Let me be clear: these conditions are not only unacceptable – they’re outrageous. As a nation, we cannot – and we will not – simply stand by as the voices of Native Americans are shut out of the democratic process. And I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.
“As Attorney General, I support taking whatever steps are necessary to guarantee that voters have access to polling places on Indian reservations and in Alaska Native villages. One idea in this regard would be federal legislation requiring any state or local election administrator whose territory includes all or part of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by the tribal government. In other words, we suggest that each tribe in the nation should have at least one polling place in a location of its choice. To consider this idea, the Justice Department will officially enter into formal consultations with sovereign tribes. If the tribes support it, the department will formally propose legislation to Congress and work to enact it.
“For decades upon decades, American Indians and Alaska Natives have faced a distinctive history of discrimination that has adversely affected their right to vote. As I made clear last November – at a White House Tribal Nations Conference in Washington – this Department of Justice and this Administration will never waver in our commitment to tribal sovereignty and self-determination. Today, we’re taking a critical step to make good on that commitment. And we’re reaffirming our dedication to expanding the ability of native peoples to exercise their most fundamental rights, to chart their own courses, and to build the better and brighter futures that they and their children deserve.”
The full video message is available at http://www.justice.gov/agwa.php.
Armed Crack Dealer Sentenced to Eight Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Joe Terry (38, Jacksonville) to eight years in federal prison for distributing cocaine base and possessing a firearm in furtherance of drug trafficking.
Terry pleaded guilty on February 26, 2014.
According to court documents, Terry was selling “crack cocaine” from a house on Cinnamon Tea Lane, in Jacksonville. Alcohol, Tobacco, Firearms and Explosives (ATF) agents utilized a confidential informant to make an undercover purchase of “crack cocaine” from Terry. During that drug transaction, Terry displayed a Glock firearm. On August 29, 2013, ATF agents executed a federal search warrant at Terry’s residence and recovered a Glock .40 caliber pistol from inside, at which time Terry was arrested. At the time of the arrest, Terry was on parole from Georgia, for a felony drug offense.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime in our communities.
6 June 2014
Woman Pleads Guilty to Theft of Government FundsRead the Press Release
ATLANTA - Jennifer Wynn has pleaded guilty to charges that she stole nearly $200,000 from the federal government by illegally receiving and spending her mother-in-law's Social Security benefits for nearly 20 years after her mother-in-law's death.
“The amount of money Wynn stole and her persistence in stealing for nearly 20 years shows her shameful disregard of the law,” said United States Attorney Sally Quillian Yates. “Those who steal from federal entitlement programs are on notice that they will be prosecuted to the fullest extent of the law. This type of crime harms not only the federal government, but the proper beneficiaries of these programs.”
“Of all the ways in which criminals attempt to steal Social Security benefits, few are as shameless and as certain to be detected as concealing the death of a family member,” said Thomas Caul, Special Agent in Charge, Office of the Inspector General for the Social Security Administration. “I’m grateful to the United States Attorney for her commitment to ensuring that these cases are prosecuted to the fullest extent of the law, preserving Social Security funds for those who need and deserve them.”
According to United States Attorney Yates, the charges and other information presented in court: Wynn's mother-in-law died in 1994. The defendant kept the deceased woman's bank account open, and the benefits, which were intended solely for her mother-in-law, were deposited into the account. Wynn used the money for her own personal expenses. Wynn attempted to conceal her mother-in-law’s death by writing checks to herself each month, and forging her mother-in-law's signature. In total, she received $195,304 in government benefits to which she was not entitled.
Sentencing for Wynn, 50, of Marietta, Ga., is scheduled for August 13, 2014, at 2:00 p.m. before United States District Judge Orinda D. Evans.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane Claire Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Javier Gomez-Sanchez, 32, of South Bend, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly or intentionally distributing a mixture or substance containing methamphetamine. According to documents filed in this case, on March 27, 2012, Gomez-Sanchez distributed a package containing over 50 grams of methamphetamine. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Veronica Woods-Smith, 61, of Hammond, Indiana pled guilty to the felony offense of theft of government property. This charge was filed as a result of an investigation by the Social Security Administration. Sentencing has been set for 8/1/2014. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
- Desman Thomas, 38, of Griffith, Indiana pled guilty to the felony offense of bank robbery. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 8/21/2014. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
- Dwayne Allen Jackson, 28, of Chicago, Illinois pled guilty to the felony offense of making a materially false statement. This charge was filed as a result of an investigation by the Department of Treasury - Secret Service. Sentencing has been set for 8/19/2014. This case is being prosecuted by Assistant United States Attorney Randy Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Sidney Sellers, 42, of Chicago, Illinois was sentenced to 64 months and 4 years supervised release after pleading guilty to the felony offense of possession with intent to distribute fifty (50) grams or more of crack cocaine. According to documents filed in this case, in February 2008, Gary Police Department made a traffic stop of Sellers and discovered him to be in possession of a loaded Glock semiautomatic handgun. Law enforcement searched the car and recovered three clear bags containing 87 gross grams of crack cocaine and 223 gross grams of powder cocaine. This case was the result of an investigation by the Drug Enforcement Agency and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Christopher Castro, 34, of Lorain, Ohio was sentenced to 63 months and 4 years supervised release after pleading guilty to the felony offense of conspiracy to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine. According to documents filed in this case, Castro travelled with others from Ohio to Northwest Indiana to purchase cocaine. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Josh Kolar.
- Carmalita Stewart-Cannon, 48, of Gary, Indiana was sentenced to 12 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of knowingly possessing, in and affecting commerce, a firearm after having been convicted of a felony offense. According to documents filed in this case, on October 7, 21st, and 22nd, Gary Police officers conducted three recorded controlled buys of heroin (for 0.53, 0.87, and 0.83 gross grams respectively) through a confidential informant from Stewart-Cannon at her residence. On October 29, based on the heroin buys, a state search warrant was issued and executed for Stewart-Cannon’s residence. Within the residence was a purse containing both Stewart-Cannon’s identification and a Ruger .22 caliber pistol. Also in the room were 15 clear ziplock bags of marijuana. Stewart Cannon was arrested and gave a post arrest statement where she stated that she was holding the gun as collateral for someone she had lent $20.00. Stewart-Cannon has a prior felony conviction for Aggravated Robbery in 1999 and two possessions of controlled substance felonies from 2003 and 2011. She fled from probation on the 2011 count and there has been a warrant for her arrest since December 2011. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Tom McGrath.
- Derrick Green, 23, of Gary, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of making materially false statements with respect to information required to be kept in the records of a federally licensed firearms dealer in connection with the purchase of a firearm. According to documents filed in this case, in 2012, Green entered several federally licensed firearms dealers in Northwest Indiana, and completed several ATF Form 4473’s to purchase firearms. Green lied on each form by answering that he was the actual transferee/buyer of the firearm(s) listed. In 2012, one of the firearms was recovered from a convicted felon by law enforcement officers. In July 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a recorded, consensual interview with Green, who indicated that he straw-purchased all of the firearms for another individual. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Duane Spears Jr., 24, of Gary, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of making materially false statements to a federally licensed firearms dealer in connection with the purchase of firearms. According to documents filed in this case, on June 21, 2012, Spears purchased a firearm from a federally licensed firearms dealer in Hammond, Indiana. Spears filled out an ATF Form 4473 for the purchase of a Ruger, .45 caliber, semi-automatic pistol, and a Glock, .40 caliber, semi-automatic pistol. In filling out this ATF Form 4473, Spears lied lied on the form by answering that he was the actual transferee/buyer of the firearm(s) listed when in truth he was actually purchasing the weapons for another individual. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Claude Hunter, 57, of Schererville, Indiana was sentenced to 5 months and 5 on detention after pleading guilty to the felony offense of selling firearm and ammunition to a known felon. According to documents filed in this case, on multiple dates including August 13, 2012, September 20, 2012 and October 3, 2012, Hunter met with an individual, who was a convicted felon, for the purpose of selling a firearm. Hunter knew the individual to be a convicted felon. In subsequent meetings, Hunter did sell firearms in a controlled buy and was later arrested. When in custody, Hunter admitted to providing two firearms for sale. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Josh Kolar.
- Christopher Lewis, 38, of Merrillville, Indiana was sentenced to 27 months, 1 year supervised release and to pay $6,000 in fines after pleading guilty to the felony offense of attempt and conspiracy to commit mail fraud. According to documents filed in this case, Lewis was part of a widespread mortgage fraud conspiracy. He recruited buyers and misrepresented home values to the buyers. Homes were sold at inflated values. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jill Koster
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Beau A. Eldridge, 28, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
- James B. Nelson, 32, of Fort Wayne, Indiana pled guilty to the felony offense of possessing with intent to distribute 10 grams or more of a mixture or substance containing a detectable amount of LSD. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Homeland Security Investigations, U.S. Postal Inspection Service, the Drug Enforcement Agency, Fort Wayne Police Department, Indiana State Police and the Allen County Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Maria Patricia Herrera, 52, of Fort Wayne, Indiana was sentenced to time served and 1 year supervised release after pleading guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine. According to documents filed in this case, Herrera was part of a network to distribute cocaine. She also assisted in destruction of incriminating evidence of drug dealing. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
- Rico J. Parrish, 28, of Fort Wayne, Indiana was sentenced to 24 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on May 17, 2013, Fort Wayne police officers performed a traffic stop of a vehicle whose passengers included Parrish. Officers recovered a .45 caliber Glock pistol. During the inventory search prior to tow, officers located a Llama 9mm pistol handgun under the front edge of the front passenger seat. After being taken into custody, Parrish admitted to purchasing and owning the Llama firearm. Parrish also admitted that he had placed the firearm underneath the front passenger seat earlier that day prior to being stopped by the Fort Wayne Police Department. Parrish is a convicted felon. He has a prior conviction of carrying a handgun without a license on August 1, 2011, in Allen County, Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony Geller.
