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22 May 2014
Two Poachers Receive Jail Time for Illegally Harvesting 147 Ginseng RootsRead the Press Release
ASHEVILLE, N.C. - U.S. Attorney Anne M. Tompkins announced that two men have been convicted and sentenced in U.S. District Court for the illegal harvesting of ginseng. Joining U.S. Attorney Tompkins in making today’s announcement is Deborah Flowers, Acting Chief Ranger of the Blue Ridge Parkway.
Daniel Mizell, 26, of Green Mountain, N.C. was sentenced today to serve 30 days in jail for engaging in business operations on the Blue Ridge Parkway and entering a closed area on the Blue Ridge Parkway during the federal government shutdown in October 2013. His co-defendant, Derek Vann Whitson, 33, of Mars Hill, N.C. was sentenced on March 27, 2014, to 90 days in jail for conspiring to harvest ginseng.
According to court documents and statements made in court:
On October 13, 2013, Whitson and Mizell called 9-1-1 for assistance after they became lost in the Asheville Watershed which borders the Blue Ridge Parkway. During the course of a search and rescue mission, approximately 35 individuals from various local, state and federal agencies responded to assist in finding the two missing men. On October 14, 2013, Asheville Watershed employees located Whitson and Mizell, who were found to be in possession of three pounds of freshly dug ginseng (147 roots). Whitson admitted ownership of two pounds of ginseng roots and stated Mizell dug the other one pound. Mizell and Whitson also admitted to entering the Watershed from the Parkway. At sentencing, U. S. Magistrate Judge Dennis L. Howell took particular note of the amount of public resources used during the search to locate two individuals, who became lost while engaged in criminal activity for personal profit.
American ginseng is on the list of the Convention on International Trade of Endangered Species (CITES). The Division of Scientific Authority, U.S. Fish & Wildlife Service is the regulatory agency that evaluates the biological and management status of wild American ginseng throughout its native range. The Division issues an annual or biennial report detailing if any harvest conditions need to be modified to ensure the sustainable harvest of wild native ginseng.
National Park, U.S. Forest Service and Asheville Watershed lands have been severely impacted by ginseng poachers in Western North Carolina. Permits to collect ginseng root in National Forests are issued annually through the U.S. Forest Service from September 1 to September 15. Permits are not available in National Park lands such as the Blue Ridge Parkway and Great Smoky Mountains National Park where even the possession of American ginseng is prohibited. Permits to collect ginseng roots are also unavailable for the Asheville Watershed and that area is closed to entry by the public.
The investigation of the cases was handled by the rangers of the Blue Ridge Parkway and officers and employees of the City Of Asheville. The prosecution was handled by the U.S. Attorney’s Office in Asheville.
Two Men Convicted in Fraudulent $24 Million Scheme Involving Sale of Iraqi CurrencyRead the Press Release
Two men from the Toledo area were convicted for their roles in the operation of a $24 million fraud scheme involving the sale of Iraqi dinar currency and non-existent hedge funds, and falsely representing that a member of their organization was a decorated Marine who was wounded in combat, announced Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Bradford L. Huebner, 66, of Ottawa Hills, Ohio and Charles N. Emmenecker, 67, of Sylvania, Ohio, were convicted of conspiracy to commit wire fraud and wire fraud following a two-week trial in U.S. District Court in Toledo. Huebner was also convicted on 40 additional counts of money laundering and structuring.
A third defendant, Michael L. Teadt, 67, of Maumee, Ohio, was convicted on one count of mail fraud.
The men are expected to be sentenced in October.Investors lost approximately $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements” as a result of the defendants’ conduct, according to court documents and trial testimony.
“The trial evidence showed that these defendants swindled many people out of their hard-earned money with grandiose fraud claims and offensive lies,” said U.S. Attorney Dettelbach. “From misrepresenting U.S. and global fiscal realities to lying about a defendant's military record, these defendants' conduct not only broke the law, but offended basic concepts of decency.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge Enstrom. “Today’s verdict reinforces our commitment to every taxpayer that we will identify and prosecute those who promote illegal financial transactions.”
Rudolph M. Coenen, 47, of Jacksonville, Florida, previously pleaded guilty to crimes related to his role in the conspiracy.
Beginning about August 2010, Huebner, Coenen, and Emmenecker conspired to operate the “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to court documents and trial testimony.
False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to court documents.
Additional material false statements made by the defendants include, but are not limited to, the portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.
Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.
Two Men Admit Roles in Armed Robbery of New Jersey Target Store on ‘Black Friday’ 2012Read the Press Release
TRENTON, N.J. – Two New Jersey men admitted this week to participating in an armed robbery of a Target Store in Union, N.J., on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Maryland Liggins III, 29, of Newark, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit a Hobbs Act robbery. On May 20, 2014, Darrell A. Carter, 24, of Irvington, N.J., pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence.
Carter, Liggins and two other men – Lavell Jones, 28, of East Orange, N.J., and DaQuaan Vaughn, 36, of Newark – were arrested on June 19, 2013, and charged by complaint in connection with the Target robbery. On April 29, 2013, a federal grand jury returned an indictment against Jones and Vaughn charging both men with one count of Hobbs Act robbery, and charging Vaughn with one count of using a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:On Nov. 23, 2012, Carter and Liggins allegedly participated in an armed robbery of the Target store on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Carter and Vaughn allegedly entered the store and robbed the store’s employees at gunpoint and Liggins served as the getaway driver. Jones allegedly posed as a shopper and served as a lookout inside the store.
While in the store, Carter and Vaughn restrained Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe located in the cash room. The two men then fled the store and ran out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000. Sentencing for Liggins is scheduled for Sept. 25, 2014; sentencing for Carter is scheduled for Sept. 24, 2014.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton, and Assistant U.S. Attorney Jonathan Romankow, acting deputy chief of the U.S. Attorney’s Office General Crimes Unit.
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Defense counsel:Carter: Peter Carter Esq., Newark
Liggins: Joseph Rotella Esq., Newark
Vaughn: Timothy Donohue Esq., West Orange, N.J.
Jones: Richie Roberts Esq., NewarkLiggins, Maryland Information
Carter, Darrell InformationTwo Logan Businessmen Sentenced for Roles in Arson SchemeRead the Press Release
Glick and Thompson To Spend Years In Prison For Million-Dollar Insurance Scam
CHARLESTON, W.Va. – Two men were sentenced in federal court yesterday in connection with a Logan arson scheme, U.S. Attorney Booth Goodwin announced. James Gregory Glick, 44, of Logan, was sentenced to seven years, three months in prison, while William Jamey Thompson, 45, of Chapmanville, was sentenced to five years in prison, both for a conspiracy to burn a building in downtown Logan and fraudulently collect the insurance proceeds. In January 2012, Glick purchased a commercial building located at 111 Stratton Street in Logan for $50,000, across the street from the restaurant he owned and operated, the 317 Steakhouse (“317”). He then worked with Thompson, owner of the insurance agency Baisden & Associates, to obtain a $1 million insurance policy on the property from General Star Indemnity Company (“General Star”). Thompson, in exchange for placing coverage, received $50,000.During the early hours of February 1, 2012, co-conspirator Guy R. Miller, Jr., 40, of Logan, enlisted the assistance of Shawn C. Simon, 41, of Charleston, and Michael D. Williams, 44, of Logan, to help torch the building. Williams spread approximately fifteen gallons of fuel throughout the first floor of the building. When he lit the match, the fumes ignited, creating an explosion that blew the top of the building’s exterior across the street. The three culprits were caught on 317’s security camera; Glick had Miller and Simon destroy the restaurant’s digital video recorder in order to conceal the crime.
Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May 2012, and Glick began sharing the money with his co-conspirators. In June 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick. Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness.
The conspirators were indicted in late August 2013 and ultimately pled guilty to their respective roles in the conspiracy to commit arson and to defraud General Star.
In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered Glick and Thompson to reimburse the City of Logan $3,900 for emergency personnel response costs.
Miller is set to be sentenced on May 28, 2014. Williams and Simon will be sentenced on May 29, 2014.
The West Virginia State Police and the IRS Criminal Investigation Division conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed today’s sentences.
Two Individuals Plead Guilty to Securities Fraud, Money Laundering in Connection with Investment SchemeRead the Press Release
Persuaded Investors To Invest Ira Funds In Residential Real Estate Project In Vernal, UtahSALT LAKE CITY - Martin A. Pool, age 44, of Atlanta, Georgia, and Armand R. Franquelin, age 57, of Liberty, Utah, pleaded guilty to securities fraud and money laundering Wednesday afternoon in U.S. District Court in Salt Lake City. Pool and Franquelin were charged in a three-count felony information filed in April.
As a part of a plea agreement reached with federal prosecutors, Pool and Franquelin admitted that from 2006 to 2010, they participated in persuading investors to convert their traditional IRAs to self-directed IRA accounts and invest their funds in a residential real estate project known as Haven Estates in Vernal, Utah. This was accomplished by inducing the investors to direct their funds to their company, The Elva Group, in return for promissory notes from Elva with a promise of monthly interest payments at annual rates between 8 percent and 20 percent. Pool and Franquelin admitted they told investors that their funds would be used to develop Haven Estates and promised to secure their loans with first lien positions in property at Haven Estates. In fact, no investors ever received any collateral or any interest in real property in Haven Estates or anywhere else.
In reality, the plea agreement says, investors’ funds were used for purposes other than the development of Haven Estates. Investors were not told of encumbrances already in place on Haven Estates. When Elva began defaulting on the mortgage loan for Haven Estates, investors were not immediately informed. Eventually, Haven Estates was foreclosed.
Pool and Franquelin admitted that these actions were taken in connection with the investors’ purchase of securities, namely the promissory notes and loan agreements. They also admitted that these representations were made for the purpose of defrauding investors.
According to the plea agreement, investors’ funds were used by Pool and Franquelin and their associates for their personal benefit and to pay interest to earlier investors as Ponzi payments. The Ponzi payments had the effect of lulling the earlier investors, persuading them to leave their funds in the company and inducing them to renew their promissory notes from time to time. The payments also enticed new investors to invest.
Pool and Franquelin each plead guilty to one count of securities fraud and one count of money laundering.
As a part of the plea agreement, Pool and Franquelin agreed to pay restitution of $9,031,336.83 to victims of the fraud, including victims of uncharged relevant conduct. Alabama victims invested more than $500,000 in this scheme.
The case was a multi-jurisdictional investigation by special agents of the FBI and IRS-Criminal Investigation; the Utah Department of Commerce, Division of Securities; and the Alabama Securities Commission with assistance from the office of Baldwin County, Alabama, District Attorney Hallie S. Dixon (28th Judicial Circuit).Alabama Securities Commission Director Joseph Borg, said, "The Alabama Securities Commission is proud to have joined the collaborative efforts of the federal and state law enforcement agencies and their professional staff members to see that justice is served for the victims in this important case. The outcome resulted from a team approach between the U.S. Attorney's Office in Utah, the Utah Department of Commerce's Division of Securities, the FBI, the IRS, and the ASC Enforcement and Legal Divisions to send a message that this financial crime, and others like it, will not be tolerated and will be prosecuted to the fullest extent of the law."
Pool is scheduled to be sentenced July 31, 2014, at 2:30 p.m. Franquelin’s sentencing is set for Aug. 18, 2014, at 2:30 p.m. Sentences will be imposed by U.S. District Judge Dale A. Kimball. As a part of Pool’s plea agreement, prosecutors and the defendant agreed to recommend the Court impose a 78-month sentence. The sentence is subject to the approval of the Court. Franquelin’s sentence will be determined at the sentencing hearing.
Two Baltimore Men Plead Guilty to Armed Robbery ConspiracyRead the Press Release
Baltimore, Maryland – Edward Lee, age 43, and Devan Martin, age 41, both of Baltimore, Maryland, pleaded guilty today to conspiring to rob a hair salon and its owner.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Lee and Martin’s plea agreements, on December 1, 2012, Lee, Martin and co-conspirator Michael Gwaltney, were seen via the Baltimore Police City Watch camera system approaching a man who was entering his vehicle, on Carrollton Avenue in Baltimore. Through the City Watch Camera, the monitoring officer was able to observe Lee, Martin and Gwaltney having a conversation with the individual. The conversation appeared to turn into an argument and the victim was seen handing money to Gwaltney, while Lee patted the victim down. As Lee turned away from the victim, the monitoring officer saw a gun in his hand. Lee and Gwaltney then escorted the victim across the street, while Martin rummaged through the victim’s vehicle and removed a briefcase from the trunk. As Lee and Gwaltney entered a building in the block, the City Watch operator saw a gun in Gwaltney’s waistband.
