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Tuesday 8 April 2014
U.S. Attorney, Along with Florida Attorney General Pam Bondi, Hosts Forum on Human Trafficking and Domestic Sex TraffickingRead the Press Release
*******MEDIA ADVISORY*******
WHO:
A. Lee Bentley, III, United States Attorney for the Middle District of Florida
Florida Attorney General Pam Bondi
Law Enforcement Personnel
Victim Services Providers
WHAT:
Public Safety Forum
In recognition of National Crime Victims’ Rights Week, the U.S. Attorney’s Office, along with members of the public safety and victims’ services community, will present an overview of human trafficking and domestic sex trafficking.WHEN:
Thuraday, April 10, 2014,
8:30 A.M. – 12:30 P.M. (EST)
WHERE:
Keiser University
5002 W. Waters Avenue
(Auditorium)
Tampa, FL 33634OPEN PRESS [DESIGNATED AREA]
(Reserved Parking for Media Vehicles in rear of main building)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license).
Media may begin arriving at 7:30 A.M. EST.(Download Flyer and Agenda )
Two Individuals Indicted in April Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the April 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JEREMY DALE JONES, age 40, of Stilwell, OK
Kidnapping in Indian Country
Brandishing a Firearm During and in Relation to a Crime of ViolenceThe Indictment alleges that on or about March 20, 2014, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did unlawfully, willfully and knowingly kidnap and confine B.D. and did unlawfully, willfully and knowingly brandish, carry and use a firearm, that is, two handguns and one rifle, during and in relation to a crime of violence for which he can be prosecuted in a court of the United States, that is, Kidnapping in Indian Country as alleged in Count One.
The charges arose from an investigation by the Cherokee Nation Marshal Service, the Adair County Sheriff’s Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Sections 1153 and 1201(a)(2), punishable by up to life imprisonment and/or up to a $250,000.00 fine and Title 18, United States Code, Sections 924(c)(1)(A) and 924(c)(1)(A)(ii), punishable by not less than 7 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Dean Burris
JON PAUL SHROPSHIRE, age 54, of Eufaula, OK
Drug Conspiracy
The Indictment alleges that from in or about September 2011 until on or about September 26, 2012, in the Eastern District of Oklahoma and elsewhere, the defendant did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Bureau of Narcotics, the McIntosh County Sheriff’s Office, District 25 District Attorney’s Drug Task Force, Eufaula Police Department, the Mesquite Police Department in Texas and the United States Marshal Service. The charge is in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 5 years imprisonment and/or up to a $10,000,000.00 fine.
Assistant United States Attorney Shannon Henson
Two Executives Sentenced for Convictions in SK Foods InvestigationRead the Press Release
SACRAMENTO, Calif. — United States District Judge Lawrence K. Karlton sentenced two defendants charged in the SK Foods investigation, United States Attorney Benjamin B. Wagner announced. Former food broker Randall Rahal, 65, of Nantucket, Mass., was sentenced today to three years in prison. Former president of SK Foods, Alan Huey, 57, of Pebble Beach, Calif., was sentenced to three years’ probation with a special condition of 60‑days intermittent confinement.
According to court documents, Rahal paid bribes on behalf of SK Foods to the purchasing officers of customers of SK Foods. He had been the subject of multiple wiretaps in 2007 and 2008. Huey had been a member of the SK Foods senior management team and admitted to directing others to falsely label food product.
In sentencing the two defendants, Judge Karlton remarked that their crimes had been very serious and called for substantial prison sentences. Because Huey’s wife has serious health problems and is entirely dependent on him for care, Judge Karlton sentenced Huey to probation.
These cases were the product of an investigation by the FBI, IRS-Criminal Investigation, FDA Office of Criminal Investigations, and the Antitrust Division of the U.S. Department of Justice. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan and Antitrust Division Trial Attorneys Anna T. Pletcher and Tai Milder prosecuted the cases.
Tulalip Tribal Member Pleads Guilty to Second Degree Murder in Death of ToddlerRead the Press Release
An enrolled member of the Tulalip Tribes pleaded guilty today in U.S. District Court in Seattle to second degree murder and criminal mistreatment in the death of one daughter and the neglect of the second, announced U.S. Attorney Jenny A. Durkan. CHRISTINA D. CARLSON, 38, was indicted by the grand jury last May following the October, 2012 death of her 19-month-old daughter and the neglect of her 33-month-old daughter. Under the terms of the plea agreement, both the prosecution and defense will recommend a prison sentence of eight to thirteen years. However, U.S. District Judge James L. Robart is not bound by that recommendation and can impose any sentence up to the maximum life sentence allowed by law. Sentencing is scheduled for July 21, 2014.
CARLSON has been in federal custody at the Federal Detention Center at SeaTac, Washington, since January 11, 2013. The criminal complaint and plea agreement describe how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground. The child was unconscious, not breathing and covered in urine and feces. A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle. The child was pale, unresponsive and covered in urine and feces. The girl was transported to the hospital and later recovered. The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect. According to the report the child was malnourished and dehydrated, weighing only 19 pounds. The child’s skin in the diaper area was excoriated and infested with maggots. Her hair was infested with lice.
The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September. On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property. CARLSON admits in her plea agreement that she was away from the car for several hours, attempting to obtain drugs for her personal use. About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.
The case was investigated by the Tulalip Tribal Police and the FBI. The case is being prosecuted by Assistant United States Attorney J. Tate London.
Third Defendant Pleads Guilty in Bribery Scheme Related to Projects at Spotlight 29 Casino Operated by Coachella Valley Indian TribeRead the Press Release
LOS ANGELES – A Central California man who was hired to advise the Twenty-Nine Palms Band of Mission Indians has become the third person to plead guilty to participating in a kickback scheme that defrauded the Coachella Valley tribe.
David Alan Heslop, 76, of Templeton, who was hired by the tribe to oversee some tribal business, pleaded guilty yesterday to conspiracy to commit bribery. Heslop admitted that he paid hundreds of thousands of dollars to bribe Gary Edward Kovall, an attorney acting as general counsel for the tribe.
Kovall, 67, of Ely, Minnesota, pleaded guilty last month to conspiracy to commit bribery.
A third defendant in the case – Paul Phillip Bardos, 58, a general contractor from Rancho Cucamonga – pleaded guilty last month to tax evasion.
As outlined in a 20-page factual basis filed in relation to Heslop’s plea agreement, Kovall and Heslop formed companies, and Kovall convinced the tribe to award construction and consulting work to those companies. To disguise Kovall’s interest in those companies, Heslop paid Kovall’s share to Peggy Anne Shambaugh, who at the time was Kovall’s girlfriend (and is now his wife). Over of period of about 18 months that ended in mid-2008, the tribe paid these companies approximately $2.8 million. Heslop, in turn, paid Shambaugh approximately $300,000 to influence and reward Kovall.
Bardos performed and subcontracted much of the work awarded by the tribe. He admitted to depositing income he earned into his personal checking account, concealing this money from his accountant, and not reporting it on his tax returns.
Heslop is scheduled to be sentenced on June 30 by United States District Judge Michael W. Fitzgerald. At sentencing, Heslop faces up to five years in federal prison.
Kovall and Bardos both are scheduled to be sentenced by Judge Fitzgerald on September 29, at which time each defendant faces up to five years in prison.
Shambaugh, who was also indicted in this case, is being evaluated for pretrial diversion. If found suitable for the diversion program, Shambaugh will be supervised by a court officer for a specific period of time. If she complies with the program, the charges against her will be dismissed.
This case was investigated by IRS - Criminal Investigation and the Federal Bureau of Investigation.
Release No. 14-041
The United States Attorney’s Office for the Eastern District of Louisiana Celebrates 30th Anniversary of Victims of Crime Act -- National Crime Victims’ Rights Week Celebrates Progress, Works Toward Future GoalsRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announces that, in celebration of National Crime Victims’ Rights Week, an information fair will be held at Lakeside Shopping Mall on April 12, 2014 from 10:00 a.m. to 1:00 p.m. Federal and local agencies participating in the fair are the United States Attorney’s Office for the Eastern District of Louisiana, the Federal Bureau of Investigation, the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Homeland Security, the Jefferson Parish District Attorney’s Office and the Orleans Parish Sheriff’s Office.
The United States Attorney’s Office will also have an information tent at the Young Leadership Council’s Wednesday at the Square on April 9, 2014.
There is no charge to attend these events. Members of the public are encouraged to stop by these events to learn more about crime victims’ rights.
National Crime Victims’ Rights Week runs from April 6-12, 2014 and celebrates the thirtieth anniversary of the passage of the Victim of Crime Act. This year’s theme – 30 Years: Restoring the Balance of Justice – celebrates the accomplishments made and presents the opportunity to reinforce the nation’s long-term commitment to aiding crime victims. Only 30 years ago, crime victims had virtually no rights and no assistance. The criminal justice system often seemed indifferent to their needs. Victims were commonly excluded from courtrooms and denied the chance to speak at sentencing. They had no access to victim compensation or services to help rebuild their lives. There were few avenues to deal with their emotional and physical wounds. Victims were on their own to recover their health, security, and dignity. Today, the nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Financed not by taxpayers but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out- of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.
Victims’ rights advocates have scored remarkable victories over the last 30 years. But there is still a lot of work to be done. As we move forward, we are increasingly expanding our reach to previously underserved victim populations, including victims of color, American Indians and Alaska Natives, adults molested as children, victims of elder abuse, and LGBTQ victims. Over three decades, VOCA pioneered support efforts for victims of once-hidden crimes, like domestic and sexual violence. Today, we are shining a spotlight on other abuses that have long been unreported and often not prosecuted—hate and bias crimes, bullying, and sex and labor trafficking, among others.
“Our commitment to reaching every victim of crime is stronger than ever,” said Joye E. Frost, Director, Office for Victims of Crime (OVC), U.S. Department of Justice. “For 30 years, VOCA has represented hope, healing, and justice. Our message to all victims of crime is this: You are not alone.”
