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21 May 2014
Former Teacher at Denton High School, Who Was Arrested Last Week on A Federal Child Pornography Charge, to Remain in Federal CustodyRead the Press Release
FORT WORTH, Texas — Following a hearing today in federal court in Fort Worth, Texas, a U.S. Magistrate Judge has ordered that Gregory Bogomol, 38, of Fort Worth, Texas, must remain in federal custody during the pendency of his case. Bogomol was arrested last week by special agents with U.S. Immigration and Customs and Enforcement’s (ICE) Homeland Security Investigations (HSI) on a federal criminal complaint charging possession of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
According to the complaint, Bogomol was employed by the Denton Independent School District as a teacher at Denton High School. He resigned from that position the week prior to his arrest.
The investigation began when HSI was contacted by the parents of a 15-year-old male victim (MV) regarding an individual who solicited a nude photograph of the MV through a smartphone application. The investigation revealed that an individual, later identified as Bogomol, posing as a young female, “Crystal Williams,” had contacted MV. Their communication quickly turned sexual in nature. Bogomol sent nude images of a young female to MV, and he requested nude images of MV in return. MV sent one sexually explicit photograph of himself, but Bogomol requested another picture of MV’s nude body, including his face. MV declined to send any additional photos. Bogomol threatened to send the one photo that MV had sent to him to MV’s friends if he did not comply. MV still refused to send another photo, and he ended all communication with Bogomol. MV advised his parents, which led to the investigation.
On May 6, 2014, HSI special agents conducted a consensual interview with Bogomol at his residence. Two days later, a search warrant was obtained to search Bogomol’s cell phone and several files containing images of minors engaged in sexually explicit conduct were located.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. The government has 30 days to present the case to a federal grand jury for indictment.
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.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Former Senior Vice President of Operations at White Rose Food Sentenced to 20 Months in Prison for Tax EvasionRead the Press Release
TRENTON, N.J. – The former senior vice president of operations of an independent wholesale food distributor was sentenced today to 20 months in prison for evading taxes on income he received from third parties, U.S. Attorney Paul J. Fishman announced.
John Annetta, 61, of Marlboro, N.J., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Between 2006 and 2011, Annetta worked at White Rose Food, an independent wholesale food distributor in the New York City and New Jersey metropolitan areas. During that time he was given $1,648,085 from two people he met in the course of his employment. He failed to report this money as taxable income for the calendar years 2006, 2007, 2008, 2009, 2010, and 2011 in the amounts of $106,500, $234,000, $317,406, $398,542, $292,700 and $298,936, respectively. He admitted that for 2006 through 2011 he would have owed the government $536,530 if he had reported the additional cash on his income tax returns.
In addition to the prison term, Judge Sheridan sentenced Annetta to two years of supervised release.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge Marie Kelokates, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Matt D. Mandel Esq. of Millburn, N.J.
Former Rothstein, Rosenfeldt and Adler, P.A. Attorney Sentenced in Connection with Rothstein Ponzi 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Christina M. Kitterman, 38, of Deerfield Beach, was sentenced by U.S. District Judge Daniel T. K. Hurley to five years in prison, followed by three years of supervised release. Kitterman was previously convicted on three counts of wire fraud.
Kitterman was charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
Evidence introduced at trial established that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors in order to explain to the investors the reason why certain payments due to them had not been made.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
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.
Former Owner of Commercial Mortgage and Finance Company SentencedRead the Press Release
ROCKFORD — ANTHONY F. D’AGOSTINO, 79, the former owner, CEO and President of Commercial Mortgage and Finance Co., in Rockford, was sentenced today by U.S. District Judge Frederick J. Kapala for seventeen counts of mail fraud, one count of wire fraud, and one count of securities fraud. Judge Kapala sentenced D’Agostino to 90 months in federal prison for each count of wire and mail fraud and 60 months in prison for securities fraud, to run concurrent, followed by 3 years of supervised release. Judge Kapala also ordered D’Agostino to pay $49,350,615.95 in restitution. D’Agostino was ordered to surrender on July 14, 2014.
After a six-day bench trial in September 2013, Judge Kapala found D’Agostino guilty on January 17, 2014, of mail fraud, wire fraud, and securities fraud. According to the decision, D’Agostino raised capital for his business by selling instruments known as Promissory Notes and Certificates of Participation to investors. The evidence showed that D’Agostino concealed from the investors the fact that Commercial Mortgage had a negative net worth that steadily increased during the years that D’Agostino owned the company. Specifically, by year-end 2003, when Commercial Mortgage’s net worth had fallen to -$12,860,653 and it had been six years since Commercial Mortgage had made a profit, it became clear to D’Agostino that Commercial might not recover and D’Agostino engaged in a scheme to defraud investors by utilizing Commercial Mortgage’s long-standing good will and reputation in order to obtain and retain money from investors. From the end of 2003 through October 8, 2008, D’Agostino’s fraud scheme exposed the investors to losses of more than $20 million.