Waterbury Woman Who Failed to Register as A Sex Offender and Violated Supervised Release Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GUITANA JONES, 42, formerly of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately one year of imprisonment, time already served, and seven years of supervised release for failing to register as a sex offender and for violating the conditions of her supervised release from a previous federal conviction. She has been detained since June 10, 2013.
According to court documents and statements made in court, in October 2003, JONES was sentenced in federal court to 120 months of imprisonment, followed by three years of supervised release, for conspiracy and use of an interstate facility to transmit information about a minor. Also, in June 2007, she was given a concurrent sentence in state court of risk of injury to a minor and conspiracy to commit risk of injury to a minor. JONES was released from federal prison in May 2010.
As a convicted sex offender, JONES was told that she was required to register and update her registration under the Sex Offender Registration and Notification Act (“SORNA”). Convicted sex offenders must update their address within five days of any move, re-registering in any state to which they move, and verifying their current address with local law enforcement every 90 days. Prior to her release on federal supervision, JONES was told that crossing state lines without registering in the new state or notifying Connecticut of her change of address could result in federal prosecution for failure to register.
In September 2011, JONES requested the Court’s permission to move from Connecticut to Florida. In March 2012, her request was denied and JONES was told that she was not permitted to move to Florida while on federal supervised release.
In May 2013, the U.S. Probation Office learned that JONES had moved to Florida and, at times, had traveled back to Connecticut to avoid detection of her supervised release violation. JONES also tested positive for cocaine use. On June 10, 2013, U.S. Marshals arrested JONES for violating her supervised release.
The investigation revealed that, in September 2012, JONES obtained a Florida identification card after providing an address in Miramar, Fla. She also possessed and used a cellular telephone with a Florida area code while residing in Florida between February and April 2013. The Florida Sex Registry has no record of JONES ever applying to register as a sex offender.
On March 5, 2014, JONES pleaded guilty to one count of failure to register as a sex offender, and also admitted that she violated the terms and conditions of her supervised release.
Judge Underhill ordered JONES to serve the first two years of her seven-year term of supervised release in home confinement under GPS or electronic monitoring by the U.S. Probation Office. JONES also was ordered to register as a sex offender and to abide by several other conditions, including that she have no unsupervised contact with minors under the age of 18.
JONES, who has related state charges pending in Waterbury Superior Court, was released into the custody of the Waterbury Police Department following today’s court proceeding.
This matter was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Waterbury Man Sentenced to 5 Years in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUICY REID-STITH, 38, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for selling crack cocaine.
According to court documents and statements made in court, in early 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation into the distribution of crack cocaine and related criminal activity in the area of Locust Street in Waterbury. In April and May 2012, REID-STITH made several sales of crack, with a total weight of approximately 167 grams, to an individual working with law enforcement.
On March 5, 2014, REID-STITH pleaded guilty to one count of possessing with the intent to distribute and distributing 28 grams or more of cocaine base (“crack”).
REID-STITH has an extensive criminal history dating to 1992.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Waterbury and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Warminster Man Charged with Theft of Government FundsRead the Press Release
William E. Gardner, 67, of Warminster, Pennsylvania was charged today by information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane D. Memeger. The information alleges that between May 22, 2005 and January 2014, William E. Gardner implemented a scheme to receive and convert to his own use survivor's insurance benefits intended for a family member for a period of almost nine years after the family member's death, resulting in total losses to the government of approximately $104,615.
If convicted the defendant faces a maximum possible sentence of 15 years in prison, a $500,000.00 fine, three years supervised release, and restitution of $104,615.
The case was investigated by the Social Security Administration's Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Metro Denver Drug Trafficking Organizations Dismantled by Metro Gang Task ForceRead the Press Release
Well over 300 special agents and officers arrested 28 defendants for drug trafficking and related crimes during early morning raids
DENVER – Following a two year criminal drug investigation, 54 defendants were named in four separate indictments charging various violations of the Controlled Substances Act, the United States Attorney’s Office and the Metro Gang Task Force announced. Of the 54 defendants indicted, 28 were arrested during raids early this morning. There are 12 defendants who have not been apprehended, and are actively being sought by law enforcement. Finally, there are 14 defendants who were already in custody prior to today’s takedown.
In addition to the arrests, agents and officers this morning recovered 2 pounds of methamphetamine, approximately $40,000 in cash, and 2 firearms. These seizures were in addition to evidence found during the pendency of the two unrelated investigations. The investigations, which were initiated in March of 2012, have resulted in the confiscation of 19,329.88 gross grams of methamphetamine, 614 gross grams of cocaine, 11.14 gross grams of heroin, 6.5 gross grams of MDMA (Ecstasy), and 18,287.8 gross grams of marijuana. In addition, 13 guns, 2 cars and $94,825, not counting items seized today.
The four indictments charged defendants from two separate and unrelated drug trafficking organizations (DTOs). The drugs being trafficked by both DTOs include: cocaine, crack, methamphetamine, heroin and marijuana. The investigations determined that some of the drugs being distributed throughout Metro Denver and along the Front Range came from Mexico. Some of the defendants who were responsible for trafficking these drugs are known for being involved with or having ties to others involved in violent crimes.
In the first DTO, known as “Operation Gangster Disciples”, 21 defendants were named in two separate related indictments returned by a federal grand jury in Denver on charges ranging from Conspiracy to possess with intent to distribute to distribution of various drugs, including: cocaine, crack, methamphetamine, and heroin. The DTO was allegedly run by defendant Ricky Kamil Garrison. In addition to drug trafficking charges, Garrison faces a charge for travel with the purpose of engaging in interstate prostitution. Another defendant, James Tillmon, faces state charges for hit and run. Some of the defendants in this DTO are members or associates of the Gangster Disciples (GD) gang. All face various drug trafficking related charges. In addition to the drug charges, various members in these indictments also face charges, including felons in possession of firearms, and distribution of dangerous drugs within 1,000 feet of a school.
Those arrested today include:
Francisco Aguilar, age 38, Denver
Shawn Beardsley, age 45, Aurora
Travis Edwards, age 52, Aurora
Dondrai Fisher, age 41, Aurora
Jesus Molina-Villarreal, age 45, Aurora
Archie Poole, age 37, Aurora
Francisco Ramirez, age 32, Aurora
Simeon Ramirez, age 40, Denver
Javier Segura-Cisneros, age 27, Aurora
Khari Smith, age 37, Aurora
Sidney Taylor, age 48, Denver
Christopher Vigil, age 27, Denver
Latoya Wimbush, age 29, Aurora
Melvin Turner, age 38, AuroraThose indicted by not yet arrested include:
Christopher Martinez, age 33, Aurora
Luis Ramirez, age 25, Thornton
Gregory Williams, age 53, Arvada
Name Unknown, age and residence unknownThose already in custody include:
Ricky Kamil Garrison, age 30
James Tillmon, age 30
Robert Painter, age 44In the second DTO, known as the “Gonzalez-Cepeva/Quintero” Drug Trafficking Organization, a federal grand jury in Denver handed down two additional indictments, unrelated to the Gangster Disciples DTO. In the Gonzalez-Cepeva/Quintero DTO, 33 defendants were named in two separate related indictments on charges ranging from drug trafficking to engaging in a continuing criminal enterprise, conspiracy to import various drugs from Mexico, cash smuggling, running a drug controlled premises, possession of a weapon by an illegal alien, possession of a weapon by a felon, interstate transportation in aid of racketeering, and possession of a weapon in connection with a drug trafficking crime. The Gonzalez-Cepeva/Quintero DTO was involved in the possession with intent to distribute, and the distribution of: methamphetamine, cocaine, and marijuana. The marijuana was allegedly imported to Colorado from California. The Gonzalez-Cepeva/Quintero DTO has individuals with ties to the “211 Crew.”
