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6 June 2014
Hogsett Announces Federal Bank Robbery ChargesRead the Press Release
Zionsville man allegedly robbed five banks in Central Indiana
TERRE HAUTE – Joseph H. Hogsett, United States Attorney, announced the indictment of Alan Wayne McCormick, 46, of Zionsville. McCormick was indicted on five counts of armed bank robbery.
“It is imperative that we go after those who steal peace of mind from the community,” said Hogsett. “Bank robberies put people in danger, both financially and physically.”
McCormick allegedly robbed five banks between July 2012 and March of this year. In each robbery, he followed a similar pattern and possessed a firearm or other dangerous weapon. The five banks are as follows:
• Citizens Bank, Eminence, Indiana, July 17, 2012 (Morgan County)
• First Financial Bank, (First State Bank) Poland, Indiana, September 18, 2012 (Clay County)
• Hoosier Heartland Bank, Lagoda, Indiana, August 12, 2013 (Montgomery County)
• Hoosier Heartland Bank, Linden, Indiana, January 16, 2014 (Montgomery County)
• Fountain Trust Bank, Darlington, Indiana, March 12, 2014 (Montgomery County)Investigators from the Montgomery County Sheriff’s Department obtained video surveillance after the March 12, 2014, robbery of the Fountain Trust Bank in Darlington, Indiana. The vehicle used was a newer model amethyst gray Nisan Sentra with damage to the passenger side rearview mirror.
Investigators were led to McCormick and a warrant was served on his residence in Zionsville. He later confessed to law enforcement his involvement in the five robberies he was charged with.
This was a joint investigation with the Federal Bureau of Investigation, Montgomery County Sheriff’s Department, Clay County Sheriff’s Department and the Morgan County Sheriff’s Department.
Acting FBI Special Agent in Charge Kevin P. Lyons said, “The FBI remains committed to investigating bank robberies and bringing to justice those individuals that threaten and intimidate bank employees and citizens in our communities.”
According to Assistant U.S. Attorney MaryAnn Mindrum who is prosecuting the case for the government, McCormick faces a possible term of 25 years imprisonment and a $250,000 fine if convicted on each charge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Guatemalan Pseudoephedrine Trafficker Enters Guilty PleaRead the Press Release
ALEXANDRIA, Va. – Erick Estrada Reyes, 31, of Guatemala, pleaded guilty today to conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aiding and abetting the manufacture of methamphetamine.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Derek Maltz, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
In a statement of facts filed with his plea agreement, Estrada Reyes admitted to being involved in the sale of nearly 5,000 pseudoephedrine pills to a person he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada Reyes, along with his father, Edgar Estrada Morales, and his cousin, Victor Estrada Paredes, negotiated the sale of equipment used to extract pseudoephedrine from pill form for use in the manufacture of methamphetamine. They also discussed working for the DEA cooperator’s fictitious U.S.-based methamphetamine trafficking organization. According to the indictment, Estrada Reyes worked for his father’s operation, which sold pseudoephedrine to groups that sold methamphetamine in the United States, including the “La Familia” Mexican drug cartel.
Estrada Reyes, along with his father and cousin, were indicted on Feb. 3, 2011 by a federal grand jury for their involvement in this operation. Edgar Estrada Morales was sentenced to 14 years in prison on Aug. 2, 2013, and Victor Estrada Paredes was sentenced to 11 years in prison on July 19, 2013. Erick Estrada Reyes faces a maximum penalty of life in prison when he is sentenced on September 5, 2014.
This case was investigated by the DEA’s Special Operations Division. Assistant U.S. Attorney Michael P. Ben’Ary is 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.Fort Peck Man Sentenced for Glass Bottle StabbingsRead 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, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.
Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.
The Court sentenced Chaser to 54 months 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 Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser 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.
Former Milwaukee Man Convicted in Federal Court of Exporting F-16 Military Parts to the Venezuelan Air ForceRead the Press Release
United States Attorney James L. Santelle announced that following a three-day jury trial, Ronald A. Dobek (age: 39), formerly of Milwaukee, WI was convicted yesterday of conspiring to export and exporting F-16 military parts to the Venezuelan Air Force (“VAF”) without a license or authority from the U.S. Department of State. The jury returned guilty verdicts on all three counts of the indictment that charged Dobek with conspiring to violate U.S. export laws and unlawfully exporting F-16 parts to Venezuela on December 29, 2007, and December 6, 2008. Dobek faces a maximum term of imprisonment of 25 years. Sentencing for Dobek has been scheduled for September 10, 2014, before Hon. Rudolph T. Randa, United States District Judge.
In furtherance of its security and foreign policy interests, the United States, through the State Department’s Directorate of Defense Trade Controls (“DDTC”), regulates and restricts the export of arms, munitions, implements of war, and defense articles, pursuant to the Arms Export Control Act, 22 U.S.C. § 2778. The regulations promulgated by the State Department which govern such exports are known as the International Traffic in Arms Regulations (“ITAR”), 22 C.F.R. §§ 120-130. The ITAR contain a list of defense articles and defense services subject to control by these regulations known as the United States Munitions List (“USML”), and is found at 22 C.F.R. § 121.1. Defense articles are items and technical data “specifically designed, developed, configured, adapted, or modified for a military application.” 22 C.F.R. § 120.3. No defense articles or defense services may be exported or otherwise transferred from the United States to a foreign national or foreign country without a license from the DDTC.
On August 17, 2006, the United States Department of State announced that it would no longer authorize the export of defense articles and services to Venezuela. Additionally, the State Department revoked all existing licenses and authorizations to export defense articles and services to Venezuela. Thus, as of that date, it became illegal to export defense articles or services to Venezuela.The evidence presented at trial showed that despite knowing about the U.S. embargo of Venezuela, Dobek conspired with a member of the VAF to supply the VAF with F-16 canopy seals for Venezuelan’s fleet of F-16 military jets. The evidence showed that Dobek exchanged numerous emails with a member of the VAF in which they discussed obtaining the F-16 canopy seals and the need to keep their operation secret. Dobek took other steps to conceal his illegal activity, including misidentifying the shipments as “t-molding” on shipping documents. As a result, Dobek sent shipments of F-16 canopy seals to a member of the VAF in Venezuela on or about December 29, 2007, and December 6, 2008.
In announcing this verdict, United States Attorney James L. Santelle stated: “Anyone who, like Ronald Dobek, elects to violate the Arms Export Control Act and the clear regulations implementing it will be investigated exhaustively—both domestically and internationally—and be convicted for crimes that jeopardize the safety and the security of our nation. I commend specially the outstanding, professional work of the special agents of the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, the Department of Defense, Office of Inspector General and of the prosecuting attorneys and staff of my office whose tenacity and focus ensured that this kind of conspiratorial engagement with foreign entities was terminated—to the benefit of all Americans.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Homeland Security, Homeland Security Investigations, and the Department of Defense, Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Erica O’Neil and Michael Chmelar.
Former District of Columbia Government Employee Sentenced to 20 Months in Prison for $783,876 Fraud SchemeDefendant Created Fake Accounts to Steal Medicaid, Food Stamp, and Other Benefits; Her Sister Also Participated in the SchemeRead the Press Release
WASHINGTON – Aretha Holland-Jackson, a former employee of the District of Columbia Department of Human Services (DHS), was sentenced today to 20 months in prison for carrying out a scheme that defrauded the government of more than $780,000 in Medicaid, food stamp, and other benefits, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General of the District of Columbia.
Holland-Jackson, 45, of Bowie, Md., pled guilty in February 2014 in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit wire fraud. She was sentenced by the Honorable Amy Berman Jackson. Upon completion of her prison term, Holland-Jackson will be placed on 3 years of supervised release. She must pay $783,876 in restitution to the District of Columbia government.
Holland-Jackson’s sister, Allison Holland, was sentenced by Judge Jackson on May 21, 2014, to a year and a day in prison for conspiracy to commit wire fraud for her role in the scheme. Holland, 47, of Cheltenham, Md., also pled guilty in February 2014. She must join her sister in paying the restitution. Upon completion of her prison term, Holland will be placed on three years of supervised release.
According to the government’s evidence, from February 2005 until September 2013, Holland-Jackson was employed as a social services representative in DHS’s Office of Medical Assistance. Her duties included processing applications for public assistance. She had access to DHS’s computer system and was able to open cases and activate benefits of Medicaid, food stamps, and Temporary Cash Assistance for Needy Families (TANF). DHS distributed food stamp and TANF benefits through an electronic benefits transfer card (EBT) that was provided to beneficiaries who qualified for assistance. These cards could be used at ATMs to withdraw the cash TANF benefits and at grocery stores to use the food stamp benefits.
From February 2011 through September 2013, Holland-Jackson and others, including her sister, participated in a scheme to defraud the benefits programs. Holland-Jackson used fictitious names and Social Security numbers to activate 23 fraudulent cases at DHS. She and others, including her sister, then used the EBT cards associated with these fraudulent accounts to make hundreds of thousands of dollars in cash withdrawals from ATMs and purchases at grocery stores. Allison Holland personally used three of the fraudulent EBTs. Holland-Jackson also activated Medicaid benefits in the 23 fraudulent cases.
All told, according to the court papers, the scheme cost the District of Columbia government at least $783,876: $196,596 in fraudulent food stamp benefits, $233,227 in fraudulent TANF benefits, and $354,053 in fraudulent Medicaid benefits, among other costs.
Holland-Jackson was arrested in September 2013 after a law enforcement investigation. On the day of her arrest, Holland-Jackson was caught having recently used one of the fraudulent EBT cards to withdraw cash TANF benefits from an ATM near her place of employment. Law enforcement officials recovered eight fraudulent EBT cards from Holland-Jackson’s wallet.
“Aretha Holland-Jackson abused her position of trust to loot government programs designed to help the neediest members of our community,” said U.S. Attorney Machen. “She lined her own pockets with nearly $800,000 intended to provide food and medicine to our most vulnerable neighbors. This prison sentence should deter other crooked public officials tempted to rip off taxpayers and deprive poor citizens to serve their own interests.”
“This successful prosecution is due to the commitment and collaboration of the Office of the Inspector General, the District of Columbia Department of Human Services, the Metropolitan Police Department, and our federal partner, the United States Attorney’s Office, to root out fraudulent schemes against District benefit programs and preserve public funding dedicated for those in need,” said Interim Inspector General Bruce.