Judge Kapala found that D’Agostino made specific false statements to several of the investors. Specifically, defendant told Commercial Mortgage customers that Commercial Mortgage was “doing well,” “doing great,” “very fine,” or “wonderful.” According to the decision, D’Agostino made these statements about Commercial Mortgage’s financial circumstances and the statements were false.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; and Illinois Secretary of State Jesse White.
The government is being represented by Assistant U.S. Attorneys Scott A. Verseman and Scott R. Paccagnini.
Former Longshoremen Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - Three former longshoremen admitted today that they conspired to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, N.J.; Michael Nicolosi, 45, of Staten Island, N.Y.; and Julio Porrao, 71, of Palm Coast, Fla. – all former supervisors on the New Jersey piers – pleaded guilty today to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them. LaGrasso, Nicolosi and Porrao entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court: During their guilty plea proceedings, LaGrasso, Nicolosi and Porrao admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. LaGrasso and Nicolosi were suspended from their positions following their arrests in this case. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against five defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
The charge to which LaGrasso, Nicolosi, and Porrao pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 17, 2014, for LaGrasso and Nicolosi and for Sept. 24, 2014, for Porrao.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.14-184
Defense counsel: Salvatore LaGrasso: Peter Till Esq., Springfield, N.J.
Michael Nicolosi: Arthur L. Aidala Esq., Brooklyn, N.Y.
Julio Porrao: Erik Hassing Esq., Flanders, N.J.Former Longshoremen Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. B Three former longshoremen admitted today that they conspired to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, N.J.; Michael Nicolosi, 45, of Staten Island, N.Y.; and Julio Porrao, 71, of Palm Coast, Fla. – all former supervisors on the New Jersey piers – pleaded guilty today to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them. LaGrasso, Nicolosi and Porrao entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, LaGrasso, Nicolosi and Porrao admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. LaGrasso and Nicolosi were suspended from their positions following their arrests in this case. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against five defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
The charge to which LaGrasso, Nicolosi, and Porrao pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 17, 2014, for LaGrasso and Nicolosi and for Sept. 24, 2014, for Porrao.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
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Defense counsel: Peter Till Esq., Springfield, N.J.
Arthur L. Aidala Esq., Brooklyn, N.Y.
Erik Hassing Esq., Flanders, N.J.
Former Executive at Collin Street Bakery Pleads Guilty to Federal OffensesRead the Press Release
Defendant Sandy Jenkins Faces Up to 60 Years in Federal Prison
DALLAS — A former executive at the Collin Street Bakery (Bakery) in Corsicana, Texas, Sandy Jenkins, appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to several felony offenses stemming from his embezzlement of approximately $16 million from the Bakery. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. He was terminated on June 21, 2013, after the Bakery discovered the fraud.
Specifically, Jenkins, 65, who remains in federal custody, pleaded guilty to one count of mail fraud, one count of conspiracy to commit money laundering and one count of making a false statement to a financial institution. He faces the following maximum statutory penalties: 20 years in federal prison and a $250,000 fine on the mail fraud conviction; 10 years in federal prison and a $1 million fine on the conspiracy conviction; and 30 years in federal prison and $1.5 million fine on the false statements conviction. Jenkins agreed to enter a forfeiture money judgment against him of at least $16,649,786, and he agreed to pay full restitution to the Bakery for the entire scope of his criminal conduct. Sentencing is set for September 10, 2014, before U.S. District Judge Ed Kinkeade.
Jenkins’ wife, Kay Jenkins, 64, also of Corsicana, is charged in the same superseding indictment with one count of conspiracy to commit money laundering, six counts of money laundering and aiding and abetting, and two counts of making a false statement to a financial institution. She remains on bond pending trial, which is set for August 25, 2014.
According to plea documents filed in the case, beginning at least as early as December 2004, and continuing until his termination from the Bakery, Sandy Jenkins engaged in a massive scheme to defraud the Bakery. During that time, he embezzled more than $16 million from the Bakery, and he and his wife, Kay Jenkins, used that money to bank-roll a lavish lifestyle that included a vacation home in Santa Fe, New Mexico (purchased for approximately $658,000); hundreds of watches and pieces of jewelry worth millions of dollars; numerous luxury automobiles; and more than 200 trips on a private jet. While this scheme was ongoing, both Sandy and Kay Jenkins were well aware that Sandy Jenkins earned approximately $50,000 per year at the Bakery, as reflected on their joint tax returns, and Kay Jenkins did not work outside the home.
Sandy and Kay Jenkins knowingly conspired to engage in monetary transactions over $10,000 with property derived from Sandy Jenkins’ embezzlement from the Bakery. Sandy Jenkins admitted that between 2005 and 2013, he caused approximately 888 fraudulent checks to be drawn on the Bakery’s account and mailed to his personal creditors, resulting in approximately $16,649,786 in losses to the Bakery.
Sandy Jenkins further admitted that prior to this check-writing embezzlement scheme, he stole at least $114,342 from the Bakery’s petty-cash fund. He also admitted that as he was embezzling from the Bakery, he and his wife Kay used the money to fund an incredibly lavish and opulent lifestyle.
Sandy Jenkins also admitted that on December 29, 2009, he made a false statement in connection with the application for a mortgage loan to purchase a residence in Santa Fe. Sandy and Kay Jenkins listed a total monthly income of $25,000 when, in fact, as they well knew, their monthly income was far less than that.