Of the defendants indicted in this case, those arrested today include:
Jose Castaneda-Zamora, age 38, unknown
Noe Chavez-Gomez, age 20, unknown
Debbi Martinez, age 24, Denver
Rafael Quintero Gomez, age 21, unknown
Jesus Montelongo-Talavera, age 24, Westminster
Alberto Quintero, age 23, Aurora
Juan Manuel Quintero, age 22, unknown
Racquel Ramos-Sanchez, age 58, San Elizario, Texas
Alberto Roel, age 45, Edinburg, Texas
Robert Schaffer, age 65, Fort Collins
Mark Singer, age 41, Colby, Kansas
John Howard Smith, age 55, Denver
Jessica Trejo-Huerta, age 23, Mexico
Servando Gandara-Chavez, age 43, DenverThose indicted by not yet arrested include:
Jose Oceguera-Ramirez, age unknown, Mexico
Tomas Gonzalez-Villalobos, age 43, Mexico
Ramona Haro-Iniquez, age 44, Denver
Marcus Marler, age 38, unknown
Juan Montelongo, age 25, Westminster
Sergio Salazar-Torres, age unknown, Mexico
Raul Ramirez-Munoz, age 42, Mexico
Hector Jesus Trejo-Huerta, age 27, MexicoThose already in custody include:
Antonio Gonzalez-Cepeva, age 25
Elias Rafael Gonzalez-Cabrera, age 22
Jesus Quintero, Jr., age 26
Gabriel Sowell, age 38
William Brewer, age 58
Porfiria Alejandra Faias-Contreras, age 24
Maria Farias-Contreras, age 23
Jesus Quintero, Sr., age 46
Carol Hawley, age 45
Gina Salcido, age 42
David Hall, age 56“Make no mistake: As a result of these raids, Colorado is a safer place,” said U.S. Attorney John Walsh. “Gangs that traffic in drugs also traffic in violence – whether by intimidation and fear, or by actual force. And while the exact impact these arrests have on the drug trade is difficult to quantify, it is safe to say that the quantity of cocaine, crack, meth and heroin available on the street have been substantially reduced as a result of today’s operation.”
“Today’s operations are yet another illustration of how these criminal organizations will not be allowed to operate with impunity in our communities,” said Thomas P. Ravenelle, Special Agent in Charge of the FBI’s Denver Division Field Office.
“Street gangs and drugs are a recipe for a significant percentage of violent crime in cities across the country,” said Kumar C. Kibble, special agent in charge of HSI Denver. “The joint investigations we pursue with many of our Denver-area based law enforcement partners target the resources of gangs and drug dealers -- finances, personnel, drugs and guns – to put them out of business.”
If convicted, the defendants face penalties ranging from not less than 5 years in federal prison to up to life in federal prison, depending on the count of conviction. The defendants’ criminal history, and the type and amount or weight of the drugs being trafficked are factors a judge will consider at sentencing.
The indictments contain an asset forfeiture allegation. The allegation states that upon conviction, the defendants shall forfeit to the United States any and all property, real or personal, involved in such offense, or any property traceable to the crime, such as vehicles or structures, and also including but not limited to a money judgment in the amount of proceeds involved in the offense.
This case was investigated by the Metro Gang Task Force. The Metro Gang Task Force is comprised of the Denver Division of the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Adams County Sheriff’s Office, Arapahoe County Sheriff’s Office, Aurora Police Department, Colorado State Patrol, Commerce City Police Department, Colorado National Guard Counter Drug Unit, Denver District Attorney’s Office, Denver Police Department, Jefferson County Sheriff’s Office, the High Intensity Drug Trafficking Areas Program (HIDTA), the Lakewood Police Department, Douglas County Sheriff’s Office and the Thornton Police Department. Agencies assisting the Metro Gang Task Force include: the Westminster Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
“Gangster Disciples” is being prosecuted by Assistant U.S. Attorney Zachary Phillips. “The Gonzalez-Cepeva/Quintero DTO” is being prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Brad Giles.
The charges contained in the four indictments are allegations, and the defendants named in these indictments are presumed innocent unless and until proven guilty.Two Men Plead Guilty in Black Money ScamRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Gooding Vincent, 38, of Syracuse, N.Y., and Eugene Cooper, 38, of Buffalo, N.Y. pleaded guilty to using paper as money before U.S. Magistrate Judge H. Kenneth Schroeder. The charge carries a maximum sentence of one year in prison, a fine of $100,000 or both.
- Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Vincent and Cooper participated in a scam commonly referred to as a “Black Money Scam.” Such a scam usually involves an individual attempting to convince an unsuspecting victim to provide the scammer with money to purchase chemicals to turn black-dyed paper into authentic U.S. currency. The individual concocts a story that money, which originated outside the United States, was treated chemically and dyed black to sneak it past immigration officials to avoid tax liability. The scammer attempts to convince the victim that money is needed to purchase chemicals to restore the money and that the scammer will share with the victim some of the funds once they are restored.
- On July 8, 2013, the defendants met with a confidential informant (“CI”) working with the Government in order to convince the CI to purchase “dirty” money from them.
- Vincent and Cooper attempted to use a slightly different version of the black money scam. According to the defendants, genuine United States currency had been obtained from the Central Intelligence Agency (CIA) to fight wars in Africa. The United States currency had been dyed either black or white to avoid being detected by opposition leaders in Africa and could be restored by simply washing the bills in chemicals provided by the defendant.
- The CI agreed to purchase, and did purchase from the defendants, what the CI had been told was $10,500 in United States currency that had been dyed either black or white, in return for $10,000. In actuality, the defendants sold valueless black and white banknote sized paper to the CI for $10,000.
- The defendants later admitted to agents working for the United States Secret Service and the Department of Homeland Security that they had sold black and white banknote sized paper having no value to the CI for $10,000.
The pleas are the result of an investigation by the United Stated Secret Service, under the direction of Special Agent in Charge Tracy Gast and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
The defendants are scheduled to be sentenced before Magistrate Judge H. Kenneth Schroeder on September 4, 2014, at 10:00 a.m.
Two Local Businessmen Plead Guilty to Multiple Federal Fraud Charges Involving Elderly Victims in St. LouisRead the Press Release
St. Louis, MO – ROBERT PALMER and MARK DRIVER plead guilty late Thursday to defrauding numerous elderly victims of approximately $3,000,000, beginning in 2004 and continuing through 2010.
According to the indictment, Princeton Partnership, LLC, was an insurance brokerage business involved in the sale of life insurance products. Princeton operated out of offices in the Hill area of St. Louis, at 1928 Marconi Street (also known as 5149 Daggett Avenue). Palmer and Driver both ran the day-to-day operations of Princeton, solicited customers, marketed the company's services and had financial oversight of the company with authorization over the company's two operating bank accounts. Palmer and Driver solicited Princeton customers with the false promises that they would invest the customers' funds in suitable investments, including but not limited to real estate, stocks and life insurance annuities. Examples of those victims include: During 2004 Palmer solicited several members of a family who had received funds upon the death of their elderly aunt with the false representation that Princeton would place those funds in a real estate investment for the benefit of those customers. Based upon his false representations, the family members transferred some or all of those funds to Princeton.
In 2005 Palmer solicited funds from an elderly individual and her family with the false representation that they would place those funds in a real estate investment for her benefit. Based on those representations the family transferred her funds to Princeton.
During 2006 through 2010 Palmer solicited investment funds from two elderly sisters with the false representations that Princeton would make suitable investments with those funds. They transferred their funds and control of their stock holdings to Princeton and, later Palmer and Driver sold and liquidated the stocks and persuaded one of the sisters to liquidate a life insurance policy as well and transfer the funds to Princeton.
During 2007 through 2009 Driver solicited investment funds from an elderly woman who transferred her funds, as well as control of her stock holdings to Princeton.
In 2006, an elderly woman was solicited by Driver to invest her personally held funds in a series of life insurance annuities through Princeton. Princeton used her funds to purchase four (4) life insurance annuities. As a further part of the scheme, during in or about 2008 and 2009, at Driver’s direction, she liquidated three (3) of her life insurance annuities and provided those funds to Princeton based upon the false representations that the funds would be placed in suitable investments for her benefit.
Most or all of the funds transferred to Palmer, Driver and Princeton by the numerous victims were used by Palmer and Driver for their own personal uses and the general operating expenses of Princeton. Palmer and Driver also engaged in Ponzi-type transactions where they used some funds provided by new customers to pay old customers who falsely believed they were receiving the returns on their purported investments.
In all cases Palmer and Driver obtained approximately $3,000,000 from Princeton customers based upon their false representations, which they used for their own personal use and for the expenses of their company Princeton.
Palmer, Kansas City, Missouri; and Driver, St. Louis, Missouri, pled guilty to all charges contained in the indictment, including two felony counts of mail fraud and two felony counts of wire fraud, before United States District Judge Rodney Sippel. Sentencings have been set for September 12, 2014.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Postal Inspection Service, with assistance of the Missouri Secretary of State’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Supplier of Non-FDA-Approved Chemotherapy and Cosmetic Drugs Sentenced to 15 MonthsRead the Press Release
ALEXANDRIA, Va. – Mirwaiss Aminzada, 44, of Montreal, Quebec, and Dubai, United Arab Emirates (UAE), was sentenced today to 15 months in prison, 1 year of supervised release and restitution of $586,798. On Dec. 19, 2013, Aminzada pleaded guilty to introducing misbranded drugs into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
According to court documents, Aminzada, a U.S. citizen, was the owner and operator of several companies based in Canada, the UAE and Afghanistan. Through these companies, Aminzada obtained chemotherapy and cosmetic drugs intended for Middle Eastern markets and sold those drugs to Gallant Pharma, an unlicensed wholesale drug distributor based in Arlington, Virginia, for resale in the United States. Aminzada used an employee in Pakistan to alter the drugs’ packaging and hide evidence of their foreign source. In one e-mail exchange with Aminzada, the employee complained he was unable to keep “cold chain” chemotherapy drugs refrigerated—which is required to protect drug efficacy and patient health and safety—because the electricity in Peshawar, Pakistan kept going out.