Ten Individuals Indicted for Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that nine residents of Miami-Dade County and a resident of Hillsborough County have been indicted for their alleged participation in a $12.5 million Medicare fraud scheme.
On March 20, 2014, a federal grand jury in Miami returned a 59-count indictment charging Vicente Diaz, 39, Daniel Ocampo, 35, Elsa Capo, 71, Santiago Sepulveda, 79, Marta Curbeco, 67, Margarita Rodriguez, 72, Francisco Maysonet, 67, Pedro Peralta, 69, Amira Galan, 79, and Ana Rosa Santana, 77, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, and the payment and receipt of kickbacks in connection with a federal health care program, from approximately November 2011 to October 2013.
All ten defendants are charged with conspiracy to commit health care fraud and wire fraud, and conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program. Diaz is additionally charged with nine counts of health care fraud, and nineteen counts of paying kickbacks and bribes in connection with a federal health care program. Ocampo is additionally charged with nine counts of health care fraud, and thirteen counts of paying kickbacks and bribes in connection with a federal health care program. Capo, Sepulveda, Curbeco, Rodriguez, Maysonet, Peralta, Galan, and Santana are charged with one count of health care fraud, and various counts of receiving kickbacks and bribes in exchange for serving as patients of Marcialed Health Care Corp. (Marcialed) and Sacred Health, Inc. (Sacred Health). Curbeco, Rodriguez, and Peralta are also charged with soliciting and accepting kickbacks and bribes in exchange for referring other beneficiaries to serve as patients of Marcialed and Sacred Health.
The allegations center on the operation of Marcialed and Sacred Health, two companies located in Miami-Dade County which were purportedly in the business of providing home health care to Medicare beneficiaries.
According to the indictment, Diaz controlled Marcialed and Sacred Health. Ocampo was for a time an officer of Sacred Health. Diaz and Ocampo offered and paid kickbacks and bribes to patient recruiters in return for referring beneficiaries to serve as patients so that Marcialed and Sacred could bill Medicare for home health services that were not medically necessary and were not provided. Curbeco, Rodriguez and Peralta solicited and accepted kickbacks and bribes in exchange for referring beneficiaries to serve as patients of Marcialed and Sacred Health. Capo, Sepulveda, Curbeco, Rodriguez, Maysonet, Peralta, Galan, and Santana are Medicare beneficiaries who solicited and accepted kickbacks in return for agreeing to serve as patients of Maricaled and Sacred Health so that the companies could bill Medicare for home health services that were not medically necessary and were not provided.
The indictment alleges that the defendants falsified, and caused to be falsified, records to document the receipt of home health services from Marcialed and Sacred Health that were not provided and were not medically necessary. Diaz and Ocampo violated Medicare rules and regulations by offering and paying kickbacks and bribes to patient recruiters in exchange for the referral of beneficiaries to Marcialed and Sacred Health. Diaz and Ocampo then caused Marcialed and Sacred Health to submit false and fraudulent claims seeking payment from Medicare for the home health services which had purportedly been provided to beneficiaries, when in truth the services had not been provided and were not medically necessary. The indictment alleges that as a result of the fraudulent claims, Diaz and Ocampo caused Medicare to pay approximately $7,809,243 to Marcialed and $4,694,834 to Sacred Health.
The indictment alleges that Diaz, Ocampo and other conspirators used the money fraudulently obtained from Medicare for their personal use and to further the fraud. The indictment seeks forfeiture of two properties and four Mercedes vehicles.
Mr. Ferrer commended the investigative efforts of U.S. Postal Inspection Service, HHS-OIG, and the FBI and was brought as part of the Medicare Fraud Strike Force. This case is being prosecuted by Assistant U.S. Attorney Eric E. Morales.
An indictment 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.
Stark County Trio Charged with Operating Illegal CasinosRead the Press Release
Three people from Stark County were charged in federal court with conspiring to launder money and operate illegal gambling businesses in Canton, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A two-count criminal information was filed charging Jerry Warren, age 70, of Canton, Tracie Warren-Pastore, age 45, of North Canton, and Yabacushyanei Bennett, age 45, of Canton, with one count of conspiracy to conduct an illegal gambling business and one count of conspiracy to launder money.
Prosecutors are seeking to forfeit more than $1.3 million in cash as well as four vehicles – a 2011 Jaguar XJ8, a 2011 Mazda CX-9, a 2008 Land Rover and a 2000 Porsche Boxter.
“This trio ran their own illegal casino in Canton, complete with 200 slot machines,” Dettelbach said. “Now the game is up, and they will be held accountable for their actions.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities,” said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
“This case illustrates the need for vigilance in the enforcement of Ohio's Casino Control Act,” said Executive Director Matt Schuler of the state’s Casino Control Commission. “There are only four legal casinos in Ohio; this was clearly an illegal gambling house."
Warren, Warren-Pastore and Bennett conspired together to operate gambling businesses from 2008 through May 2013, including the Nugget, which was located in Canton, according to the information.
The group operated illegal gambling businesses, including the Nugget, as casinos, offering more than 200 slot machines where the public could gamble. These slot machines included but were not limited to the Frog Prince, Pharaoh’s Fortune, Lucky Meerkats, Treasure Diver, Enchanted Kingdom and others, according to the information.
The businesses remained in substantially continuous operation and sometimes had gross revenues of $2,000 or more in a single day of operation, according to the information.
If convicted, the sentences of Warren, Warren-Pastore and Bennett will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the person’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the Internal Revenue Service with assistance from the Ohio Bureau of Criminal Investigation and the Ohio Casino Control Commission. The case is being prosecuted by Kevin Culum, Special Assistant United States Attorney.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Stamford Man Who Possessed Sawed-off Shotguns and Drugs Sentenced to 66 Months in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHTER RINVIL, also known as “Ricky, 20, of Stamford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by three years of supervised release, for possessing two sawed-off shotguns and narcotics.
According to court documents and statements made in court, in January 2013, the Stamford Police Department conducted a controlled purchase of heroin from RINVIL. RINVIL was arrested on January 30, 2013, and a search of his Custer Street residence on that date revealed two sawed-off shotguns, one of which was loaded, as well as 4.2 grams of heroin packaged for distribution, approximately 293 grams of marijuana, a personal use quantity of cocaine, drug packaging materials and $3,470 in cash.
RINVIL has been detained since his arrest. On January 13, 2014, he pleaded guilty to one count of possession of unregistered firearms.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Six Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of April, six individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
James DEAN, age 57, of Clarksburg, West Virginia, was sentenced to 18 months in prison for unlawful possession and use of cocaine and excessive use of alcohol. DEAN was originally sentenced on August 21, 2006, to 155 months in prison and four years of supervised release for possession with intent to distribute crack cocaine. In March of 2009, DEAN’s sentence was reduced to 125 months in prison pursuant to the crack resentencing guidelines and in October of 2011, DEAN’s sentence was again reduced to 88 months pursuant to the crack resentencing guidelines. DEAN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Chasty ANDERSON, age 24, of Clarksburg, was sentenced to 8 months in prison and 28 months of supervised release for commission of the new crime of DWI and possession and use of hydrocodone and oxycodone. ANDERSON was originally sentenced on October 7, 2011, to 12 months and 1 day in prison and three years of supervised release for conspiracy to distribute heroin and possession of a stolen firearm. ANDERSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
John William PICKENS of Braxton County, West Virginia, was sentenced to 8 months in prison for unlawful possession and use of marijuana and commission of the new offense in state court of marijuana possession. PICKENS was originally sentenced on November 2, 2007, to 55 months in prison and three years of supervised release for felon in possession of a firearm. PICKENS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Cara CARPENTER, age 24, of Barrackville, West Virginia, was sentenced to 8 months in prison and 28 months of supervised release for failure to complete treatment and commission of the new offense of DUI. CARPENTER was originally sentenced on October 30, 2012, to 4 months in prison and three years of supervised release for distribution of oxycodone within 1,000 feet of a protected location. CARPENTER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Julious Cesar PETTIS, age 38, of Morgantown, West Virginia, was sentenced to 6 months in prison for unlawful possession and use of synthetic marijuana; failure to submit truthful monthly reports; failure to notify probation office of address change; failure to participate in counseling; and, failure to report for drug screen. PETTIS was originally sentenced on April 2, 2009, to 81 months in prison and three years of supervised release for distribution of cocaine and possession of a firearm during the commission of a drug offense. PETTIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
Michael VIANDS, age 36, of Kearneysville, West Virginia, was sentenced to 8 months in prison and 30 months of supervised release for driving while suspended, fleeing from police, associating with a known felon and excessive alcohol use. VIANDS was originally sentenced on July 16, 2001, to 238 months in prison and five years of supervised release for distributionof crack cocaine within 1,000 feet of a school. In November of 2011, VIANDS’ sentence was reduced to 154 months in prison pursuant to the crack resentencing guidelines. VIANDS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys Paul T. Camilletti, Shawn A. Morgan and Zelda E. Wesley.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Sesser Man Pleads Guilty to Conveying False Allegations of A Terrorist Plot to Disrupt Election Day 2012Read the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Ray Allen Flener, 25, of Sesser, Illinois, pled guilty today to federal charges that he made a false statement to a federal officer and that he conveyed a false threat. Sentencing is set for July 31, 2014.
At the change of plea hearing, Flener admitted that on November 2, 2012, as a detainee at the Franklin County Jail in Benton, he told a Special Agent of the Federal Bureau of Investigation (FBI) that he had knowledge of a plan by a group called “the New World Order” to disrupt Election Day on November 6, 2012, by using weapons and explosives. Specifically, Flener told and showed the FBI agent the area in which the weapons and explosives allegedly had been stored in August of 2012. Flener’s representations were false because, as Flener knew, he had no such knowledge of weapons and explosives having been stored at that location.