The FBI has conducted the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
Former Correctional Officer Sentenced to Two Years in Federal PrisonRead the Press Release
Ocala, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Michael J. Garland (42, Lecanto) to two years in federal prison for bribery of a public official. The court also ordered Garland to forfeit $4,200, which are traceable proceeds of the offense. Garland pleaded guilty to the offense on February 28, 2014.
According to court documents, Garland worked as a correctional officer at the Federal Correctional Institution Medium in Sumter County, Florida. On May 24, 2013, federal agents observed Garland on a video surveillance system as he met with an inmate at the federal prison. When agents subsequently searched the inmate, they discovered contraband in the inmate’s waistband in the form of a cellular phone with accessories, a prepaid phone card, ten packs of cigarettes and snuff tobacco. Agents immediately confronted Garland, who admitted that he had smuggled the items into the prison for the inmate. In return for smuggling the contraband into the prison, the inmate had made cash payments to Garland through a third party in the amount of $4,200.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Prisons Special Investigations Unit. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former CFO of Rothstein, Rosenfeldt and Adler, P.A. Pleads Guilty to Conspiracy to Launder Money and to Defraud A Financial InstitutionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that Irene Shannon, formerly known as Irene Stay, 50, of Miami, pled guilty to conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). The defendant was the Chief Financial Officer of RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The defendant pled guilty before U.S. District Judge Robin S. Rosenbaum to conspiracy to commit money laundering and to defraud a financial institution, in violation of Title 18, United States Code, Section 371. At her sentencing, which is scheduled for August 8, 2014, the defendant faces a maximum statutory sentence of up to five years in prison.
According to the factual statement executed by Shannon in support of her guilty plea, Shannon oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes. The factual statement further explains that Shannon was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. Irene Shannon also admitted that she utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.”
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Former Bank Officer Sentenced to 18 Months in Prison for Accepting Bribes, Bank FraudRead the Press Release
CAMDEN, N.J. – A former bank officer was sentenced today to 18 months in prison for accepting bribes of more than $50,000 in return for his assistance in corrupt financial transactions as well as bank fraud, U.S. Attorney Paul J. Fishman announced.
Jose Dominguez, 47, of Newark, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with soliciting and accepting bribes in excess of $1,000 as a bank officer. He had also pleaded guilty to a separate indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 1988 to February 2007, Dominguez was employed as a loan officer at Spencer Savings Bank in Elmwood Park, N.J. From September 2004 to November 2004, Dominguez and Victor Patela, 38, a former Newark Police officer, conspired to fraudulently obtain a $1.92 million commercial loan from Spencer Savings Bank so that they could purchase apartment buildings in Elizabeth, N.J. In connection with this scheme, Dominguez and Patela made false representations to Spencer Savings Bank relating to Patela’s assets in order to obtain the commercial loan. Dominguez also accepted bribe payments from Patela in exchange for using his influence as a loan officer to obtain the $1.92 million loan. In June 2012 Patela was convicted at trial of bank fraud, conspiracy to commit bank fraud, two counts of loan application fraud and bank bribery and sentenced in April 2013 to 48 months in prison.
In 2003, Dominguez was contacted by a bank customer who wanted to refinance some loans with Spencer Savings Bank and wanted to do so without paying significant prepayment penalty fees. Dominguez advised the customer that if the customer made corrupt payments to Dominguez, the customer could obtain a lower interest rate without paying a prepayment penalty to Spencer Savings Bank.
Between August 2003 and December 2003, Dominguez accepted $55,529.57 in corrupt payments from the customer to influence the requested loan modification. Dominguez also admitted to accepting additional bribes from other bank customers in the amounts of $4,500 and $5,000, respectively.
In addition to the prison term, Judge Hillman sentenced Dominguez to three years of supervised release and fined him $4,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, CamdenFormer Assemblyman Eric Stevenson Sentenced in Manhattan Federal Court for Taking More Than $20,000 in Bribes in Exchange for Proposing Legislation and Performing Other Official ActsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert T. Johnson, the District Attorney for Bronx County, announced that former Assemblyman ERIC STEVENSON was sentenced today in Manhattan federal court to three years in prison, for taking more than $20,000 in bribes from four businessmen in exchange for STEVENSON’s official acts, including drafting, proposing, and agreeing to enact legislation that favored the bribers’ business interests. Specifically, the four businessmen, who sought to operate and construct adult day care centers in the Bronx, paid STEVENSON to sponsor and introduce legislation that would declare a three-year moratorium on the construction of adult day care centers in New York City, but from which their current centers would be exempted, in effect giving the businessmen a monopoly in adult day care centers in the area. In connection with one of the defendants’ adult day care centers on Jerome Avenue in the Bronx (the “Jerome Avenue Center”), in exchange for bribes by the businessmen, STEVENSON, in his official capacity as an Assemblyman, contacted Con Edison and the New York City Department of Buildings at their request. In addition, in exchange for bribes, STEVENSON held public events paid for by the businessmen to recruit senior citizens to attend a second center on Westchester Avenue in the Bronx (the “Westchester Avenue Center”). STEVENSON was convicted in January 2014 after a six-day jury trial before U.S. District Judge Loretta A. Preska, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “In shameless pursuit of profit, Eric Stevenson took bribes and put his own personal interests before those of his constituents. Now instead of serving the public he will be serving time behind prison walls. I’d like to thank our partners at the Bronx County District Attorney’s Office for their collaborative efforts in exposing this corruption and successfully prosecuting this case.”