The City Watch operator called for police units to respond to the area. As the units responded, they stopped Martin approximately one-half block from the car with the briefcase. The officers then proceeded into the block and eventually located the victim leaving his wife's business, a hair salon. The victim advised officers that Lee and Gwaltney had taken him into the business and demanded drugs and money from him. The victim stated that after seeing the officers in the block, Gwaltney ordered the victim go out and tell the officers that everything was fine. Eventually, both Gwaltney and Lee exited the business, were placed under arrest, and the business was searched. Officers recovered a .38 caliber revolver, as well as clothing that matched the items worn by Gwaltney as he entered the location. In the yard adjacent to the business, officers recovered a 9mm semi-automatic handgun.
Lee, Martin and Gwaltney had agreed to carry out the robbery of the victim and the hair salon business.Lee, Martin and the government have agreed that if the Court accepts their plea agreements Lee will be sentenced to 10 years in prison and Martin will be sentenced to between five and six years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Lee on August 13, 2014, and for Martin on September 4, 2014. Michael Gwaltney, age 39, of Baltimore, previously pleaded guilty to his role in the robbery and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Twenty Million Dollar Stolen Identity Refund Fraud Ring IndictedRead the Press Release
Identities Stolen from Fort Benning, various Alabama State agencies, and a call center
Montgomery, Alabama– Tracy Mitchell, of Phenix City, Alabama; Dameisha Mitchell, of Phenix City, Alabama; Latasha Mitchell, of Phenix City, Alabama; Keisha Lanier, of Seale, Alabama; Sharondra Johnson, of Phenix City, Alabama; Cynthia Johnson, of Phenix City, Alabama; Mequetta Snell-Quick, of Phenix City, Alabama; Talarious Paige, of Phenix City, Alabama; and Patrice Taylor, of Midland, Georgia were indicted for their roles in a $20 million dollar Stolen Identity Refund Fraud (“SIRF”) conspiracy, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama following the unsealing of the superseding indictment.
According to the Superseding Indictment, between January 2011 and December 2013, the Defendants ran a large-scale identity theft ring in which they filed over 7,000 false tax returns that claimed in excess of $20 million in fraudulent claims. The Defendants obtained stolen identities from various sources to be used in filing false returns. Tracy Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Tracy Mitchell and her daughter, Latasha Mitchell, also obtained stolen identities from an Alabama state agency. Keisha Lanier obtained stolen identities from the Alabama Department of Corrections. Talarious Paige and Patrice Taylor worked in a call center for a Columbus, Georgia company and stole identities. Paige, in turn, sold those identities and they were used by Tracy Mitchell, Keisha Lanier, and others to file false tax returns.
In order to file tax returns, according to the Superseding Indictment, the Defendants obtained several Electronic Filing Numbers (“EFIN”) in the names of sham tax businesses. On behalf of those sham tax businesses, the Defendants applied for bank products from various financial institutions, which mailed blank check stock to the Defendants’ homes. Tracy Mitchell, Latasha Mitchell, Keisha Lanier, Mequetta Snell-Quick, and others used the sham tax businesses and stolen identities to file false tax returns.
Furthermore, according to the Superseding Indictment, the Defendants directed anticipated tax refunds to prepaid debit cards, to U.S. Treasury Checks, and to financial institutions which in turn issued the refunds via checks or prepaid debit cards. As to the refunds sent through the financial institutions, the Defendants simply printed out the refund checks from the check stock sent to them. Regarding the U.S. Treasury Checks, the Defendants directed those checks to be mailed to several addresses in Alabama and then obtained them from the mail. To coordinate the cashing of the refund checks, the Defendants sent various text messages between themselves. The Defendants cashed the fraudulent checks at several businesses located in Alabama, Georgia, and Kentucky. In addition to the conspiracy charge, the defendants are also charged with mail and wire fraud, access device fraud, and aggravated identity theft.
“To steal the identity of a soldier serving his/her country is the lowest form of thievery,” stated U.S. Attorney Beck. “If a soldier serving his country is not safe from identity theft, then none of us are safe from this crime. We will continue our efforts to stamp out this crime. Identity theft affects too many people in our communities and we must use all available resources under the law to destroy it. I want to commend the IRS Criminal Investigations Unit and the U.S. Army Criminal Investigation Command for their dedication to destroying this criminal organization.”
Daniel Andrews, the director of the U.S. Army Criminal Investigation Command's Computer Crime Investigative Unit stated, “Today's indictments are not only a strong testament to our unwavering commitment to aggressively pursue cases of identity theft and protect the men and women serving this nation, but also our equal commitment to work shoulder-to-shoulder with other law enforcement agencies and the DOJ in helping to bring those to justice who commit cyber-crime and identity theft while stealing from the American taxpayer.”
“Identifying, investigating and vigorously prosecuting those individuals involved in tax related identity theft schemes, remains a top priority for IRS Criminal Investigation,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “These indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
“The problem with identity theft is that the victims don’t know they have been subjected to the crime until well after the fact,” said U.S. Attorney for the Middle District of Georgia, Michael Moore. “The prosecution of this case resulted from the great work of the U.S. Attorney in Montgomery and the Tax Division. I hope it sends a message to both our soldiers and to those who try to take advantage of them – while you are protecting us from bad guys abroad, we will be protecting you from the bad guys at home.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum potential sentence of 10 years in prison for the conspiracy charge, a maximum potential sentence of 20 years in prison for each wire and mail fraud count, a maximum potential sentence of 15 years in prison for each access device fraud count, and a mandatory two-year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture, and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the Computer Crimes Investigative Unit of the U.S. Army Criminal Investigation Command. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown of Alabama are prosecuting the case. The United States Attorney’s Office for the Middle District of Georgia provided assistance in this matter.Tiverton Resident Faces up to Life in Federal Prison on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Ian D. Andrade, 37, of Tiverton, faces statutory penalties of up to life in federal prison when he is sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 7, 2014, having pleaded guilty on Wednesday to trafficking cocaine and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
Andrade was arrested by Newport Police on November 8, 2013, after officers stopped and executed a court authorized search of Andrade’s vehicle which resulted in the seizure of approximately 400 grams of cocaine packaged for sale, a loaded firearm and more than $4,400 in cash.
According to information presented to the court, during the fall of 2013, members of the Newport Police Department Vice Unit were conducting an investigation into Andrade’s alleged drug trafficking activities. Detectives developed information that Andrade was using a vehicle with a hidden compartment inside to facilitate his drug trafficking activities.
According to information presented to the court, on November 8, 2013, members of the Newport Police Department observed Andrade and a juvenile female, his girlfriend’s daughter, enter the vehicle outside a Newport residence and drive away. A uniformed Newport Police officer stopped the vehicle a short time later and advised Andrade of a court authorized search warrant for the vehicle. Andrade turned over two envelopes containing $4,435 in cash.
According to information presented to the court, the vehicle was towed to the Newport Police Department and searched. Investigators seized a loaded handgun and a plastic container with approximately 400 grams of cocaine packaged for sale in quantities consistent with distribution from inside a hidden compartment located behind the front passenger seat.
According to information presented to the court, after being advised of his constitutional rights, Andrade made a recorded statement to investigators admitting to possessing the cocaine and the firearm seized from the vehicle. Andrade told investigators that he used the firearm to protect his drugs. He also stated that the $4,435 in cash seized was drug money.
Possession of cocaine with the intent to distribute is punishable by a statutory penalty up to 20 years in federal prison and a fine of up to $1,000,000. Possessing a firearm in furtherance of a drug trafficking crime is punishable by a statutory penalty of up to life imprisonment with a mandatory minimum sentence of 5 years in federal prison, to run consecutive to the sentence imposed for possession of cocaine with the intent to distribute, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.The Rhode Island DEA Drug Task Force assisted Newport Police in this matter.
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Contact: 401-709-5357
[email protected]Three St. Thomas Men Sentenced Today for Their Roles in A Drug ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Ignacio Batis- Joseph, age 37, to 70 months of incarceration and five years of supervised release, Omar Norberto James-Byar, age 37, to 46 months of incarceration and five years of supervised release, and Eldry Santos-Guzman, age 33, to 33 months of incarceration and four years of supervised release. Batis-Joseph, James-Byar and Santos-Guzman are residents of St. Thomas, Virgin Islands. Each defendant was sentenced for his role in a drug conspiracy that ended in the seizure of 85 kilograms of cocaine, announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito Guarino.
On December 11, 2013, James-Byar and Batis-Joseph pleaded guilty to conspiracy to possess narcotics with the intent to distribute and Santos Guzman pleaded to the same charges on December 13, 2013.
According to the plea documents filed in court, in August of 2013, Batis-Joseph contacted a DEA Task Force Officer acting in an undercover capacity for the purpose of conducting a transaction involving the sale of 100 kilograms of cocaine. Thereafter, the Page -2- defendant encouraged the officer to travel to St. Thomas in order to purchase the 100 kilograms of cocaine. On September 11, 2013, the officer contacted Batis-Joseph and informed him that he was on his way to St. Thomas and would purchase 10 kilograms of cocaine. Later that day, Batis-Joseph arrived at the Crown Bay Marina in a red Ford Explorer, along with James-Byar and Santos-Guzman. During the meeting with the officer, a red Cost U Less bag that contained approximately 11 kilograms of cocaine was produced by the defendants and given to the officer to inspect. When the officer informed Batis-Joseph that the money was on the way, Batis-Joseph told James-Byar and Santos-Guzman to leave the area. James-Byar and Santos-Guzman were arrested as they attempted to leave the parking lot. Batis-Joseph was arrested at the scene. After the arrest, 74 kilograms of cocaine was found at an apartment in downtown Charlotte Amalie.
U.S. Attorney Sharpe commended the efforts of the DEA which investigated the case. The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
Three Men Sentenced for Trafficking Meth in HoustonRead the Press Release
HOUSTON – Roberto Carlos Garza, Alexander Chavez and Martin Loya-Plancarte have all been ordered to federal prison for their roles in a five kilogram methamphetamine deal that occurred on May 18, 2013, announced United States Attorney Kenneth Magidson. Garza, 24, and Chavez, 34, both of Rio Grande City, and Loya-Plancarte, 26, an undocumented alien from Mexico residing in the Houston area, all previously pleaded guilty in the case.
Today, U.S. District Judge Lynn N. Hughes sentenced Loya-Plancarte to a 294-month federal prison term, while Garza and Chavez were ordered to serve 90 and 96 months, respectively. Garza and Chavez will also be required to serve five years of supervised release. Loya-Plancarte, not a U.S. citizen, also received a five-year-term of supervised release but is expected to face deportation proceedings following his release from federal prison.
At the time of their guilty pleas, the men admitted to arranging a methamphetamine transaction on May 17, 2013, for approximately 22 pounds of methamphetamine at a price of $15,000 per pound. The following day, Garza and Chavez each agreed to deliver the drugs to a parking lot near the Houstonian Hotel in Houston.
At approximately 12:58 p.m. on May 18, 2013, agents observed a gray Honda CR-V arrive at the location driven by Chavez with Garza riding as a passenger. Shortly after arrival, agents attempted to take Garza and Chavez into custody. Identifying themselves as law enforcement officers and wearing law enforcement identification, agents ordered them out of the vehicle. Chavez attempted to flee, driving in reverse and striking another vehicle, then driving forward and accelerating rapidly towards two agents who were on foot.
Fearing for his life, one of the agents fired two rounds from his service weapon toward Chavez while attempting to move out of the way and avoid being hit. The agent believed Chavez was attempting to run him over and had no choice but to fire his weapon toward the vehicle to avoid being run over and possibly killed. The rounds appeared to strike Chavez and the CR-V veered to the side, struck two other vehicles and came to a stop.
Garza was then taken into custody and Chavez was treated at the scene until an ambulance arrived and transported him to a hospital for treatment. Agents subsequently seized three plastic containers containing methamphetamine from the rear area of the Honda. The methamphetamine had a net weight of 4.946 kilograms, was 90.1% pure and had been imported into the U.S. from Mexico.
Upon his arrest, Garza made several statements incriminating himself, Chavez and Loya-Plancarte in this methamphetamine transaction. Garza and Chavez each also stated that Loya-Plancarte was the person in Houston who had set up the deal and that they were conducting the transaction in part under his supervision.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is the result of an investigation conducted by agents from the Drug Enforcement Administration with assistance from the Houston Police Department. Assistant United States Attorney Arthur R. Jones is prosecuting.
Three Men Guilty of Federal Felony Charges for Starting Illegal Campfire in Angeles National Forest That Became Colby FireRead the Press Release
LOS ANGELES – The third man involved in an illegal campfire above Glendora that erupted out of control to become the destructive Colby Fire was found guilty this afternoon of federal criminal charges.