Flener also admitted that on November 1, 2012, he did intentionally convey false and misleading information, under circumstances where such information may reasonably have been believed. Specifically, Flener told law enforcement officers from the Franklin County Sheriff’s Office and the FBI that he had personal knowledge of a plan by a group called “the New World Order” to disrupt Election Day, November 6, 2012, by using weapons and explosives.
The first charge of making a false statement carries a maximum penalty of 8 years in prison, a $250,000 fine, and up to 3 years of supervised release. The second charge of conveying a false threat carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
The case was investigated by the Federal Bureau of Investigation, the Illinois State Police, the Illinois Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sheriff’s Offices of Franklin County, Williamson County, Saline County and Jackson County, and the Police Departments of Marion, West Frankfort, and Johnston City. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Serial Robber Pleads GuiltyRead the Press Release
Robbed Seven Businesses and Employees; Attempted to Rob a Take-Out Restaurant
Greenbelt, Maryland – Duane James, age 53, of Germantown, Maryland pleaded guilty today to five counts of robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, on seven occasions from January 21 to February 17, 2013, James robbed Maryland businesses and their employees, each time wearing a ski mask and pointing what appeared to be a gun at the store clerks. In Silver Spring, James stole $50 and $10,000 worth of jewelry at The Gold Spot store; $110 from the store register and $100 from the clerk’s wallet at the AT&T store; and $3,000 from the cash drawer and lottery proceeds at the Bel Pre Beer & Wine store. In Rockville, James stole $1,500 from the register at the Shell Gas Station. In Gaithersburg, James stole $400 from the store register and $5 from the clerk at the Walnut Hill Liberty Gas Station; $300 from the cash register and $200 from the clerk at Twinbrook Shell Gas Station; and $1,043 from the register and cigarettes at the Exxon Gas Station.Also, on February 17, 2013 and prior to robbing the Exxon gas station that same day, James pointed what appeared to be a gun at a clerk at a take-out restaurant in Gaithersburg, demanding cash from the register. The clerk did not move or open the drawer. James left the store.
James faces a maximum sentence of 20 years in prison and a fine of $250,000 for each of the five counts robbery. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for July 14, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg and Special Assistant U.S. Attorney Jennifer R. Sykes, who are prosecuting the case.Serial Bank Robber Sentenced to 15 Years in Prison for TwoLong Island Bank RobberiesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Steven Bertuglia was sentenced to 15 years in prison by United States District Judge Joseph F. Bianco. On October 3, 2012, Bertuglia pleaded guilty to committing two bank robberies in Nassau and Suffolk Counties while on release to a halfway house for convictions stemming from a string of 14 bank robberies he committed in 2007.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation (FBI), New York Field Office, Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD), and Edward Webber, Commissioner, Suffolk County Police Department (SCPD).
"Having refused to learn from his mistakes, this serial bank robber will now have the next 15 years to contemplate the consequences of his actions. We stand committed to protecting the public from dangerous repeat offenders," stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the NCPD, and the SCPD for their participation in this case.
On June 16, 2008, United States District Judge Jack B. Weinstein, in federal court in Brooklyn, sentenced Bertuglia to five years in prison for committing 14 bank robberies in 2007 in Nassau, Suffolk, and Queens Counties, and in New Jersey and Connecticut. On May 3, 2011, Bertuglia was released from prison to live in a halfway house in Brooklyn, where he was scheduled to finish serving the remainder of the 2008 sentence, which would have ended on January 13, 2012.
During his guilty plea proceeding before Judge Bianco, Bertuglia admitted that in June 2011, he committed two bank robberies in Nassau and Suffolk Counties while on release at the Brooklyn halfway house. Specifically, on June 9, 2011, Bertuglia rented a car, drove to an Atlantic Bank branch in Hicksville, New York, presented the teller with a threatening note, and made off with cash. Nearly four years earlier in June 2007, Bertuglia had robbed that same Atlantic Bank branch while armed with a pellet gun. On June 16, 2011, Bertuglia again used a threatening note to rob a TD Bank branch in Farmingville, New York.
On January 13, 2012, Bertuglia was arrested by the FBI, with assistance from NCPD and SCPD.
The government's case was prosecuted by Assistant United States Attorney Charles N. Rose.
The Defendant:
STEVEN BERTUGLIA
Age: 41
Sacramento Man Sentenced to More Than 21 Years in Prison for Trafficking MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Jose Mario Medrano, 36, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 21 years and 10 months in prison for his involvement in a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Medrano was a member of a Mexican-based drug trafficking organization that operated in California, Nevada, and Illinois and regularly distributed up to 40 pounds of methamphetamine on a monthly basis. Ultimately, the investigation resulted in the seizure of more than 145 pounds of methamphetamine, extensive drug ledgers, numerous firearms, bullet-proof vests, and more than $145,000 in cash.
Medrano was arrested driving a car that also held a woman and her eight-year-old daughter. Investigators searched Medrano’s vehicle and found 15 pounds of methamphetamine and a loaded 9 mm pistol inside two hidden compartments. Following his arrest, investigators searched Medrano’s house in Sacramento and found more than four pounds of methamphetamine, more than $20,000 in cash, four firearms, ammunition, four ballistic vests, pay-owe sheets, packaging materials, scales and a money counter.
In sentencing Medrano, Judge Mendez noted his connection to firearms and “ballistic vests,” the fact that he was “heavily involved” with a “large drug-trafficking organization,” and the fact that he endangered an eight-year-old child by allowing her to ride with him while he was armed and transporting a large quantity of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Sacramento Sheriff’s Department High Intensity Drug Trafficking Area (HIDTA) task force, and the California Department of Justice (Cal-MMET). Assistant United States Attorney Michael M. Beckwith prosecuted the case.
Rochester Couple Indicted on Wire Fraud ConspiracyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three-count indictment charging Brian Leonard, 44, and his wife, Nancy Cedeno, 44, both of Rochester, N.Y., of conspiracy to commit wire fraud and wire fraud. The charges each carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendants used online, e-commerce sites, including eBay.com and Amazon.com, to sell stolen merchandise to unwitting buyers. Leonard and Cedeno are accused of using their business, Rochester Consignment Broker, a consignment business in Rochester, to purchase goods and merchandise that they knew to be stolen. The couple then advertised and sold or attempted to sell the items to buyers online, all while falsely representing that they had lawful ownership of the goods.
The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and members of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Robertsdale Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jesse Knighten, 24, of Robertsdale, Alabama, was sentenced today in federal court to 54 months in federal prison for his participation in a methamphetamine manufacturing conspiracy. United States District Court Judge Callie V. S. Granade imposed the sentence, but ordered that Knighten would receive 22 months credit against the 54-month sentence based on time he had spent in jail awaiting the imposition of sentence. The judge ordered that Knighten undergo drug treatment, both during his custody sentence and after his release on supervision for a three-year term. No fine was imposed, but the judge ordered that Knighten pay $100 in special mandatory assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the Loxley Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Rigby Man Sentenced for Unlawfully Possessing FirearmRead the Press Release
POCATELLO — Gary Wallace Hoffman, 50, of Rigby, Idaho, was sentenced today in United States District Court to 90 days in prison followed by six months of home detention for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Robert J. Bryan also ordered Hoffman to serve three years of supervised release following his release from prison. Hoffman was indicted by a federal grand jury in Pocatello on May 29, 2013, and pleaded guilty on January 15, 2014.
According to the plea agreement, on May 29, 2012, Hoffman sold .81 grams of methamphetamine and a 9 millimeter Glock pistol to another individual in Rexburg, Idaho. Hoffman received $120 for the methamphetamine and $580 for the firearm. Hoffman is prohibited from possessing firearms due to a drug conviction in Bonneville County, Idaho, in 2004.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with the assistance of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Purchaser and Seller in Loan Fraud Scheme Are SentencedRead the Press Release
A DFW Lawyer Who Served as Escrow Officer in Scheme is Sentenced
to Federal Prison for Covering up the Bank FraudDALLAS — Plano, Texas, residents, Vathany Teng, 43, and Lina Ma, 55, were sentenced yesterday for their role in a loan fraud scheme they ran from August 2007 to April 2008 that resulted in the total funding of more than $3 million in fraudulent loans, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. District Judge David C. Godbey sentenced Teng to 27 months in federal prison and ordered him to pay $4.2 million in restitution. Ma was sentenced to 18 months in federal prison and ordered to pay $2.1 million in restitution. Both must surrender to the Bureau of Prisons on July 7, 2014.
Both Teng and Ma pleaded guilty to one count of conspiracy to commit bank fraud. The other defendant in the case, Jerry Goh, 51, a lawyer who had offices in the Dallas-Fort Worth metroplex, and who acted as the escrow officer for the Prosper Bank loan, pleaded guilty to one count of misprision of a felony. He was sentenced in February 2014 to serve seven months in federal prison, and he must surrender to the Bureau of Prisons on May 26, 2014, to begin serving that sentence. Judge Godbey also ordered that he serve the first seven months of a one-year term of supervised release on home confinement and he was ordered to pay more than $2.1 million in restitution.
According to documents filed in Teng and Ma’s case, Teng, Ma and Goh participated in a scheme to defraud and deceive Prosper Bank, United Central Bank (UCB) and the Small Business Administration (SBA). The conspiracy involved one fraudulent SBA guaranteed loan from Prosper Bank and two fraudulent loans from UCB.
The scheme involved making false representations and deliberate omissions of material information when fraudulent loan applications were submitted to these banks in connection with the three loans. According to Teng and Ma’s factual resumes, Teng, Ma and Goh falsely represented to Prosper Bank and UCB, and caused the HUD-1 Settlement Statement on all three loans to falsely represent, that Ma was the true source of loan down payments.
Goh, acting in his capacity as the escrow officer on the Prosper Bank loan, and thus with control of the loan proceeds, concealed from lender Prosper Bank the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The case was investigated by the U.S. Small Business Administration – Office of Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis prosecuted.