Bronx County District Attorney Robert T. Johnson said: “The betrayal of public trust is one of the most serious matters this office must confront. Stevenson’s crimes were not only that, but he also sought to deny services to a vulnerable population, the elderly. We thank the U.S. Attorney’s office for its diligent work in bringing a measure of justice. Together we will continue to trumpet the message that there is no place in New York for dishonest public officials.”
According to the Complaint and the Indictment filed in Manhattan federal court, the evidence at trial and sentencing:
STEVENSON has served as a member of the New York State Assembly since 2011 representing District 79, which includes various neighborhoods in the Bronx. The four businessmen – Igor Belyansky, Rostislav Belyansky, a/k/a “Slava,” Igor Tsimerman, and David Binman – are individuals who, during 2012 and 2013, were seeking to open and manage adult day care centers in the Bronx, New York, including the Westchester Avenue Center, within STEVENSON’s Assembly District, and the Jerome Avenue Center, within another Assemblyman’s District. During that time period, they paid multiple bribes to STEVENSON in connection with efforts to open and operate both centers.
For example, at a meeting on July 23, 2012, STEVENSON, Belyansky, and Tsimerman discussed the opening of the Westchester Avenue Center. During this meeting, STEVENSON said that on the following Thursday, July 26, 2012, he was “having a night [event]” for “my reelection” and that he needed “support and help like everyone else.” Subsequently, on July 25, 2012, Rostislav Belyansky provided a cooperating witness (the “CW”) with a check for $2,000 made out to STEVENSON’s political action committee, which the CW provided to STEVENSON. STEVENSON did not disclose this check as a campaign contribution as required by New York State Law.
At a September 7, 2012, meeting at a steakhouse in the Bronx, Igor and Rotislav Belyansky offered to pay STEVENSON $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. STEVENSON agreed, but when Igor Belyansky attempted to hand him the $10,000 in an envelope, STEVENSON indicated that he was concerned that there might be surveillance cameras in the restaurant, so he waited until he was outside of the restaurant to take the cash bribe. On September 18, 2012, STEVENSON gave the CW a $1,500 cut of the $10,000 bribe in exchange for the CW’s assistance, and promised to pay the CW an additional $500.
On December 27, 2012, the CW met with STEVENSON and showed STEVENSON a copy of an email dated December 26, 2012, sent from the contractor for the Jerome Avenue Center to Rostislav Belyansky and Tsimerman. In the email, the contractor stated that “[i]t is urgent . . . that we call the State Senator Eric Stevenson so that he can call the building department at once and ask them to have this application reviewed” in connection with getting “a permit to install the gas lines into the building.” After reviewing this email, STEVENSON stated, “he’s not a smart guy . . . he’s not too bright, this guy” because “he put this in writing . . . why he got to put my name in it? . . . He shouldn’t have said that.” STEVENSON said they needed to avoid creating a “paper trail.”
During that meeting, the CW and STEVENSON also discussed the possibility of STEVENSON introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Subsequently, the CW met with Tsimerman and Igor Belyansky. Tsimerman said that as a result of the Moratorium Legislation, the value of their adult day care centers was “gonna skyrocket. . . . As long as [there’s a] moratorium, I can guarantee you at least a triple [in profits].”
On January 1, 2013, the CW and STEVENSON spoke on the telephone and STEVENSON referred to “Igor” [Belyansky] as “Santa,” in reference to the money he expected to receive. In a subsequent meeting on the same day in the CW’s car, STEVENSON sought assurances that “Igor” [Belyansky] was going to “bless everything,” meaning pay STEVENSON. He added that: “I got the inauguration, I want a blessing [payment] in place, man.” Two days later, the CW gave Belyansky and Rostislav Belyansky a copy of a document titled “Proposed Adult Day Care Center Bill,” which contained a proposal for the Moratorium Legislation. On January 7, 2013, the CW provided the same proposal to STEVENSON. Later that day, Tsimerman provided STEVENSON with another copy of the proposal containing Tsimerman’s notes. On January 9, 2013, the CW told Igor Belyansky that STEVENSON wanted $10,000 for the Moratorium Legislation, with $5,000 paid up front. Two days later, on January 11, 2013, at the Westchester Avenue Center, Igor Belyansky, Rostislav Belyansky, Tsimerman, and Binman gave the CW $5,000 cash. The CW then left the Westchester Avenue Center with the envelope of money and got in his car where STEVENSON joined him, at which time the CW gave the envelope of money to STEVENSON, after taking out his $500 cut.
On January 27, 2013, STEVENSON met with the CW and told the CW that he was concerned that Tsimerman might be cooperating with law enforcement officials and recording their conversations. STEVENSON said a concern that if “they bring me down… somebody’s going to the cemetery.”