In announcing the sentence, U.S. Attorney Machen and Interim Inspector General Bruce praised the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and the District of Columbia Department of Human Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and former Paralegal Specialist Diane Hayes. Finally, they commended the work of Assistant U.S. Attorney David Johnson, who prosecuted the case, and Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
14-132Former Correctional Officer Sentenced for Smuggling Cell PhonesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Curtis Drakes, aged 33, of Mitchell County, Georgia, was sentenced to serve 2 years in federal prison for conspiracy to provide contraband in prison by the Honorable W. Louis Sands, U.S. District Court Judge. The sentence was pronounced on June 5, 2014 in Albany, Georgia.Mr. Drakes entered a guilty plea to the charge on February 11, 2 014. As a part of his plea agreement, Mr. Drakes admitted that from about April 15, 2013 to May 16, 2013, while employed as a Correctional Officer at the Mize Street Detention Facility in Pelham, Georgia, he accepted money from inmates in custody at the facility in exchange for cell phones, which are prohibited objects for the inmates.
“When Mr. Drakes smuggled cell phones into a secure detention facility, he not only violated his oath, he put the safety of his fellow guards, law enforcement officers, and potential witnesses in jeopardy. We don’t need people who are locked up using cell phones to conduct illegal business or intimidate witnesses in the community,“ said U.S. Attorney Michael Moore.The case was investigated by the United States Marshal Service and the Pelham Police Department. Assistant United States Attorney Leah E. McEwen is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Correctional Officer and Inmate Sentenced in Contraband Smuggling CaseRead the Press Release
ABILENE, Texas — A former Correctional Officer at Big Spring Correctional Center (BSCC), Matthew Castaneda, 24, and an inmate at BSCC, Ferdinand Trinidad, 45, have been sentenced for offenses related to contraband smuggling at the facility, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Trinidad was sentenced by U.S. District Judge Sam R. Cummings to six months in federal prison. He pleaded guilty in February 2014 to one count of misprision of a felony. Castaneda, who pleaded guilty in January 2014 to one count of making false statements, was sentenced by Judge Cummings on May 16, 2014, to six months in federal prison and six months home monitoring. He must surrender to the Bureau of Prisons on June 20, 2014.
According to documents filed in the case, from mid-September 2012 to mid-December 2012, Castaneda accepted monetary bribes from Trinidad’s wife to smuggle cell phones and other contraband into the facility for Trinidad. Trinidad’s wife would receive the contraband at her residence and then mail it to Castaneda at BSCC. She would deposit money directly into a bank account that Castaneda had set up to hide the scheme. Castaneda admitted receiving a $1,700 bribe, and Trinidad admitted he failed to notify an authority as soon as possible that Castaneda had agreed to bring contraband into the prison in exchange for monetary bribes.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Five Worcester Residents Indicted for Marijuana Trafficking and Money Laundering SchemeRead the Press Release
BOSTON – In a 91-count superseding indictment unsealed yesterday, five Worcester residents were charged with participating in a marijuana trafficking and money laundering scheme.
Huy Anh Lam, a/k/a Henry; Nhi Ai Thi Lam, a/k/a Cindy, Cindy Nguyen, and Lien Mach; An Bao Lam, a/k/a Bao; Diemphuc Thi Lam, a/k/a Diem Lam and Deedee; and Dan Pham, all of Worcester, were charged with multiple crimes relating to the scheme, including conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, money laundering conspiracy, structuring conspiracy, structuring transactions to evade reporting requirements, money laundering, unlawful monetary transactions, perjury, and aiding and abetting.
The first three defendants, Huy Lam, Nhi Lam, and An Bao Lam, were arrested yesterday in Worcester and appeared in U.S. District Court in Boston. All have been detained in custody pending a detention hearing which is scheduled for the afternoon of, June 10, 2014, in Boston.
Among other offenses, the superseding indictment alleges from April 2009 until the present, four of the defendants, Huy Lam, Nhi Lam, An Bao Lam, and Diemphuc Lam, conspired to traffic at least 100 kilograms of marijuana and that the conspiracy involved criminal activity in Massachusetts, Connecticut, New Hampshire, Rhode Island, California, and Washington State.
The superseding indictment alleges that all five defendants conspired to launder hundreds of thousands of dollars in drug proceeds in the course of renting vacation homes in Connecticut, Rhode Island, and New Hampshire. The defendants conspired by receiving shipped packages of marijuana at the vacation homes, and exchanging cash drug proceeds in small denomination bills for apparently “clean” money by stuffing “huge amounts” of cash into casino slot machines in Connecticut and Rhode Island and then withdrawing it from the casinos in $100 bills. Furthermore, the defendants shipped large amounts of currency from New England to California and Washington via the U.S. Postal Service, Federal Express, and United Parcel Service. The defendants used drug proceeds in Massachusetts to purchase real property and luxury vehicles, including a 2012 Range Rover Sport SUV, a 2013 Cadillac Escalade, and a 2013 Nissan GT-R custom-built sports car. The vehicles have been seized by law enforcement for possible forfeiture in the criminal case.
The charge of marijuana conspiracy carries a mandatory minimum sentence of five years and maximum sentence of 40 years in prison, a minimum of four years of supervised release and a $5 million fine. Each count of money laundering carries a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered property. Each unlawful monetary transaction charge carries a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000 or twice the value of the property involved. Each count of structuring carries a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000. Perjury carries a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Richard L. Hoffman and Timothy E. Moran of Ortiz’s Strike Force Unit, Cory Flashner of Ortiz’s Worcester Branch Office and Doreen Rachal of Ortiz’s Asset Forfeiture Unit.
The details contained in the superseding indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Men Indicted for Roles in Investment Fraud SchemeRead the Press Release
A federal grand jury returned a 52-count superseding indictment against Mark O. Wittenmyer, age 54, of Holland, Ohio; Robert Milam, age 64, of League City, Texas; Lonny Remmers, age 56, of Corona, California; Mark Aller, age 50, of Birmingham, Michigan; and Douglas Boyce, age 56, of Maumee, Ohio. The indictment includes multiple charges including conspiracy, wire fraud, money laundering, securities fraud, and access device fraud.
The indictment was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge, FBI Cleveland Division, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
The indictment charges that from in or around January 2003, and continuing through May 2014, Wittenmyer, Milam, Remmers, Aller, Boyce, and others, conspired to solicit and collect investments, expenses, consulting fees, salaries and other payments in connection with investment and financing transactions induced by false and fraudulent pretenses, representations, and promises. The conspirators used several business entities to promote and induce investments, including Spring Valley Marketing Group, Community ISP, Momentum Management, OnLetterhead, bSecured Solutions, New Dimension Fund, and RM Capital.
False statements were made to investors, lenders, and other participants regarding past successes in arranging investments transactions for the purpose of inducing investments. Wittenmyer used the participation, and purported participation, of attorneys and other professionals to confer an aura of legitimacy to potential investors. Wittenmyer often fraudulently requested that investors and lenders advance funds for travel, legal fees, and other various expenses, which the conspirators then used for personal living expenses, according to the indictment.
In addition to each defendant being charged with one count of conspiracy to commit wire fraud, Wittenmyer is charged with eight counts of wire fraud, 32 counts of money laundering, six counts of securities fraud and two counts of access device fraud.
Milam is also charged with two counts of wire fraud and one count of money laundering.
Remmers is also charged with two counts of wire fraud.
Aller is also charged with three counts of wire fraud and one count of money laundering, and Boyce is charged with one count of money laundering.
If convicted, each defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including any prior criminal record, respective roles in the offense and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.“The investing public needs to watch for fraudsters and scam artists who promise the moon and sun, but deliver only pain and deceit. Remember, if it sounds too good to be true, it probably is,” Dettelbach said.
“These individuals enriched themselves with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard earned money of others,” Anthony said.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, both of Toledo, Ohio. The case is being prosecuted by Assistant United States Attorneys Gene Crawford and James V. Moroney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
First Conspirator Pleads Guilty in Conspiracy to Distribute and Sell Millions in Contraband CigarettesRead the Press Release
Transported Contraband Cigarettes from Maryland to New York
Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes.
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; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.According to his guilty plea, Azerman conspired with other to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. Co-conspirators obtained contraband cigarettes, which were transported from Maryland to Brooklyn, New York, and sold at a profit to individuals in New York, who further distributed the contraband cigarettes.
Azerman transported contraband cigarettes from Maryland to Brooklyn, using a van registered in his name. Following a delivery of contraband cigarettes in Maryland, members of the conspiracy arranged for the contraband cigarettes to be loaded into Azerman’s van. Azerman drove his van from Maryland to Brooklyn, New York, where he met a co-conspirator and provided him with the keys to the van. The co-conspirator would take the van and return a few hours later, after having unloaded the contraband cigarettes into a nearby warehouse. Azerman would drive the van back to Maryland. On the days that Azerman transported contraband cigarettes, he used his cell phone to communicate with co-conspirators in New York and Maryland.
Co-conspirators in Maryland purchased quantities of contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. These transactions included thousands of cartons of contraband cigarettes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded was more than $1 million.
Azerman faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for September 11, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Felon Facing 8 Year Prison Term Gets Additional 27 Month Sentence for Possessing ‘Shanks’ at Federal PrisonRead the Press Release
A repeat felon was sentenced to an additional 27 months on top of an eight year sentence for possession of dangerous weapons at the Federal Detention Center, announced U.S. Attorney Jenny A. Durkan. JOHN CHRISTIAN PARKS, 38, of Belfair, Washington was sentenced in January 2014 to eight years in prison for being a felon in possession of firearms. PARKS was found guilty of that charge following a jury trial in October 2013. On April 10, 2014, PARKS pleaded guilty to providing or possessing contraband in prison. Chief Judge Marsha J. Pechman ordered the 27 month sentence to run consecutive to the eight year sentence saying that the crime is “very, very significant because it presents such a danger to everyone at the Federal Detention Center – guards and inmates.”
According to filings in the case, guards at the prison observed what appeared to be the passing of contraband between PARKS and a visitor. PARKS appeared to be in a drugged state following the visit, so he was put in a special cell and his cell was searched. At the bottom of a box of PARKS’ papers were two sharpened black metallic objects that appeared to be homemade weapons. Both weapons are between four and five inches in length, with one wrapped in a fabric in such a way as to provide a handle. Both weapons resemble what is commonly referred to as a “shank.”
PARKS has eight prior felony convictions. He was most recently arrested on March 30, 2013 while target shooting in the Mt. Baker-Snoqualmie National Forest. U.S. Forest Service officers heard multiple shots and were directed to the group by a witness who said he had encountered the armed men. Law enforcement recovered eight firearms, including four assault rifles. Evidence introduced at trial revealed PARKS had illegally purchased and possessed two of the assault rifles.