Philadelphia Man Pleads Guilty to Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA – Eric Sijohn Brown, 46, of Philadelphia, pleaded guilty today to 20 counts in connection with a mortgage fraud scheme involving KREW Settlement Services. Brown pleaded guilty to conspiracy, two counts of FHA loan fraud, 12 counts of loan fraud, and three counts of tax evasion. Between May 2004 and February 2009, Brown and his co-conspirators inflated purchase prices on loan documents for more than 100 Philadelphia properties resulting in more than $20 million in fraudulent loan proceeds. A sentencing hearing is scheduled for July 8, 2014. Brown faces a maximum possible sentence of 486 years in prison, including a mandatory two year term, five years of supervised release, a fine of up to $15 million, and $2,000 special assessment. A forfeiture notice was also filed seeking more than $13.7 million from all defendants.
KREW Settlement Services was a Philadelphia real estate settlement company and Brown was a general contractor who worked with his co-defendants to identify distressed properties to purchase, typically in the West Philadelphia area. The scheme involved recruiting “straw buyers” whose credit history and personal information was used to purchase the properties, obtain mortgage loans, and take title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Mortgage brokers - including Roderick Foxworth, Walter Brown, and John William Polosky (charged separately in the Western District of Pennsylvania) - allegedly submitted the fraudulent loan applications to lenders to secure the loans for the buyers, knowing that the information was false.
Charged with Brown were Roderick L. Foxworth, Sr., Cynthia Evette Brown, Walter Alston Brown, Jr., and Kevin Joseph Franklin. Cynthia Brown is alleged to have falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. Kevin Joseph Franklin, a title agent, is alleged to have falsely prepared two deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. Franklin is also alleged to have created false title insurance policies for the lenders.
After the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed by Franklin to Eric Brown, Foxworth, Walter Brown, and Cynthia Brown, and many of these payments were not reflected on the HUD-1 forms.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
In addition to the five defendants charged with Brown, and the three defendants charged by the Western District of Pennsylvania, seven defendants were charged by information.As alleged in the indictment, “KREW” is an acronym of the first names of Kevin Joseph Franklin, Roderick L. Foxworth, Sr., Eric Sijohn Brown, and Walter Alston Brown, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Payette Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
BOISE – Steven Ray Hemenway, 47, of Payette, Idaho, was sentenced today in United States District Court to 78 months in prison for possessing sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Hemenway to serve 20 years of supervised release, during which he will undergo treatment for sexual deviancy, adhere to conditions designed to protect the public and must register as a sex offender. He pleaded guilty to the charge on December 2, 2013.
According to court documents, in December 2012, law enforcement officers executed a search warrant at a residence in Toronto, Ontario. The individual at that residence confessed to distributing images of child pornography via his email account. Investigators reviewed the account and developed information that the Canadian offender had sent images and videos of child pornography to an email account associated with Hemenway.
On February 26, 2013, federal agents, assisted by officers from the Payette Police Department, performed a “knock-and-talk” at Hemenway’s home in Payette. During an interview, Hemenway admitted that he had been receiving child pornography via the Internet for several years. He also told agents that he had sent between 100 and 500 images of child pornography to approximately ten other email accounts during the previous year. Hemenway consented to a search of his laptop computer and investigators found child pornography and child erotica.
The images and videos recovered from Hemenway’s computer confirmed that the user had been receiving and distributing child pornography, including sexually explicit material depicting prepubescent minors. Investigators sent the material to the National Center for Missing and Exploited Children (NCMEC) for analysis and comparison with previously identified victims of abuse. According to NCMEC, among the images found on Hemenway’s computer were known victims of sexual abuse from the states of North Carolina, Georgia, Washington, Missouri, Connecticut, Kentucky, Pennsylvania, as well as from Canada, United Kingdom, Ukraine, France, and Belgium.
The case was investigated by the Department of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), an affiliate of the Idaho Internet Crimes Against Children Task Force (ICAC), with the assistance of the Payette Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” For more information about the Idaho ICAC, see http://www.icacidaho.org/index.html.
Pasadena Man Convicted of Illegally Warning Targets of DEA WiretapsRead the Press Release
Baltimore, Maryland – Joshua Ferguson, age 34, of Pasadena, Maryland pleaded guilty today to unlawfully providing notice of electronic surveillance.
The guilty plea was 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; and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, in June of 2013, pursuant to a court authorized wiretap, the DEA and Anne Arundel County Police Department were monitoring the cell phone of a suspected drug trafficker, Paul Cain. On June 27, 2013, law enforcement overheard a call from Ferguson who warned Cain of three phone taps in Pasadena for drugs. Ferguson also told Cain to warn another suspected drug dealer, Daryell Rexrode, about the phone taps. Shortly thereafter, Cain and Rexrode stopped using their cell phones.Further investigation revealed that Ferguson learned of the phone taps through Sarah Harris who worked at the Clerk’s Office in the Circuit Court for Anne Arundel County. Ferguson had met with Harris at a bar on June 26, 2013. Harris told Ferguson that there were phone taps in Pasadena for drugs, which were not local. Ferguson understood this to mean that federal law enforcement officers were conducting the phone taps.
Ferguson faces a maximum sentence of five years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge George L. Russell III scheduled sentencing for June 27, 2014.
Sarah Elizabeth Harris, age 23, of Pasadena, Maryland, pleaded guilty in February 2014 to obstruction of an official proceeding and faces a maximum sentence of 20 years in prison at her sentencing scheduled on May 9, 2014 at 2:00 p.m. Paul Rodney Cain, age 48, and Daryell Mitchell Rexrode, age 56, both of Pasadena, Maryland, previously pleaded guilty to their participation in drug trafficking activities. Rexrode was sentenced on March 8, 2014 to 160 months in prison. Cain awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.Nigerian National Faces New Stolen Identity Tax Refund Charges in 31-Count Federal Indictment Returned in New JerseyRead the Press Release
NEWARK, N.J. - A Nigerian national who formerly resided in Livingston, N.J., was arraigned today on a 31-count superseding indictment charging him with participating in an $3 million scheme to use stolen identities to generate fraudulent tax refunds, U.S. Attorney Paul J. Fishman announced.
Kole Akinola, 40, allegedly engaged in a stolen identity refund fraud, or “SIRF,” scheme that resulted in more than $3 million in losses to the U.S. Treasury and the theft of the personal identification information of hundreds of individuals. Akinola was indicted April 1, 2014, and was arraigned on the charges today before U.S. District Judge Jose L. Linares in Newark federal court. The superseding indictment charges Akinola with one count of conspiring to steal government funds, 10 counts of misusing the personal identification information of others, 10 counts of illegally using social security numbers and 10 counts of aggravated identity theft.
Akinola originally was arrested on a complaint in April 2011 and indicted in May 2011 on one count of conspiring to steal government funds in relation to an approximately four-month scheme to file fraudulent income tax returns to illegally obtain refunds. Akinola, who is subject to a final order of removal to Nigeria, has been detained since the time of his arrest. The new charges allege a conspiracy lasting approximately three years, including the time of his incarceration.
According to documents filed in this case and statements made in court:
In April 2011, Akinola was arrested for driving under the influence in Glen Ridge, N.J. At the time of arrest, Akinola was found to be in possession of debit cards and Turbo Tax receipts in the names of third parties; two composition books and loose papers containing the personal identifiers of numerous individuals, including names, social security numbers and dates of birth; a July 2007 inmate population report from Union County Correctional Facility, which included the names, social security numbers, and dates of birth of over 700 inmates; W-2 forms in the names of third parties, which included employer identification numbers, or “EINs”; and several cellular telephones and handheld electronic devices.The government alleges that the personal identification information, EINs, and electronic devices found in Akinola’s possession at the time of his arrest were used in connection with a SIRF conspiracy to file numerous fraudulent tax returns seeking tax refunds.
Akinola and the other members of the conspiracy obtained personal identifiers – such as dates of birth and Social Security numbers – belonging to numerous U.S. citizens, including from inmate population reports from prison facilities. The conspirators used those identifiers to create fake 1040 forms, which falsely reported wages and withheld taxes to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically with the IRS and generated refunds.
Members of the conspiracy then directed the refunds onto pre-paid debit cards, which were mailed to addresses in New Jersey and elsewhere, where they could be retrieved by the conspirators. They then used the pre-paid debit cards to make ATM withdrawals and purchases in New Jersey for their personal use and benefit.
As recently as July 2013, while incarcerated at Hudson County Correctional Facility, Akinola was found to be illegally in possession of a cellular telephone and three prison inmate population reports, from three separate dates, that contained the names and personal identification information of hundreds of inmates.
The conspiracy count carries a maximum potential penalty of 10 years in prison; each count of misuse of personal identification information carries a maximum potential penalty of 15 years in prison; each count of illegal use of a Social Security number carries a maximum potential penalty of five years in prison; and each aggravated identity theft count carries a mandatory penalty of two years in prison, which would be consecutive to any term imposed for a conviction of illegal use of a Social Security number. Each count also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Jonathan D. Larsen; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie Kelokates, for the investigation.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Andrew S. Pak of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.14-119
Defense counsel: Assistant Federal Public Defender K. Anthony Thomas Esq., Newark
Akinola, Kole SIndictment
New Haven Man Sentenced to 46 Months in Prison for Gun and Narcotics OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ALPHONZO DIXON, also known as “Fonz,” 26, of New Haven, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. DIXON was identified over a court-authorized wiretap communicating with Donald Ogman, who has been identified in court proceedings as the alleged leader of the Grape Street Crips, and discussing narcotics transactions and shootings.
In February 2012, DIXON purchased eighth-ounce quantities of crack cocaine from members of the conspiracy for distribution purposes. On March 12, 2012, investigators also recovered a revolver that was identified as belonging to DIXON.
DIXON had been convicted in August 2011 of possessing a weapon in a motor vehicle, and it is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
DIXON has been detained since March 26, 2012.