STEVENSON had a draft of the Moratorium Legislation prepared by January 31, 2013, which he showed the CW at a meeting in his office and which was consistent with the bullet points prepared by the CW and Igor Belyansky, Rostislav Belyansky, Tsimerman, and Binman. On February 11, 2013, STEVENSON told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, in a hotel room in Albany, Rostislav Belyansky gave $5,000 in cash to the CW, which the CW gave to STEVENSON after taking a $500 cut. While the CW took out his $500 cut, STEVENSON walked into the bathroom of the CW’s room and left the door open so that he could receive the $4,500 cash in the bathroom.
STEVENSON introduced and sponsored Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City on February 20, 2013. The bill was not enacted.
Two days later, in a meeting between the CW and Igor Belyansky, Tsimerman, and Binman, Belyansky said that the legislation would double the value of his share in the Jerome Avenue and Westchester Avenue Centers from approximately $350,000 to $700,000.
In the course of recorded conversations between STEVENSON and the CW, STEVENSON repeatedly referenced the convictions and sentences of other New York officials for crimes of public corruption, even as STEVENSON himself requested bribes. For example, during one meeting between STEVENSON and the CW on December 27, 2012, STEVENSON observed, “if half of the people up here in Albany was ever caught for what they do . . . they . . . would probably be in [jail] . . . so who are they bullsh**ing?” During another meeting, on January 1, 2013, after discussing the convictions of former New York State Senator Carl Kruger, former New York State Senator Pedro Espada, Jr., and former New York State Comptroller Alan Hevesi, STEVENSON commented on being “careful” about “the recorders and all those things” that informants wear in order to be careful not to “put yourself in jail.”
In addition to the prison term, STEVENSON, 47, of the Bronx, New York, was sentenced to two years of supervised release. He was also ordered to pay $22,000 in forfeiture and a $400 special assessment fee.
During the sentencing proceeding, Judge Preska said that STEVENSON’s conduct amounted to a “betrayal of the responsibility bestowed on a public official by his constituents” because he engaged in “selling the core function of a legislator for his own self-aggrandizement.”
Igor Belyansky, Rostislav Belyansky, Tsimerman, and Binman all pled guilty in September 2013 to conspiring to commit honest services wire fraud in connection with their payment of bribes to Stevenson before the Honorable William H. Pauley III. On January 24, 2014, Judge Pauley sentenced Tsimerman to two years in prison and Rostislav Belyansky to 18 months in prison. On February 6, 2014, Judge Pauley sentenced Igor Belyansky to 20 months in prison and Binman to nine months in prison.
Mr. Bharara praised the work of the investigators from the United States Attorney’s Office for the Southern District of New York and the District Attorney’s Office for Bronx County.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Special Assistant U.S. Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
Father and Son Arrested for Sex TraffickingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Keith A. Arrick Sr., 46, of Ft. Mitchell, Kentucky and his son, Keith A. Arrick Jr., 21, of Columbus, Ohio charging them with conspiracy to commit sex trafficking, sex trafficking of a minor and sex trafficking by force, fraud or coercion.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the indictment today.
Task Force agents and Columbus Police patrol officers arrested Keith A. Arrick Jr. yesterday in Columbus. U.S. Magistrate Judge Elizabeth Preston Deavers scheduled a detention hearing for Arrick Jr. for 11 a.m. Friday, May 23, 2014. Keith A. Arrick Sr. is currently in custody in Kenton County, Kentucky on unrelated state charges.
The indictment alleges that between September 2013 and February 2014, the men used various hotels in the Columbus area to harbor women, including a minor female, to engage in commercial sex acts for the financial benefit of the defendants. The indictment accuses the men of recruiting customers through internet websites by posting photos of the women or others who resembled the women, instructing the women how much to charge for the various acts then keeping a portion of the money for themselves, and providing the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. The indictment alleges that Keith A. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
The indictment charges both men with conspiracy to commit sex trafficking, a crime punishable by a sentence ranging from zero years to life in prison. They are also charged with sex trafficking of a minor, which is punishable by at least ten years and up to life in prison, and two counts of sex trafficking by force fraud or coercion, which is punishable by at least 15 years and up to life in prison.
In addition, the indictment charges Keith Arrick Sr. with two counts of violating the Mann Act which prohibits interstate transportation for prostitution. It is punishable by up to ten years in prison.
“These arrests highlight HSI's commitment to identify and investigate human trafficking threats, as well as protect victims' rights and bring traffickers to justice,” said Marlon Miller, special agent in charge of HSI Detroit, which covers Michigan and Ohio. “We will continue to work tirelessly with our law enforcement partners to dismantle human trafficking networks in our community.”
“The investigation found that these defendants forced the victims to commit sex acts for money. They were held against their will and were fearful for their lives,” said Attorney General DeWine. “Members of this task force helped get these victims away from this situation, and now the defendants are facing the consequences of their actions.”
“The cooperation between agencies in the Central Ohio Human Trafficking Task Force shows the level of commitment we all have to making Ohio a safer place to live,” said Col. Paul Pride, Ohio State Highway Patrol Superintendent. “Multi-agency task forces enhance the efforts to remove individuals like this from our communities.”