This most recent case involving weapons in the federal facility was investigated by the Bureau of Prisons. The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Federal Jury Finds Brevard County Man Guilty of Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal jury, in Jacksonville, has found Richard Dale Brooks (55, Cocoa) guilty of receiving videos of child pornography and possessing an image of child pornography using the Internet. Brooks faces a minimum of five years, up to twenty years in federal prison on each of the five receipt charges, and up to ten years’ imprisonment on the possession charge. After the return of the jury’s verdict, Brooks was remanded to the custody of the United States Marshals Service to await his sentencing hearing, which is scheduled for September 15, 2014.
According to testimony and evidence introduced during the trial, during 2012, a Jacksonville Sheriff’s Office law enforcement officer identified videos depicting child pornography over the Internet as coming from a host computer using Internet Protocol (IP) addresses that traced back to Brooks’s residence in Jacksonville, Florida. On August 2, 2012, a search warrant was executed at this residence. Law enforcement officers entered the residence and recovered five computers and several other computer media. During an interview, Brooks told detectives that he was the primary user of the computer, that he used a file-sharing program to download video files of adult pornography, and that he has also received child pornography via the file-sharing program. A subsequent forensic analysis of Brooks’s computers revealed that he had at least 245 files depicting children engaged in sexually explicit conduct and that he had compact discs and a DVD containing the same.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and other agencies that comprise the North Florida Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the June 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Michael D. Bennett and Gabriel Martinez. Possession of Marijuana with Intent to Distribute and Maintaining a Location for Storing and Distributing Marijuana. Bennett, 29, of Tulsa, and Martinez, 22, of Oklahoma City, are charged with possessing marijuana with intent to distribute. Bennett is also charged with maintaining an apartment for the purpose of storing and distributing marijuana. If convicted, the maximum penalty is five years in prison and a fine of $250,000 for marijuana possession with intent to distribute. In addition, Bennett faces a maximum of 20 years in prison and a $500,000 fine if convicted for maintaining a drug storage space. The defendants would also forfeit seized currency, a firearm and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the investigative agency.
Ashley Johnson Calhoun. Bank Fraud. Johnson, 41, of Muskogee, is charged with nine counts of committing bank fraud against Arvest Bank, Bank of Oklahoma, and JPMorgan Chase Bank by means of forged checks. If convicted, the maximum penalty is 30 years in prison and a $1,000,000 fine. The United States Postal Inspection Service is the lead investigative agency.
Marcos Cereceres-Romero. Alien in the United States After Deportation. Cereceres-Romero, 23, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July of 2008 near Presidio, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Oscar Escalera-Duron. Alien in the United States After Deportation. Escalera-Duron, 33, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in October of 2006 near Laredo, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Aylediz Leon-Cuba. Possession of Methamphetamine with Intent to Distribute. Leon-Cuba, 34, of Tulsa, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendant would also forfeit seized currency and a firearm. The Drug Enforcement Administration is the lead investigative agency.
Heron Marquez Ramirez and Sergio Guadalupe Gonzalez. Drug Conspiracy. Marquez Ramirez, 27, of Oklahoma City, and Guadalupe Gonzalez, 52, of Lancaster, Texas, are charged with conspiring to distribute 500 grams or more of cocaine. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendants would also forfeit a seized Porsche and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.
Ulyssis Ramirez. Possession of Cocaine with Intent to Distribute. Ramirez, 23, of Oklahoma City, is charged with possessing cocaine with intent to distribute. If convicted, the maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant would also forfeit seized currency, a vehicle and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.
Feliciano Saldana-Juarez. Alien in the United States After Deportation. Saldana-Juarez, 48, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March of 2012 near Brownsville, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Gregory Lynn Shrader. Felon in Possession of Firearm and Ammunition. Shrader, 55, of Jay, Oklahoma, is charged with possessing a 12 GA gauge shotgun, a .45 ACP rifle, a 9mm rifle, and ammunition after prior felony convictions in Arkansas. Those convictions include terroristic threatening, theft by receiving, and attempt to manufacture a controlled substance. If convicted, the maximum penalty is 10 years in prison and a $250,000 fine. The defendant would also forfeit three firearms. The Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Federal Bureau of Investigation investigated this matter.
Duval County Men Plead Guilty to Manufacturing and Passing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Christopher Jon Kirkland (41) and William Brinkley, Jr. (35), both of Jacksonville, yesterday pleaded guilty to manufacturing and aiding and abetting the passing of counterfeit Federal Reserve Notes. Each faces a maximum penalty of 20 years in federal prison. As part of the plea agreement, both men agreed to forfeit the computer equipment used to manufacture the counterfeit currency.
Kirkland and Brinkley, Jr. were originally indicted on February 27, 2014.
According to the plea agreements, in approximately August 2013, Kirkland began manufacturing counterfeit $20 and $100 Federal Reserve Notes. Once Kirkland manufactured the counterfeit currency, Brinkley drove Kirkland around to various businesses in Florida and Georgia in order to pass the counterfeit currency. The two passed the counterfeit currency in order to obtain merchandise and reloadable gift cards. They also returned fraudulently-obtained merchandise in order to obtain genuine currency. From approximately August 2013 to December 2013, the men passed or attempted to pass approximately $32,600 in counterfeit currency in Florida, to include Duval County, St. Johns County, Volusia County, and Glynn County, Georgia. The currency was passed at locations including Target, CVS, Kirkland’s, Winn-Dixie, OfficeMax, Family Dollar, Old Navy, Lowe’s, Belk, and Dollar General.
Another co-defendant, Timothy Larry Malden, is charged in the same indictment. His case is scheduled to proceed at trial on September 2, 2014.
This case was investigated by United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Durham Man Sentenced for Child PornographyRead the Press Release
GREENSBORO, N.C. – A Durham, North Carolina, man has been sentenced for his involvement with child pornography, announced United States Attorney Ripley Rand.
On June 5, 2014, William Lee Ebenstein, age 57, was sentenced to 144 months in prison, 10 years of supervised release, a $10,000.00 fine, and a $100.00 special assessment for receiving child pornography. Court documents revealed that Ebenstein used the Internet to receive child pornography. United States District Judge Catherine C. Eagles imposed the sentence.
The case was investigated by the Duke University Police Department, Durham Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Anand Ramaswamy.
Convicted Sex Offender Sentenced to More Than 24 Years for Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – United States District Judge John Antoon II yesterday sentenced Todd Leslie Kroeber (43, Port St. Lucie) to 24 years and 5 months in federal prison, to be followed by a lifetime of supervised release, for the attempted sexual enticement of a minor. He was found to be a repeat and dangerous sex offender against minors. Kroeber pleaded guilty to the offense on January 17, 2014.
According to court documents, on July 19, 2013, Kroeber answered an advertisement on a public classified ad website, where he met an undercover agent online. The agent was posing as a 19-year-old asking for help with his 14-year-old brother. The following day, Kroeber traveled to Rockledge, Florida, from Port St. Lucie, Florida, to have sex with the 14-year-old. Kroeber also transported another minor to the location. During the drive, Kroeber told the minor that he would have sex with the 14-year-old and the minor.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Claremont, Minnesota Man Sentenced for Conspiring to Distribute Methamphetamine and Illegal Firearms UsageRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 38-year-old Claremont man was sentenced for conspiring to distribute methamphetamine and illegal firearms possession. United States District Court Judge Richard H. Kyle sentenced Clancy Shane Amy to 78 months in federal prison, followed by five years of supervised release. Amy, who was indicted on May 6, 2013, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine as well as one count of Using and Carrying a Firearm During and in Relation to a Drug Trafficking Offense.
In his plea agreement, Amy admitted that from at least August 2012 through March 2013, he conspired with others to distribute methamphetamine from Texas to areas within southeastern Minnesota. Amy admitted that his actions were part of a larger drug distribution enterprise which was operated by multiple conspirators between Minnesota and other areas of the United States. Further, Amy admitted that during a law enforcement search of his home on April 16, 2013, agents found various items associated with the distribution of methamphetamine, including 112 grams of methamphetamine packaged in multiple plastic baggies as well as multiple firearms. Amy also admitted that he possessed one of the firearms for security and protection in his drug distribution efforts – namely a Browning .22 caliber semi-automatic handgun found in a bedroom safe with some of the recovered methamphetamine and U.S. currency.
This case was the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the South Central Drug Investigation Unit, and the Southeast Minnesota Narcotics and Gang Task Force. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.Cedar Rapids Man Charged with Bank RobberyRead the Press Release
Jacob Allen Mack, 24, from Cedar Rapids, Iowa, has been charged with one count of bank robbery. The charge is contained in an Indictment filed on June 4, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about May 2, 2014, Mack robbed the Hills Bank in downtown Cedar Rapids.If convicted, Mack faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.
Mack appeared on June 5, 2014, in federal court in Cedar Rapids and was held without bond. Mack’s next appearance for trial is set for August 4, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0060.
Campaign Worker Pleads Guilty to Buying Votes<br /> in a Donna, Texas School Board ElectionRead the Press Release
A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, 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.
Guadalupe Escamilla, 72, of Weslaco, Texas, pleaded guilty to one count of vote-buying before Chief U.S. District Judge Ricardo Hinojosa in the Southern District of Texas, McAllen Division. Sentencing is scheduled for Aug. 29, 2014.
According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board. Escamilla assisted in the campaign to elect candidates to the Donna School Board. In the course of that work, Escamilla knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two candidates gave her money to pay to voters for voting in the election.
Two other campaign workers, Rebecca Gonzalez, 44, and Diana Balderas Castaneda, 48, of Donna, Texas, have pleaded guilty to the same charge. Gonzalez is scheduled to be sentenced on Sept. 16, 2014 and Castaneda is scheduled to be sentenced on July 25, 2014.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.Buffalo Woman Convicted of Conspiracy to Distribute Cocaine BaseRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kayla Renee Combs, 24, of Buffalo NY pleaded guilty before United States District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute and to distribute cocaine base. The charge carries a maximum term of imprisonment of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary C. Baumgarten stated that the charges stem from an investigation into the trafficking of cocaine base and cocaine from the Cleveland, Ohio area into Western New York, and the distribution of those drugs in North Tonawanda, Niagara Falls, Lockport, and Buffalo. The charges in the indictment against co-defendants Nathaniel Clark, 29, of Niagara Falls, NY, Raysean Clark, 27, of Buffalo, NY, and Tommy Eugene Clark, 26, of Niagara Falls, NY, remain pending. Combs is the first defendant convicted in this case.
The plea is the culmination of an investigation on the part of Task Force Agents and Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, in conjunction with the Niagara County Sheriff's Department and Niagara County Drug Task Force, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief William Hall.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencing is scheduled before Judge Arcara on September 15, 2014 at 1:00 p.m.Buckhead Man Convicted for Sex Trafficking of A MinorRead the Press Release
ATLANTA - Steven E. Thompson has been convicted by a federal jury of sex trafficking of a juvenile, conspiring to do the same, and transportation for prostitution.