On April 9, 2012, a grand jury returned an indictment charging DIXON and 17 other individuals with narcotics distribution and related offenses stemming from this investigation. Two additional individuals were later charged in the case.
All of the defendants have pleaded guilty. On August 8, 2012, DIXON pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
DIXON will begin service of his federal sentence after he completes a six-month term of incarceration for contempt ordered in state court on December 13, 2013, following DIXON’s refusal to testify at trial.
Ogman awaits sentencing.This matter was investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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Tom Carson
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[email protected]Multi-Convicted Felon Sentenced to 15 Years for Possession of A Loaded FirearmRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Quinton Justin Davis (27, Sarasota) to 15 years in federal prison for being a felon in possession of a firearm. Davis pleaded guilty on January 21, 2014.
According to court documents, on October 17, 2013, officers from the Sarasota Police Department arrested Davis on an outstanding warrant. Pursuant to the arrest, they located a loaded Glock 22 .40 caliber handgun in his waistband. Davis had previously been convicted of multiple felonies prior to his October 2013 arrest, including drug trafficking and firearm offenses, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Miami-Dade, Fla. Police Officer Charged in Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. - An internal affairs officer of the Miami-Dade Police Department was arrested this morning in Miami Gardens, Fla., and charged with allegedly aiding a narcotics trafficking organization – distributing cocaine from the Dominican Republic in New Jersey and elsewhere – by orchestrating a murder-for-hire plot; providing firearms and sensitive law enforcement information; and facilitating the transport of drug proceeds, New Jersey U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 45, a/k/a “the Milk Man,” of Broward County, Fla. – a lieutenant with the Miami-Dade Police Department, Internal Affairs – is charged by federal criminal complaint with one count each of: aiding and abetting a conspiracy to distribute cocaine; conspiring to distribute cocaine; and engaging in monetary transactions in property derived from specified unlawful activity – specifically, drug proceeds.
Mata is scheduled to appear tomorrow, April 9, 2014, before U.S. Magistrate Judge Alicia M. Otazo-Reyes in federal court in the Southern District of Florida.
According to the complaint unsealed today:
After rival drug dealers threatened to kill members of the drug trafficking organization, or “DTO,” with which Mata conspired, Mata and members of the DTO discussed a murder plot. Mata stated that his contacts – assassins – would wear uniforms and badges to make it appear as though the two targets of the plot were being pulled over by law enforcement before shooting them. Mata arranged to pay two assassins $150,000 per target. Ultimately, the DTO decided not to move forward with the murder plot, but Mata still received a payment for setting up the meetings.
Mata purchased several firearms to provide protection and security to the DTO members located in the Dominican Republic, which he transported on two separate trips from Miami to the Dominican Republic between Oct.5, 2012, and Jan. 17, 2013. A number of these firearms have been recovered by law enforcement.
Mata also helped to transport narcotics proceeds for the DTO in exchange for thousands of dollars in cash and a Rolex watch valued at approximately $10,000.
Mata also used sources of information available to him as a law enforcement officer to find out information about the seizure of $419,000 in narcotics proceeds from a Bergen County, N.J., residence, which members of the DTO suspected had been stolen by another member, but were in fact seized by law enforcement.
The narcotics charges each carry a statutory mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine. The transaction involving drug proceeds charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the DEA’s Paterson Post of Duty under the direction of Special Agent in Charge Carl J. Kotowski; IRS – Criminal Investigation, Newark Field Office, under the Acting Special Agent in Charge Jonathan D. Larsen; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, New York, under the direction of James T. Hayes Jr. He also thanked the Miami FBI, Miami-Dade Police Department and Miami-Area Corruption Task Force for their assistance with the arrest. The investigation is ongoing.
The government is represented by Assistant U.S. Attorneys Mary Toscano of the U.S. Attorney’s Office Special Prosecutions Division, José Almonte of the Criminal Division, and Barbara Ward and Marion Percell, Chief, of the office’s Asset Forfeiture Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.14-120
Defense counsel: TBD
Mata, Ralph Complaint
Miami Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announce that Roshawn Jermaine Davis, 38, of Miami, was sentenced for his participation in a stolen identity tax refund scheme. Davis was sentenced to 57 months in prison, to be followed by three years of supervised release. Davis previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, during a traffic stop of a vehicle Davis was driving, a bag was found containing pre-paid debit cards in other individuals’ names, together with over 150 pieces of personal identification information (PII) on handwritten sheets of paper, printouts, and patient information sheets from doctors’ offices. Some of the sheets had handwritten notes indicating dollar amounts, routing numbers, and account numbers.
Court documents also state that fraudulent tax returns were filed for the 2011 tax year on behalf of at least sixteen individuals whose PII was found in the defendant’s bag. The handwritten dollar amounts listed on the documents found in the bag matched the tax refund amounts on the sixteen fraudulent tax returns.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and the Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
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.
Mexican National Sentenced for Unlawful Possession of FirearmRead the Press Release
POCATELLO — Rigoberto Torres-Perez, 31, of Idaho Falls, Idaho, was sentenced today in United States District Court to nine months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Torres-Perez was indicted by a federal grand jury in Pocatello on June 25, 2013, and pleaded guilty on January 15, 2014.
According to the plea agreement, police officers encountered Torres-Perez on November 4, 2012, during a search of another individual’s residence in Idaho Falls. Torres-Perez was in possession of a 9 millimeter pistol with an obliterated serial number. Torres-Perez is prohibited from possessing firearms due to a drug conviction in Arizona in 2006.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Idaho Falls Police Department.
Meth Ice Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jonathon Blake Jones, 33, of Robertsdale, Alabama, was sentenced today in federal court to 120 months in federal prison for his role as a dealer distributing methamphetamine ice from 2009 through April of 2013. Court documents establish that Jones became involved in the distribution of the more potent form of methamphetamine, called “ice,” after initially becoming involved in manufacturing the drug locally. Jones was identified in an investigation conducted by the Baldwin County Drug Task Force, and he was ultimately arrested on federal charges when a federal search warrant was executed at his residence last year. During the execution of the warrant, investigators seized about a quarter-kilogram of methamphetamine ice, cash, a gun and a vehicle. Senior United States District Court Judge Charles R. Butler, Jr., imposed the sentence this morning. The judge ordered that Jones undergo drug treatment during the period of his custody and after his release on supervision for a 10-year term. No fine was imposed, but the judge ordered that Jones pay $100 in special mandatory assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Loxley Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Meth Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Tessa Weaver Rivers, 39, of Mt. Vernon, Alabama, was sentenced today in federal court to a year and a day in federal prison for her participation in a conspiracy to possess with intent to distribute methamphetamine. Court documents establish that Rivers was involved in both the manufacture and the distribution of the drug in north Mobile County. Rivers was arrested as the result of cooperation by a confidential informant working with the Mobile County Sheriff’s Office, who made controlled purchases of methamphetamine from Rivers. United States District Court Judge Callie V. S. Granade imposed the sentence, and revoked Rivers’ conditions of release to remand her to the custody of the United States Marshal’s Service to begin serving her sentence. The judge ordered that Rivers undergo drug treatment after her release on supervision for a three-year term. No fine was imposed, but the judge ordered that Rivers pay $100 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Media AdvisoryRead the Press Release
Montgomery, Alabama - The United States Attorney’s Office will hold a press conference to announce the takedown of a drug distribution operation that involves two federal judicial districts and is the result of the joint efforts of the Drug Enforcement Administration and the Alabama Department of Corrections.
The press conference will be held on Thursday, April 10, 2014 at 1:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited. A press release will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Laguna Pueblo Man Pleads Guilty to Assaulting a Federally Deputized Tribal Police OfficerRead the Press Release
ALBUQUERQUE – This morning Gregory Allen Bahe, 32, a member and resident of Laguna Pueblo, pled guilty to an indictment charging him with assaulting a federal officer. The guilty plea was announced by Acting U.S. Attorney Damon P. Martinez, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Police Chief Brian Carr of the Pueblo of Laguna Tribal Police Department.
Bahe was arrested on Sept. 19, 2013, pursuant to a criminal complaint alleging that he assaulted a tribal police officer who holds a Special Law Enforcement Commission from the BIA. Bahe subsequently was indicted and charged with two counts of assaulting a federal officer.
According to these charging instruments Bahe assaulted an officer of the Laguna Pueblo Tribal Police Department on Sept. 12, 2013, when the officer responded to a call from Bahe requesting police assistance at a residence located in Laguna Pueblo in Cibola County, N.M.
When the officer was restraining Bahe for officer safety reasons, Bahe assaulted the officer by spitting at the officers on the face and head-butting the officer on the face.
During today’s proceedings, Bahe pleaded guilty to Count 1 of the indictment and admitted assaulting a federal officer who was engaged in the performance of his official duty.
Bahe has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Bahe will be sentenced to 12 months in federal prison followed by a term of supervised release to be determined by the court.
The case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Kenyan Woman Sentenced to One Year for Marriage Fraud ConspiracyRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Margaret Kimani, 30, of Worcester, Massachusetts, was sentenced today to one year in prison
and three years of supervised release for conspiring to defraud the United States by seeking to
become a lawful permanent resident, or green card holder, by engaging in a marriage fraud
conspiracy. She was convicted after a jury trial in December 2013.According to court documents, in 2001, Kimani, a Kenyan national, came to the United
States on a visitor’s visa. In 2003, after her visa expired, Kimani came to Maine and paid a U.S.
citizen from Maine to marry her. She and the Maine resident then filed documents with U.S.
immigration authorities to adjust her immigration status so she could stay permanently in the
country. After the U.S. citizen backed out of the scheme, Kimani filed a petition under the
Violence Against Women Act, which allows aliens who are subject to abuse to apply for
permanent residence without the knowledge or consent of their U.S. spouse. In support of that
petition, she filed false documents to make it appear that her U.S. citizen spouse had abused
her. Relying on her false claims, immigration authorities granted her petition and awarded her
lawful permanent resident status.Other than cases against fugitives, Kimani’s sentencing brings to a close a major
marriage fraud conspiracy investigation that resulted in felony convictions against 28 defendants
in Maine since 2010. Launched in 2005 by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations (HSI), the investigation identified more than 40 sham
marriages in the Lewiston/Auburn and Newport areas between U.S. citizens from Maine and
nationals of Kenya, Uganda, Zambia and Cameroon. The Maine residents were paid to marry
the foreign nationals and assist them in seeking a green card.