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
Authorities with the Columbus Police Department's gang and vice units, as well as the Grove City Police Department assisted in the investigation.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #Fargo Man Sentenced to 9 ½ Years for Possession of Sexually Explicit Materials Involving MinorsRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 21, 2014, Jared Tyler Allen, 28, Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson to 9 ½ years for receipt and possession of material involving the sexual exploitation of minors. Allen was also sentenced to 10 years of supervised release, ordered to pay $1000 in restitution and a $200 special assessment to the Crime Victims Fund.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network.
Homeland Security Investigators eventually traced the computer to Allen’s apartment located in South Fargo where task force officers seized two computers, including the computer that was previously seen with child pornography on the P2P network. A subsequent forensic examination of the two computers revealed more than 3,400 images and 175 videos depicting child pornography.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation, and the Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Eufaula Man Pleads Guilty to ConspiracyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOHN PAUL SHROPSHIRE, age 54, of Eufaula, Oklahoma, pled guilty to Conspiracy, in Violation of Title 18, United States Code, Section 371.
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics. The defendant was indicted in April, 2013. An Information was filed in May, 2014.
The Information alleged that from in or about September, 2011, until on or about September 26, 2012, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 5 years imprisonment, and/or up to a $250,000 fine and a discretionary term of supervised release of not more than 3 years.
Assistant United States Attorney Shannon Henson represented the United States.
Erie Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws and drug laws, United States Attorney David J. Hickton announced today.
Shawn I. McCrorey, 45, pleaded guilty to three counts before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on January 5, 2013 McCrorey was found in possession of cocaine and a handgun, and a second handgun was found in his residence in Erie, Pennsylvania. Also, McCrorey obtained one of the handguns in December 2012, after lying to a local gun store about his identity and lying that he had no prior felony conviction. McCrorey, known by several aliases, was convicted in 1994 for the crime of delivery of cocaine under the name William Dean, and is therefore prohibited from firearm possession.
Judge Cohill scheduled sentencing for August 26, 2014 at 11:00 a.m. The law provides for a total sentence of life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, and the Erie Bureau of Police conducted the investigation that led to the prosecution of McCrorey.
Disturbance of Peregrine Falcon Nest Leads to Charges Against Bridge Repair CrewRead the Press Release
PHILADELPHIA - Nikolaos Frangos, 38, George Capuzello, 42, both of Campbell, Ohio, and Mikhail Zubialevich, a/k/a “Russian Mike,” 41, of Princeton, New Jersey were charged by indictment, unsealed today, in a conspiracy related to the disturbance of protected Peregrine Falcons, announced United States Attorney Zane David Memeger. The indictment charged the three defendants with conspiring to falsify, conceal and cover up a material fact in a matter within the jurisdiction of the Fish and Wildlife Service and the US Department of Transportation, witness tampering, and harboring an alien. Capuzello was also charged with perjury and Zubialevich was also charged with making a false statement. The defendants were arrested today.
According to the indictment, the defendants were involved, to varying degrees, in the refurbishment of the Girard Point Bridge in Philadelphia, which, for many years, had been a nesting site for peregrine falcons. As a condition of the work contract, the company, The Liberty-Alpha Joint Venture, agreed to refrain from working in the areas of the falcons’ nests during nesting season. On June 4, 2011, Capuzello allegedly directed Zubialevich and another worker to perform grinding or sanding in the “restricted zone” which frightened and disturbed the falcons and caused them to abandon their nest. During a subsequent investigation into the disturbance of the falcons, the three defendants allegedly conspired to cover up the identity of one of the workers, who was an illegal alien and was partly responsible for disturbing the Peregrine Falcons. It is further alleged that Frangos and Capuzello intimidated another person, J.W., in order to prevent or delay communication with a Special Agent relating to the possible commission of a federal offense.
If convicted Frangos faces a maximum possible sentence of 35 years in prison, Capuzello faces a maximum possible sentence of 40 years in prison, and Zubialevich faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the Department of Labor, the Office of Inspector General of the Department of Transportation, the Environmental Protection Agency Criminal Investigation Division, the Office of Inspector General of the Social Security Administration, U.S. Immigration and Customs Enforcement Homeland Security Investigations,and Amtrak Office of Inspector General. The case has been assigned to Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Diane Schmaler Pleads Guilty to Dorset Field Club EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Diane Schmaler, 61, of Cossayuna, NY, pleaded guilty on May 15, 2014, in United States District Court in Burlington to a charge of interstate transportation of stolen money. U.S. Magistrate Judge John M. Conroy released Schmaler on conditions pending sentencing, which is set for September 2.
According to the charging information and other court records, Schmaler had been employed for many years by the Dorset Field Club of Dorset, VT as a bookkeeper and manager of finance and administration. Schmaler paid the club's bills, handled payroll and maintained the general ledger.
Beginning no later than 2007 and continuing until June 2013, Schmaler embezzled tens of thousands of dollars from the club. She did this primarily by issuing checks to herself without authorization. She also inflated payroll checks which the club issued to her. Schmaler attempted to conceal the embezzlement by falsifying entries in the club's general ledger. Schmaler quit her employment with the club in September 2013. At that time, an audit of the club's books was about to start. The audit uncovered the embezzlement.