Jonathan Carl Jarrell, 24, was found guilty of a felony offense of unlawfully setting timber afire. After a three-day trial, a jury also convicted Jarrell of a misdemeanor offense of illegally starting a fire. (The jury was unable to reach a unanimous verdict on two other misdemeanor fire-related charges.)
Two other defendants – Clifford Eugene Henry Jr, 22, of Glendora, and Steven Robert Aguirre, 21 – were each found guilty last Friday of four charges (one felony and three misdemeanors) related to the fire.
The Colby Fire started on the morning of January 16. By that evening, the fire had consumed more than 1,700 acres of federal, state, local and private lands. The fire had also destroyed five residences, damaged 17 additional structures, and resulted in injuries to one civilian and two firefighters.
Henry, Aguirre and Jarrell were detained by Glendora Police Officers after they were seen escaping the fire. During interviews with Glendora Police and personnel with the Los Angeles County Fire Department’s Arson Investigations Unit – interviews that the jury heard during the two trials – all three defendants admitted playing a role in the starting of a campfire that started the Colby Fire after wind blew burning paper into the brush in the hills above Glendora.
A United States Forest Service fire investigator determined that the origin of the Colby Fire was at a point near a fire ring built by the three men at a location on federal lands within the Angeles National Forest.
As a result of today’s guilty verdicts, Jarrell faces up to 5½ year in federal prison when he is sentenced by United States District Judge George H. Wu on July 31.
Henry and Aguirre are scheduled to be sentenced by Judge Wu on August 4. They each face a statutory maximum penalty of 6½ years in prison.
The investigation in this case was conducted by the United States Forest Service, the Glendora Police Department and the Los Angeles County Fire Department.
Release No. 14-065
Third Fugitive Extradited from El Salvador to the United States to Face Federal Robbery and Felony Murder Charges in New MexicoRead the Press Release
ALBUQUERQUE – Francisco Melgar-Cabrera, also known as Francisco Malgar-Cabrera, 30, a Salvadoran national, was extradited from El Salvador to the United States on Wednesday, May 21, 2014. Melgar-Cabrera was previously indicted by a District of New Mexico grand jury on Oct. 14, 2010, on multiple charges, including federal robbery and felony murder stemming from an armed robbery and murder in Albuquerque, N.M., in June 2009.
Damon P. Martinez, the Acting U.S. Attorney for the District of New Mexico, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, made the announcement.
Melgar-Cabrera, who is charged with multiple counts, including federal robbery and felony murder charges, faces a maximum penalty of life imprisonment if convicted. Melgar-Cabrera will make his initial appearance this morning in the U.S. District Court in Albuquerque and be arraigned on the charges against him.
Melgar-Cabrera and co-defendants Marvin Aguilar-Lopez and Pablo De Leon Ortiz, both Salvadoran nationals, were indicted in Oct. 2009, and charged with armed robbery, felony murder and firearms offenses. The nine-count indictment stemmed from the armed robbery of a Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Stephanie Anderson, a cook at the restaurant.
In April 2010, a ten-count superseding indictment was filed adding Melgar-Cabrera’s brother, Jose “Tito” Humberto Melgar-Cabrera, also a Salvadoran national, as a defendant. Jose Melgar-Cabrera was charged as an accessory after the fact for assisting Melgar-Cabrera to avoid apprehension. A 14-count second superseding indictment, filed in Oct. 2010, added four new robbery and firearms offenses against Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz. The new charges arose out of the armed robbery of a Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
Aguilar-Lopez and De Leon Ortiz each have entered guilty pleas to armed robbery and felony murder charges. Aguilar-Lopez was sentenced to 40 years in prison and De Leon Ortiz was sentenced to a 35-year term of imprisonment. Jose Melgar-Cabrera pled guilty to being an accessory after the fact and is serving a 48-month term of imprisonment. Each of the three men will be deported after completing his term of incarceration.
Melgar-Cabrera fled to El Salvador where he was arrested on Sept. 14, 2013, by Salvadoran law enforcement authorities on a provisional arrest warrant for his extradition. He was apprehended by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force. The TAG is composed of specially trained Salvadoran National Police investigators who work closely with the FBI on transnational investigations.
“The extradition of Francisco Melgar-Cabrera brings a fugitive to justice as we continue to enhance the federal law enforcement community’s partnership with El Salvador,” said Damon P. Martinez, the Acting U.S. Attorney for the District of New Mexico. “This extradition is an example of the United States’ continued efforts to work with our partners around the world to make sure criminals cannot find safe haven from justice.”
“I am extremely proud of the work of this office and our law enforcement partners. I would like to recognize the investigative efforts of ATF Special Agents who for years doggedly pursued Melgar-Cabrera for his alleged role in the 2009 murder of Stephanie Anderson. I hope his extradition back to face justice brings some peace to Stephanie’s family,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. “ATF is committed to working with our law enforcement partners – at home and around the world – to take violent criminals off the streets and bring them to justice.”
“Justice, like the grief of a family who lost a young woman in the prime of her life, transcends international boundaries. The governments and law enforcement agencies of the United States and El Salvador proved that by working together to bring this suspect back home, where his long-awaited trial will hopefully give Stephanie Anderson's loved ones some closure” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “I want to recognize the work of the FBI Special Agents and other staff in this case, particularly FBI Legal Attaché in San Salvador, as well as the U.S. Department of State, U.S. Department of Justice Office of International Affairs, U.S. Attorney's Office, the FBI's Transnational Anti-Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, the Government of El Salvador, and the Albuquerque Police Department.”
The charges in the second superseding indictment against Melgar-Cabrera are merely accusations, and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.The criminal case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Albuquerque Division of the FBI and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez of the District of New Mexico.
The extradition of Melgar-Cabrera is the result of close cooperation between the ATF, FBI, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, and Salvadoran law enforcement authorities. The United States law enforcement partners involved in the investigation and prosecution of Melgar-Cabrera praised the outstanding efforts of the Salvadoran National Police for their assistance in bringing this fugitive to justice. The Acting U.S. Attorney, Damon P. Martinez, also thanked the ATF’s Country Attaché in El Salvador, the FBI’s Legal Attaché office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs.
Tennessee Man Indicted for Cross BurningRead the Press Release
A federal grand jury in Nashville, Tennessee, returned a three count indictment yesterday against Timothy Flanagan, 33, formerly of Giles County, Tennessee, currently residing in Hudson, Florida, charging him with federal offenses for his role in a cross-burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice and U.S. Attorney’s Office for the Middle District of Tennessee announced.
The indictment charges Flanagan with one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony.
The indictment alleges that on April 30, 2012, Flanagan conspired with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights in Minor Hill, Tennessee. According to the indictment, Flanagan and two other individuals devised a plan to burn a cross in the yard of an interracial couple who had recently had a baby. The conspirators constructed a wooden cross, purchased diesel fuel and then covered the cross in a diesel-fuel-soaked cloth. The conspirators then drove the cross to the victims’ residence, placed the cross in the driveway and ignited it. Flanagan and his co-conspirators allegedly chose to burn the cross at the victims’ house because of their race, as well as the race of their infant child.
This case was investigated by the Columbia, Tennessee, Resident Agency of the FBI and the Giles County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Blanche Cook of the Middle District of Tennessee and Trial Attorney Jared Fishman of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Tax Preparer Sentenced to 46 Months in Prison for Filing 3,200 False Returns Claiming Refunds Totaling $3.37 Million for ClientsRead the Press Release
CHICAGO — A former Chicago tax preparer was sentenced today to nearly four years in federal prison for filing nearly 3,200 false federal income tax returns that claimed refunds totaling more than $3.37 million for clients. The defendant, VERLEAN HOLLINS, was sentenced to 46 months in prison and fined nearly $800,000 after pleading guilty in January to two counts of aiding and assisting in the preparation of false federal income tax returns.
Hollins, 43, of South Holland, was ordered to begin serving her sentence on Sept. 23 by U.S. District Judge Samuel Der-Yeghiayan. The $798,250 fine, which Hollins agreed to but does not currently have the ability to pay, represents twice the product of the 3,193 false returns multiplied by Hollins’ average client fee of $125.
This was “not a minor offense, there was significant loss to the government over a period of years,” Judge Der-Yeghiayan said in imposing the sentence in U.S. District Court. “Defendant stole from the people,” he said, adding her crime “became a business lifestyle.”
Hollins, who owned Taxes, Etc., Inc., a tax preparation business located in the 2300 block of East 71st Street, admitted that for calendar years 2009 through 2011, she filed a total of 3,193 individual income tax returns for clients, each of which claimed false education tax credits. As a result, she falsely claimed refunds totaling more than $3.372 million for her clients, the majority of whom paid her approximately $125 to prepare their returns. The vast majority of Hollins’ clients never indicated that they or a dependent were eligible for a college tuition credit, and among the small number of her clients who were eligible for the tax credit, none provided any documents to support eligibility.
The government is being represented by Assistant U.S. Attorney Kaarina Salovaara.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Statement from U.S. Attorney Joyce White Vance on DOJ Policy Calling for Electronic Recording of Individuals in Federal CustodyRead the Press Release
BIRMINGHAM -- “I have enormous confidence in the integrity of the federal agents with whom we work, but I also recognize that, increasingly, we live in a world where juries expect to see law enforcement make electronic recordings of defendants’ statements at the time of arrest,” said U.S. Attorney Joyce White Vance. “So, I am encouraged by this leap forward for the Department of Justice that will help us record the best evidence of a statement – a defendants’ own words and demeanor -- and allow juries to understand how deeply committed our agents are to carrying out their mission in a professional manner. This new policy will help us side step unwarranted allegations by defendants of agent misconduct and permit us to protect our communities in a fair and just manner.”
The Attorney General's Weekly Video Message
St. Thomas Woman Arrested and Charged with Embezzlement of Postal FundsRead the Press Release
St. Thomas, USVI - Rosemarie Peltier, age 43, was arrested today and charged with misappropriation of postal funds, embezzlement of government property, and false entries and reports of monies and securities. Peltier appeared in District Court before District Court Judge Curtis V. Gomez and was released from custody after posting a $10,000 unsecured bond.
According to the Indictment filed in the District Court, Peltier, a nine year veteran with the United States Postal Service, failed to remit in excess of $29,000 given to her by customers for the purchase of money orders from the U.S. Postal Service.
If convicted of the offenses charged in the indictment, Peltier faces a statutory maximum of not more than 10 years in prison for each offense.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The case was investigated by the Office of Inspector General of the United States Postal Service. It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
Sixteen Current and Former Puerto Rico Police Officers<br /> Indicted for Allegedly Running Criminal Organization<br /> out of Police DepartmentRead the Press Release
Sixteen current and former Puerto Rico police officers have been indicted for their alleged participation in a criminal organization, run out of the police department, that used their affiliation with law enforcement to make money through robbery, extortion, manipulating court records and selling illegal narcotics.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“ The criminal action today dismantles an entire network of officers who, we allege, used their badges and their guns not to uphold the law, but to break it,” said Acting Assistant Attorney General O’Neil. “The indictment portrays a classic criminal shakedown, an organized crime spree of which the most experienced mafia family would have been proud. But the people wielding the guns and stealing the drugs here weren’t mob goodfellas or mafia soldiers – these were police officers violating their oaths to enforce the law, making a mockery of the police’s sacred responsibility to protect the public. ”
“This is a troubling day for law enforcement in Puerto Rico. Officers who use their badges as an excuse to commit egregious acts of violence and drug trafficking are an affront to the rule of law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “According to these allegations, the law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting, extorting money, planting evidence and stealing from them, to mention a few of their crimes. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to end this cycle of corruption and renew Puerto Rico’s trust in its police officers.”
“Today is a sad day for Puerto Rico, where a group of police officers allegedly disgraced their uniform and are a shame to the Police of Puerto Rico,” said FBI Special Agent in Charge Cases. “They not only let their colleagues and family down, they let the citizens of Puerto Rico down.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico, includes 36 charges against the following individuals: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 34; Roberto Ortiz-Cintron, 34; Yovanny Crespo-Candelaria, 33; Jose Sanchez-Santiago, 31; Miguel Perez-Rivera, 34; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; Carlos Candelario-Santiago, 46; Ruben Casiano-Pietri, 36; Ricardo Rivera-Rodriguez, 39; and Christian Valles-Collazo, 28. At the time of the crimes charged, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR); the others were police officers.
The first 13 defendants listed are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Other charges against certain defendants include extortion and attempted extortion under color of official right, conspiracy to commit robbery and attempted robbery, illegal use and sale of firearms, narcotics trafficking, civil rights violations, theft of government property, and false statements to federal agents.
According to the indictment, the officers charged with RICO conspiracy were members of a criminal organization who sought to enrich themselves through a pattern of illegal conduct. The officers worked together to conduct traffic stops and enter homes or buildings used by persons suspected of being engaged in criminal activity to steal money, property and narcotics. The officers planted evidence to make false arrests, then extorted money in exchange for their victims’ release from custody. In exchange for bribe payments, the defendants gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed. The officers also sold and distributed wholesale quantities of narcotics.