In addition to Kimani, three other defendants -- Emmanuel Musiitwa, Grace Nyaga and
Jecinta Wambui Ngige -- all filed false claims of spousal abuse with U.S. immigration
authorities. These were the first prosecutions in the United States for fraudulently misusing the
immigration provisions of the Violence Against Women Act. Emmanuel Musiitwa was
sentenced to four months in January 2014. Grace Nyaga was sentenced to three months in
September 2013. Jecinta Wambui Ngige was sentenced to four months in January 2014.
Others who were convicted include ringleader Rashid Kakande, who was sentenced to 19
months in prison in April 2012; and Maine organizers Angela Roy, who was sentenced to 10
months in April 2011, and Torri Patterson, who was sentenced to six months in April
2011. James Mbugua, the other ringleader, fled after being charged in the case and released on
bail conditions, and remains a fugitive.Also convicted were:
Name
Sentence
Month/Year of Sentence
Catherine Nantume
one year
December 2012
183 days
May 2012
Thomas Taylor
six months
July 2011
Henry Swan
four months
June 2011
Heather Dugas
three months
July 2011
Paula German
three months
April 2011
Thomas Patrick Hanson
three months
May 2011
Simon Kihugu
three months
July 2013
Albert White
three months
April 2011
June Roy White
three months
May 2011
Samuel Paradis
three months
October 2011
Susan Wambui Kimani
three months
December 2011
Lucy Kubai
two months
February 2012
James Muhoro
two months
March 2012
Jason Neas
two months
July 2012
Janet Wanjiru Thumi
two months
March 2013
Annie Njoroge
45 days
February 2013
Edward Kizito
one month
December 2011
Christine Njoroge
one month
October 2012
Beth Stewart
3 years probation
November 2012
Kelly Rider
1 year probation
June 2011
"America's legal immigration system is not for sale and we will move aggressively
against those who willfully compromise the integrity of that system simply to enrich
themselves," said Bruce Foucart, Special Agent in Charge for HSI in Boston. "Immigration
benefit fraud is a serious crime. Not only does it potentially rob deserving immigrants of benefits
they rightfully deserve, it also creates a security vulnerability that could be exploited by
criminals and others who pose a danger to our community. People who use ruses like this in an
attempt to obtain a green card should be forewarned, if you commit marriage fraud, there isn't
going to be a honeymoon."
The case was investigated by HSI and U.S. Citizenship and Immigration Services in
Portland and Boston, with the assistance of the Lewiston Police Department.Justice Department Files Lawsuit to Stop Pennsylvania Man from Preparing Federal Tax ReturnsRead the Press Release
The United States filed a civil lawsuit today in Pittsburgh federal court to permanently bar Larry E. Snow, of Seward, Pa., from preparing federal tax returns for others, the Department of Justice and Internal Revenue Service (IRS) announced today.
In February 2012, Snow pleaded guilty to one count of aiding and assisting in the preparation of false and fraudulent individual income tax returns and was later sentenced to six months of home detention and three years of probation. The civil complaint filed with the U.S. District Court for the Western District of Pennsylvania today alleges that Snow repeatedly prepared returns with false deductions for medical expenses, personal property taxes, charitable contributions and unreimbursed employee expenses. He allegedly maintained a list he referred to as “IRS Gimmies,” which were items he instructed his employees to report on each return prepared in his accounting practice, regardless of whether the client was entitled to them.
The IRS estimates that Snow’s fraudulent return preparation for one year alone cost the U.S. Treasury over $1.3 million in lost tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Larry E. Snow
Complaint for Permanent Injunction and Other ReliefJury Convicts Sierra Leone Man of Repeatedly Resisting DeportationRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Osman Jalloh, 52, of Sierra Leone, guilty of two counts of preventing or hampering his deportation from the United States. United States District Judge Dee D. Drell presided over the trial.
Following the two-day trial, the jury found Osman guilty after deliberating for 35 minutes. Based on witness testimony and documents admitted into evidence, it was shown that Jalloh refused to leave the United States on March 16, 2012 and September 9, 2012. Both times Immigration and Customs Enforcement agents brought Jalloh to the Alexandria International Airport and attempted to put him on a commercial flight. He refused to comply with the agents and was returned to incarceration.
Osman faces four years in prison and a $250,000 fine for each count of preventing or hampering his deportation from the United States. Sentencing was set for July 11, 2014.
Immigration and Customs Enforcement – Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Joseph G. Jarzabek and Brandon B. Brown are prosecuting the case.
Jesse Lewis Detained on Charges of Violently Forcing Women to Engage in Acts of ProstitutionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the arrest and detention of Jesse Lewis, 28, on charges of sex trafficking by force, fraud or coercion, in violation of Title 18, United States Code, Section 1591(a). These charges carry a minimum mandatory sentence of fifteen years and a possible maximum sentence of life in prison.
According to the allegations contained in the criminal complaint, Lewis met a 26 year- old victim in Tampa in June 2013 and offered her a place to live after finding out that she was homeless. After unsuccessfully trying to prostitute her in Tampa, Lewis transported the victim to Broward County where he took sexually provocative pictures of her, posted them on-line and then forced her to engage in prostitution dates with numerous men over the course of several days. Following each “date,” Lewis took all the money. According to the victim, Lewis choked her and slapped her in the face, instructing her to always look him in the eye and call him ‘Daddy.’ The victim said she had about 10 “dates” over several days, collecting between $80 and $150 per date, with all the money going to Lewis, who waited outside the hotel rooms during each sexual encounter. After approximately one week with Lewis, the victim was able to escape after Lewis fell asleep. She contacted the police who located Lewis and arrested him in June 2013 on what were originally state charges of human trafficking, forcing commercial sexual activity, procuring for prostitution another to become a prostitute, and living off the earnings of a prostitute. The federal criminal complaint and arrest warrant were issued shortly thereafter, but before Lewis could be taken into custody on the federal charges, he was transported to Miami-Dade County where he was facing charges of living off the earnings of a prostitute, stemming from a previous arrest in Miami Beach on March 14, 2013. Lewis pled guilty to the Miami charges and after his release from custody on April 2, 2014, he was arrested on the federal complaint.
During Lewis’ April 7, 2014 detention hearing, the government proffered additional testimony that Lewis forced another victim to engage in acts of prostitution in 2010. According to that victim, she met Lewis when she was unemployed and Lewis offered her a place to live. Soon thereafter, Lewis convinced her to work as an “escort” but when the victim told Lewis she did not want to engage in prostitution, Lewis beat her. When the victim tried to escape, Lewis prevented her from leaving by holding a gun to her head and threatening to carve the word “liar” into her forehead with a knife.
At the conclusion of the hearing, United States Magistrate Judge Patrick M. Hunt found that Lewis posed a serious danger to the community and ordered him detained pending trial.
Mr. Ferrer commended the investigative efforts of ICE-HSI and BSO. The case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.
A complaint is merely an accusation, and the 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.
International Business Executive Pleads Guilty to Scamming Investors and Dodging TaxesRead the Press Release
SAN DIEGO - Sven Erik Ulsteen, a former executive and shareholder of a Channel Islands company named Anturion Limited, pled guilty today to fraudulently using counterfeit and forged securities to take over $2 million from investors.
Ulsteen also admitted that he attempted to conceal this income from the Internal Revenue Service, and in so doing defrauded the United States out of more than $200,000 in taxes. The defendant tendered his guilty plea before U.S. Magistrate Judge Mitchell Dembin, who had previously ordered Ulsteen held on $1 million bond because of the substantial risk that Ulsteen would flee to his native Norway during the pendency of this case.
Ulsteen has been in custody since December 16, 2013, when he left his San Diego home and attempted to leave the country for Norway. Agents from the Federal Bureau of Investigation intercepted Ulsteen at the airport and arrested him on a criminal complaint filed by the FBI’s San Francisco Field Office that alleged Ulsteen had used counterfeit and forged Anturion securities on at least six instances to defraud investors.
At today’s hearing the defendant admitted that between November 2012 and December 2013, he solicited investors from the United States to purportedly purchase shares of stock from, or lend money to, Anturion. At the same time, Ulsteen also created counterfeit and forged “subscription agreements” and “loan” documents that purported to be authentic securities of Anturion. The defendant presented these counterfeit securities to investors in order to convince them to part with money, and with the intent to deceive investors into believing that the securities were legitimate and that their funds were going to Anturion.
Ulsteen’s scam defrauded investors throughout California out of more than $2 million, which he then directed to accounts in the name of Anturion and another company that Ulsteen controlled. The defendant admitted that instead of transferring these investments and loans to Anturion, he took the monies for himself and used them to pay for personal expenses and to wire funds to bank accounts overseas.
Multiple investors who attempted to buy Anturion shares from Ulsteen never received them. The only Anturion shares victims received from the defendant came from his own personal holdings, and not from the company as they had been promised. Investors only received these shares long after they had paid Ulsteen for their supposed purchases, and after a lawyer representing multiple investors sent a letter to Ulsteen accusing him of fraud. Individual investors who believed they were loaning funds to Anturion either never received their repayment as promised, or never received the Anturion shares to which their loan repayments were supposedly convertible.
In addition to selling forged securities, Ulsteen admitted to corruptly obstructing the IRS’s attempts to assess his true tax liability. Between 2010 and 2012, Ulsteen earned over $1 million from various activities, including from the sale of his Anturion stock. And several times the IRS notified Ulsteen that he needed to file a federal income tax return and that he owed taxes, penalties and interest. Despite these notifications Ulsteen refused to file a federal income tax return for any of these years, and took several steps to prevent the IRS from learning how much income he had earned. These included depositing investor funds into the nominee company accounts he controlled, payment of his personal expenses out of these company accounts, and providing incomplete and inaccurate information to a tax return preparer in order to create false federal income tax returns.