The exact amount of the loss is still being determined. Schmaler has already repaid $60,000 to the club.
Schmaler faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Schmaler is represented by Robert O'Neill. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Deputy Jailer Pamela Beard Pleads to Providing Information to Felon to Assist Him in Avoiding Law EnforcementRead the Press Release
Memphis, TN – Pamela Beard, a/k/a “Princess,” 43, of Memphis, TN, pleaded guilty today in a one count information to providing information regarding the detention and arrest of individuals in order to assist her husband, John L. Thomas III, in his effort to avoid law enforcement, announced U.S. Attorney Edward L. Stanton III and Shelby County Sheriff Bill Oldham.
According to the facts of the information and details provided during her plea hearing, on or about March 8, 2013 while working as a Shelby County Deputy Jailer One, Beard was asked by Thomas to access law enforcement databases to determine if his co-conspirator Andre Adams, a/k/a Andre Wrister, had been detained by law enforcement officials. At that time, Thomas and Adams were actively involved in the possession and distribution of as much as 500 grams of heroin into the Memphis area on a bi-weekly basis.
“When members of law enforcement violate the laws they have sworn to uphold, it undermines the public’s trust in the rule of law,” said U.S. Attorney Stanton. “Our office will continue to work at all levels to vigorously root out and pursue anyone who abuses their position of trust.”
“The actions of Ms. Beard are indefensible by any standard and will not be tolerated by this office,” said Shelby County Sheriff Bill Oldham. “I believe the public will look at this case as an example of one misguided individual and will in no way assume that her behavior is indicative of the responsible, hard-working professionals who make up the Shelby County Sheriff’s Office.”
Beard is scheduled to appear before U.S. District Judge S. Thomas Anderson on August 21, 2014 for sentencing. She could receive up to three years in federal prison and a fine of up to $250,000. There is no parole in the federal prison system.
This case was investigated by the Memphis Police Department’s Organized Crime Unit and the Drug Enforcement Administration. Assistant U.S. Attorney Daniel French is representing the government.Company Pleads Guilty to Improper Storage of Explosive Hazardous Waste and Agrees to $1.2 Million FineRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, pled guilty today to storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA, announced United States Attorney Zane David Memeger. The defendant has agreed to pay a fine of $1.2 million, and will face a five-year term of probation and a special assessment of $800. Its president has agreed to resign, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. A sentencing hearing is scheduled for August 27, 2014.
Action Manufacturing makes timing and arming devices for munitions and explosives. In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders. Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act. The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit. In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal.
Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
“The defendant’s illegal business practices threatened the lives and safety of workers and neighbors,” said David G. McLeod, Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “By creating a risk for detonation and release of hazardous waste, the company also threatened to pollute the environment. Today’s plea demonstrates EPA’s commitment to prosecute those who endanger public safety and a clean environment by ignoring the law.”
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Columbia Man Indicted for Distributing Heroin to a Minor who may have Died from OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for distributing heroin to a 16-year-old minor who died of a suspected heroin overdose.
Jon Patrick Washington, also known as “Doom,” 27, of Columbia, was charged in a single-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Washington on May 7, 2014. Washington remains in federal custody.
Today’s indictment alleges that Washington distributed heroin to a minor on April 2, 2014.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers responded to a suspected heroin overdose death at the Providence Suites, 1718 N. Providence Rd., in Columbia on April 3, 2014. The victim was a 16-year-old female. A confidential informant later reported that the heroin had been supplied by Washington and another person.
The Boone County Medical Examiner has not released an official cause of death.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Cape Cod Man Sentenced for Trafficking Counterfeit ViagraRead the Press Release
BOSTON – A Cape Cod man was sentenced yesterday for trafficking counterfeit Viagra on Craigslist.
David Nailen, 45, of East Falmouth, was sentenced by U.S. District Judge Douglas P. Woodlock to 18 months in prison, to be served intermittently, with nine months in the custody of the Bureau of Prisons and nine months in home confinement, followed by two years of supervised release. Nailen was also ordered to pay $48,902 in restitution to Pfizer, Inc. and a money judgment of $2,280 to the United States Customs and Border Protection. In February 2014, Nailen pleaded guilty to trafficking in counterfeit drugs.
Between March and October 2012, Nailen sold counterfeit tablets that were similar or indistinguishable from Pfizer, Inc.’s pharmaceutical drug Viagra, via the Internet, on Craigslist, and in person. In October 2012, investigators executed a search warrant on his East Falmouth home and seized over 3,000 counterfeit Viagra tablets.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Canadian Man Sentenced in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ravinder Arora, 33, a resident of Canada, who was convicted of conspiracy to export five kilograms or more of cocaine from the United States into Canada, was sentenced to 84 months in prison by Chief U.S. District Judge William M. Skretny. The case involved the seizure of 100 kilograms of cocaine - believed to be the largest narcotics seizure in the history of the Western District of New York.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on September 8, 2010, the defendant attempted to cross the Lewiston-Queenston Bridge from the United States into Canada. An outbound inspection of Arora's tractor-trailer revealed a hidden compartment underneath the floor. In the hidden compartment, U.S. Customs and Border Protection Officers and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations found approximately 97 kilograms of cocaine. The defendant admitted to making at least four additional smuggling trips between the United States and Canada.