For example, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira allegedly conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual they believed to be a drug dealer’s accomplice in exchange for promising to release an alleged prisoner.
In another example, the indictment alleges that in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The indictment charges that the defendants frequently shared the proceeds they illegally obtained and that they used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the indictment charges that they used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes and concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork to make it appear that they were engaged in legitimate police work.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.Related Materials:
Indictment
Sixteen Current and Former Puerto Rico Police Officers Indicted for Allegedly Running Criminal Organization Out of Police DepartmentRead the Press Release
WASHINGTON – Sixteen current and former Puerto Rico police officers have been indicted for their alleged participation in a criminal organization, run out of the police department, that used their affiliation with law enforcement to make money through robbery, extortion, manipulating court records and selling illegal narcotics.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“The criminal action today dismantles an entire network of officers who, we allege, used their badges and their guns not to uphold the law, but to break it,” said Acting Assistant Attorney General O’Neil. “The indictment portrays a classic criminal shakedown, an organized crime spree of which the most experienced mafia family would have been proud. But the people wielding the guns and stealing the drugs here weren’t mob goodfellas or mafia soldiers – these were police officers violating their oaths to enforce the law, making a mockery of the police’s sacred responsibility to protect the public.”
“This is a troubling day for law enforcement in Puerto Rico. Officers who use their badges as an excuse to commit egregious acts of violence and drug trafficking are an affront to the rule of law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “According to these allegations, the law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting, extorting money, planting evidence and stealing from them, to mention a few of their crimes. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to end this cycle of corruption and renew Puerto Rico’s trust in its police officers.”
“Today is a sad day for Puerto Rico, where a group of police officers allegedly disgraced their uniform and are a shame to the Police of Puerto Rico,” said FBI Special Agent in Charge Cases. “They not only let their colleagues and family down, they let the citizens of Puerto Rico down.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico, includes 36 charges against the following individuals: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 34; Roberto Ortiz-Cintron, 34; Yovanny Crespo-Candelaria, 33; Jose Sanchez-Santiago, 31; Miguel Perez-Rivera, 34; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; Carlos Candelario-Santiago, 46; Ruben Casiano-Pietri, 36; Ricardo Rivera-Rodriguez, 39; and Christian Valles-Collazo, 28. At the time of the crimes charged, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR); the others were police officers.The first 13 defendants listed are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Other charges against certain defendants include extortion and attempted extortion under color of official right, conspiracy to commit robbery and attempted robbery, illegal use and sale of firearms, narcotics trafficking, civil rights violations, theft of government property, and false statements to federal agents.
According to the indictment, the officers charged with RICO conspiracy were members of a criminal organization who sought to enrich themselves through a pattern of illegal conduct. The officers worked together to conduct traffic stops and enter homes or buildings used by persons suspected of being engaged in criminal activity to steal money, property and narcotics. The officers planted evidence to make false arrests, then extorted money in exchange for their victims’ release from custody. In exchange for bribe payments, the defendants gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed. The officers also sold and distributed wholesale quantities of narcotics.
For example, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira allegedly conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual they believed to be a drug dealer’s accomplice in exchange for promising to release an alleged prisoner.
In another example, the indictment alleges that in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The indictment charges that the defendants frequently shared the proceeds they illegally obtained and that they used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the indictment charges that they used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes and concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork to make it appear that they were engaged in legitimate police work.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.
Six Sentenced for Robberies of Hotels & Pawn ShopRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that MARVIN ANTHONY BLANGO, 20, of Vanceboro, CLIFFORD EARL HORTON, III, 20, of Bayboro, ANTONIO RAY STEVENS, 24, of New Bern, DEMARCUS DEON DRIGGERS, 21, of Raleigh and DIQUAN ANTOINE BELL, 20, of Bayboro were each sentenced resulting from their earlier guilty pleas to robbery and firearms charges. The charges involved a string of robberies of hotels and a robbery of a federal firearm licensee in December 2012. The businesses victimized were the Best Western Riverside Inn and Suites and Hampton Inn in New Bern; the Hilton Garden Inn in Raleigh; and the Glenburnie Coin & Pawns in New Bern.
On November 19, 2013, BLANGO pled guilty to the theft of firearms from federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On May 21, 2014, BLANGO was sentenced to 162 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.86 in restitution. On September 30, 2013, HORTON and STEVENS pled guilty to theft of firearms from a federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, HORTON and STEVENS were sentenced for these offenses. HORTON was sentenced to 171 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.96 in restitution. STEVENS was sentenced to 180 months imprisonment followed by 5 years of supervised release and ordered to pay $5,840.86 in restitution. On September 30, 2013, DRIGGERS pled guilty to the interference with commerce by threats or violence and aiding and abetting, and to using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, DRIGGERS was sentenced to 126 months imprisonment followed by 5 years of supervised release and was ordered to pay $141.00 in restitution. On September 30, 2013, BELL pled guilty to the interference with commerce by threats or violence and aiding and abetting. On January 17, 2014, BELL was sentenced to 70 months imprisonment followed by 3 years of supervised release and was ordered to pay $141.00 in restitution.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Bern Police Department, the Craven County Sheriff’s Office, the Raleigh Police Department, North Carolina State Bureau of Investigation, and the New Hanover County Sheriff’s Office.
Six Defendants Charged with Securities Fraud Related ViolationsRead the Press Release
180 Defendants Have Been Charged to Date as Part of the Southern District of Florida Securities and Investment Fraud Initiative
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Eric I. Bustillo, Regional Director, Securities and Exchange Commission (SEC), Fred W. Gibson, Jr., Principal Deputy Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), David Meister, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), Cindy Liebes, Director, Federal Trade Commission, Southeast Region (FTC), and Drew J. Breakspear, Commissioner, State of Florida’s Office of Financial Regulation, announce the most recent charges filed in connection with the Southern District of Florida Securities and Investment Fraud Initiative (the “Initiative”). The Initiative was first announced in December 2010 and designed to combat securities fraud and protect the interests of the investing public.
The Initiative was established to address an increase in investment and securities fraud schemes in the Southern District of Florida. Participating agencies include the U.S. Attorney’s Office, FBI, IRS-CI, USSS, USPIS, SEC, CFTC, FTC, FDIC-OIG, and the Florida Office of Financial Regulation. These law enforcement and regulatory agencies have shared intelligence and combined their resources to combat securities and investment fraud, including Ponzi schemes, affinity fraud schemes, prime bank/high-yield investment scams, business opportunity fraud, promoter/micro-cap/“pump and dump” schemes, foreign exchange (FOREX) frauds, false bankruptcy petitions, and other schemes to defraud individual investors. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.
Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 180 defendants in the Southern District of Florida, resulting in more than $ 1.8 billion in restitution ordered.
Today, we announce charges against six individuals in the following five cases:
1. United States v. Eric Brown, Case No. 14-60107-CR-Cohn
Eric Brown, 50, of Brooklyn, New York, is charged with one count of mail fraud, in violation of Title 18, United States Code, Section 1341. The information alleges that Brown agreed to pay a purported fund manager one share for every four shares of buying that the fund would make in DAM Holdings, Inc. (DAMH). In October 2011, Brown agreed to come to Florida to induce the fund manager to invest in DAMH.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
2. United States v. Billy Ray, Jr., Case No. 14-60109-CR-Zloch
Billy Ray, Jr., 56, of Cumming, Georgia, is charged with one count of securities fraud, in violation of Title 18, United States Code, Section 1348. The information alleges that Ray was the CEO and President of the Board of Directors of Urban AG Corporation (AQUM), a Delaware corporation that was publicly traded. Its common stock was traded in the Pink Sheets and registered with the SEC under Section 12 of the Securities Exchange Act of 1934. On approximately May 28, 2013, Ray agreed to pay a kickback to induce a hedge fund manager to invest the fund’s money in AQUM.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
3. United States v. Wade Clark, Case No. 14-60108-CR- Dimitrouleas
Wade Clark, 38, of Melissa, Texas, is charged with committing one count of insider trading, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a), and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. The information alleges that on or about July 9, 2013, in a recorded conversation, Clark told an FBI undercover agent who posed as a hedge fund manager about press releases that had not yet been issued. Clark told the purported fund manager “you should probably start buying” stock before a press release was issued.
The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
4. United States v. Kevin McKnight and Stephen Bauer, Case No. 14-80080-CR-Hurley
Kevin McKnight, 41, of Boca Raton, and Stephen Bauer, 63, of Hillsboro Beach, were charged by indictment alleging that they conspired to commit securities fraud, in violation of Title 18, United States Code, Section 1349. According to the indictment, both men were promoters for Environmental Infrastructure Holdings Corp. (EIHC), a publicly traded company whose stock was registered with the SEC. The defendants were charged with engaging in a scheme to manipulate the publicly quoted share price and trading volume of EIHC common stock. The alleged scheme involved, among other things, illegal kickbacks and the “match trading” of stock, which is the unlawful buying and selling of securities in equal quantities by two parties to a transaction, rather than their bidding or offering orders on the open market.
The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
5. United States v. Jeffrey Berkowitz, Case No. 14-20342-CR-Scola
Jeffrey Berkowitz, 57, of Palm Beach County, a stock promoter, was charged by information with conspiracy to engage in a scheme to manipulate the publicly quoted share price and trading volume of Face Up Entertainment Group (FUEG) stock, in violation of Title 18, United States Code, Section 371. FUEG, a Florida corporation, is purported to be in the business of operating an internet gaming website.
The case is being prosecuted by Assistant U.S. Attorney Michael Sherwin.
Mr. Ferrer commends the investigative efforts of the FBI, IRS-CI, USSS, USPIS, SEC, FDIC-OIG, CFTC, FTC, and the State of Florida’s Office of Financial Regulation.
An indictment or information is merely an accusation and defendants are presumed innocent until proven guilty.
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.
Shiprock Man Pleads Guilty to Federal Aggravated Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Vernon J. Atcitty, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an aggravated sexual assault charge. Under the terms of his plea agreement, Atcitty will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court. Atcitty will be required to register as a sex offender after he completes his prison sentence.
Atcitty was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse, and subsequently was indicted on that same charge on March 11, 2014. According to court filings, Atcitty sexually assaulted a Navajo woman on Feb. 22, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
In entering his guilty plea, Atcitty admitted taking the victim to an abandoned house and refused to let her leave until he raped her. Atcitty admitted forcing the victim to succumb to his demands by punching and grabbing her and by telling her that he would not let her leave the abandoned house.
Atcitty has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Serial Bankruptcy Filer Sentenced to 18 Months in Prison for Lying During Bankruptcy ProceedingsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Shelley R. Callahan, 49, of Clinton, Mo., was sentenced by U.S. District Judge Donald Walter to 18 months in prison and three years of supervised release for making a false statement during a bankruptcy proceeding. She was also ordered to pay $21,990 in restitution.
After a three-day trial that ended on February 14, 2013, witness testimony and exhibits admitted into evidence established that Callahan filed for bankruptcy protection on August 26, 2010, her eighth bankruptcy filing in nine years. Callahan falsely stated that she had not given any gifts or made any payments to family members prior to filing for bankruptcy protection. In truth, Callahan received more than $55,000 for a personal injury claim eight months before her latest bankruptcy filing. Instead of paying her creditors, she provided gifts during the Christmas season and gambling trips to casinos to her family.
The U.S. Trustee’s Office and the FBI conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan prosecuted the case.Serial Armed Robbers, Who Robbed Four Metroplex Jewelry Stores, Are Arrested on Federal ChargesRead the Press Release
DALLAS — Two men who are charged with recently committing the armed robberies of four jewelry stores in Dallas and Lewisville, Texas, were arrested this morning on federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Mark D. Whitfield, 35, of Mesquite, Texas, and Michael Demon Jackson, 37, of Dallas, are each charged in a federal criminal complaint with conspiracy to commit robbery and using, carrying and brandishing a firearm in relation to a crime of violence. They each made their initial appearance before U.S. Magistrate Judge Irma C. Ramirez this afternoon in federal court in Dallas and were detained.
According to the complaint, Whitfield and Jackson committed the following armed robberies:
October 18, 2013 Marquise Jewelers
13331 Preston Road, Dallas
February 4, 2014 Marquise Jewelers
13331 Preston Road, Dallas
February 24, 2014 Classic Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, Texas
April 29, 2014 Gianni’s Jewelers
2401 S. I-35E (Vista Ridge Mall), Lewisville, TexasGenerally, during each robbery, the two men would enter the store and one would ask to see diamond rings. The other man, armed with a pistol, would force the victim store employee to the floor while jewelry in display cases was taken at gunpoint. In-store video surveillance recorded all robberies. On two of these robberies, witnesses observed the robbers fleeing in a red car.