“This defendant maintained his lifestyle on money made through prostitution,” said United States Attorney Sally Quillian Yates. “Thompson had no problem with sexually exploiting women, even going as far as forcing a homeless 17-year old to have sex with strange men for a place to sleep. Sex trafficking is despicable. Our office will use every asset available to eradicate this practice from our community.”
‘"The sale of under-aged girls for sex is a plague on our society and my agents will not rest while we know there are more victims out there being exploited by these 'pimps' who should be more accurately known as child rapists,” said Special Agent in Charge Brock D. Nicholson, head of Homeland Security Investigations in Atlanta. “I am grateful to the GBI for joining us in this investigation and for their larger commitment to target the criminals engaging in sex trafficking in Georgia.”According to United States Attorney Yates, the charges and other information presented in court: Thompson and his co-defendant, Tierra Waters, who pled guilty to conspiracy to sex-traffic a minor, lived in the Grandview Condominiums in the Buckhead area of Atlanta, Ga. Thompson advertised his prostitution business on Backpage.com, posting advertisements inviting men to contact women for sex. The men then came to the Buckhead condo for sex or met the women at residences or hotels around Atlanta.
Between April and June of 2011, Thompson advertised a 17-year old refugee from West Africa for prostitution, falsely listing her age as 19 and 20. Because she came to the United States without her parents, the teen was at the mercy of various relatives and friends for shelter and support and went through frequent periods of homelessness. In February of 2011, the teen was declared a deprived child by the Clayton County, Ga., Juvenile Court and was placed in a temporary shelter. Her grandmother took custody of her, but soon left the country, leaving the teen to fend for herself. In April 2011, Thompson and Waters offered the homeless teenager a couch to sleep on while she waited to get into Job Corps.
After a few weeks, they told her that she would have to have sex with men for money or get out of the condo. For the next six weeks, the teen was forced to have sex with three to five men each night at the condo and other places around Atlanta, Ga. The teen was arrested in an undercover operation at the Intercontinental Hotel in Atlanta on June 11, 2011.
Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly. A customer testified at trial that he had found the minor on Backpage.com, not realizing she was underage. This witness also testified regarding threatening text messages he received from Thompson advising him of the teen's age and attempting to extort money from him.
In addition to the teen, Thompson, 43, who went by the name ‘Silk,’ also posted ads on Backpage.com for A.M., a prostitute from Washington, and F.F., a prostitute from Alabama. Thompson met A.M. on the Internet and invited her to come to Atlanta to work as a prostitute. In March 2011, A.M. flew from Seattle, Wash., to Atlanta. She moved in with Thompson and Waters and continued to engage in prostitution from the condo. Likewise, Thompson found F.F. on Backpage.com. Thompson told F.F. that she could make more money being a prostitute in Atlanta than she could in Alabama and convinced her to come to Atlanta in August 2011.
This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant United States Attorneys Susan Coppedge and Leslie J. Abrams prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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/.
Brookline Man Sentenced to 3 Years in Prison for Conspiring to Traffic Controlled ChemicalRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 37 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Patrick Taylor, 34.
According to information presented to the court, on or about Nov. 12, 2011, and continuing thereafter to on or about March 6, 2013, in the Western District of Pennsylvania and elsewhere, Taylor conspired with others to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methylone, a Schedule I controlled substance. Specifically, Taylor contacted a source of supply in China via the Internet, and arranged for the importation of kilogram quantities of methylone into the United States for further distribution.
Methylone is a psychoactive chemical that is structurally and pharmacologically similar to the Schedule I substance MDMA. On April 12, 2013, the Administrator of the DEA issued a Final Rule, which scheduled methylone as a Schedule I controlled substance. Schedule I status is reserved for those substances with a high potential for abuse, no currently accepted use for treatment in the United States, and a lack of accepted safety for use of the drug under medical supervision.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security - Homeland Security Investigations, the United States Postal Service, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patrick Taylor.
Brevard County Man Convicted at Trial for Attempting to Entice A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that a federal jury found Matthew Steven Howard (26) guilty of attempting to persuade, induce and entice a person he believed to be 14 years of age to engage in illicit sexual conduct. Howard is facing a minimum sentence of 10 years, up to life in prison. A sentencing hearing is scheduled for September 9, 2014. He was remanded to the custody of the United States Marshals Service until his sentence.
Howard was indicted on February 12, 2014.
According to the testimony and evidence presented at trial, on December 31, 2013, a Federal Bureau of Investigation (FBI) Task Force Officer (TFO) noticed a sexually explicit advertisement on Craigslist that made reference to a minor female. During the time span charged in the Indictment, Howard engaged in communications, via the Internet, with the undercover FBI TFO, who was posing as a 14-year-old girl. During the online communications, Howard told the “minor” that he wanted to engage her in sexual conduct.
On January 3, 2014, Howard traveled from his residence in Merritt Island, Florida, to Rockledge, Florida, where he intended to meet the “minor” for the purpose of engaging in illicit sexual conduct, at which time he was arrested. During an interview with law enforcement, Howard admitted that he attempted to entice a minor, via the Internet, for the purposes of engaging in sexual activity. Howard had been previously charged with lewd and lascivious battery in the state of Florida.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office, with the assistance from the U.S. Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Bruce Ambrose.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bloods Street Gang Investigation Culminates in Life SentenceRead the Press Release
Contact Person: J.D. Rowell (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that Calvin James Hall age 43 of Irmo, South Carolina was sentenced today in federal court in Columbia, South Carolina to life in prison without the possibility of parole. On July 25, 2013, a federal jury convicted Hall of being a member or associate of the Bloods Street gang as part of a conspiracy to commit racketeering (RICO Conspiracy). As to the racketeering conspiracy charge the jury unanimously found that Hall agreed that the racketeering activity that would be or was committed included: (1) Distribution, Possession with Intent to Distribute, and Trafficking in controlled substances, in violation of SC Code Sections 44-53-370 and 44-53-375; (2) Distribution, Receipt, Concealment, Buying, Selling, and Otherwise Dealing in Controlled Substances, including Cocaine, Cocaine Base, Marijuana, and Other Controlled Substances, in violation of 21 U.S.C. §§ 841 and 846; (3) Recruiting, Enticing, or Transporting a Minor in Interstate Commerce or to Benefit Financially from Participation in a Venture which Recruits, Entices, or Transports Minors to Engage in Commercial Sex Acts, in violation of 18 U.S.C. § 1591; (4) Obstruction of Justice; and (5) Witness Tampering. In addition to the above RICO conspiracy conviction, Hall was also convicted of six related federal violations involving conspiracy to traffic crack cocaine, use of a telephone in furtherance of drug trafficking, attempted armed robbery of a drug dealer, and related charges. United States District Judge Joseph F. Anderson Jr. of Columbia sentenced to Hall to a statutory mandatory life sentence, without the possibility of parole. Hall faced this sentence in part because of his two prior felony drug convictions.
Hall was one of 39 members and associates of the Bloods street gang that were indicted and arrested in the summer and fall of 2012. The investigation was the second wave of an FBI investigation that began in 2007 of the violent street gang. As of the date of this release, all 39 defendants charged in the case have been convicted and all received sentences that included periods of incarceration in the Federal Bureau of Prisons.
During Calvin Hall’s trial, evidence was presented that the Bloods street gang was formed in 1998, when James Powell a/k/a Munchie, came to Columbia, South Carolina, from New York because he was on the run from the police for a shooting he committed. Powell began initiating young men in Columbia in 1998 or 1999 into the Gangsta Killa Blood (GKB) set of the Bloods and that set was operating in Columbia in 2011 when Hall and his coconspirators were arrested and charged. Evidence at the trial demonstrated that the Bloods were involved in coordinated armed robberies of drug dealers, the posting of young women on the internet for prostitution, crack cocaine trafficking, financial crimes, and other criminal activity.
Evidence during Hall’s trial established that on May 23, 2011, Hall, along with two codefendants and Blood Gang members Nicholas Jason Wright and Stewart Stroman, conspired to commit an armed robbery of a marijuana dealer in or around Lexington County, South Carolina. Witnesses testified that after Stroman put Wright in contact with Hall, they along with three other conspirators went to the marijuana dealers house to rob him. When Hall breached the front door armed with a pistol, he was shot in the stomach by a resident of the house.
Despite being shot in May of 2011, evidence at trial demonstrated that Hall continued to associate with the Bloods and in June of 2012, he was the beneficiary of a drug robbery committed by Wright and other Bloods gang members in Greenville, South Carolina. Witnesses testified that Stroman coordinated a robbery in Greenville in which Wright, Kenneth Timmons and several other Bloods shot a drug dealer in the gut who refused to tell them where his cocaine was. After the dealer was shot, the conspirators came back to Columbia, where Calvin Hall purchased a large quantity of the cocaine from his conspirators. Witnesses testified that Hall provided one of the guns that was used in the Greenville robbery.
The investigation resulted in a number of Bloods gang leaders being sentenced to federal prison including Titus Will Bowman, a/k/a “T.I”; Torrean Antwan Sims, a/k/a Slim; and David Andrea Jenkins, a/k/a “Arma G.” Bowman, a high level leader and shooter, was sentenced to 220 months incarceration by Judge Anderson on December 16, 2013. Other notable sentences include Andre Cummings (108 months incarceration), Craig Xavier Alston (177 months incarceration), Nicholas Wright (180 months incarceration); Stewart Stroman (96 months incarceration); Nathaniel Farmer (151 months incarceration); Jarius Jones (108 months incarceration); Antwain Brisbon (200 months incarceration); Odel “Teazy” Martin (240 months incarceration); Joshua “Metro” Kitt (168 months incarceration); Hassaan R. Brown (115 months incarceration); Kenneth “Keno” Timmons (190 months incarceration) and Alex Russell Anderson (151 months incarceration).
U.S. Attorney Bill Nettles said, "Organized violent criminals who exploit our communities to fund their criminal enterprises are a focus of our Violent Crime and Narcotics Division. The work of the prosecutors, agents and good citizens that made this case is remarkable and will have a tangible impact on the quality of life in our neighborhoods."
"Dismantling violent gangs is a continuing priority for the FBI. This verdict is the direct result of joint efforts with our federal, state, and local law enforcement partners, and we will continue to work diligently with our colleagues to investigate and eradicate gangs and the violence they perpetrate. Together we are committed to restoring safety and security to our communities", said David A. Thomas, Special Agent in Charge, FBI.