Aminzada also was the source of vials of tampered Botox that were missing safety caps, contained an unusual jelly-like substance and bore mismatched lot numbers and expiration dates. The tampered Botox entered the U.S. supply chain through Gallant Pharma, and some was administered to patients in New England.
To date, twelve defendants associated with Gallant Pharma have been convicted. Two additional defendants named in the indictment, Robert Wachna and Munajj Rochelle, remain fugitives and are believed to be in Canada.
This case was investigated by FDA’s Office of Criminal Investigations, DEA’s Group 33 Diversion Task Force, ICE-HSI and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department and Interpol. Assistant U.S. Attorneys Lindsay Kelly, Maya Song and Jay Prabhu are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Second Marijuana Grow Robber Sentenced to Long Prison TermRead the Press Release
Defendant was Shot and Critically Wounded While Fleeing from Marijuana Distributor in Maple Valley Neighborhood
A second defendant who was shot while fleeing from the robbery of a marijuana distributor was sentenced today in U.S. District court in Seattle to 12 years in prison, announced U.S. Attorney Jenny A. Durkan. FERDINAND CLAY, 32, of Seattle and Melvin Charles Slaughter, 31, tied up and robbed Maple Valley marijuana dealer Jason Loken on August 13, 2013. The two men stole guns, and marijuana from Loken; Loken had been restrained but was able to free himself. He raced out of the house with a gun he had hidden under his mattress, and fired multiple shots at the fleeing robbers. CLAY was shot in the face, neck and hip but recovered from his wounds. U.S. District Judge Robert S. Lasnik also imposed 3 years of supervised release.
“Drug dealing is a volatile business, where guns and violence threaten public safety. All those involved in this crime are paying with their freedom for their criminal conduct,” said U.S. Attorney Jenny A. Durkan. “The two robbers who have extensive criminal history, will serve the longest sentences. But the drug dealer who attracted this violence to his quiet neighborhood will also spend years in prison.”
After shots were fired the robbery team sped away tossing bloodied items from the car, including some of the stolen firearms. They were recovered by police along the highway. The two who were injured went to different hospitals for treatment. Slaughter and the other female member of the robbery crew later turned themselves in to police.
Slaughter was sentenced to 14 years in prison on April 25, 2014. Loken was sentenced to 32 months in prison on May 27, 2014.
The case was investigated by the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney Vince Lombardi.
Savannah Man Sentenced to 25 Years for Transporting A Minor with Intent to Engage in Sexual Conduct and Child Pornography ChargesRead the Press Release
STATESBORO, GA – Steve Lavon Biggins, 33, of Savannah, Georgia, was sentenced Wednesday by United States District Court Senior Judge B. Avant Edenfield to 25 years in prison, followed by supervised release for the remainder of his life, for Transporting a Minor with Intent to Engage in Illicit Sexual Conduct, Production of Child Pornography, and Transportation of Child Pornography. Biggins had been found guilty by a federal jury after a 2-day trial in Statesboro, in December 2013.
United States Attorney Edward Tarver said, “Crimes targeting children is reaching epidemic proportions. The protection of our children is, and should be, a priority to which the Department of Justice takes swift and aggressive enforcement action. This defendant met an underage girl online, lied to her to gain her trust, and engaged in illegal sex acts in violation of numerous federal laws. Lengthy sentences like the one handed down in this case help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
Evidence presented during the trial revealed that Biggins, a 33-year-old truck driver posing as a man in his twenties named “Rodney,” engaged in text and telephone communications with a girl under the age of 16 with whom he initiated contact through the mobile application “Tagged.com.” After developing an in-person relationship with the victim, and without the knowledge of the girl’s parents, in July 2013, Biggins took the child on short-haul trips that spanned seven days, and included travel to South Carolina, Tennessee, and North Carolina, before returning to Georgia. While on the trip he engaged in sexual conduct that violated the laws of each state he entered, and photographed the same. Upon his return trip through Millen, Georgia, Biggins was stopped and immediately arrested by law enforcement officers. He has remained in custody since that time.
The arrest in this case was accomplished through the combined efforts of Millen Police Department, Jenkins County Sheriff’s Office, Georgia State Patrol, Georgia Bureau of Investigation, and the Federal Bureau of Investigation. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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.
FBI Special Agent Marcus Kirkland investigated the case. Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Francisco Man Indicted for FraudRead the Press Release
SAN FRANCISCO – Yesterday a grand jury indicted Luke D. Brugnara on charges of mail fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to court documents, Brugnara, 50, of San Francisco, allegedly agreed to purchase several works of art for a combined total of approximately $11,000,000. The art was shipped to Brugnara from New York, however, after he took possession of the art, he refused to pay for it or to return it. Law enforcement authorities obtained a search warrant for Brugnara’s home and seized four of the five crates of art that had been shipped to Brugnara. The fifth crate, which contained a work of art worth at least hundreds of thousands of dollars, remains missing.
According to the Indictment, Brugnara represented he would pay millions of dollars for these works of art, however, the Indictment alleges that Brugnara had almost no income, no assets, no means to pay for the art, and a substantially negative net worth.
After a Criminal Complaint was filed against him, Brugnara was arrested on May 28, 2014, in San Francisco. He made his initial appearance in federal court in San Francisco that morning. Brugnara remains in custody. Brugnara’s next court appearance is scheduled for Monday, June 9, 2014, at 9:30 a.m. before the Honorable Laurel Beeler, United States Magistrate Court Judge.
In 2010, Brugnara was convicted of several other federal crimes, including filing false tax returns, making false statements, and violating the Endangered Species Act. As a result, he was sentenced to 30 months in prison. He was still on supervised release from some of those convictions when he allegedly committed the fraud offense for which he was indicted yesterday.
The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, is 20 years in prison, a fine of $250,000, forfeiture, and restitution. Any sentence following conviction, however, would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of a one-month investigation by the Federal Bureau of Investigation.
Please note that an Indictment contains only allegations against an individual and, as with all defendants, Luke D. Brugnara must be presumed innocent unless and until proven guilty.
(Brugnara indictment )
Salesman and CEO of Former Downstate Telecommunications Business Indicted in Alleged $6 Million Financing Fraud SchemeRead the Press Release
CHICAGO — During three telephone conference calls with an outside auditing firm and his own company’s CEO and CFO in November 2012 and January 2013, a sales representative for a downstate computer and telecommunications business posed as an employee of a global telecommunications company that the downstate firm had partnered with and, with his CEO’s alleged knowledge and participation, lied about the downstate company being owed millions of dollars by its larger international partner, according to a federal fraud indictment.
As a result, DAVID GODWIN, the chief executive officer, president and board chairman of the former ContinuityX Solutions, Inc., of Metamora, Ill., and JOHN COLETTI, a ContinuityX sales representative, allegedly secured $6 million in November 2012 from two victim financing companies for ContinuityX based on the allegedly false assurances that its global marketing partner owed ContinuityX $12 million in receivables.
Godwin, 52, of Germantown Hills, Ill., was charged with six counts of wire fraud, and Coletti, 53, of Canyon Country, Calif., was charged with four counts of wire fraud, in an indictment returned yesterday by a federal grand jury in Chicago. The indictment also seeks forfeiture of approximately $6 million from both defendants. Both defendants will be ordered to appear for arraignment on a date to be determined in U.S. District Court in Chicago.
According to the indictment, an unnamed global telecommunications company entered into a joint marketing agreement with ContinuityX under which ContinuityX billed the larger company for computer and telecommunications services, including networked computer server space, which ContinuityX provided to the international firm’s customers. Godwin and Coletti allegedly falsely represented to the two victim financing companies in Atlanta and Baltimore, an auditing firm, and ContinuityX’s chief financial officer and investors, that ContinuityX was owed $12 million for services it provided to the global firm’s customers. Godwin allegedly caused ContinuityX to create false emails and invoices as part of the fraud scheme and knew that a signature was forged on a purchase order.
Godwin and Coletti together fraudulently arranged the conference calls in which Coletti posed as an employee of the global telecommunications partner to falsely assure auditors, ContinuityX’s CFO, and the two victim financing companies that the accounts receivable were legitimate and that payment was forthcoming, the indictment alleges.
To conceal the false invoices, Godwin allegedly fraudulently caused ContinutyX to file a Form 10-Q with the U.S. Securities and Exchange Commission in November 2012, which Godwin certified as CEO of ContinuityX, purportedly recognizing $4 million in revenue from the global telecommunications company that Godwin knew was false.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago office of the Securities and Exchange Commission cooperated with the investigation.
The government is being represented by Assistant U.S. Attorney Steven Dollear.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Ringleader of Tax Refund Check Scam Admits $2.6 Million ConspiracyRead the Press Release
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Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Blake and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Blake admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Blake and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Blake admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Poplar Man Gets 20 Years for Rape, Assault and BurglaryRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, KEVIN J. DEVEREAUX, 50, of Poplar, was sentenced to a term of 20 years imprisonment, five years supervised release, and a special assessment of $300.