The investigation revealed that a 2010 Mitsubishi Galant, stopped for a traffic violation on February 15, 2014, matched the get-away vehicle’s description. The citation report listed Whitfield as the driver, and Jackson as the passenger. The vehicle was registered to Whitfield’s wife.
The investigation further revealed that Jackson was arrested on a state charge of unlawful possession of a firearm by a felon on March 13, 2014, when he was found with a loaded firearm during another traffic stop. He was released on bond the following day.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine. The maximum statutory penalty for the firearm offense is life in federal prison and a $250,000 fine. The government has 30 days to present the matter to a federal grand jury for indictment.
The Dallas FBI Violent Crimes Task Force, the Dallas Police Department and the Lewisville Police Department are conducting the ongoing investigation. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay, Assistant U.S. Attorney Lisa Miller and Special Assistant U.S. Attorney Lara Burns are prosecuting.
(Download Factual Basis)
Sentences Imposed in Federal Drug Trafficking and Murder CaseRead the Press Release
GRAND RAPIDS, MICHIGAN – Four Lansing men were sentenced this week in U.S. District Court, announced U.S. Attorney Patrick A. Miles, Jr. The men - Charles Kunta Lewis, age 36, Wallee Abdullazeem Al-Din, age 24, his brother, Mustafa Al-Din, age 25, and Ralphael Crenshaw, age 24 - were tried by a jury before U.S. District Judge Robert J. Jonker during August, 2013. After a two-week trial, they were convicted of conspiring to commit drug trafficking crimes and robbery, and using a firearm during and in relation to a drug trafficking crime resulting in murder. The four defendants were found guilty of abducting and murdering Lansing resident Shayla Johnson, age 19, in an effort to obtain drugs. The sentences imposed were 50 years for Mustafa Al-Din, 60 years for Wallee Al-Din, life plus a consecutive term of seven years for Lewis, and 47 ½ years for Crenshaw.
Evidence at trial established that the defendants were members and associates of a violent Lansing street gang known as the Block Burners. The prosecution’s evidence demonstrated that during one six-week span in the summer of 2010, the defendants were involved in a pattern of robbing and at times beating victims for drugs, money and other valuable items. Their violent conduct culminated in the kidnaping and first degree murder of Shayla Johnson. The defendants wrongly believed Shayla Johnson had access to a large number of marijuana plants. The defendants planned to kidnap her in order to compel her to disclose the location of the marijuana plants. Acting on their plan, the defendants entered her home, forced her from her bedroom, and brutally shoved her into the trunk of a vehicle. When Ms. Johnson resisted, she was fatally shot multiple times with an assault rifle.
In the fall of 2010, the Ingham County Prosecutor’s Office sought the assistance of the U.S. Attorney’s Office in the prosecution of the matter because of serious concerns over allegations of obstruction and intimidation by gang members. The decision was made to transfer the case to federal court for prosecution.
“These lengthy sentences highlight the acts of senseless violence committed by these individuals; their actions were particularly heinous and brutal,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven Bogdalek. “It is my hope that these sentences will bring some measure of comfort to the family of Shayla Johnson and to the other victims. I want to commend the investigative efforts our ATF Special Agents, Lansing Police Department, Meridian Township Police Department, Ingham County Prosecutor’s Office, and the United States Attorney’s Office.”
This case was prosecuted by Assistant U.S. Attorneys Timothy P. VerHey and Brian K. Delaney and Special Assistant U.S. Attorney Catherine Emerson, on assignment from the Ingham County Prosecutor’s Office.
END
San Antonio Man Sentenced to Federal Prison for Escaping Half-Way House and Robbing A San Antonio BankRead the Press Release
In San Antonio this morning, 45-year-old Malcolm David Brooks was sentenced to 92 months in federal prison followed by three years of supervised release for escaping from a half-way house and robbing a San Antonio bank in 2012 announced United States Attorney Robert Pitman, United States Marshal Robert Almonte and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On February 21, 2014, Brooks pleaded guilty to one count of escape and one count of unarmed bank robbery. By pleading guilty, Brooks admitted that in early February 2012, he escaped from custody in a half-way house in San Antonio. Brooks was serving the remainder of a 140-month federal prison sentence imposed in El Paso in 2002 for committing seven 2001 bank robberies in Missouri, Oklahoma, Colorado and Texas. On February 13, 2012, approximately one week after his escape, Brooks stole approximately $1,200 from a Wells Fargo branch in San Antonio. San Antonio Police officers were able to apprehend Brooks after he barricaded himself inside a restroom of a nearby restaurant.
This case was investigated by the Federal Bureau of Investigation and the U.S. Marshals Service together with the San Antonio Police Department. Assistant United States Attorney Michael Hardy prosecuted this case on behalf of the Government.
Rothstein, Rosenfeldt and Adler Partner Charged with ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce the filing of charges against Stuart Rosenfeldt, 59, of Boca Raton, for conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). Stuart Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The information, which was filed earlier today, charges Rosenfeldt with conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of Title 18, United States Code, Section 371. If convicted, Rosenfeldt faces a maximum statutory sentence of up to five years in prison.
According to the information, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Rosenfeldt, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA. Stuart Rosenfeldt also participated in a scheme to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Additionally, Rosenfeldt arranged with Rothstein to have certain law enforcement officers utilize unlawful threats against the boyfriend of an escort who was threatening to expose an illicit relationship which existed between the escort and Rosenfeldt.
Mr. Ferrer commended the investigative efforts of the FBI and the IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Registered Sex Offender Indicted for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A federal grand jury returned an indictment yesterday charging Mark Anthony Pape, 23, of Fort Worth, Texas, with one count of production of child pornography and one count of committing this offense as a registered sex offender. Pape has been in federal custody since his arrest last month in San Marcos, Texas, on a related charge outlined in a federal criminal complaint. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to the criminal complaint, in February 2014, Pape used a prepubescent minor to engage in sexually explicit conduct with him and made a video recording of that conduct with his cell phone. During the execution of a state search warrant at a search of Pape’s residence, law enforcement seized that cell phone, and a forensic exam of the memory card revealed images and videos of Pape engaged in the sexual abuse of a prepubescent female.
The investigation was initiated when the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip regarding an individual who had uploaded an image, containing suspected child pornography, to the Internet. The investigation led to the identification of Pape, a registered sex offender.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the registered sex offender count, a mandatory 10-year consecutive sentence. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are investigating. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
(Download Factual Basis)
Reda Overton Pleads Guilty to Embezzlement and Theft from A Labor UnionRead the Press Release
KNOXVILLE, Tenn. – On May 20, 2014, Reda Overton pleaded guilty in U.S. District Court to a one-count Information charging her with unlawfully and wilfully embezzling over $200,000 from Locomotive Engineers, a labor union.
Sentencing for Overton has been set for October 23, 2014, at 3:00 p.m., in U.S. District Court, Knoxville. She faces up to five years in prison, a fine of up to $10,000, a term of supervised release of up three years, and a $100 special assessment.
According to the plea agreement on file with the U.S. District Court, beginning on or about December 10, 2008, Overton was employed as the Executive Secretary to the General Chairman of a Locomotive Engineers’ committee. Locomotive Engineers is a labor organization which represents bargaining unit members who are employed by Norfolk Southern, a Virginia-based railway company that ships products across state lines throughout the United States. Overton was paid a bi-weekly salary in exchange for her secretarial and treasury duties that consisted of processing the payroll for herself and others. Acting unlawfully and willfully with the intent to defraud, in her official capacity as an employee, Overton transferred or overpaid herself over $200,000, which was union money taken from the organization’s bank accounts and deposited into Overton’s personal bank accounts, including at least one bank account that was held in Overton’s name. Overton confessed to United States Department of Labor (“DOL”) investigators that she embezzled over $200,000 from the union.
Special agents with Department of Labor investigated this case and it is being prosecuted by Assistant United States Attorney Brooklyn Sawyers.
Raymond Man Pleads Guilty to Diverting Fentanyl at Exeter HospitalRead the Press Release
CONCORD, NEW HAMPSHIRE – Peter McGlynn, 45, of Raymond, pled guilty in United States District Court for the District of New Hampshire to obtaining a controlled substance by fraud, announced United States Attorney John P. Kacavas.
McGlynn admitted that on or about January 16, 2013, while working as an Emergency Medical Technician at Exeter Hospital, McGlynn volunteered to administer fentanyl (a powerful opiate) to a patient who was being treated at the Emergency Department of the hospital. Although he obtained 100 micrograms of fentanyl and claimed to administer the drug to a patient, the patient did not obtain any pain relief. A nurse suspected that the drug had not been provided to the patient. A drug test was performed on McGlynn. The test detected the presence of fentanyl in his system.
McGlynn is facing of up to 4 years in prison and a $250,000.00 fine and is scheduled to be sentenced on August 28, 2014.
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Exeter Police Department, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney John J. Farley.
Postal Service Supervisor in Brooklyn FacilityIs Charged in Federal Court with Possessing Thousands of Dollars of Baseball Cards Stolen from the MailRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Rafael A. Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Field Office, announced the arrest of a United States Postal Service supervisor for possessing and selling professional sports cards in Westchester County that had been stolen from the mail. Defendant JOHN BU was arrested today and presented in White Plains federal court before United States Magistrate Judge Judith C. McCarthy, who ordered that BU be released on bail.
According to the allegations in the criminal Complaint unsealed today in White Plains federal court:
From at least November 2, 2013, and up to and including November 9, 2013, BU unlawfully and knowingly possessed and sold baseball cards and professional sports cards in Westchester County that had been stolen from the United States mail. BU is alleged to have received thousands of dollars from selling the professional sports cards, including cards of greats like Larry Bird, Mickey Mantle, and Thurman Munson.
BU, 38, has been charged with one count of possessing stolen mail, in violation of 18 U.S.C. § 1708. The offense, upon conviction, carries a maximum prison sentence of five years. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the United States Postal Service, Office of the Inspector General, for its work in this investigation.
The prosecution is being overseen by the Office’s White Plains Unit. Assistant United States Attorney Daniel Filor is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. John Bu Complaint
Postal Employee Indicted for Mail TheftRead the Press Release
Follow @SDILNewsAbra K. Albrecht, 31, of Carrollton, Illinois, was charged on May 21, 2014, for theft of United States Mail by a postal employee in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, IL, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The indictment alleges that in February 2014, Albrecht, who was at the time working as a postal employee, stole a debit card that had been placed in the mail to be delivered to another person. The indictment further alleges that Albrecht converted the debit card to her own use. The mail theft charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Ranley R. Killian.
Portland Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Hamadi Hassan, 26, of Portland, pled guilty yesterday in U.S. District Court to conspiring to distribute crack cocaine.According to court records, between November 2010 and February 2012, the defendant was the leader of a drug trafficking conspiracy that acquired cocaine in Boston and distributed crack cocaine in the greater Portland area. The defendant took orders for crack cocaine from customers and co-conspirators, transported cocaine from Boston to Maine, and prepared, packaged and delivered crack cocaine to his customers and co-conspirators.
Hassan faces a mandatory minimum of 5 years and up to 40 years in prison, a $5,000,000 fine, or both. He will be sentenced after completion of a pre-sentence investigation report by the
U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation (FBI), the
Portland Police Department, the Maine Drug Enforcement Agency, the Maine State Police and the Southern Maine Gang Task Force, which is a task force comprised of agents and officers from FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland
Security, U.S. Drug Enforcement Administration and the Portland and Biddeford Police
Departments.Paxton, Ill. Man Sentenced to 30 Years in Prison for Operating Extensive Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A Paxton, Ill., man, Eddi Ramirez, 32, who led an extensive network of cocaine and heroin suppliers, couriers, and distributors, has been sentenced to 30 years in prison, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. At sentencing yesterday, before U.S. District Judge Michael P. McCuskey, the government characterized Ramirez and his operation as one of the largest and most far-reaching cocaine dealers in central Illinois’ history. Ramirez has remained in law enforcement custody since his arrest in September 2012.
As a result of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, known as "Operation Tres Ciudades (Three Cities)", law enforcement gathered evidence to establish that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico destined for central Illinois, stretching from Paxton to Champaign, Decatur and Springfield. Sixteen defendants have been charged and sentenced for their respective roles in Ramirez’s trafficking operation or their relation to it; three defendants remain fugitives. A list of the defendants and their respective sentences is attached.