Ulsteen remains in custody and is scheduled to be sentenced June 30, 2014, at 2 p.m. before U.S. District Judge M. James Lorenz.
The charges were announced by United States Attorney for the Southern District of California Laura E. Duffy, and by United States Attorney for the Eastern District of California Benjamin B. Wagner, whose office is handling the prosecution in San Francisco. The timely arrest of Ulsteen by the FBI before he could leave for Norway – a country which will not extradite its own nationals to the United States – and the prompt resolution of these fraud and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
DEFENDANT Case Number: 14cr923-L and 14cr924-L Sven Erik Ulsteen Age: 50 San Diego, CA CHARGESCounterfeit and Forged Securities, in violation of 18 U.S.C. §513.
Maximum Penalties: 10 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Obstruction of Internal Revenue Laws, in violation of 26 U.S.C. § 7212(a).
INVESTIGATING AGENCY
Maximum Penalties: 3 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Hermitage Couple Sentenced for Conspiring to Defraud the IRSRead the Press Release
PITTSBURGH - Two residents of Hermitage, Pa., pleaded guilty and were sentenced in federal court on their conviction of conspiracy, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentences yesterday on Eric Graven, 57, and Barbara Graven, 58. Eric Graven was sentenced to three years probation, a $4,000 fine, 150 hours of community service, and was ordered to pay $35,805 in restitution. Barbara Graven was sentenced to two years probation, a $2,000 fine, and ordered to pay $35,805 in restitution.
According to information presented to the court, Eric Graven, the Vice President, co-owner and shareholder of Custom Stone and Tile, Inc., and Barbara Graven, the President of Custom Stone and Tile, Inc., located in Hermitage, Pennsylvania, conspired with each other to defraud the Internal Revenue Service by intentionally failing to report cash earnings of the business in each of the calendar years 2005 through 2008, thereby avoiding the payment of income tax due and owing on such earnings.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Eric and Barbara Graven.
Greenville Felon Sentenced in Operation “No Quarter”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge W. Earl Britt sentenced Ernest Joshon Wright, 27, of Greenville, North Carolina, to 78 months of imprisonment and 3 years of supervised release. WRIGHT previously pled guilty to possession of firearm by a felon and conspiracy to distribute and possess with intent to distribute quantities of cocaine, oxycodone, methadone, and marijuana.
The Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives used a confidential informant to make the following controlled purchases of narcotics from WRIGHT in 2012: cocaine on August 29 and September 27; marijuana on October 9 and October 23; and oxycodone on November 1. During the investigation WRIGHT began negotiating a purchase of four firearms, including a fully automatic assault rifle, from the confidential informant. On November 5, 2012, the confidential informant was provided with four “prop” firearms with firing pins removed. After WRIGHT took possession of the four firearms, agents executed search warrants and recovered two additional firearms and methadone pills. WRIGHT was prohibited from possessing the firearms due to his prior felony convictions of discharging a weapon into occupied property, attempted common law robbery and possession of firearm by a felon.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Grand Prairie Man Sentenced to 96 Months in Federal Prison for Exchanging Sexually Explicit Photos with A MinorRead the Press Release
DALLAS — Aaron Garcia, 21,of Grand Prairie, Texas, was sentenced yesterday by U.S. District Judge David C. Godbey to 96 months in federal prison, following his guilty plea in October 2013 to an Information charging one count of receipt of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began as a result of a cyber-tip to law enforcement indicating that in September 2012, a minor girl, “Jane Doe,” began using an app on her cell phone to have sexual conversations with an adult male. The conversations included solicitations from both the adult male and Jane Doe to meet for sex. Jane Doe identified herself as a 14-year-old, although she was actually 13. The male also solicited nude photos of Jane Doe, which she sent. He sent her two sexually explicit images of himself.
An analysis of Garcia’s iPhone by the North Texas Regional Computer Forensic Lab revealed that it contained more than 40 images of child pornography, not including the images sent by Jane Doe.
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 investigation was conducted by the Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Georgia Woman Sentenced for Bank Fraud and Identity TheftRead the Press Release
BUFFALO, N.Y.B U.S. Attorney William J. Hochul, Jr. announced today that Kristina Thomas, 42, of Columbus, Georgia, formerly of Buffalo, N.Y., who was convicted of bank fraud and aggravated identity theft following a jury trial, was sentenced to 32 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $6,473.
The sentencing is the culmination of an investigation on the part of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Shelly Binkowski.
Assistant U.S. Attorneys Edward H. White and Maura K. O'Donnell, who handled the trial of the case, stated that in 2005 and 2006, while the defendant was an employee of HSBC Bank, she and others came into possession of checks and a credit card from HSBC Bank. The checks and credit card were obtained using stolen identifying information of a woman from Illinois. Thomas and others then recruited individuals to cash the checks at various banks in Buffalo. The defendant also caused the credit card to be used at various retailers in Buffalo.Former Caseworker for the Dallas Project Reconnect Pleads Guilty to Witness Tampering, Making A False Statement to HUD and Deprivation Under Color of LawRead the Press Release
DALLAS — Lawrence Hart, 37, appeared today before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to a felony and misdemeanor Information charging various offenses stemming from his role as a caseworker for an outreach program that is managed by the City of Dallas’s Housing Department. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Hart pleaded guilty to one count of witness tampering, one count of making a false statement to the U.S. Department of Housing and Urban Development (HUD) and one count of deprivation of rights under color of law. He faces a maximum statutory sentence of 20 years in federal prison and a $250,000 fine for the witness tampering count, and a maximum statutory sentence of one year in federal prison and a $100,000 fine for the false statement count and for the deprivation of rights count. He will remain on bond pending sentencing, set for July 14, 2014, by U.S. District Judge David C. Godbey.
According to documents filed in the case, in 2012 and 2013, Hart was a caseworker for Project Reconnect, a HUD-funded outreach program managed by the City of Dallas’s Housing Department. Project Reconnect provides reentry case management and community referrals to help non-violent offenders on parole settle back into the Dallas community. One of the main components of Project Reconnect is to provide housing to eligible individuals. As the program was being applied at the time, to be eligible for Project Reconnect, an individual must reside in Dallas, have felony conviction, be 18 years or older, be currently on parole or probation and meet HUD low to moderate income guidelines.
Hart admitted that in July 2012, he arranged for “Person A” to sign a lease for an apartment in Carrollton, under the Project Reconnect program, even though Person A did not qualify for the program at that time. The apartment’s rent was $980.00 per month, and Project Reconnect was responsible for $975 of that amount and Person A was responsible for $5.00 per month. Hart admitted that while he worked for the City of Dallas’s Housing Authority, he was in fact the sole occupant of that apartment and Person A never resided there. Hart further admitted that he submitted documentation to HUD reflecting that Person A was the sole occupant.
When HUD, the Dallas Police Department (DPD) and the FBI began investigating fraudulent activity related to Project Reconnect, they interviewed Hart about his involvement in Project Reconnect and his potential criminal activity. After that interview, Hart contacted Person A and instructed Person A to lie to a DPD detective and FBI special agent by telling them that Person A lived in the Carrollton apartment.
In late 2012, according to the factual resume filed in the case, Hart met “Person B” and fast-tracked Person B through the Project Reconnect program. While Person B was qualified for the program, Hart propositioned her for sex and expedited her placement in an apartment because she agreed to have sex with him. In January 2013, Person B ended her intimate relationship with Hart. Acting under color of law, Hart removed her from the HUD-subsidized apartment, wilfully depriving her of the right, to be free from discrimination in the terms, condition and privileges of rental of a dwelling because of her sex.
The DPD, HUD and FBI investigated the case. Assistant U.S. Attorney Errin Martin is prosecuting.
Former Carbon County Man Sentenced to 188 Months in Prision for Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old former Lehighton resident was sentenced today to serve 188 months in prison for receiving and distributing child pornography by Senior U.S. District Court Judge Edwin M. Kosik.
According to United States Attorney Peter Smith, the defendant, Stephen Puza III, previously pleaded guilty to using a computer to download and share numerous images of child pornography during July 2011 through September 2011. Puza was living in Bethlehem, Pennsylvania, at the time of his arrest.
Puza was indicted by a federal grand jury on September 10, 2013, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Lehighton Borough Police.
Judge Kosik also ordered Puza to be placed on supervised release for 10 years after serving his prison sentence. Puza was ordered to undergo sex offender treatment and will be subject to sex offender registration requirements and restrictions upon his release from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Former CFO of Nashville Restraunts Pleads Guilty to $1 Million Money Laundering Scheme Against American ExpressRead the Press Release
Guilty Plea Came During Fourth Day of Jury Trial
Michael G. Tangredi, 23, of Nashville, pleaded guilty yesterday to money laundering, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Tangredi’s plea came after evidence and testimony during the fourth day of a jury trial in U.S. District Court. District Judge Aleta Trauger accepted the guilty plea and then discharged the jury hearing the case.
A superseding indictment in June 2013 charged Tangredi with wire fraud and mail fraud and aiding and abetting others in the execution of a wire fraud and mail fraud scheme against American Express. The superseding indictment also charged Tangredi with engaging in financial transactions using portions of the $1 million that American Express had paid them during the scheme, which occurred between May-September 2008.
“This guilty plea required the dogged determination and detailed analysis by the U.S. Secret Service to unravel a complex case and its convoluted money trail,” said U.S. Attorney David Rivera. “The defendant now stands convicted and faces a significant sentence.”