Following a three-day trial in Great Falls, a jury convicted Devereaux of raping a woman on the Fort Peck Reservation, burglarizing her home, and severely assaulting her in front of her 7-year-old granddaughter. The rape occurred in 2009, when Devereaux appeared in the victim's house as she was asleep on the sofa with her two grandchildren, ages two and eight months. Devereaux dragged her to the bedroom, where he raped her. He then fled the house. Days after the offense occurred, Devereaux intimidated the victim into recanting her story. In 2013, Devereaux broke into her bedroom where she was sleeping with her seven-year-old granddaughter and beat her in the head multiple times. When the child pleaded with him to stop, Devereaux screamed at her "I'm going to kill your grandma!" The victim was able to escape and call 911. During the investigation of the second offense, the Federal Bureau of Investigation interviewed the victim, at which point she disclosed Devereaux had intimidated her into changing her story regarding the rape. Due to advancements in the law, the United States was still able to prosecute the rape offense years later, when the truth came out about the circumstances surrounding the victim's statements about the rape.
The Court sentenced Devereaux to 20 years of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Devereaux will likely serve all of the time imposed by the court. In the federal system, Devereaux does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Polk County Man Sentenced to 7 Years for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Norman V. Charlton (50, Lakeland) to 7 years in federal prison on tax fraud charges. The Court also ordered the forfeiture of $14,952 in U.S. currency that was seized from his residence on March 21, 2012, and entered a forfeiture money judgment in the amount of $325,886, the traceable proceeds of the fraud scheme.
On March 7, 2014, Charlton pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft in connection with using stolen names and social security numbers to electronically file fraudulent tax returns.
According to court documents, from August 2011 through June 4, 2012, Charlton and co-conspirators used stolen identities, including names, dates of birth, and social security numbers, to electronically file fraudulent tax returns and obtain tax refunds to which they were not entitled. A record of those filings was kept by Charlton in a detailed ledger, complete with names, email addresses, passwords, filing dates, times, and amounts. The fraudulent refunds were deposited onto reloadable debit cards in the names of others, and/or were disbursed in the form of U.S. Treasury checks and mailed to addresses controlled or directed by Charlton and others. Charlton and his co-conspirators used and directed the fraudulent tax refunds to obtain cash and goods for their own benefit and the benefit of others.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Overton Cattle Feeding Operation Sentenced for Clean Water Act ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Central Feeders, Inc. a Concentrated Animal Feeding Operation (CAFO) located near Overton in Dawson County, Nebraska, has entered a plea of guilty and has been sentenced for a misdemeanor violation of the Clean Water Act. The plea and sentencing occurred in the United States District Court in Lincoln, Nebraska. The Honorable Richard G. Kopf, Senior Judge, accepted the plea and sentenced Central Feeders, Inc. to a 3 year term of probation and imposed a fine of $20,000. During probation Central Feeders, Inc. will be required to abide by a compliance plan to be monitored by the United States Probation Office and the Environmental Protection Agency to eliminate violations of the Clean Water Act.
Central Feeders, Inc. is a cattle feeding operation. On at least four separate occasions between April of 2011 and April of 2012 livestock waste was negligently discharged from the feedlot into Mud Creek. Mud Creek is a tributary of the Platte River, a waterway of the United States. The discharges did not result in any fish kills and no environmental clean-up costs were noted.
In addition to the criminal penalty Central Feeders, Inc. has negotiated a civil penalty with the Environmental Protection Agency. That penalty is subject to publication and final approval. It is anticipated that the civil penalty will be $38,911.
Omaha Man Sentenced for Social Security FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Kingsley Onumbu, age 53 of Omaha, Nebraska, was sentenced after pleading guilty to Social Security fraud. The Honorable Joseph F. Bataillon sentenced Onumbu to time served and a 1 year term of supervised release.
The Social Security Administration Office of Inspector General investigated this case after it was learned that Onumbu provided two different Social Security Numbers and name variations in applications to be a licensed car salesman. He used a number that was legitimately assigned to him and also used his son’s number. No monetary loss occurred as a result of Onumbu’s actions as the Nebraska Motor Vehicle Licensing Board reported the problem immediately upon discovery.
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Are Sentenced for Roles in Conspiracy to Commit Health Care FraudRead the Press Release
DALLAS — Yesterday afternoon, two businessmen, Stanley Thaw, 72, of Frisco, Texas, and Michael Kincaid, 57, of Plano, Texas, who owned and operated hyperbaric oxygen therapy (HBOT) companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, were each sentenced to five years in federal prison by U.S. District Judge Jorge A. Solis for conspiring to commit health care fraud. In addition, Judge Solis ordered them to pay approximately $1.5 million in restitution, jointly and severally. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Each defendant pleaded guilty in July 2013 to one count of conspiracy to commit health care fraud, admitting they conspired together, and with others, to defraud Medicare by making false and fraudulent representations and promises in connection with payments of HBOT services and items. HBOT is a therapy used to assist in healing diabetic sores or amputations in an outpatient setting. HBOT is administered by placing the patient in a hyperbaric oxygen chamber to receive increased levels of oxygen; each session of HBOT is commonly referred to as a “dive,” and generally lasted between ninety minutes and two hours.
The HBOT companies employed physicians to attend and supervise HBOT sessions to ensure that a patient was medically appropriate for the HBOT on that particular day and also to treat any medical emergency that may occur. Stanley Thaw and Kincaid admitted that they defrauded Medicare by billing multiple times for the physician supervision and attendance of HBOT-related services, when, in fact, the physician only supervised and attended one session/dive that day.
Stanley Thaw and his co-conspirators were advised on multiple occasions that billing for multiple dive sessions was improper and that they had overbilled Medicare. They continued to direct fraudulent claims to Medicare and other health care programs through at least June 2011.
The case was investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General, the Office of Personnel Management - Office of Inspector General and the Texas Department of Public Safety. To learn more health care fraud, please visit: http://www.stopmedicarefraud.gov/.
Assistant U.S. Attorney P.J. Meitl prosecuted.
New York Marine Life Dealer Convicted and Sentenced for Illegal Wildlife TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service, Office of Law Enforcement, and Tracy A. Dunn, Special Agent in Charge, SAC Southeast Regional Office, NOAA, announce that Jonathan M. Hale, 30, of Patchogue, New York, pled guilty and was sentenced for transporting, possessing, and selling live rock bearing specimens of Ricordea florida in interstate commerce, with a fair market value in excess of $350.00, knowing the marine life was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), (a)(4), 3373(d)(1)(B), and Title 18, United States Code, Section 2.
The defendant entered his guilty plea to the single charge before U.S. District Judge James Lawrence King, who after accepting the guilty plea imposed sentence on the defendant. Hale was sentenced to a term of probation of two years and a criminal fine of $10,000.
According to the indictment, joint factual statements submitted to the Court, and statements in court, at the relevant times, Hale was Chairman/Chief Executive Officer of Country Critters of Long Island, Inc., located in Patchogue, New York. Country Critters of Long Island, Inc. was a retail business engaged in the sale of various species of wildlife, including mammals, reptiles, and fish.
In September 2012, at Marathon Shores, Florida, the defendant met with a marine life supplier and discussed pricing of various marine life species, including Ricordea florida, tarpon, and sharks. The defendant then placed an order for 100 ricordea, on rock.
In early October 2012, in a telephone conversation from Marathon Shores to the defendant in Patchogue, New York, the supplier advised he had acquired the requested marine life near Key West, and secured defendant’s promise to keep the source of the ricordea secret because it was illegal to harvest them in that area.
Thereafter, a shipment including six live rocks (Scleractinia) bearing approximately 111 specimens of Ricordea florida was shipped in interstate commerce from Fort Lauderdale-Hollywood International Airport to New York, consigned to “Country Critters-Jonathan Hale” and invoiced for wholesale in the amount of $444.00. Payment for the shipment was made by Jonathon Hale by credit card, to the marine life supplier. The retail fair market value of the ricordea exceeded $2,200.
Mr. Ferrer commended the investigative efforts the U.S. Fish & Wildlife Service, Office of Law Enforcement, and NOAA Fisheries Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Moldovan national pleads guilty to wire fraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Iurie Stratenco, 28, of Moldova, pleaded guilty to wire fraud before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years In prison, a fine of $250,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant used a fraudulent passport from Denmark in the name of Christian Bendtner, to open up several bank accounts in the Buffalo area. Stratenco then placed false advertisements on eBay for “Can-Am Spyder” and “Honda Goldwing” motorcycles. The defendant directed interested buyers to wire money into one of the bank accounts opened under the name Christian Bendtner. Stratenco told victims the money would go into an eBay holding account until the merchandize was shipped. Instead, the money went directly into one of the fraudulent accounts. During the course of the scheme, the defendant transferred $17,500 of the money wired into the fraudulent accounts to an individual located in the Ukraine. As a result of Stratenco’s actions, individuals wired $49,300 to the fraudulent bank accounts.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
Sentencing is scheduled for September 10, 2014, at 1:00 p.m. before Judge Arcara.Man Sentenced for Identity TheftRead the Press Release
GREENSBORO, N.C. – A Myrtle Beach, South Carolina, man was sentenced to 23 months of imprisonment for fraudulently obtaining Treasury checks and aggravated identity theft, announced United States Attorney Ripley Rand.