A jury convicted Ramirez, aka "Migo," on Feb. 13, 2014, following a seven-day trial, of conspiring with others to distribute cocaine and distribution of cocaine. During the seven days of trial, the government presented evidence obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
“This was a particularly significant pipeline of drugs into our area. We had to shut it down, and we did,” said U.S. Attorney Lewis. “Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, worked together to make smart use of their respective investigative resources to effectively shut down this extensive drug operation, to hold Ramirez and his organization accountable, and to truly serve our community.”
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as "Operation Tres Ciudades (Three Cities,)" was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass prosecuted the cases in the Central District of Illinois, Springfield and Urbana Divisions.
Parkersburg Insurance Agent Gets 6+ Years for Defrauding ClientsRead the Press Release
Carr drained clients’ retirement savings, now must pay back nearly $600,000
CHARLESTON, W. Va. – United States Attorney Booth Goodwin announced that Lloyd B. Carr, 55, an independent insurance agent from Parkersburg, was sentenced today to six years, three months in federal prison for converting client funds to his own personal use. Carr was employed as an outside agent for various life insurance companies from early 2007 until at least July 2010, including Allianz Life Financial Services, LLC (“Allianz”). Beginning sometime in 2008, Carr began taking checks provided by clients intended to purchase annuity contracts and life insurance policies from Allianz and other companies, and depositing those checks into his own accounts and spending the client funds on personal items.On October 6, 2008, Allianz terminated its agency relationship with Mr. Carr following consumer complaints of unaccounted funds. Sometime in 2009, Carr filed a “trade name” application with the West Virginia Secretary of State’s office to operate as “Lloyd B. Carr doing business as American Life Insurance & Annuities Group” (“American Life”). American Life is not and never was an actual business entity or licensed insurance company. American Life had no employees or place of business other than sales that Carr conducted out of his home. Rather, American Life was only a “doing business as” or “dba” name that Carr used to conduct a fraudulent business.
On July 27, 2010, Mr. Carr opened a business checking account with an initial deposit of $12.50 in the name of “Lloyd B. Carr dba American Life Insurance & Annuities Group” at Huntington National Bank. Carr then began convincing existing Allianz clients to roll over legitimate retirement accounts into his bogus company. Once Carr deposited the client check, he began siphoning off those funds by making frequent ATM cash withdrawals and cashing a series of $5,000 checks.
In one instance in August 2010, Carr convinced a client, identified in the indictment by the initials “P.C.,” to cancel an Allianz policy and provide him with the settlement check. On August 2, 2010, Allianz mailed P.C. a check in the amount of $55,270.96. On August 9, 2010, P.C. endorsed the Allianz check and gave it to Carr with the understanding that the full amount would be used to pay an annuity premium with American Life, which Mr. Carr led P.C. to believe was an actual and legitimate life insurance company. Carr deposited the check into the American Life account at Huntington National Bank.
Almost immediately, Carr converted a portion of those monies for his own personal use from the American Life account either by cashing checks made payable to “cash” or withdrawing cash from ATMs located in and around Parkersburg. After several inquiries from P.C. requesting a copy of an insurance policy that Carr was supposed to provide, Carr eventually purchased P.C. a life insurance policy in January 2011 from a legitimate company known as Presidential Life Insurance Company (“Presidential Life”). However, the premium paid to Presidential Life by Carr on behalf of P.C. was only $25,000. On January 13, 2011, the Presidential Life policy was delivered to Mr. Carr by mail. Carr later delivered the policy to P.C.
Carr had illegally converted the remaining balance of $30,270.96 from the Allianz policy into cash for his own use. To appease P.C., Mr. Carr created a purported Roth IRA account issued by American Life, showing the balance of the funds the victim had provided him from Allianz was safely invested with American Life. The “American Life” “Roth IRA account” issued for P.C. was fraudulent. As Carr knew, American Life was not capitalized as an insurance or investment company, and it was not authorized to issue any type of insurance policy, security, investment, individual retirement account, or annuity contract. Carr had already converted a portion of P.C.’s funds for his own use prior to issuing the fraudulent American Life Roth IRA contract, but did so in order to convince P.C. that the balance of P.C.’s investment monies was safe and secure.
All told, Carr was convicted of fleecing twelve clients, including P.C., out of $589,000 in retirement savings.
The Court ordered Carr to serve a term of imprisonment of 75 months, noting that Carr “had brought many of his clients, who trusted him, to financial ruin.”
The investigation was conducted by the West Virginia Insurance Commission. Assistant United States Attorney Thomas Ryan handled the prosecution. United States District Judge Thomas E. Johnston is presiding over the case and imposed today’s sentence.
Owner and Recruiter for Louisiana and Texas Mental Health Clinics Convicted as Part of $258 Million Health Care Fraud Scheme in Baton Rouge, LouisianaRead the Press Release
An owner and operator of community mental health centers in Baton Rouge, Louisiana, as well as a patient recruiter for a related facility in Houston, Texas, were convicted on Wednesday, May 21, 2014, for their roles in a $258 million Medicare fraud scheme involving three facilities that filed fraudulent claims for psychiatric services that were unnecessary or never actually provided.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Walt Green for the Middle District of Louisiana, Special Agent in Charge Michael J. Anderson for the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields for the Dallas Region of the Department of Health and Human Services (HHS) Office of Inspector General and Louisiana State Attorney General James Buddy Caldwell made the announcement.
“These convictions resulted from a massive fraud involving thousands of false billings for mental health services that were either not needed or not given," said Acting Assistant Attorney General O'Neil. "It was a sophisticated scheme involving kickbacks, falsified medical records and false billings. We will use all tools at our disposal – from data to traditional law enforcement techniques – to root out these schemes and bring the appropriate people to justice.”
“These significant convictions are the latest example of our ongoing commitment to rooting out health care fraud throughout our community,” said U.S. Attorney Green. “We will use all of the tools and resources at our disposal to prosecute those who submit false information and false claims to Medicare - especially where, as in this case, those claims cost the United States tens of millions of dollars and were filed using the names and identities of Medicare beneficiaries who are particularly vulnerable. I appreciate the tremendous assistance we received in this case, and in our other anti-health care fraud efforts, from the Department's Criminal Division and our federal and state law enforcement partners.”
“The success of this broad sweeping, complex healthcare fraud investigation could not have been possible without the tremendous collaboration between all agencies involved,” said Special Agent in Charge Anderson. “It clearly demonstrates how law enforcement can make such a significant community impact as a result of such strong partnerships.”
“Whenever Medicare providers are motivated by greed, our most vulnerable citizens, the elderly, are put at risk," said Special Agent in Charge Fields. "Our HHS-OIG agents will continue to work closely with our law enforcement partners to investigate providers who will stop at nothing to loot the Medicare Trust Fund.”
Roslyn F. Dogan, 53, of Baton Rouge, Louisiana, and James R. Hunter, 49, of Houston, Texas, were found guilty after a six-day jury trial before Chief U.S. District Judge Brian A. Jackson of the Middle District of Louisiana. Dogan was convicted of conspiracy to commit health care fraud and two counts of health care fraud. Hunter was convicted of conspiracy to commit health care fraud and conspiracy to pay and receive health care kickbacks.
The investigation into these three community mental health centers - Shifa Community Mental Health Center of Baton Rouge (Shifa Baton Rouge), Serenity Center of Baton Rouge (Serenity Center), and Shifa Community Mental Health Center of Texas (Shifa Texas) - has resulted in the convictions of 17 individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The investigation is ongoing.
According to court documents, the companies billed Medicare more than $258 million over a period of seven years for partial hospitalization program services for the mentally ill that were unnecessary or never provided.
Further according to court documents, Dogan was part owner of Serenity Center as well as the marketer for Serenity Center and Shifa Baton Rouge. As part of the scheme, Dogan would arrange for Medicare-eligible patients to be sent to Shifa Baton Rouge and Serenity Center and admitted to those facilities, regardless of whether the patients needed partial hospitalization program services. In order to increase billings to Medicare, Dogan, along with others in management, instructed administrators and therapists to falsify patient treatment records for services that had not been provided. Dogan also concealed the fraud at Shifa Baton Rouge and Serenity Center by directing that patient billing statements be intercepted from patients’ mail in order to prevent the patients from seeing the services that had been billed in their names, and by stealing incriminating documents seized pursuant to a search warrant from federal custody.
According to court documents, Hunter, a resident of Houston, was paid $1,500 per week in cash to direct patients to attend the partial hospitalization program at Shifa Texas. Hunter, in turn, paid each patient $75 per week to attend the program. In an effort to get patients admitted to Shifa Texas, Hunter instructed patients as to the types of symptoms and diagnoses to describe to physicians in order to be admitted to the program.
The individuals who have pleaded guilty in this case include:· Dr. Zahid Imran - Imran, a Baton Rouge area psychiatrist, served as Shifa’s medical director and co-owner of Serenity Center and Shifa Texas. As part of the scheme, Imran would admit mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization. Imran would then re-certify these patients’ appropriateness for the program, in an effort to continue to bill Medicare for services. In order to support their fraudulent Medicare billing, Imran and others would falsify patient treatment records to reflect services on dates where no such services were provided.
· Hoor Naz Jafri – Jafri was an owner of all three facilities in Baton Rouge and Houston and a marketer for Shifa Baton Rouge and Serenity Center. Jafri was also part owner of two affiliated residential facilities; patients who lived at these apartments were required to attend the programs at Shifa Baton Rouge and Serenity Center, regardless of whether these patients actually needed or desired the services. As a marketer for Shifa Baton Rouge and Serenity Center, Jafri caused patients to be admitted to the facilities who were inappropriate for the services. As management at all three facilities, Jafri directed administrators and therapists at these facilities to falsify records for treatment that patients did not in fact receive.
· Sedra Signater and Arthur Smith – Signater and Smith were the administrators of Shifa and Serenity Center, respectively. At the direction of management, Signater and Smith fabricated and instructed other therapists at the facilities to fabricate patient treatment records to indicate therapy had been provided to patients, when in fact, no such therapy had been provided. These fabricated records formed the basis of the fraudulent billings to Medicare.
· Erica Williams and Kyeiana Murray – Williams and Murray were office managers of Shifa Texas and Shifa Baton Rouge, respectively. Williams also served as the admissions coordinator of Shifa Texas. As the office managers at these facilities, Murray and Williams facilitated and coordinated the collection of the falsified patient treatment records and submitted these records for billing to Medicare. Williams also directed therapists at Shifa Texas to falsify patient treatment records and coordinated the payment of kickbacks to patient recruiter James Hunter in Houston.
· Robert Booker, Teryl Vincent, Todd Ulmer, June Durio, Nancy Reed, Jason Myer, Anna Ngang and Patrick Wallace – Booker, Vincent, Ulmer, Durio, Reed and Myer, therapists at Shifa Baton Rouge and Serenity Center, and Anna Ngang and Patrick Wallace, therapists at Shifa Texas, were directed by Signater, Smith, and Williams to falsify patient treatment records for group therapy sessions they had not conducted.
The case was investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. This case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for almost $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
# # #Owner of Motley Golf Club Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Yesterday in federal court, Roger Martin Pedley was sentenced for evading taxes for the tax years 2006-2009. Pedley was indicted on April 9, 2013 and pleaded guilty to four counts of Tax Evasion on August 12, 2013. United States District Court Chief Judge Michael J. Davis sentenced Pedley to one year and one day in prison on each of the four counts, to be served concurrently, and ordered Pedley to pay $489,623 in restitution.
According to his plea agreement, Pedley admitted to owning and operating the Pine Ridge Golf Course in Motley as well as engaging in other business ventures. These ventures generated considerable cash income for Pedley. In his plea agreement, Pedley also admitted to engaging in transactions with this cash at various banks in ways that avoided triggering the banks’ federal currency reporting requirements. In addition, Pedley admitted that he failed to declare the cash as income on his personal income tax returns, filed jointly with his wife for tax years 2006, 2007, 2008, and 2009.
This case was the result of an investigation by the IRS- Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney John Docherty.Owensboro, Kentucky, Man Charged in Second Home Improvement Scam - Robert Gray Charged with Defrauding Union County, Kentucky, Couple of Nearly $150,000Read the Press Release
– Recently pleaded guilty in U.S. District Court to defrauding elderly Daviess County couple of $200,000 in similar home improvement scam
OWENSBORO, Ky. – An Owensboro, Kentucky man is being held by the U.S. Marshals Service following his arrest May 9th for devising a scheme to defraud a Union County, Kentucky couple of nearly $150,000 in a home improvement scam announced David J. Hale, United States Attorney for the Western District of Kentucky. Robert K. Gray was awaiting sentencing in a similar case in which he had pleaded guilty to mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky, couple and agreed to pay $220,000 restitution.
Defendant Gray, age 49, was charged in a 14 count federal grand jury indictment this week with two counts of wire fraud and 12 counts of structuring financial transactions in order to evade federal reporting requirements.