The testimony at trial was that Tangredi’s father owned three Italian restaurants in Nashville which he operated with Tangredi’s assistance as chief financial officer. Bank records introduced in evidence reflected that the restaurants had experienced significant financial stress in the months just prior to the fraud. The credit card scheme generated large sums of cash. Trial testimony also established that the fraudulently acquired funds were used to purchase a Maserati, a Bentley; and a restaurant in Hawaii.
Federal State, and, Local Teamwork Nets 38 Indictments for Illegal Prescription Drug Sales, Money LaunderingRead the Press Release
Memphis, TN – At least 28 individuals were arrested today as part of an illegal prescription drug distribution ring, announced U.S. Attorney Edward L. Stanton III and Shelby County District Attorney General Amy Weirich.
A federal indictment was unsealed today accusing 15 individuals of money laundering and distribution of Dilaudid and Oxycodone. In addition to those charged federally, General Weirich’s office announced the indictments of 23 individuals on state charges.
The following individuals were charged by a federal grand jury. The potential penalties each one is facing can be found on the chart attached to this release.
Larry Bailey, aka, “Rock”, 30, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Michael Gholson, 45, of Memphis, TN, was charged with one count of distribution of Dilaudid, one count of distribution of Oxycodone, and one count of money laundering.
Melody Hurtault, 37, of Corona, CA, was charged with one count of money laundering.
Willie Jamerson, 52, of Los Angeles, CA, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Corey Jeffries, 40, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Eliado Jimenez, 46, of Los Angeles, CA, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Marissa Lewis, 45, of Las Vegas, NV, was charged with one count of money laundering.
Terrence Moore, aka, “Head”, 36, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Milton Murray, 67, of Los Angeles, CA, was charged with one count of distribution of Dilaudid, one count of distribution of Oxycodone, and one count of money laundering.
Shira Nickerson, 46, of Terrell, TX, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Shelby Robinson, age unknown, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Frederick Scott, 40, of Corona, CA, was charged with one count of distribution of Dilaudid, one count of distribution of Oxycodone, and one count of money laundering.
Marlin White, 32, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Alton Williams, 41, of Memphis, TN, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
Victor Wright, 55, of Atlanta, GA, was charged with one count of distribution of Dilaudid and one count of distribution of Oxycodone.
More than 200 individuals from law enforcement agencies assisted in the early morning takedown, including the Drug Enforcement Administration, the Memphis Police Department’s Organized Crime Unit, and the Shelby County Sheriff’s Office.
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This case is being investigated by the Drug Enforcement Administration, the U.S. Marshal’s Service, and the Memphis Police Department. Assistant United States Attorney Michelle Kimbril-Parks is representing the government.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Federal Search Warrant Executed at Golden Grove Correctional Facility in St. CroixRead the Press Release
St. Croix, USVI – A federal search warrant authorizing federal agents to search the Golden Grove Adult Correctional and Detention Facility (Golden Grove) in St. Croix for illegal contraband was executed last night, announced Ronald W. Sharpe, United States Attorney for the District of the Virgin Islands, Vito S. Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA) Caribbean Division and Carlos Cases Special Agent in Charge of the Federal Bureau of Investigation (FBI) San Juan Field Division. The search warrant authorized federal agents to search inmates’ cells and certain common areas such as the prison yard and workshop areas for illegal contraband, weapons, controlled substances and cellular telephones. Under federal and territorial law, it is illegal for inmates to possess such items. Federal inmates awaiting trial and those already sentenced and pending transfer to a federal correctional facility are held at Golden Grove.
The search is part of a multi-year federal investigation involving the smuggling of illegal contraband into Golden Grove by Correctional Officers (COs), inmates, and others. According to the affidavit in support of the warrant, COs have been directly involved in the smuggling of contraband into the prison and are often paid by inmates to do so. The affidavit also states that numerous inmates regularly possess illegal contraband. The affidavit also details the methods used by COs and inmates to smuggle and hide contraband inside the prison. These methods include the use of cellular phones by inmates to arrange for delivery of contraband to COs, the smuggling of contraband into the prison by COs using their personal belongings, and the concealment of contraband by inmates in their cells and other places in the prison. The affidavit also reveals the following:
• Between February 2012 and February 2014, fifty-one (51) of approximately 350 prison cells at Golden Grove have been searched by the Bureau of Corrections. These searches have resulted in the seizure of marijuana, weapons such as shanks and knives, cellular telephones, telephone chargers, SIM cards (subscriber module), and cable boxes.
• Inmates are often “tipped off” by prison officials prior to searches.
• Since November 2012, there have been 11 stabbing incidents (one resulting in the death of an inmate) with the most recent stabbing incident occurring February 20, 2014.
• A cellular telephone was used by inmates to arrange a murder for hire plot against two COs.
• Cellular telephones were used by inmates to arrange the sale or purchase of contraband in the prison.
• Most inmates (approximately 90%) are in daily possession of some form of prison contraband.
• Despite the recent arrest of two COs for attempting to smuggle contraband into the prison, contraband continues to be smuggled into Golden Grove.
U.S. Attorney Sharpe said a search warrant is an investigative tool used to collect evidence of criminal offenses, and that the execution of the warrant at Golden Grove is part of an ongoing investigation. “The smuggling of contraband into Golden Grove is a serious offense that jeopardizes not just the inmates and corrections officers but the entire community,” said U.S. Attorney Sharpe.
“Shanks, knives, and controlled substances pose an obvious danger to other inmates and correctional personnel,” stated Special Agent in Charge Guarino. “As the search warrant affidavit shows, cellular telephones in the hands of inmates also pose a serious threat to the security of the prison. They can be used to commit further crimes, run criminal organizations from inside prisons, intimidate witnesses, plot escapes, and facilitate drug trafficking inside the prison.”
The investigation leading to today’s search warrant was led by the St. Croix DEA High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes officers from the Virgin Islands Police Department (VIPD), with assistance from the FBI. Assisting HIDTA in today’s search were agents from the FBI, the U.S. Marshals Service, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service Criminal Investigation Division, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), U.S. Customs and Border Protection, VIPD, and the Virgin Islands National Guard.
There were no arrests in connection with today’s search. The search warrants and a redacted version of the affidavit in support of the search warrants have been unsealed today. The results of the search will be made public at a later date.
Fairview Heights Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOtto W. Jean, a 60-year old, Fairview Heights, Illinois, man was sentenced on April 7, 2014, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jean was sentenced to 5 years’ probation, fined $150 and ordered to pay a $100 special assessment.
The violation occurred when Jean moved his residence from Missouri to Fairview Heights, Illinois, in November 2011, without registering as a sex offender as required under both Illinois law and the Sex Offender Registration and Notification Act (SORNA). Jean was convicted of Statutory Sodomy in the 2nd Degree, Statutory Rape, and Endangering the Welfare of a Child on March 1, 2000, in St. Louis County, Missouri.
Jean signed a Missouri Sex Offender Registration Act Form on May 3, 2000, acknowledging he understood the conditions of maintaining his sex offender registration after his release from prison. The victim’s mother in the 2001 conviction reported him residing within the city limits to the Fairview Heights Police Department. Officers interviewed Jean on July 28, 2013, where he admitted living in Illinois, between November 2011 and July, 27, 2013, and not having registered, until police confronted him on July 28, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Fairview Heights Police Department. Assistant United States Attorney Daniel T. Kapsak prosecuted the case.
Elma Man Pleads Guilty to Gun ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Bernard T. Grucza, 38, of Elma, N.Y., pleaded guilty to possession of a firearm by a person subject to as domestic violence order of protection before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, the defendant made false written statements to Big Daddy Guns in order to obtain a Ruger .380 caliber pistol. Between July 13, 2013 and October 16, 2013, the defendant possessed the pistol despite being the subject of a restraining order issued by Elma Town Court. In addition, Grucza made false statements to Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had destroyed the pistol and thrown out the parts when in fact he had not.
As part of his plea, the defendant admitted to stealing over $200,000 worth of merchandise and cash from his employer, Toys R Us. Grucza then sold the merchandise on eBay. The plea agreement require the defendant to pay restitution to Toys R Us in the amount of $223,000.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Federal Bureau of Investigation, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Hamburg Police Department, under the direction of Michael Williams.
Sentencing is scheduled for July 23, 2014 at 11:00 a.m. before Judge Skretny.East Hartford Man Sentenced to 66 Months in Prison for Role in Heroin Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGEL ROSA, also known as “Booby” and “Little Booby, 21, of East Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by five years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy,” who is a member of the Los Solidos street gang. Rosa’s cousin, Angel Rosa, also known as “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.
ROSA, who is Mo Betta’s son, distributed heroin from 584 Zion Street almost every day during the course of the investigation.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
ROSA was arrested on April 11, 2013. On December 19, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Downsville Man Sentenced to 15 Years in Prison for Receiving Child PornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that Randy A. Powell, 34, of Downsville, La., was sentenced Monday by U.S. District Judge Robert G. James to 15 years in prison and five years of supervised release for receiving child pornography.
According to evidence presented at the guilty plea on December 10, 2013, Ouachita Parish Sheriff’s Office deputies learned in February of 2012 that Powell, who is a registered sex offender, was maintaining social media accounts under an alias, which is a violation of his sex offender registration requirements. Authorities arrested Powell February 23, 2013, and his home was searched. They found 1,041 images and 150 videos of prepubescent children. Approximately 50 of the videos/photos depicted children in bondage. Powell admitted to investigators that he used a file-sharing program to download the images. Powell has a previous conviction for attempted possession of child pornography.
The FBI and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Monroe FBI office number is (318) 387-0773.
Dominican Man Charged with Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal proceedings have been initiated against Reynoso Matos, a/k/a Julio Eliezer Minyettis, age 35, a native and citizen of the Dominican Republic.
A Grand Jury in Scranton today returned an Indictment charging Matos with illegal reentry into the United States after having been previously deported and after having been convicted of an aggravated felony involving the trafficking of controlled substances.
If convicted, Matos faces imprisonment of up to 20 years and a fine in the amount of $250,000.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Enforecment and Removal Operations (ERO).
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.