Senior United States District Judge N. Carlton Tilley, Jr., sentenced Herber Alexsander Gonzales-Escobar, 24, to 23 months in prison. Gonzales-Escobar was also ordered to pay a $200.00 special assessment, and will be deported back to Honduras. Gonzales-Escobar had pleaded guilty to fraudulently obtaining Treasury checks and aggravated identity theft on November 7, 2013.
On July 29, 2013, Gonzales-Escobar was operating a motor vehicle near Pinnacle, North Carolina, when he was stopped by a North Carolina Highway Patrol trooper. During the stop, the trooper discovered four United States Treasury checks made out to four different individuals. Along with the checks were identifying documents specific to each individual’s name as listed on the Treasury checks.
The case was investigated by the North Carolina Highway Patrol, Internal Revenue Service - Criminal Investigation Division, and the United States Secret Service, and prosecuted by Assistant United States Attorney Frank Chut.
Local Woman Admits Stealing $78K in Social Security Income BenefitsRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Laverne Russell, 73, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Russell converted to her own use over $78,000 in Social Security Income Benefits from the Social Security Administration.
Judge Fischer scheduled sentencing for Oct. 15, 2014 at 9 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond pending sentencing.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Laverne Russell.
Local Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Christopher Lee, 41, of Corpus Christi, has been ordered to federal prison for possession of child pornography, announced United States Attorney Kenneth Magidson. Lee pleaded guilty March 3, 2014.
U.S. District Judge Nelva Gonzalez Ramos considered the need to protect the public and deter future criminal conduct and ordered Lee serve a total sentence of 70 months in prison. He will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet . He will also be ordered to register as a sex offender.
On March July 28, 2013, the Corpus Christi Police Department (CCPD) responded to a domestic disturbance call at a motel in Corpus Christi. The victim claimed her boyfriend, Lee, had assaulted her. She further alleged Lee had been viewing child pornography on his cell phone earlier that day. She described images of nude girls between the ages of seven and nine as well as a video of an adult male sexually assaulting a six-month old female infant.
Lee later contacted the police in an effort to obtain reports related to the assault and on Aug. 7, 2013, he came to the police station to pick up the assault reports. At that time, he provided consent for officers to search his cell phone, which resulted in the discovery of child pornography. A forensic examination identified numerous child pornography and child erotica images.
Lee later admitted to downloading, viewing and saving the child pornography on his phone.
Lee will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and CCPD – Internet Crimes Against Children task force investigated.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – Lenyn Acosta, 33, and three others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced U.S. Attorney Kenneth Magidson. Mexican National Acosta pleaded guilty to conspiracy to transport aliens as did Debora Baldizon, 37, of Nicaragua, and Maurisio Hernandez-Chinchilla, 32, and Franklin Gutieres, 33, both of Honduras.
Today, U.S. District Judge Melinda Harmon, who accepted all the guilty pleas, handed Acosta a total sentence of 97 months in federal prison. In handing down the sentence, Judge Harmon found Acosta was the organizer and leader of an ongoing and extensive conspiracy involving hundreds of undocumented aliens, to include juveniles. Judge Harmon also found Acosta caused serious bodily injury to a female alien he harbored by sexually assaulting her during the course of the conspiracy. At the hearing today, that victim testified about the impact the crime has had on her life.
Baldizon and Hernanez-Chinchilla were also sentenced today to a respective terms of 30 and 12 months in prison. Gutieres was sentenced on May 23, 2014, to a 12-month term of imprisonment.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in July 2012 after federal agents received information that Acosta was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In May 2014, Hernandez-Chinchilla and Gutieres were arrested in connection with arranging the transportation of eight aliens illegally present in the U.S. Later, agents executed a search warrant at a residence in Houston which was being used by Acosta and his conspirators to stash aliens awaiting transportation. Agents encountered 13 additional aliens illegally present in the country.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Law Enforcement Arrests Members of the Violent “Goon Squad” and Others on Drug Trafficking and Robbery Conspiracy ChargesRead the Press Release
Led by Two Brothers and Their Sister; Other Family Members Also Involved
DALLAS — Following a law enforcement operation yesterday by special agents with the FBI and officers with the Dallas Police Department, 10 defendants who are charged in a drug distribution and robbery conspiracy are in custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of Dallas FBI and Chief David O. Brown of the Dallas Police Department.
Defendants indicted and in custody are:
- Cesar Ibarra, aka “Bling,” 39, of Mansfield, Texas
- Hilberto Ibarra, aka “Gilberto,” 29, of Mansfield, Texas
- Cesar Ibarra, Jr., aka “Chicho,” 21, of Dallas, Texas
- Lauro Reyes-Serrano, aka “Wicho” and “Gordo,” 29, of Dallas
- Nicholas Manriquez, 28, of Dallas, Texas
- Andres Garcia, aka “Mentiras,” 30, of Dallas, Texas
- Victor Anderson, aka “Old School,” 51, of Dallas, Texas
- Quinton Walker, 30, of Dallas, Texas
- Mark Anthony Nolasco, 22 of Dallas, Texas and Mansfield, Texas
One defendant named in the indictment, Elva Sofia Ibarra, 36, also of Dallas, has not been arrested. Another defendant, Felipe Gonzalez, 27, was arrested today on a related federal criminal complaint. The 10 arrested defendants made their initial appearances in federal court this afternoon and will remain in custody pending detention hearings scheduled for next week.
“This indictment and the arrests of these defendants represent the culmination of many months of diligent work by the FBI and the Dallas Police Department, and serves as an excellent example of the collaborative efforts of the federal government and local law enforcement to apprehend those individuals who are the most dangerous in our communities,” said U.S. Attorney Saldaña. “We believe this case will have a significant impact on the communities in which these criminals operated.”
“These arrests have resulted in a significant disruption of a criminal enterprise in the Dallas Division,” said Special Agent in Charge Rodriguez. “This joint investigation is a clear example of law enforcement’s commitment to remove the elements that pose significant social and criminal threats to our communities.”
“The Dallas Police Department was pleased to be involved in the investigation which led to the successful indictment and arrest of several members of the Goon Squad street gang,” said Chief Brown. “The arrests of these individuals is the culmination of a successful collaboration between the FBI, the US Attorney’s Office and our Department, as well as other members of the law enforcement community.”
The indictment alleges that Cesar Ibarra and his brother, Hilberto Ibarra, and their sister, Elva Sofia Ibarra (the Ibarra siblings) conspired with each other and others to commit illegal narcotics-trafficking offenses and criminal offenses in furtherance of their drug-trafficking activities, including the commission or planned commission of burglaries, robberies and other acts of violence. The Ibarra siblings and certain other co-conspirators called themselves the “Goon Squad,” and while Cesar and Hilberto Ibarra led the Goon Squad, the Ibarra siblings involved other family members, including Cesar Ibarra, Jr., in their cocaine, methamphetamine and marijuana trafficking activities.
According to the indictment, the Goon Squad targeted individuals known, or believed, to be drug dealers for burglary, robbery or other acts of violence, because those individuals were likely to possess large quantities of illegal narcotics, U.S. currency or firearms, and would not be likely to report any offenses by the Goon Squad.
The Goon Squad performed surveillance and reconnaissance on their potential victims. They also attempted to perform similar surveillance on members of law enforcement they believed were investigating their illicit activities by taking photographs and recording vehicle-specific information.
Count One of the indictment alleges that between November 2011 and June 3, 2014, these 10 defendants conspired to possess with intent to distribute 500 grams or more of methamphetamine, five kilograms or more of cocaine and marijuana.
Count Two of the indictment alleges that during the same time frame, defendants Cesar Ibarra, Hilberto Ibarra, Elva Sofia Ibarra, Lauro Reyes-Serrano and Victor Anderson conspired with each other and others to obstruct, delay and affect interstate commerce by robbery, in that the defendants and their co-conspirators conspired to unlawfully take and obtain controlled substances, firearms and cash from others, by actual or threatened force and violence. Cesar and Hilberto were the leaders and organizers of the robberies, or other acts of violence, and personally participated in such illegal activities.
A federal indictment is an accusation by a grand jury. A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each count of conspiracy to commit robbery affecting interstate and foreign commerce is 20 years in federal prison and a $250,000 fine.
Assistant U.S. Attorneys P. J. Meitl and Jason Schall are prosecuting.
(Download Factual Basis)
Lame Deer Man Sentenced to Twelve Years in Triple StabbingRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, ROBET LEWIS BURSHIA, of Lame Deer, was sentenced to a term of 12 years imprisonment, three years supervised release, and a special assessment of $400.