This case was investigated by the Columbia Violent Gangs Task Force (CVGTF), led by agents with the Federal Bureau of Investigation. The CVGTF is part of the FBI’s Safe Streets Task Force initiative. The CVGTF is an investigative and enforcement partnership between the FBI, Richland County Sheriff’s Department (RCSD), Columbia Police Department (CPD), South Carolina Law Enforcement The case was prosecuted by AUSA J.D. Rowell and AUSA William Witherspoon, out of the United States Attorney’s Office in Columbia, South Carolina.Associate Attorney General Tony West to Visit AlaskaRead the Press Release
Associate Attorney General Tony West will visit Alaska next week to discuss the Department of Justice’s efforts to protect civil rights and strengthen public safety in American Indian and Alaska Native communities. He will deliver remarks at the National Congress of American Indians Mid-Year Conference in Anchorage, Alaska, on MONDAY, JUNE 9, 2014, at 10:20 a.m. AKDT .
Associate Attorney General West will also deliver opening remarks at the fourth and final publ ic h earing of the Advisory Committee of the Attorney General’s Task Force on A merican Ind ian and Ala ska Native Child ren Exposed to Vio lence in Anchorage on WEDNESDAY, JUNE 11, 2014, at 1:00 p.m. AKDT . For more infor mation on the Attorney General’s Task Force and the Adv isory Co m mittee, plea se visi t: the department website .
Monday, June 9, 2014
10:20 a.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the
2:20 p.m. EDT National Congress of American Indians Mid-Year Conference.
Dena'ina Civic and Convention Center
600 West Seventh Avenue
Anchorage, Alaska
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Sarah Beccio at 410-371-5551 or via email
Wednesday, June 11, 2014
1:00 p.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the
5:00 p.m. EDT Opening of the Task Force Hearing on American Indian and Alaska Native Children’s Exposure to Violence
Sheraton Hotel
Howard Rock Ballroom
401 East Sixth Avenue
Anchorage, Alaska
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Wyn Hornbuckle at 202-514-2007 or via email
Akron Man Sentenced on Charges of Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Michael A. Taschetta, 55, of Akron, New York, who was convicted of a felony charge of possession of child pornography, was sentenced to 60 months of incarceration with 5 years of supervised release by District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the defendant downloaded images of child pornography from the internet, some of which included graphic depictions of children under 12 years of age engaged in sexual conduct. Upon execution of a search warrant, the defendant admitted to agents that he downloaded child pornography onto his computer utilizing a peer-to-peer software application.
The conviction was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James Spero.
3rd Defendant Pleads Guilty in Hobbs Act Robbery ConspiracyRead the Press Release
PROVIDENCE, R.I. – Gennaro Miele, 61, of Niantic, CT., pleaded guilty in U.S. District Court in Providence today to conspiracy to commit Hobbs Act robbery, in connection with a home invasion and robbery in March 2010 of a 78-year-old associate of the Gambino crime family, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Information regarding the home invasion in Stamford, CT., came to law enforcement’s attention during an unrelated drug trafficking investigation in Rhode Island.
According to court documents and information presented to the court, Miele was solicited into the conspiracy by an individual the investigation shows had been loaned $100,000 by the victim, and that the home invasion was planned in a growing dispute over the loansharking debt that had grown to be in excess of $300,000. The victim of the home invasion was well known to Stamford Police as being an associate of the Gambino crime family.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Miele admitted that he also participated in the conspiracy with two other individuals, Napoleon Andrade, 33, of Central Falls, R.I., and Stephen L. Conti, 43, of Swansea, Mass. He acknowledged that the conspiracy and plans to execute the home invasion and robbery were formulated during meetings and telephone conversations that occurred in Rhode Island, Massachusetts and Connecticut.
According to the victim, the attackers, who gained entrance to his home on March 2, 2010, purporting to be deliveryman, bound and blindfolded him and stole more than $200,000 worth of jewelry, more than $16,000 in cash and a double-barreled shotgun. Law enforcement’s investigation determined that some of the items stolen were sold to a pawn shop in Rhode Island later the same day.
According to information presented to the court, Napoleon Andrade was the target of an unrelated, long-term federal, state and local law enforcement investigation into his suspected drug trafficking activities. During a March 8, 2010, conversation surreptitiously recorded by law enforcement, Andrade discussed his participation in home invasions in Connecticut and New York. An investigation by ATF agents determined that among the home invasions discussed was the incident in Stamford, CT.In August 2011, in matters unrelated to the home invasion, Andrade admitted to the facts that were the basis for charges contained in three federal indictments and three informations that were brought as the result of several ATF led investigations, and several joint federal, state and local investigations. Some of the investigations included “sting operations” and the use of electronic surveillance. Andrade received a10-year federal prison sentence for drug trafficking, money laundering, theft of government property and federal firearm violations. His sentenced was enhanced by 63 months for his role in the March 2010 home invasion. He pleaded guilty in March 2014 to conspiracy to commit a Hobbs Act robbery.
Stephen L. Conti pleaded guilty on September 26, 2013, to conspiracy to commit a Hobbs Act robbery. He is scheduled to be sentenced on September 12, 2014, by U.S. District Court Judge John J. McConnell, Jr.
Gennaro Miele is scheduled to be sentenced by on August 27, 2014.
At sentencing, Miele and Conti face statutory penalties of up to 20 years in prison and a fine of up to $250,000.
The cases against Miele, Conti and Andrade are being prosecuted in the District of Rhode Island by Assistant U.S. Attorney Gerard B. Sullivan.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
5 June 2014
Zenbio Bookeeper Pleads Guilty to Fraud Related to the Sale of Synthetic DrugsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Crystal Hope Henry, a resident of Pensacola, Florida, entered a guilty plea today before Chief United States District Court Judge William Steele to one count of conspiracy to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA.
Henry and her co-conspirators manufactured and distributed at least 20 tons of products containing the chemical compound XLR11. They referred to the products as potpourri and marketed them under names such as “Bizarro,” “Sonic Zero,” “Neutronium,” and “Orgazmo.” The products were misbranded smokable synthetic cannabinoids which were distributed for human consumption. The products were packaged and sold without the labeling required by law and necessary to protect the user such as: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings where its use may be dangerous to health; or warning against unsafe dosage. The products were labeled, “Not for Human Consumption.”
The company Henry worked for operated a call center in Robertsdale, Alabama and from December 1, 2012 through April 30, 2013 took in over $29, 656,917.98.
“The use of synthetic or designer drugs has a devastating impact on our communities. Although synthetic cannabinoids are many times marketed as ‘legal’ marijuana, they are not only illegal are extremely harmful,” U.S. Attorney Brown said. “We are committed to working with our law enforcement partners to shut down the manufacturers and distributors who reap profits without regard for the law or public safety.”
Henry faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Monies seized from her in June of 20913 have also been administratively forfeited.
The matter was investigated by the Mobile Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); and the Mobile Field Office of the Internal Revenue Service’s Criminal Investigations; with assistance from the Food and Drug Administration Office of Chief Counsel; the San Francisco and Chicago Field Divisions of the U.S. Drug Enforcement Administration (DEA); the Oakland, California Field Office of the Internal Revenue Service’s Criminal Investigation; and the San Francisco Field Office of HSI, and was prosecuted by AUSA Deborah Griffin.
Two Panama City Men Sentenced to Federal Prison for Tax Fraud, Wire Fraud, and Identity TheftRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that the Honorable Richard Smoak sentenced Versiah M. Taylor, 33, of Panama City, Florida, to 264 months in federal prison and Tracy L. Collier, 48, of Panama City, Florida, to 164 months in federal prison for filing fraudulent tax returns using the personal identifying information (PII) of other individuals.
Between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds. The defendants used the PII of inmates of the Florida Department of Corrections, Bay County residents, and others to file fraudulent income tax returns. Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and mailed them to Taylor. Taylor, operating out of a small office that he rented in the Steele Boys Bail Bond’s Plaza in Panama City, orchestrated the filing of multiple tax returns creating false employment information and using the PII of other individuals. These returns each claimed fraudulent refunds between $3,000 and $9,530 and were to be deposited onto prepaid debit cards, which were then mailed to various locations throughout Bay County, Florida.
Taylor was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $4,500 special monetary assessment.
Collier was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $2,200 special monetary assessment.
This conviction results from an investigation by agents of the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Katy Risinger.
Two North Texas Men Plead Guilty to Role in Stolen Refund Identity Fraud ConspiracyRead the Press Release
DALLAS — Two north Texas men have pleaded guilty in federal court in Dallas to their respective roles in a stolen refund identity fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Reminico Zhangazha appeared before U.S Magistrate Judge David L. Horan on Tuesday and pleaded guilty to one count of theft of public funds. Last month, co-defendant Tonderai Sakupwanya pleaded guilty to the same offense. Each faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sakupwanya is scheduled to be sentenced on September 8, 2014, by U.S. District Judge David C. Godbey. A sentencing date has not yet been set for Zhangazha. Both are in federal custody.
The plea agreements with the government also note that the defendants will forfeit the following property seized by law enforcement in May 2012 during the investigation of this case: $10,613 cash seized from Zhangazha’s vehicle; $93,513 cash from Villa Piana Luxury Apartments on Noel Road in Dallas; and $4,500 from a residence on Spring Mountain in Plano, Texas.
According to the factual resumes filed in the case, Zhangazha and Sakupwanya engaged in a scheme to defraud the Internal Revenue Service (IRS) by obtaining stolen tax refunds that were generated by e-filing false and fraudulent income tax returns. They rented private mailboxes in the names of aliases by using forged United Kingdom passports. They then established bank accounts using the alias names and mailing addresses acquired at the private mailboxes. During the course of the scheme, Zhangazha used the aliases of “Martin V. Masters” and “Roy Daniel Black.” Sakupwanya used the aliases of “Webster G. Rice,” “Floyd Robbins,” and “Floyd Roberts,” during the scheme, according to the factual resume.
According to the factual resumes, the Forms 1040 directed the IRS to electronically deposit the refunds into bank accounts the defendants established. Alternatively, the Forms 1040 directed refunds to be issued by a treasury check and mailed to an address under the control of the defendants. The income tax returns also directed refunds to accounts established at a third-party financial services company, such as EPS Financial, that would enable them to issue a check containing the tax refund. These third party checks and the treasury checks were deposited into bank accounts the defendants established. After the checks were deposited, or the tax refunds had been electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes further note that the cash, mentioned above, which was seized from the defendants during the investigation, was obtained by them as a result of their scheme.
The case was investigated by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Two Miami Residents Plead Guilty to Money Laundering Charges Involving Stolen Identity Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Steven Toussaint, 33, and Emmanuel Marvin Alphonse, 28, both of Miami, each pled guilty to one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). Sentencing is scheduled for August 14, 2014 at 2:30 p.m. At sentencing, the defendants each face up to 20 years in prison.