According to the indictment, between January 17, 2014 and April 14, 2014, Gray was paid a total of $149,839 for work on the home of a Union County, Kentucky couple. Payment was made in the form of 24 checks drawn on their personal checking account at Old National Bank. It is alleged that defendant Gray never completed any of the home improvement projects he’d undertaken to perform. Further, Gray is charged with requesting payments be made in amounts under $10,000 and then cashing each of the checks at different branches of a financial institution in order to avoid the bank’s requirement to report currency transactions over $10,000 to the Internal Revenue Service. According to the indictment, between February 16, 2014 and February 27, 2014, in Daviess, Union, Henderson, and Hopkins Counties, defendant Gray knowingly and for the purposes of evading reporting requirements cashed checks, drawn on an Old National Bank account, in amounts less than $10,000.
If convicted at trial, Gray faces a combined term of not more than 100 years in prison, a fine of up to $1,000,000 and a term of supervised release of up to five years.
In a separate case, in February, 2014, Gray admitted to defrauding an elderly Daviess County couple of their retirement fund, by making material misrepresentations about an investment opportunity in the defendant’s construction company. Defendant Gray also made home improvements to the couple’s residence in excess of $300,000, an amount that is more than double the assessed value of the property.
Gray admitted to using investment funds he received from the victim to pay for personal expenses and to purchase vehicles, including a 2006 Hummer for $25,000 the day after Gray received and deposited the first investment check, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000. Gray is scheduled for sentencing before Chief Judge Joseph H. McKinley Jr., on June 26, 2014, in U.S. District Court in Owensboro.
This case is being prosecuted by Assistant United States Attorney Marisa Ford, and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
North Carolina Man Convicted of Cocaine TraffickingRead the Press Release
BROWNSVILLE, Texas - Orlando Giovanni-Hernandez, 28, has been convicted of conspiracy to possess with intent to distribute and possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Giovanni-Hernandez following three days of trial and approximately four hours of deliberation.
The jury heard that on or about Dec. 10, 2012, Francisco Chavez-Arriaga, 49, a drug coordinator based out of San Juan, provided an ice chest filled with 10 kilograms of cocaine to a truck driver with instructions to deliver the cocaine to Natalie Hernandez, 26, of Concord, N.C. When the truck driver contacted Hernandez, she advised she could not pick up the cocaine, but another woman driving a white Volvo would be at the truck stop to receive it.
Giovanni-Hernandez, a drug trafficker himself, lived in a stash house with Nidia Ramirez-Martinez, 23, in Charlotte, N.C. On Dec. 17, 2012, Ramirez-Martinez and Giovanni-Hernandez were together when Ramirez-Martinez received a phone call from Hernandez requesting she pick up the cocaine. Ramirez-Martinez asked Giovanni-Hernandez to borrow his white Volvo to pick up some drugs and he agreed.
Ramirez-Martinez, Giovanni-Hernandez and a third co-defendant, Melanie Pretell, 24, also of Concord, drove approximately 90 miles to the truck stop. Along the way, they smoked marijuana and continued to negotiate the drug deal.
At the truck stop, Giovanni-Hernandez orchestrated the transaction entirely. He received the cocaine and was planning to take it to his stash house where Hernandez was supposed to come and get it. However, he was stopped en route by local authorities, at which time Giovanni-Hernandez lied to the troopers about where he had been and made various statements trying to pass the blame onto the other co-defendants.
At trial, he again re-iterated that he was not guilty and the crime was perpetrated by the others. The jury disagreed and found him guilty as charged.
At the time of his sentencing, Giovanni-Hernandez faces a minimum of 10 years and up to life on each count of the two counts of conviction.
Chavez-Arriaga, Ramirez-Martinez, Hernandez and Pretell have all pleaded guilty and are awaiting sentencing.
The charges are the result of the joint investigative efforts of Drug Enforcement Administration agents in Texas and North Carolina along with the North Carolina Highway Patrol. Assistant United States Attorneys Holly D’Andrea and Carrie Wirsing are prosecuting.
Nine Mid-State Residents Charged with Running an Illegal Gambling OperationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Sheely, Sr., 59, Camp Hill, PA, Staci Sheely, 52, Camp Hill, PA, Steven Sheely, Jr., 39, Mechanicsburg, PA, John McDonald, 37, New Cumberland, PA, James Fox, 46, Harrisburg, PA, Bret Hager, 42, Carlisle, PA, Brian Fertenbaugh, 43, Mechanicsburg, PA, Ralph Domene, 47, Camp Hill, PA, and Roger Charles Vaneslow, II, 44, New Cumberland, PA, were indicted yesterday by a federal grand jury in Harrisburg charging them with four counts of running an illegal gambling operation, money laundering and criminal conspiracy.
According to United States Attorney Peter Smith, the grand jury found probable cause to believe that all were involved in running a sports betting operation. It is a federal crime if five or more individuals are involved in running such an operation, and it operated continuously for more than 30 days or had gross receipts of at least $2,000 in any given day. The indictment alleges that it was in operation over the last six months. All nine were also charged with money laundering and conspiracy. Additionally, the indictment contained a forfeiture allegation, which means that if any or all of the defendants are convicted of the charges, they may be required to forfeit to the United States all illegal gambling proceeds.
Each defendant faces a maximum sentence of 20 years’ imprisonment on each count if convicted of the money laundering or money laundering conspiracy charges and fines of up to $500,000 on each of those counts. The charge of operating an illegal gambling business and criminal conspiracy are each punishable by up to 5 years’ imprisonment and a fine of $250,000 on each of those counts.
The case was investigated by the Federal Bureau of Investigation’s Harrisburg Resident Agency, the Pennsylvania State Police and the Pennsylvania State Horse Racing Commission. This case is being prosecution of by Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York Woman Pleads Guilty to Federal Fraud Charge for Stealing More Than $130,000 in Two Schemes That Spanned, D.C., Maryland and New YorkAdmits Collecting Fraudulent Unemployment Benefits, as Well as Stealing from Former EmployerRead the Press Release
WASHINGTON – Sakinah Smith, 26, of New York, N.Y., pled guilty today to a federal charge stemming from a pair of schemes, including one in which she used stolen personal identification information to collect more than $80,000 in fraudulent unemployment benefits, and another in which she stole more than $50,000 from a former employer.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Bill Jones, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General - Office of Labor Racketeering and Fraud Investigations, and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Smith pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Senior Judge Thomas F. Hogan scheduled sentencing for Aug. 27, 2014. The charge carries a statutory maximum of 20 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that Smith faces a likely range of 21 to 27 months of incarceration and a fine of up to $50,000. She also has agreed to make full restitution and to pay an additional $15,246 as a forfeiture money judgment.
According to a statement of offense filed as part of the guilty plea, Smith created an events planning service in 2009 in Washington, D.C. She created a website for “Saki Mone Events Management” and posted employment advertisements on Craigslist. Potential applicants were asked to provide personal information, including dates of birth and social security numbers.
Smith then used this personal information to fraudulently request unemployment benefits in the names of 17 individual applicants. Between 2009 and 2012, Smith obtained $80,111 in fraudulent unemployment benefits from the District of Columbia, Maryland and New York. The benefits, in the names of the 17 applicants, were deposited into Smith’s own financial accounts.
In a second scheme, Smith admitted that she fraudulently wired about $52,174 from an employer’s bank account to accounts she created for herself. This activity took place from November 2009 through May 2010, while Smith was working for a temporary employment agency in Washington, D.C.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge Jones, and Interim Inspector General Bruce commended the work of those who investigated the case from the FBI’s Washington Field Office, the Labor Department’s Inspector General’s Office, and the District of Columbia Office of the Inspector General. They also thanked the New York State Department of Labor – Office of Special Investigations; the Maryland Department of Labor, Licensing and Regulation – Division of Unemployment Insurance; the Virginia Employment Commission; the District of Columbia Department of Employment Services, and the Burlington, N.C. Police Department for providing assistance in the investigation.
They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo and Angela Lawrence, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Diane Lucas, who assisted on forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Philip A. Selden, who is prosecuting the matter.
14-118New Jersey Business Owner Admits Fraudulent Claims of Service-Disabled Veteran OwnershipRead the Press Release
Business Was Awarded Dozens of Undeserved Contracts Worth $1.2 Million
NEWARK, N.J. - The president of a New Jersey-based furniture and design services company admitted today to fraudulently holding her business out as a service-disabled veteran-owned small business, which obtained dozens of government contracts set aside for disabled veterans, U.S. Attorney Paul J. Fishman announced.Miriam Friedman, 54, of Teaneck, N.J., pleaded guilty to an information charging her with making false claims to the U.S. Department of Veterans Affairs (VA). She entered her guilty plea before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case and statements made in court:
Friedman is the president and owner of Office Dimensions Inc. – which sells furniture and design services to industrial and government customers – controlling all its revenues and running the company’s day-to-day operations. Friedman never served in the U.S. military.
Friedman self-certified in a central registry for government contractors that Office Dimensions was a service-disabled veteran-owned small business. She falsely claimed in the certification that her father-in-law – who was retired, unemployed and had very little involvement with Office Dimensions – was the owner and operator of the business. He had served in the U.S. military, but was not classified as a service-disabled veteran. Friedman then started bidding for VA contracts set aside for service-disabled veterans who own their own businesses.
During her guilty plea proceeding, Friedman admitted that she knew her claims were false, and that they led to dozens of contracts with the VA to provide furniture and interior space planning at VA facilities.
In total, the VA paid approximately $1.2 million to Office Dimensions based on contracts set aside for service-disabled veterans.
The charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 3, 2014, before U.S. District Judge Jose L. Linares.U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes; the U.S. General Services Administration, Office of Inspector General, under the direction of Special Agent in Charge James E. Adams; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation.
The case is being prosecuted by Scott B. McBride, Deputy Chief of the U.S. Attorney’s Economic Crimes Unit, and Assistant U.S. Attorney Danielle A. Walsman of the office’s Health Care and Government Fraud Unit.
14-187
Defense counsel: Brian J. Neary Esq.;Perry Primavera Esq., Hackensack and Hoboken, N.J.Friedman, Miriam Information
New Hampshire Resident Sentenced to 4¾ Years for Armed Bank RobberyRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Marvin Eugene Ansteth, Jr. 41, of Somersworth, New Hampshire was sentenced today in U.S.
District Court to 4¾ years in prison and three years of supervised release for armed bank robbery. He was also ordered to pay $19,087 in restitution. The charges arose from the armed bank robberies of Peoples United Bank in Exeter, New Hampshire on October 7, 2013; of
Meredith Village Savings Bank in Alton, New Hampshire on October 10, 2013; and of
Kennebunk Savings in Eliot, Maine on October 19, 2013. Ansteth pled guilty to the charges on
January 16, 2014.According to court records, Ansteth was the getaway driver for the three armed bank robberies. Peoples United Bank was robbed of $1,451; Meredith Village Savings Bank was robbed of $9,740 and Kennebunk Savings was robbed of $7,896.
This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, county and federal law enforcement agencies across two states worked closely together.”NSA Contractor Pleads Guilty to Submitting False TimesheetsRead the Press Release
Claimed To Be Working Full Time On Two Separate NSA Contracts Causing a Loss to the Government of More Than $65,000
Baltimore, Maryland – Lynette C. Jackson, age 33, of Hanover, Maryland, pleaded guilty today to making false claims to the government, in connection with her work as a contractor at the National Security Agency (NSA).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and the National Security Agency, Office of Inspector General.
According to Jackson’s plea agreement, beginning in 2008, she was hired by a DoD subcontractor, Merito, Incorporated as a full time employee to perform work on a specific contract at NSA. Jackson’s primary duty station was within NSA Headquarters and her salary from Merito was approximately $97,000. Merito billed the federal government $95.45 per hour for her services. Jackson was required to submit a timesheet every week to both Merito and the primary contractor, detailing the number of hours she worked in support of the contract. Jackson’s paychecks from Merito were based upon the number of hours she claimed to work.
Jackson admitted that from September 2010 through June 2011, she worked full time for Sentel Corporation, another DoD contractor, at the same time that she claimed to be working full time for Merito. During this time, Jackson billed Merito for full time hours when she actually was only working for Sentel. In all, Jackson submitted 79 fraudulent timesheets to Merito, falsely claiming to have worked 683.75 hours, causing a total loss to the government of $65,264.55.
Jackson faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge William D. Quarles, Jr. scheduled Jackson’s sentencing for September 3, 2014 at 1:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the DCIS and NSA, Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
Multi-Million Interstate Transportation of Stolen Goods Operation Sends Leader to Federal PrisonRead the Press Release
HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been ordered to prison for nearly 13 years following his conviction on six counts related to the interstate transportation of stolen goods and obstruction of justice, announced United States Attorney Kenneth Magidson. A federal jury sitting in Houston convicted Danhach March 4, 2013, after just an hour of deliberation following a five-day trial.