Following trial in Great Falls, a jury convicted BURHSIA on all three counts charged in the indictment: three counts assault with a dangerous weapon and one count assault resulting in serious bodily injury. BURSHIA was charged after stabbing three women at a Fort Peck residence. The group was eating dinner out in the kitchen area, when BURSHIA suddenly pulled a knife out of his hoodie pocket and stabbed one of the women in the abdomen, claiming the group had taken his "jug" and methamphetamine. When the woman ran away, Burshia chased her. Another woman threw herself in front of the first victim and was stabbed by Burshia in the arm. When the two women ran to hide in the garage, BURSHIA went to another room where he stabbed a third woman, who was sleeping with her young children. Burshia then fled the residence, screaming that he should have killed them.
The Court sentenced Devereaux to 12 years of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Burshia will likely serve all of the time imposed by the court. In the federal system, Burshia does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Justice Department and CNCS Announce New Partnership to Enhance Immigration Courts and Provide Critical Legal Assistance to Unaccompanied MinorsRead the Press Release
The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced “justice AmeriCorps,” a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. border without a parent or legal guardian.
The interagency agreement reflects the spirit of a presidential memorandum issued on July 15, 2013, that established the Task Force on Expanding National Service. The task force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.
“With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society,” said Attorney General Eric Holder. “How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts.”
“Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system,” said Wendy Spencer, Chief Executive Officer of CNCS. “AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today.”
The partnership, known as justice AmeriCorps, is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to the department’s Executive Office for Immigration Review (EOIR) “to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation.” In addition, department officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.
CNCS is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund and other programs, and leads the President’s national call to service initiative, United We Serve. For more information, visit CNCS' website.
EOIR is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to the United States’ immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Justice Department Concludes That Los Angeles County Jails System Has Made Progress, but Serious Deficiencies ContinueRead the Press Release
The Justice Department today released its latest compliance assessment of mental health services at the Los Angeles County Jails based on a memorandum of agreement (MOA) designed to protect the constitutional rights of prisoners with serious mental illness at the jails. The department concluded that, despite progress in some areas of the MOA, the county of Los Angeles fails to provide sufficient suicide prevention practices to protect prisoners from self-harm. The department also found that other serious deficiencies in the mental health care delivery system remain and combine with inadequate supervision and deplorable environmental conditions to deprive prisoners of constitutionally-required mental health care.
The Los Angeles County Jails system is the largest jail system in the country, housing approximately 19,000 pre-sentenced and sentenced prisoners in seven facilities throughout the county. The Los Angeles Sheriff’s Department operates the jails system and supports the delivery of mental health services within the jails by the county’s Department of Mental Health. In 2002, the department entered into the MOA with the county to resolve a long-standing civil investigation into conditions of confinement at the jails under the Civil Rights of Institutionalized Persons Act (CRIPA). The MOA gives the department access to personnel, documents and prisoners to evaluate the county’s compliance with the MOA. The department is assisted by expert consultants in correctional mental health care and suicide prevention, and provides ongoing technical assistance as part of its monitoring activities. The county has cooperated fully and openly with the department.
The comprehensive assessment released today confirms that certain conditions and practices have not been remedied under the MOA and continue to violate the constitutional rights of prisoners with mental illness. There have been 15 completed suicides at the jails in less than 30 months and the department concluded that some of the deaths may have been preventable with proper suicide prevention practices. The department’s assessment also reveals widespread lapses with regard to basic supervision of prisoners at risk; deficient mental health care for prisoners with clearly demonstrated needs; deplorable environmental conditions, most acutely at Men’s Central Jail; and a suicide review process that often includes inaccurate information and fails to remedy evident and repeated problems in order to prevent similar incidents in the future.
At the same time, the department’s assessment reveals that the county has achieved substantial compliance with certain aspects of the MOA. For example, the county has implemented nearly all provisions related to mental health screening at intake, developed a robust electronic medical records system, increased the number of clinical and support staff and ensured that custodial staff receive initial and ongoing training in the identification and custodial care of prisoners with mental illness. The county has demonstrated a sustained level of acceptable performance and improvement in these areas, which will no longer be subject to evaluation under the MOA.
“The Los Angeles County Jails have an obligation to provide conditions of confinement that do not offend the Constitution and to take reasonable measures to protect inmates from harm,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Although the county has consulted with the Justice Department for years, our latest assessment reveals serious deficiencies that require further corrective action. We are hopeful that county officials will continue their long-standing cooperation to ensure that sustainable reforms are implemented fully.”
The department intends to enter into discussions with county officials from the Los Angeles County Sheriff’s Department and the county’s Department of Mental Health to address the results of the evaluation. The department expects that those MOA requirements that are in substantial compliance will terminate and no longer be subject to monitoring. The department will propose additional corrective action in the form of a court-enforceable agreement to address the remaining areas with serious deficiencies that violate prisoners’ constitutional rights. The department’s compliance letter includes a comprehensive list of recommended remedial measures that are designed to ensure adequate mental health treatment, supervision, suicide prevention and conditions of confinement for prisoners throughout the jails.
The challenges that the county faces in providing constitutionally adequate mental health services at the jail are driven in part by a rapid increase in the number of prisoners who are seriously mentally ill. The county has begun to take steps to expand diversion programs that will provide community supervision and treatment in a manner consistent with public safety. The department applauds these efforts.
CRIPA was enacted in 1980 to eradicate egregious and harmful conditions that result in a pattern or practice of civil rights violations in jails, prisons, juvenile justice facilities and other public institutions. CRIPA authorizes the department to investigate and, if necessary, initiate a civil action to guarantee the federal and constitutional rights of institutionalized persons.
The MOA is enforced by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, Civil Division. A copy of the MOA can be obtained on the department's website and additional information about the Civil Rights Division’s enforcement activities under CRIPA can be found at the division website .
Justice Department Concludes That Los Angeles County Jail System Continues to Violate Constitutional Rights of Prisoners with Mental Illness and Fails to Provide Adequate Suicide PreventionRead the Press Release
LOS ANGELES – The Justice Department today released its latest assessment of mental health services at the Los Angeles County jails, which concludes that, despite progress in some areas, the County of Los Angeles fails to provide sufficient suicide-prevention practices to protect prisoners from self-harm. The department also found that other serious deficiencies in the mental health care delivery system remain and combine with inadequate supervision and deplorable environmental conditions to deprive prisoners of constitutionally-required mental health care.
The comprehensive assessment sent to the county on Wednesday and released today confirms that certain conditions and practices continue to violate the constitutional rights of prisoners with mental illness. There have been 15 suicides at the jails in less than 30 months, and the Justice Department concluded that some of the deaths may have been preventable with proper suicide prevention practices.
The Justice Department’s assessment also reveals widespread lapses with regard to basic supervision of prisoners at risk; deficient mental health care for prisoners with clearly demonstrated needs; deplorable environmental conditions, most acutely at Men’s Central Jail; and a suicide review process that often includes inaccurate information and fails to remedy evident and repeated problems in order to prevent similar incidents in the future.
The Los Angeles County jail system is the largest in the country, housing approximately 19,000 pre-sentenced and sentenced prisoners in seven facilities throughout the county. The Los Angeles Sheriff’s Department operates the jails system and supports the delivery of mental health services within the jails by the county’s Department of Mental Health.
In 2002, the Justice Department entered into a Memorandum of Agreement with the county to resolve a long-standing civil investigation into conditions of confinement at the jails under the Civil Rights of Institutionalized Persons Act (CRIPA). The MOA gives the Justice Department access to personnel, documents and prisoners to evaluate the county’s compliance with the MOA. The Justice Department is assisted by expert consultants in correctional mental health care and suicide prevention, and provides ongoing technical assistance as part of its monitoring activities. The county has cooperated fully and openly with the Justice Department.
While significant lapses were found, the Justice Department’s assessment reveals that the county has achieved substantial compliance with certain aspects of the MOA. For example, the county has implemented nearly all provisions related to mental health screening at intake, developed a robust electronic medical records system, increased the number of clinical and support staff, and ensured that custodial staff receive initial and ongoing training in the identification and custodial care of prisoners with mental illness. The county has demonstrated a sustained level of acceptable performance and improvement in these areas, which will no longer be subject to evaluation under the MOA.
The Justice Department intends to enter into discussions with officials from the Los Angeles County Sheriff’s Department and the county’s Department of Mental Health to address the results of the evaluation. The Justice Department expects that those MOA requirements that are in substantial compliance will terminate and no longer be subject to monitoring. The Justice Department will propose additional corrective action in the form of a court-enforceable agreement to address the remaining areas with serious deficiencies that violate prisoners’ constitutional rights. This week’s compliance letter includes a comprehensive list of recommended remedial measures that are designed to ensure adequate mental health treatment, supervision, suicide prevention and conditions of confinement for prisoners throughout the jails.
The challenges that the county faces in providing constitutionally adequate mental health services at the jail are driven in part by a rapid increase in the number of prisoners who are seriously mentally ill. The county has begun to take steps to expand diversion programs that will provide community supervision and treatment in a manner consistent with public safety. The department applauds these efforts.
CRIPA was enacted in 1980 to eradicate egregious and harmful conditions that result in a pattern or practice of civil rights violations in jails, prisons, juvenile justice facilities and other public institutions. CRIPA authorizes the Justice Department to investigate and, if necessary, initiate a civil action to guarantee the federal and constitutional rights of institutionalized persons.