According to court documents, from January 1, 2011 through July 29, 2011, the defendants engaged in money laundering activities involving the cashing of money orders funded with fraudulent, stolen identity tax refunds. Both Toussaint and Alphonse had their own check cashing accounts at the Cash-A-Check check-cashing store. Steven Toussaint cashed 985 money orders, totaling $490,401, using his own Cash-A-Check account. Emmanuel Marvin Alphonse cashed 581 money orders, totaling $286,995, using his own Cash-A-Check account. The defendants knew that the money orders were funded by unlawful activity, and knowingly conducted the transactions on behalf of third-parties for the purpose of concealing and disguising the nature and source of the unlawful proceeds in exchange for a portion of the funds involved in each transaction.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Two Men Plead Guilty in Separate Cases for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth Polite announced that yesterday, two men pled guilty before U.S. District Judge Sarah S. Vance to charges involving the sexual victimization of children.
AUNG GAW, a/k/a Michael Gaw, age 26, of Fremont, California, pled guilty to one count of conspiracy to produce child pornography. According to court documents, beginning in December 2012, and continuing until May 2013, GAW conspired with Jonathan Johnson to produce sexually explicit videos of young boys. On November 5, 2013, federal agents executed a federal search warrant at GAW’s Fremont, California residence. GAW has been in custody since his arrest that day.
GAW faces a sentence of 15 to 30 years’ imprisonment, 5 years to life of supervised release, and a maximum fine of $250,000. In addition, he will have to register as a sex offender. Sentencing is scheduled for September 3, 2014.
Additionally, KIRK P. WEBER, age 54, of Reserve, Louisiana, pled guilty to one count of Distribution of Child Pornography. According to court documents, from May 14, 2013, to October 24, 2013, WEBER knowingly distributed images depicting the sexual victimization of minors through the use of a popular social media site. WEBER has been in federal custody since his February 7, 2014 arrest.
WEBER faces a sentence of 5 to 20 years’ imprisonment, 5 years to life of supervised release, and a maximum fine of $250,000. In addition, he will have to register as a sex offender. Sentencing is scheduled for September 3, 2014.
U.S. Attorney Polite stated, “These convictions, which carry significant mandatory minimum sentences, continue to demonstrate our Office’s commitment to protecting our young children from sexual exploitation.”
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The GAW matter is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The WEBER matter is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations. The prosecution of both cases is being handled by Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Gaw Factual Basis )
(Download Weber Factual Basis )
Transporting and Harboring Aliens Lands Four in PrisonRead the Press Release
Nine Aliens Killed During Transport
McALLEN, Texas – Four defendants, who conspired to transport and harbor illegal aliens resulting in multiple deaths, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Carmelo Diaz-Gopar, 26, and Jose Vega-Zapata, 37, both of Mexico, and Gloria Solis, 26, and Luis Julian Vargas, 21, both of Mission, all previously pleaded guilty to one count of conspiring to transport and harbor illegal aliens within the U.S. resulting in the death of at least one person.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Vega-Zapata a sentence of 132 months in federal prison, while Diaz-Gopar, Solis and Vargas receive respective sentences of 121, 42 and 100 months imprisonment. In handing down the sentences, the court noted that transporting and harboring aliens is a horrendous profession motivated by greed and that this offense tragically resulted in the death of nine individuals who had come to this country in search of work. Vargas and Solis must also serve two years of supervised release following completion of their prison terms. Both Diaz-Gopar and Vega-Zapata are illegal aliens and are expected to face deportation proceedings following release from prison.
According to court records, on April 10, 2012, Border Patrol (BP) agents attempted to conduct a traffic stop on a mini-van suspected of transporting undocumented aliens. The mini-van initially stopped on the side of the road in Palmview, at which time Diaz-Gopar exited from the van and ran away in an attempt to elude agents. He was apprehended shortly thereafter.
The driver of the van, a juvenile, then drove away at a high rate of speed and was involved in a single car accident just a short distance from the location of the original stop. A total of 16 undocumented aliens were being transported in the mini-van at the time of the accident. Nine were killed and the others were taken to local hospitals to seek medical treatment. Homeland Security Investigations (HSI), along with several other law enforcement agencies responded to the scene of the accident.
After further investigation, it was determined the aliens had been picked up from a stash house in Mission, where they had been harbored and were subsequently being transported to another destination. Believing additional undocumented aliens were still being harbored at the same stash house; law enforcement subsequently conducted a consensual search of the stash house where they discovered 12 additional aliens in the residence, along with Solis, Alexander Barrios-Grajales, 28, and Alejandro Garcia-Nava, 20.
Vega-Zapata and Vargas were later apprehended for their involvement in the alien harboring. Some of the undocumented aliens provided statements to agents implicating the defendants and their involvement in the alien harboring, according to the court records.
At the hearing today, additional testimony was presented concerning the role each individual defendant played in the offense. Vega-Zapata was in charge of hiring individuals who would in turn secure stash houses and drivers for the organization’s use. Diaz-Gopar made arrangements with some of the aliens while still in Mexico and not only guided them through Mexico but was also to guide them north once they had been smuggled into the U.S. Vargas hired the juvenile to drive the transport vehicle which was subsequently involved in the accident, while Solis was the caretaker of the aliens at the stash house.
All four defendants have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Barrios-Grajales and Garcia-Nava have also pleaded guilty to related charges and were also sentenced to federal prison.
The investigation was the result of an investigation led by Homeland Security Investigations with the assistance of Border Patrol and the Palmview Police Department. Assistant United States Attorney Linda Requénez prosecuted the case.
Texas Man Sentenced, Another Pleads Guilty to Roles in Vehicle Theft RingRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Vincent L. Simmons, 48, of Porter, Texas, was sentenced and Carey Dale Reed, 40, of Conroe, Texas, pleaded guilty before U.S. District Judge Richard T. Haik for participating in a scheme to steal tractors in Texas and sell them in Louisiana. Simmons was sentenced to 30 months in prison and three years of supervised release.
According to evidence presented at the guilty plea hearings, from December 2010 to October 2011, Simmons conspired with Reed to steal a John Deer mower, a CASE Skidster front end loader, and a Kubota KX 61 Mini-Excavator. They then sold the machinery to Katherine and Ronnie Larocca of Calcasieu Parish, who were also part of the scheme.
Reed faces up to five years in prison, three years of supervised release, and a $250,000 fine for the conspiracy count. A sentencing date was not set.
The Louisiana State Police and the FBI conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Storeowner Sentenced for Defrauding Food Stamp ProgramRead the Press Release
PITTSBURGH - A Whitehall resident has been sentenced in federal court to three years’ probation with eight months’ home detention and ordered to pay $101,333 in restitution on his conviction of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Samson Dweh, 32 of Pittsburgh, Pa.
According to information presented to the court, Dweh was the owner and operator of Mariama African Store, a retail specialty food store on Brownsville Road in Pittsburgh. Mariama participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items at Mariama using food stamp benefit cards. The defendant was aware that Food Stamp Program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving his customers only 50 cents on the dollar for food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
Prior to imposing sentence, Judge Cercone stated that the sentence, which was within the advisory range established by the United States Sentencing Guidelines, was a necessary and appropriate sentence.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government. Assistant United States Attorney Colin Callahan litigated the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Dweh.
St. Paul Felon Pleads Guilty to Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 31-year-old St. Paul man pleaded guilty to one count of Possession of a Stolen Firearm. Michael Anthony Vargas, who was charged via an Information on May 3, 2014, entered his guilty plea on June 3, 2014 before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Vargas admitted that on January 8, 2014, he possessed a stolen Smith & Wesson 9-millimeter pistol, which was recovered during a traffic stop by the St. Paul Police Department.
For his crime, Vargas faces a potential maximum penalty of 10 years in federal prison. Judge Ericksen will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. It is being prosecuted by Assistant United States Attorney LeeAnn K. Bell.Six Charged in Racketerring Conspiracy Case Involving Nine MurdersRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a twenty-eight count second superseding indictment charging Nathaniel Harris (23, Bradenton), Napoleon Harris (29, Bradenton), Charlie L. Green (27, Bradenton), Jerry W. Green, Jr. (31, Bradenton), Corey Deonta Harris (23, St. Petersburg), and Deonte Jamal Martin (28, Bradenton) for their roles in a racketeering conspiracy involving murder, attempted murder, kidnapping, robbery, and drug trafficking. Seven of the offenses carry a maximum penalty of death.
A confidential “TIP LINE” has been established for anyone with information regarding any homicides, robberies, narcotics and/or violent criminal acts conducted by these individuals or their associates. Anyone with information relevant to this case is encouraged to call 1-888-ATF-TIPS (1-888-283-8477).
According to court documents, the six individuals were part of an ongoing criminal enterprise. Between April 2007 and August 2013, nine individuals were shot and killed, as a result of the enterprise’s criminal activity. Among those murdered were Christopher Jenkins, Demetrious Cunningham, Calvin Barnes, Ceola Lazier, Carlos Jurado, Brenton Coleman, Joseph Evans, Rodney D. Lamb, and Erika Williams. The murder of Brenton Coleman took place in the vicinity of the 13th Avenue Recreation Center, commonly referred to as the “Dream Center,” and was witnessed by a crowd of young children attending youth football practice.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the State Attorney’s Office (12th Judicial Circuit Court), the Manatee County Sheriff’s Office, the Bradenton Police Department, the Palmetto Police Department, the Sarasota Police Department, and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorneys Walter E. Furr, III, Christopher F. Murray, and Trial Attorney Laura Gwinn of the Department of Justice’s Organized Crime and Gang Section.
Click HERE to view Superseding Indictment
Significant Sentence Handed Down for Firearms TraffickingRead the Press Release
CORPUS CHRISTI, Texas - Angel Aquino-Pineda, 27, of McAllen, has been ordered to serve more than eight years in the Bureau of Prisons for his role in trafficking AK-47 variant rifles to Mexico, announced United States Attorney Kenneth Magidson. Aquino-Pineda pleaded guilty before Senior U.S. District Judge Hayden Head on March 26, 2014.
In handing down the 100-month sentence, Judge Head observed that the firearms in Aquino-Pineda’s possession were “were weapons of war.” The court further expressed relief that the assault rifles were intercepted, as there was simply no way to know how many lives they would have taken.
In 2013, the Kingsville Specialized Crimes and Narcotics Task Force conducted a traffic stop on a truck driven by Aquino-Pineda in Kingsville and located 35 AK-47 variant rifles and $26,000 concealed in a false compartment. Seven of the rifles had obliterated serial numbers. Aquino-Pineda admitted his role was to transport the firearms from Houston to McAllen. The firearms would then be transported to Mexico.