Today, U.S. District Judge Sim Lake, who presided over the trial, handed Danhach a total sentence of 151 months in federal prison and further ordered him to pay nearly $540,000 in restitution. Danhach resides in Houston but is a legal permanent resident of the U.S. from Lebanon. He is expected to face deportation proceedings following his release from prison.
Five others are charged in the case. Two of those have pleaded guilty, while three remain as fugitives and warrants remain outstanding for their arrests.
At trial, evidence demonstrated Danhach was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.
The scope of this criminal enterprise ranged from April 2008 to February 2012.
Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.
To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.
Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.
A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach, which documented the extent of Danhach’s criminal enterprise. Specifically, the records showed that between August 2011 through January 2012, Danhach was responsible for nearly $3 million in sales of stolen OTC items. At the time of the search, Danhach instructed a co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling. The video specifically showed several days worth of stolen merchandise being delivered to the warehouse, undocumented aliens removing the retailers’ labels, then repackaging and shipping the OTC items on pallets.
Several cooperating witnesses testified on behalf of the United States, including one of his “boosters,” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.
At the sentencing hearing today, the court also considered Danhach’s role in the receipt of 38 Parmigiani watches taken during a June 2010 robbery of travelling Swiss jewelers. The government presented evidence that he later attempted to sell the watches at a fraction of their value to a local jewelry store, at which time he was arrested. At least two of the watches were taken to the United Arab Emirates (UAE) by Danhach’s brother-in-law a year after the robbery. Allegedly, Danhach’s brother-in-law took the watches, taken during the robbery, to a jewelry store where he attempted to get cases for the watches. Parmigiani officials in Switzerland became aware of this attempted transaction and notified the FBI that the two watches were presented to the UAE jewelry store representatives.
Danhach will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith and Joe Magliolo.
Modesto Woman Indicted for Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. — Dorothy Brown, aka Dorothy Hickey, 62, of Modesto, was indicted today by a federal grand jury charging her with stealing benefits paid by the United States Social Security Administration (SSA), misrepresenting her eligibility for benefits to the SSA, and concealing material information from the SSA, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Brown misrepresented her true economic resources to the SSA, failing to disclose her savings in multiple bank accounts and the true cost of her living expenses. She also concealed her true living situation from the SSA. As a result, and over the course of nearly four years, Brown received approximately $36,000 in SSA benefits to which she was otherwise not entitled.
This case is the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Brown faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The other charges carry maximum statutory penalties of five 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.
Mexican National Sentenced to Five Years for Marijuana Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jesus Agustin Gastelum-Carrasco, 29, a Mexican national from Nogales, Sonora, Mexico, who is illegally in the United States, was sentenced today in federal court in Las Cruces, N.M., for his marijuana trafficking conviction. Gastelum-Carrasco was sentenced to five years in federal prison. He will be deported after he completes his term of incarceration.
Gastelum-Carrasco is one of four defendants convicted based on an investigation by Homeland Security Investigations (HSI) that ensued after a New Mexico Department of Public Safety Motor Transportation Division officer found 527 kilograms (1163 pounds) of marijuana concealed in a commercial vehicle during a routine inspection at a checkpoint on Interstate 10 in Hidalgo County, N.M., on July 27, 2011.
According to court filings, the marijuana was found in a vehicle driven by Carl Francis Carter, 60, of Deptford, N.J. The investigation revealed that Gastelum-Carrasco helped load the marijuana bundles into Carter’s vehicle at a location near Tucson, Ariz., on July 26, 2011, with the understanding that Carter would be delivering the marijuana to the East Coast.
The investigation also revealed that Carter had been in communication with Gary Harris, 50, of Carle Place, N.Y., on the night of his arrest (July 27, 2011), and that Eric Harris, 46, of Albans, N.Y., had attempted to contact Carter the morning after his arrest. Court filings reflect that Gary Harris and Eric Harris traveled from New York to Phoenix, Ariz., on July 17, 2011, to facilitate the purchase of the marijuana and arrange its transport from Tucson, Ariz., to New York. Eric Harris and Gary Harris traveled back to New York on July 27, 2011, following Carter’s arrest.
Gastelum-Carrasco was arrested in Arizona on May 24, 2013, and transferred to New Mexico for prosecution on June 18, 2013. On Sept. 12, 201, he pled guilty to conspiracy to possess marijuana with intent to distribute. In entering his guilty plea, he admitted helping load the marijuana into Carter’s vehicle on July 26, 2011. He also acknowledged learning that Carter was arrested the following day in Hidalgo County when the 527 kilograms of marijuana were discovered in his vehicle.
Carter pled guilty to a marijuana trafficking charge on Jan. 31, 2012, and admitted knowingly possessing 527 kilograms of marijuana on July 27, 2011. Carter admitted knowing that the marijuana was concealed in his commercial vehicle and that he expected to be paid for delivering the marijuana for further distribution.
On Aug. 13, 2013, Eric Harris was arrested in New York City, N.Y., and Gary Harris was arrested in Carle Place, N.Y. The two men were later transferred to New Mexico to face the charges against them. Gary Harris pled guilty on March 5, 2014, and admitted ownership of 300 pounds of 527 kilograms of marijuana. He also admitted traveling with Eric Harris from New York to Arizona to facilitate the purchase and transportation of the marijuana from Arizona to New York. Gary Harris has agreed to forfeit $52,882.97 in drug proceeds which were seized from two bank accounts and a safe deposit box by HSI pursuant to seizure warrants. On March 7, 2014, Eric Harris entered a guilty plea and admitted conspiring with Gary Harris, Carter and others to distribute the 527 kilograms of marijuana found in Carter’s commercial vehicle.
Sentencing hearings for Carter, Eric Harris and Gary Harris have yet to be scheduled. At sentencing, each man faces a sentence of not less than five years and not more than 40 years in prison.
This case was investigated by the Deming office of HSI with assistance from the New Mexico Department of Public Safety Motor Transportation Division, and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Sentenced to Eight and a Half Years in Federal Prison for Aggravated Sexual Abuse Conviction Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Elroy Duffy, 51, was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 103 months in prison for his aggravated sexual abuse conviction. Duffy will be on supervised release for five years after he completes his prison sentence. Duffy also will be required to register as a sex offender. The sentence was announced by Acting U.S. Attorney Damon P. Martinez and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Duffy, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was arrested in March 2013, on a criminal complaint charging him with forcing his girlfriend to engage in a sexual act on Oct. 14, 2012, in a location within the Mescalero Apache Reservation. Duffy has been in federal custody since his arrest.
On Aug. 21, 2013, Duffy entered a guilty plea to a felony information charging him with aggravated sexual abuse by force. In his plea agreement, Duffy admitted forcing the victim to engage in a sexual act on Oct. 14, 2012.
Prior to his arrest on the federal complaint, Duffy was arrested on related tribal charges on Oct. 18, 2012. Duffy subsequently entered a no contest plea to the tribal charges and was sentenced to 180 days in jail. He was transferred to federal custody after completing his tribal sentence.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Man Sentenced on Charge of Murder on Isabella Reservation for Saginaw Chippewa Native American TribeRead the Press Release
Anthony Michael Bennett, 21, was sentenced today to 40 years in federal prison on the charge of second degree murder, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Bennett pleaded guilty before U.S. District Judge Thomas L. Ludington in Bay City, Michigan on December 17, 2013. During his guilty plea, Bennett informed the court that on three occasions he had assaulted four-year-old Carnel Chamberlain. The last time, on June 21, 2012, he killed him by punching him in the head. According to the factual basis contained in his plea agreement, Bennett burned the body in an attempt to conceal evidence of his crime.
“This was a horrific crime that is unsettling to anyone who cares about children,” McQuade said. “We are grateful for the diligent work of the investigating agents and prosecutors who were able to obtain this conviction and find some measure of justice for Carnel.”
Special Agent in Charge Abbate stated: “The heinous acts committed by the defendant in this case are simply unspeakable. While today’s sentencing will never fill the void created by Carnel’s death, it does ensure that the family and the many others who loved him will not have to endure the pain associated with a trial and that justice is served through a lengthy term of imprisonment for the defendant. We hope that this can be a step in some measure towards peace and closure.”
The investigation of this case was conducted by officers of the Saginaw Chippewa Tribal Police, Isabella County Sheriff’s Department, Michigan State Police and Special Agents of the Federal Bureau of Investigation. The case was prosecuted by the Bay City branch of the United States Attorney’s Office.Malden Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
BOSTON – A Malden man pleaded guilty yesterday to sex trafficking a 15-year-old girl.
David Minasian, 25, pleaded guilty to causing a minor to engage in prostitution. In April 2013 he was indicted and is scheduled to be sentenced by U.S. District Court Judge William G. Young on October 9, 2014.
In 2012, officers executed a search warrant at Minasian’s home and recovered a computer that contained advertisements offering sex for a fee with a young girl whose pictures were also displayed. After analyzing the advertisements, which Minasian posted on the Internet site Backpage.com, agents identified the 15-year-old victim.
After Minasian and accomplices took pictures of the minor victim, which were used in advertisements posted on various Internet sites offering sex for a fee, they prostituted her in area hotels and a residence in Malden.
Pursuant to the plea agreement, Minasian faces a sentence between 13 and 15 years in prison, five years of supervised release, a $250,000 fine, and $4,000 in restitution.U.S. Attorney Ortiz, Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division and Malden Police Chief Kevin Molis, made the announcement. The case was prosecuted by Assistant U.S. Attorney Leah Foley who is a member of Ortiz’s Civil Rights Enforcement Team.
Since United States Attorney Carmen M. Ortiz created the Civil Rights Enforcement Team in 2010, the U.S. Attorney’s Office has handled numerous human trafficking investigations and prosecutions. Within the last week, Michael Gemma was convicted by a federal jury of sex trafficking and five individuals from Massachusetts and Maine were indicted for operating a sex trafficking ring.
Madera County Man Indicted for Pipe Bombs Found at School and Gas StationRead the Press Release
FRESNO, Calif. — Today a federal grand jury indicted the man alleged to be responsible for pipe bombs found at a Chowchilla Shell Gas Station on March 28, 2014, and at the Crossroads Christian School in Madera on May 4, 2014, United States Attorney Benjamin B. Wagner announced.
The nine-count indictment returned against Richard Wilson Key, 37, of Raymond, charges him with crimes associated with the possession and use of three pipe bombs, including two counts of attempting to damage property by use of explosives, two counts of carrying a destructive device in relation to a crime of violence, three counts of unlawfully making a destructive device, possession of destructive device, and carrying a firearm in relation to a crime of violence.
According to court documents, on March 28, 2014, Chowchilla police responded to a report of a possible pipe bomb in a trash can by a Shell gas station. Inside the trash can was a silver pipe with a cap on both ends. Written on the top of one of the caps were the words, “PULL TO OPEN,” and a smiley face was drawn on the bottom of the cap. When the pipe was rendered safe, an inspection showed that it was set to be triggered with a nine‑volt battery that would spark when the plastic center piece on one of the caps was pulled. According to the criminal complaint, the “PULL TO OPEN” and the smiley face drawn on the bomb demonstrated that this bomb was manufactured for the purpose of killing or seriously injuring an unsuspecting victim.
On May 4, 2014, a similar device was found by children at a private grade school on property owned by the Grace Community Church. A third destructive device was found in Key’s possession when he was arrested by law enforcement on May 8, 2014.
“Thanks to the work of the federal agents and local law enforcement officers whatever plans Key had were disrupted and no one was injured,” stated U.S. Attorney Wagner. “Through these partnerships, we will continue to investigate and bring to justice those who threaten the safety of our residents.”
“Luck was on our side as no serious injuries or fatalities were incurred during either incident,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI responds swiftly with all available resources when individuals act with such blatant disregard for life, especially when innocent children have been placed at risk. By selecting busy public areas, it was clear that the devices were planted with an intent to cause death or serious bodily injury. The FBI will work closely with the US Attorney’s Office to ensure Key will face the fullest extent of federal prosecution. I am grateful for our dedicated agents who stopped this serial bomber before he was able to strike again.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Madera County Sheriff’s Office, the Fresno County Sheriff’s Office, and the Chowchilla Police Department. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Key is in custody and is scheduled for arraignment on May 23, 2014. If convicted, he faces the following statutory penalties: at least 30 years in prison and up to life for each count of using and carrying a destructive device; and at least 20 years and up to life in prison for using and carrying a firearm in relation to a crime of violence; a term of between five and 20 years in prison on each count of the attempted use of explosives to damage property; and a term of up to 10 years in prison for each of the three counts of making a destructive device and the one count of possessing destructive devices. In addition, Key could be fined up to $250,000 for each count. 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.