The MOA is enforced by the Special Litigation Section of the Civil Rights Division and the United States Attorney’s Office in Los Angeles.
Release No. 14-072
Justice Department and CNCS Announce New Partnership to Enhance Immigration Courts and Provide Critical Legal Assistance to Unaccompanied MinorsRead the Press Release
WASHINGTON - The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced "justice AmeriCorps," a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. Border without a parent or legal guardian.
The interagency agreement reflects the spirit of a Presidential Memorandum issued on July 15, 2013 that established the Task Force on Expanding National Service. The Task Force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.
"With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society," said Attorney General Eric Holder. "How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse, or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts."
"Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system," said Wendy Spencer, CEO of the Corporation for National and Community Service. "AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution, or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today."
The partnership, known as "justice AmeriCorps," is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to DOJ's Executive Office for Immigration Review "to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation." In addition, DOJ officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.
- EOIR -
The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund, and other programs, and leads President's national call to service initiative, United We Serve. For more information, visit nationalservice.gov.
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Jacksonville Man Indicted on Federal Charges of Failure to Register as A Sex Offender and Possession of Firearms by A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced yesterday that Daniel Todd Manning (42, Jacksonville) has been indicted by a federal grand jury and charged with failing to register as sex offender, after traveling from the state of Missouri. He is also charged with the possession of firearms by a convicted felon. If convicted, Manning faces up to 10 years in federal prison for each offense. Manning has been in custody on related state charges since his arrest on April 30, 2014, in Jacksonville.
According to the indictment, on July 26, 2013, Manning was found guilty on two counts of aggravated indecent acts and one count of indecent acts with a child, in the state of Kansas. Subsequent to this adjudication in Kansas, and between July 30, 2013 and April 30, 2014, Manning traveled to the state of Missouri, where he registered as a sex offender. Thereafter, he moved to Florida, where he has since resided. Manning allegedly failed to register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
The indictment also alleges that, on April 30, 2014, Manning knowingly possessed eight different firearms in Jacksonville. At the time of the possession, Manning was a convicted felon and prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
It is also a case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime in our communities.
Jackson Man Sentenced to Prison for Drug TraffickingRead the Press Release
Jackson, Miss – Curtis Anthony Shell, 38, of Jackson, was sentenced on June 4, 2014, to 262 months in federal prison for conspiracy to distribute up to 8.4 kilograms of crack cocaine, U.S. Attorney Gregory K. Davis announced today.
Shell orchestrated the distribution of crack cocaine and powder cocaine within Central Mississippi from Holmes County to Simpson County. At times, his network stretched as far as Milwaukee, Wisconsin. Twelve co-conspirators were also convicted in this case with sentences ranging from 36 months to the high of 262 months received by Shell. Large amounts of cash and several vehicles were seized as a result of this investigation.
U.S. Attorney Gregory Davis praised the cooperation exemplified by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics in bringing this organization to its end.
“Thanks to the dedication and hard work of state, local, and federal law enforcement agencies, another illegal drug trafficker has been brought to justice,” said U.S. Attorney Davis. “We will continue to seek out and prosecute those who bring drugs into our Mississippi communities.”
“This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the distribution of illegal and dangerous drugs,” stated DEA Assistant Special Agent in Charge Floyd Baker.
The case was investigated through the Organized Crime and Drug Enforcement Task Force with substantial involvement by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Hinds County Sheriff’s Office, Rankin County Sheriff’s Office, Leake County Sheriff’s Office and Pearl Police Department..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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Investment Adviser Charged with Stealing Client FundsRead the Press Release
BOSTON - A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was arrested today on charges that she orchestrated a massive Ponzi scheme.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Plead Guilty to Charges Relating to A $3.7 Million Advance Fee Scheme and Tax EvasionRead the Press Release
Developed Relationships with Religious Groups as Part of the Scam
Greenbelt, Maryland - Husband and wife Shannon and Yvette Johnson, ages 50 and 52, respectively, of Laytonsville, Maryland, and Corona, California, pleaded guilty to charges in connection with a fraudulent advance fee scheme and tax evasion. Yvette’s guilty plea was today and Shannon pleaded guilty on June 2, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Tamara W. Ashford of the U.S. Department of Justice Tax Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Fraud schemes cause tremendous financial damage to everyone, especially members of our community. Engaging in an advance fee scheme and under reporting taxable income is unlawful and honest law abiding citizens are fed up with the likes of those motivated merely by greed,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling fraud schemes such as this and enforcing the nation’s tax laws.”
Shannon Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009. Shannon Johnson held himself out as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the Johnsons promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds, and developed relationships with pastors, ministers, and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
According to their plea agreements, the Johnsons also evaded taxes on the millions in income earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for the tax years 1998 through 2001 using false W-2s to fraudulently generate a total of $66,097 in refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts in three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and by using multiple business names to conduct business.Shannon Johnson and the government have agreed that if the Court accepts his plea, he will be sentenced to between four and six years in prison for conspiracy to commit wire, mail fraud, and tax evasion. Yvette Johnson faces a maximum of five years in prison for tax evasion. Shannon Johnson is detained. His bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Shannon Johnson on September 8, 2014 at 11:30 a.m. and for Yvette Johnson on September 29, 2014 at 9:30 a.m.
As part of his plea agreement, Shannon Johnson will be required to forfeit at least $3.7 million. As a special condition of their supervised release, Shannon and Yvette Johnson will both be required to cooperate with the IRS in determining all taxes owed for tax years 2002 thought 2009, and to pay the IRS all additional taxes, interest and penalties.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant Chief John N. Kane of the U.S. Justice Department, Tax Division and Assistant United States Attorney Thomas Sullivan, who are prosecuting the case.
Hogsett Announces Kokomo Man’s Sentence for Illegal Firearm PossessionRead the Press Release
Hogsett continues aggressive fight against illegal firearm possession to protect Hoosiers
KOKOMO – Joseph H. Hogsett, United States Attorney, announced a sentence for Michael A. Hiers, 40, of Kokomo, on one count of felony possession of a firearm. Hiers was sentenced to seven years in federal prison by U.S. District Judge Tanya Walton Pratt.
“Taking those with prior felonies and firearms off of the streets is a top priority of this office,” said Hogsett. “If you have already been acquainted with the American justice system and still do not obey the law, we will prosecute you.”
In 2013, FBI investigators received information that an individual had posted photos to a Facebook account and a known white supremacist webpage. There were two photos, both showing Hiers in clan attire, including a hood, while holding a handgun and a machete. Based on the tattoos in the photographs and the known tattoos of Hiers, a federal search warrant was issued to search Hiers’ Kokomo residence for firearms and ammunition.
In July 2013, federal investigators executed a search of Hiers’ home and found a Bryco Jennings, 9 mm handgun loaded with ammunition, as well as additional ammunition in Hiers’ bedroom. Hiers told investigators he did own the gun but thought it did not work. He also stated he had intentions of fixing the firearm.
Hiers had prior convictions as a felon. In 1994 he was convicted of burglary in Miami County and in 1996 he was again convicted of burglary, this time in Knox County. Because of these prior convictions, federal law makes it illegal for Hiers to own or possess a handgun or firearm of any kind.
“This case shows the success of our Violent Crime Initiative. One of the most effective ways to prevent violence in our communities is to make sure those with prior felonies are not armed,” said Hogsett.
FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI will continue to work with our state and local partners to remove firearms from the hands of convicted felons.”
The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons must serve 85 % of their sentence at a minimum.
Hogsett Announces Former Law Enforcement Officer’s Sentence for Child ExploitationRead the Press Release
Hogsett announces sentence shows success of “Operation Community Watch”
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a former law enforcement officer on two counts of child exploitation. Derek D. Walton, 31, Liberty IND, was sentenced to 192 months (16 years) in federal prison by U.S. District Judge William T. Lawrence.
“Protecting the most innocent Hoosier victims is a top priority of this office. It doesn’t matter who you are; if you violate our children, you will be held accountable accordingly,” said Hogsett.
In 2011, federal law enforcement became aware of an account on AOL that was sending child pornography through email. This account was shut down by AOL, but another account was discovered and was traced to Walton. Federal agents served a search warrant at Walton’s home in August 2013. They located a laptop and thumb drive that contained a number of pornographic images and videos depicting a minor female. Agents also found a hidden camera in the living room which was found to contain additional explicit materials showing a minor female.
Walton was an employee of the Franklin County Sheriff’s Office where he was employed as a reserve Sheriff’s Deputy and worked as a jail officer. Prior to that position, he was employed by the Richmond Police Department and worked as a deputy marshal for the Laurel Police Department.
“The type of behavior in this case was deplorable. To think that those who vow to protect our community would commit such acts is saddening,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.”
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This investigation was a collaborative effort between the Federal Bureau of Investigation, the Indiana State Police and the Indianapolis Metropolitan Police Department.
FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI is committed to pursuing on-line child predators through our Innocent Images National Initiative. FBI agents and local and international task force members collaborate with our state and local partners daily in the fight against those who prey on our children.”
According to Senior Litigation Counsel Steve DeBrota, who prosecuted the case for the government, Walton was fined $5000 and must serve a lifetime of supervised release after completing his sentence.