Six Houston residents have also pleaded guilty for their roles in a conspiracy to traffic the firearms. Javier Resendez, 29, entered a guilty plea before U.S. Magistrate Judge Janice Ellington. Abel Lopez, 34, Arturo Garcia, 30, Roberto Santana Mears, 22, Mary Bel Deanda, 39, and Martha Gonzales, 41, previously pleaded guilty at varying times before U.S. Magistrate Judges Ellington and Jason Libby. They all await sentencing.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) traced the firearms to Houston purchasers Deanda, Gonzales and Mears, who admitted they were “straw purchasers” for Resendez. Resendez indicated Garcia recruited him to purchase firearms for Lopez and that the firearms would be taken to Mexico. Resendez then recruited Deanda and Gonzales to “straw purchase” the firearms on his behalf. Mears admitted he was also a “straw purchaser” for Lopez.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffrey D. Preston are prosecuting the case.
Sentencing for May 28 - June 2, 2014Read the Press Release
Giovanni Valle, 29, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on May28, 2014, for distribution of methamphetamine. Valle was arrested in California. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Owen John Brown, 27, of Riverton, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2014, for resisting a federal officer with a dangerous weapon. Brown was arrested in Denver, Colorado. He received 18 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Michael John Anderson, 27, of Cheyenne, Wyoming, was sentenced by Federal District Court Chief Judge Nancy D. Freudenthal on June 2, 2014, for failure to register as a sex offender. Anderson was arrested in Cheyenne. He received time served, to be followed by five years of supervised release with the first five months to be served in a community corrections facility and was ordered to pay a $100.00 special assessment. This case was investigated by the United States Marshal Service.
Fort Washakie Resident Convicted of Assault on a Federal Officer
U.S. Attorney Christopher A. Crofts announced today that Fort Washakie resident Kevin Paul Brown, 24, has been convicted in federal court. Brown was charged by indictment with a violation of 18 U.S.C. § 111, assault on a federal officer. On June 3, 2014, a jury found Brown guilty on the sole count of the indictment after a two-day jury trial in the U.S. District Court in Casper. Brown is scheduled to be sentenced by Federal District Court Judge Scott Skavdahl on August 15, 2014. This case was investigated by the Federal Bureau of Investigation Agency in Lander Wyoming.
Sacramento Man Indicted for Selling Machineguns and ExplosivesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against James Christopher Malcolm, 29, of Carmichael, charging him with transfer of explosive materials for use in a crime of violence or drug trafficking crime; unlawful dealing in firearms; and two counts of possession of machine guns, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Malcolm met with a confidential informant to discuss a plan to sell fully automatic rifles. At the meeting, Malcolm told the informant that distributing firearms was only a side business, and his main business was distributing explosives and poison. Later, Malcolm sold four short-barrel AR-15-style machine guns, 1.5 pounds of improvised explosive material, three blasting caps, and a firearm silencer to undercover agents posing as arms dealers for drug trafficking organizations. Additionally, Malcolm told undercover law enforcement agents that he could manufacture parts to convert Glock pistols into fully automatic machine guns. Malcolm actually demonstrated the process of converting pistols to machine guns and over the course of various meetings sold the agents parts to convert 10 pistols.
“Trafficking in explosives and machine guns poses a real threat to public safety,” said U.S. Attorney Wagner. “Fortunately, federal law enforcement agencies acted swiftly in neutralizing the threat in this case.”
“Firearms trafficking is the mechanism in which criminals obtain their firearms used in violent crimes,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “ATF will continue to focus our efforts on criminals who are unlawfully manufacturing and selling machine guns, and explosive materials.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI. Assistant United States Attorney Justin Lee is prosecuting the case.
Malcolm is currently in custody at the Sacramento County Jail. He is scheduled to be arraigned on June 12, 2014.
If convicted of the first count, Malcolm faces a mandatory sentence of 10 years in prison and a $250,000 fine to be run consecutive to any other sentence. The maximum sentence count two is five years in prison a $250,000 fine, and for counts three and four the maximum sentence is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Sentenced to Prison for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Theodore Olguin, 26, of Roswell, N.M., was sentenced in federal court in Las Cruces, N.M., to 60 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm.
Olguin was charged in May 2012, in a two-count indictment alleging that he unlawfully possessed a firearm and ammunition on Feb. 15, 2011 and on Feb. 23, 2011, in Eddy County, N.M. At the time, Olguin was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary of a vehicle in the 5th Judicial District Court for the State of New Mexico. Olguin was arrested on Aug. 14, 2012, and has been in federal custody since that time.
On Jan. 15, 2013, Olguin entered a guilty plea to Count 2 of the indictment charging him with unlawfully possessing a firearm and ammunition on Feb. 23, 2011.
According to court filings, Olguin was arrested on local charges by the Artesia Police Department on Feb. 23, 2011, after officers recovered a loaded pistol from his vehicle following a traffic stop. Investigation revealed that the pistol, which had been reported stolen in Sept. 2010, and had been used to shoot at the residence of a Artesia police officer in Jan. 2011. The pistol also had been used to shoot at two vehicles parked in the driveway of an Artesia police officer’s residence on Feb. 15. 2011. Evidence presented during a court hearing indicated that Olguin fired the pistol on both occasions, and the court relied on this information in enhancing Olguin’s sentence by 14 months.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the Artesia Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Restauranteur Admits to Tax EvasionRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Konstantinos Votsis, 63, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci to tax evasion. The charge carries a maximum sentence five years in prison, a fine of $616,124, or both. In addition, Votsis agreed in related asset forfeiture proceedings to forfeit $250,000 to the United States.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Votsis owned and controlled Rookies Neighborhood Sports Bar, a restaurant and bar in Gates, N.Y. In 2009, the defendant learned of a pending audit of his sales taxes, and in response, directed that sales data contained in Rookies’ point-of-sale computer system be deleted. This data, which was later recovered by the Government, showed that Votsis failed to report $986,660 in income from his Rookies business from 2006 through 2008. By concealing such income, the defendant evaded paying $308,062 in taxes that he owed to the Internal Revenue Service.
Acting IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen said: “Business owners are expected to report all of their gross receipts. When business owners hide receipts to evade paying all of the taxes they are legally required to, law abiding businesses and taxpayers ultimately end up making up the difference. IRS-Criminal Investigation is committed to seeing that everyone pays their fair share.”
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service-Criminal Investigation, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge.
Votsis will be sentenced by Judge Geraci on September 4, at 3:30 p.m.Rochester Man Pleads Guilty to Child Pornography ChargeRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Zachary S. Dressner, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to possessing images of child pornography. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that between July and November 2011, the defendant used his home computer to acquire and download images of children younger than 16 years of age. The images included the minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 5, 2014, at 11:00 a.m. before Judge Siragusa.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Rhode Island Sears Franchisee Pleads Guilty to FraudRead the Press Release
PROVIDENCE, R.I. – Joseph Kilty, 53, of Wakefield, R.I., a former authorized dealer and franchisee of a Sears Hometown and Outlet, Inc. store in Middletown, R.I., pleaded guilty in federal court in Providence today to defrauding Sears of more than $154,000, announced United States Attorney Peter F. Neronha; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Chief Judge William E. Smith, Kilty admitted to the court that between January 2012 through June 2013, he failed to deposit $154,120 in cash receipts into a bank account he was required by Sears to establish and into which all store receipts were to have been deposited. Kilty admitted that he deposited the receipts in question into other personal bank accounts which he controlled.
Kilty admitted to the court that as part of the scheme he created false documents to make it appear that the deposits had been made, including 47 fraudulent deposit slips and several fake bank reconciliation forms.
Additionally, Kilty admitted to the court that he created two counterfeit bank checks in the amounts of $99,000 and $28,319.75 made payable to Sears Hometown and Outlet, Inc., and that he provided the checks to a Sears district manager. The fraudulent checks were eventually mailed to the Sears Hometown and Outlet office in Hoffman Estates, Illinois.
Kilty pleaded guilty today to one count of mail fraud. He is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 18, 2014.
Mail fraud is punishable by statutory penalties of up to 20 years in federal prison; a fine of up to $250,000 or twice the gross gain or the gross loss resulting from the offense, whichever is greater; and a term of supervised release of up to 5years.
The matter was investigated by the U.S. Postal Inspection Service and the FBI.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Resident Pleads Guilty in Alleged $1.8 Million Dollar Fraudulent Tax Return SchemeRead the Press Release
PROVIDENCE, R.I. – Julian Balbi, 22, of Providence, pleaded guilty in federal court in Providence today to participating in a scheme in which personal identifying information of more than 1,200 individuals was collected, of which many were used to file fraudulent tax returns with the IRS totaling more than $1.8 million dollars. Balbi pleaded guilty to four counts of aggravated identity theft and one count each of conspiracy and theft of government property.
Balbi, and a co-defendant in this matter, Richard Lara, 22, of Providence, were arrested by Rhode Island State Police on January 2, 2012, on an unrelated matter during a routine traffic stop. During a court authorized search of the vehicle, State Police discovered 87 U.S. Treasury checks made out to third parties totaling $596,646.46 allegedly generated by fraudulent tax returns. Also seized were several ledgers and notebooks containing the personal identity information, including Social Security numbers and dates of birth, of hundreds of individuals; ledgers containing employer information such as Employee Identification Numbers and addresses; and a USB flash drive containing numerous spreadsheets detailing taxpayer information and fraudulent tax returns that were allegedly filed with the IRS.
Balbi’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police, William P. Offord, Special Agent in Charge of IRS Criminal Investigation, and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service
According to information presented to the court, Rhode Island State Police executed a court authorized search of Balbi’s Providence residence where they seized numerous computers and USB flash drives. A forensic examination of the computers and flash drives allegedly revealed a number of spreadsheets containing ledgers identical to those on the flash drives allegedly seized from Mr. Balbi’s vehicle. A court authorized search of Richard Lara’s residence resulted in the seizure of another ledger which allegedly contains personal identity information which matched information contained on the flash drive allegedly seized from Balbi’s vehicle.
According to information presented to the court, IRS and U.S. Secret Service agents interviewed 17 individuals listed as payees on the treasury checks seized from Balbi’s vehicle. All 17 stated they did not file the tax return in question, and that they did not know Balbi or Lara. The IRS conducted an analysis of all of the information associated with the 1,258 individuals listed on the various ledgers and computers allegedly seized from Balbi and Lara. The investigation revealed that between April 2011 and January 2012, 823 fraudulent tax returns seeking refunds totaling $1,854,438.46 were allegedly filed with the IRS.
Julian Balbi is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2014.
Conspiracy to commit a crime against the U.S. Government is punishable by statutory penalties of up to 5 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. Theft of government property (treasury checks) is punishable by statutory penalties of up to 10 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by statutory mandatory sentence of 2 years imprisonment, to be served consecutive to the sentence imposed for theft of government property, and a fine of $250,000.
Richard Lara is awaiting trial on an indictment returned by a federal grand jury on February 26, 2014, which charges him with four counts of aggravated identity theft and one count each of conspiracy and theft of government property
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Heroin Dealer Arrested While on State Probation Sentenced to 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Moises Tronilo, 28, of Providence, was sentenced today to 5 years in federal prison for trafficking heroin and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Tronilo to serve 3 years of supervised release upon completion of his prison term. Tronilo pleaded guilty on November 5, 2013, to one count each of possession with the intent to distribute heroin and being a felon in possession of a firearm.
According to information presented to the court, an investigation in March 2013 by ATF agents into Tronilo’s alleged drug trafficking activities resulted in five undercover purchases of heroin from Tronilo within an 11-day period. The fifth purchase of heroin was in return for payment in cash and a .40 caliber Glock handgun. Tronilo was arrested immediately upon completion of the 5th transaction, when he took possession of the firearm. The transactions were electronically monitored by ATF agents.
According to information presented to the court, on March 22, 2013, ATF agents conducted a court authorized search of Tronilo’s Providence residence and seized a loaded 9mm Browning pistol, 35 grams of heroin, and various items used in the packaging and sale of heroin.
According to information presented to the court, Tronilo was previously convicted in Rhode Island State Court for possession of narcotics with the intent to prosecute. At the time of his arrest by ATF agents, Tronilo was serving a 51-month term of probation.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Postal Carrier and Another Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Tangela R. Jackson-Lezeau, 34, and Kerry Lionel Ruffin, 31, have both entered guilty pleas in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson.
Both entered guilty pleas to conspiracy to commit mail fraud. Ruffin also pleaded guilty to aggravated identity theft.
According to court records, Ruffin obtained stolen personal identifying information (PII) from a Fulton County, Ga., employee who had received the information from Rance Hunter, 29, of Atlanta, Ga. Hunter had access to the sheriff’s office database including names, birth dates and Social Security numbers of arrestees, inmate, and employees.
Ruffin, of Atlanta, acted as a conduit, funneling the stolen PII to co-conspirators in Houston. From 2010 through 2013, Ruffin’s co-conspirators used the stolen PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to Internal Revenue Service records, the National Treasury paid out more than $6 million before the scheme was discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.
Jackson-Lezeau was employed as a postal carrier in Port Saint Lucie, Fla. She was recruited into the scheme and paid for allowing addresses on her delivery route to be used by the co-conspirators as locations where the fraudulently obtained tax refunds could be sent. After gathering the mail containing the refund debit cards, Jackson-Lezeau sent it via express mail to her co-conspirators in Houston.
Hunter previously pleaded guilty in a companion case and is set for sentencing Oct. 8, 2014.
Co-conspirator Calvin Shelton, a postal carrier in Atlanta, pleaded guilty May 21, 2014 to conspiracy to commit mail fraud, mail fraud, seven counts of wire fraud and seven counts of aggravated identity theft for his part in the scheme. He remains in custody awaiting sentencing, set for Aug. 14, 2014.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas today, has set sentencing for Sept. 3, 2014. At that time, Ruffin and Jackson-Lezeau face of up to 20 years imprisonment for the conspiracy charge. Ruffin also faces another mandatory two years for the aggravated identity theft which must be served consecutively to any other sentence imposed. Both convictions also carry a possible $250,000 maximum fine. They were permitted to remain on bond pending that hearing.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Part Owners of Subway Restaurants in Lexington Admit Harboring and Under Compensating Unauthorized Aliens, and Tax EvasionRead the Press Release
LEXINGTON Two former part owners of four Subway restaurants in Lexington admitted they employed unauthorized aliens and intentionally failed to pay them lawful wages.
Amrutlal Patel, 46, pleaded guilty to harboring unauthorized aliens, and his wife Dakshaben Patel, 46, pleaded guilty to evading employment taxes. Both defendants also pleaded guilty to failure to pay employees overtime hours.
According to court documents, from April 2012 until November 2013, Amrutlal Patel used his residence to harbor four unauthorized aliens, who were employed at the Subway restaurants. These employees worked as many as 80 hours a week, but the Patels paid them below minimum wage and didn’t compensate them for overtime hours. Federal law requires employers to pay employees a minimum wage of $7.25 an hour and one and one-half times that rate for hours worked that exceed 40 in a week.
Dakshaben Patel acknowledged that she omitted unauthorized aliens from the payroll in order to evade taxes. According to the plea agreement, the couple must pay between $9,000 and $9,900 in payroll taxes, a $65,000 money judgment which is in lieu of a real estate forfeiture to the government, and $40,000 in restitution to the improperly compensated employees.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Gary T. Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Ronnie Bastin, Chief, Lexington Division of Police and Christopher A. Henry, Special Agent in Charge, IRS, Criminal Investigation Division, jointly announced the plea.
Assistant U.S. Attorneys Hydee Hawkins and David Marye, and Civil Rights Attorney, Benjamin Hawk, prosecuted this case on behalf of the federal government.
The Patels will be sentenced on September 4, 2014. Amrutlal Patel faces a maximum of ten years in prison and a Dakshaben Patel faces a maximum of five years. However, any sentence imposed by the Court would come after consideration of the U.S. Sentencing Guidelines and the federal statutes governing the imposition of sentences.Owner of Ozark Businesses Sentenced for Failure to Pay Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of two Ozark, Mo., businesses has been sentenced in federal court for willfully failing to pay over hundreds of thousands of dollars in employment taxes.
Kerry W. May, 65, of Ozark, was sentenced by U.S. District Judge Beth Phillips on May 29, 2014, to one year and one day in federal prison without parole. The court also ordered May to pay $94,485 in restitution (on the unpaid interest), in addition to the $373,200 in restitution that May has already paid.
On Oct. 3, 2012, May pleaded guilty to two felony counts of failure to collect, or to truthfully account for and pay over employment taxes for his two corporations, Spring Creek Antiques, Inc. (with approximately 25 employees) and Riverview Antique Center, Inc. (with approximately 10 employees). As corporate president of both businesses, May failed to account for and pay over the employees’ trust fund portion as well as the corporations’ portion of the employment taxes to the Internal Revenue Service.
May admitted that, from 2003 through 2009, he engaged in a deliberate scheme to avoid reporting or paying the trust fund taxes on approximately $373,200 he withheld from his employees’ paychecks. According to court documents, May withheld taxes from his employees’ pay, but simply pocketed the funds without reporting the withholding to the IRS or making the required trust fund payments.
May personally maintained the books and records for both businesses, which operated as S-corporations. May, who has a bachelor’s degree in accounting, has been a senior tax advisor with H&R Block and previously had an H&R Block franchise. He also served as an enrolled agent, representing clients in their dealings with the IRS.
To perpetrate his scheme, according to court documents, May calculated and issued bi-weekly paychecks to employees, including himself and his wife. The paychecks included detailed withholding information. Therefore, May was clearly aware on an ongoing basis how much employment tax was due.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by IRS-Criminal Investigation.Owner of Louisiana Film Tax Credits Companies Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the sentencing of GREGORY MARTIN WALKER, 47, formerly of Baton Rouge, Louisiana. WALKER previously pled guilty on October 23, 2013, to wire fraud in violation of Title 18, United States Code, Section 1343.
WALKER was sentenced today by U.S. District Judge James J. Brady to 70 months imprisonment and a term of 3 years on supervised release following imprisonment. WALKER was also sentenced to pay restitution in the amount of $1,833,619.75 to the 24 victims of his fraud. Additionally, WALKER was ordered to forfeit $971,418 to the United States, said funds being the property which was derived from his scheme to defraud investors and purchasers of film tax credits.
In total, WALKER sold bogus tax credits with a face value of $3,823,441 to 24 investors and collected $2,560,670 from them.
WALKER was engaged in the business of buying and selling of Louisiana motion picture investor tax credits. WALKER owned and operated The Bishop, LLC, an entity which purported to own film tax credits for resale to others. WALKER represented to purchasers that he owned tax credits for various film productions, including Universal Soldier IV, El Gringo, Mama I Want to Sing, and Transit.
The State of Louisiana, Department of Economic Development, Office of Entertainment Industry Development (“LDED”) administered the Louisiana Motion Picture Incentive Act. In order to develop and promote film productions, the State of Louisiana offered tax credits for the production of movies within the State. Such tax credits can be used to pay the Louisiana income taxes of the film production companies, redeemed by the film production companies for a discounted price at the Louisiana Department of Revenue (“LDR”), or even sold to others who could use the tax credits to pay their Louisiana income tax liabilities. LDR was vested with the authority to disallow tax credits if the transferor of tax credits did not have rights to claim or use the tax credits at the time of their purported transfer.
Strategies for Investment, LLC (“SFI”) was a Baton Rouge business owned and operated by a local Certified Public Accountant (“CPA”). WALKER and The Bishop sold tax credits to SFI, which re-sold said credits to tax clients of the CPA. WALKER and The Bishop represented that they owned and controlled the tax credits which they sold to SFI.
From November 2011 through July 2012, WALKER marketed tax credits to the CPA who owned and operated SFI. From August 2011 through September 2013, WALKER also sold tax credits to other Louisiana taxpayers who sought tax credits to pay their Louisiana income tax liabilities.
Beginning in August, 2011, and continuing through in or about January, 2013, WALKER devised and executed a scheme to defraud purchasers of Louisiana film tax credits. WALKER falsely represented to purchasers that he owned certain tax credits, when in fact, he neither owned nor controlled such film tax credits. In order to carry out his scheme to defraud, WALKER forged the signatures of various individuals on tax credit purchase agreements and used interstate wires to complete his scheme.
WALKER sold purported tax credits to SFI on approximately 11 occasions between January 3, 2012 and June 20, 2012. SFI paid WALKER and The Bishop approximately $971,418 for the purchase of tax credits purporting to have a face value of $1,456,926. WALKER used the funds obtained through his scheme for his personal enrichment.
This matter was jointly investigated by the Federal Bureau of Investigation, the Louisiana Inspector General’s Office, and the United States Grand Jury for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon. Additional assistance was provided by the Louisiana Department of Economic Development and the Louisiana Department of Revenue.
United States Attorney Green stated, “We will continue to safeguard all types economic programs that fall prey to fraudsters and ensure they are held accountable for their actions.”
FBI Special Agent-in-Charge Michael Anderson stated, “This conviction should convey a clear message to the public that schemes to defraud that interfere with legitimate government incentives to stimulate economic growth in Louisiana will not be tolerated.”
Louisiana Inspector General Stephen Street commented, “This sort of blatant fraud undermines the entire tax credit program and cannot be tolerated. We will continue working with the FBI and United States Attorney to make sure that those who engage in this sort of corruption face criminal consequences.”