During the course of the conspiracy, the defendant and other individuals utilized a warehouse on Walden Avenue in Cheektowaga, N.Y., to conceal their narcotics trafficking operation. More specifically, the conspirators loaded and unloaded legitimate cargo (cardboard boxes, Styrofoam packaging material) into tractor-trailers, so as to further conceal the cocaine contained within the false floors of the conveyances. The hidden compartment was also used by members of the conspiracy to smuggle marijuana and ecstacy into the United States, as well as United States currency. The conspiracy trafficked over 1,600 kilograms of cocaine into Canada during its operation, in addition to the marijuana and ecstasy which was smuggled into the United States via the international bridges located in the Buffalo-Niagara region.
Co-defendants Michael Bagri and Parminder Sidhu have been convicted of similar charges and are awaiting sentencing.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.California Man Sentenced to 51 Months in Prison for Multi-Million Dollar Mortgage FraudRead the Press Release
PHILADELPHIA - Steven Pitchersky, 65, of Rancho Mirage, California, was sentenced today to 51 months in prison for a scheme to defraud Ally Bank that resulted in losses to the bank of approximately $5.3 million. Pitchersky, who pleaded guilty to wire fraud on September 23, 2013, operated Nationwide Mortgage Concepts (“NMC”), a California mortgage lender.
Between August 2009 and January 2011, Ally was the warehouse lender for thousands of mortgage loans in which NMC borrowed from Ally’s warehouse line of credit to refinance first mortgages held by other financial institutions. Pitchersky made misrepresentations to Ally to secure the warehouse line of credit including his false representation that NMC had a current $10 million warehouse line of credit with a company named MPL. Pitchersky stated that the contact person for MPL was a man named “Rick Jay” and he listed a phone number for Rick Jay. The phone number that was provided, however, was actually for Pitchersky’s cell phone, and MPL was the name of another business entity that Pitchersky ran. Over the next three years, Pitchersky represented to Ally multiple times that he had a warehouse lending relationship with this company.
Pitchersky used NMC’s $10 million warehouse line with Ally to obtain funds to refinance thousands of mortgages held by other banks for NMC customers. Ally required NMC to disburse funds through a third-party, commonly referred to as a title company. Pitchersky used a company called Hanover as the title company but, unbeknownst to Ally, Pitchersky had created Hanover. This subterfuge allowed Pitchersky to have complete control over money NMC acquired from Ally’s warehouse line. Between December 2010 and January 2011, Ally advanced NMC approximately $5.3 million to pay off 23 first mortgages for NMC clients. NMC failed to use these funds to pay off these mortgages and instead used the money to pay off first mortgages for other customers. At the end of January 2011 Ally discovered that defendant and NMC had not used this money to pay off the 23 loans and ended the warehouse agreement with NMC.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $3,242,888, five years of supervised release and a $100 special assessment.
In total, $17.2 billion in federal taxpayer bailout funds were invested in GMAC Inc., since rebranded as Ally Financial Inc., through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). As of April 9, 2014, Treasury owned 17 percent of Ally Financial, and $4.1 billion of the TARP investment remained outstanding.
“Greed got the best of Pitchersky and, for his crimes, he will spend the next [XX] years in federal prison.” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Defrauding a recipient is the same as defrauding American taxpayers who funded TARP. Pitchersky drew down millions of dollars on a warehouse line of credit with Ally through lies and false pretenses, faking that he used Ally’s funds to pay off refinanced mortgages while, instead, he used the money in part to fund his luxurious lifestyle and extravagant art collection. SIGTARP and our law enforcement partners will bring justice to those committing crimes that threaten taxpayers’ TARP investments.”
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Burns Flat Woman Sentenced to 27 Years for Videotaping Sex Acts with ToddlerRead the Press Release
Oklahoma City, Oklahoma – Today, United States District Court Judge Robin J. Cauthron sentenced LAURA JEAN SHOULDERS, 47, of Burns Flat, Oklahoma, to serve 324 months in federal prison for producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Shoulders will have no possibility of parole. Upon release from prison, Shoulders will have to register as a sex offender.
According to court records and information from court proceedings, Shoulders met a Burlington, Oklahoma, man online through a Craigslist personals ad in the summer of 2012. The two began texting each other about sexually explicit themes and exchanged sexually explicit photographs. The conversations turned to the subject of child pornography, and Shoulders sent the man three videos of herself performing sex acts with a one-year-old child that she made with her iPhone. Shoulders was babysitting the child. The man, in turn, distributed the videos to others, whom he met online.
Shoulders was indicted on January 8, 2014, and pled guilty on February 26, 2013.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. Among the investigators who participated in this investigation were the recently deceased Officer Kristian Willhight of the Burns Flat Police Department and the recently deceased Undersheriff Brian Beck of the Washita County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Bunch Man Sentenced to 151 Months, $395,000 for Methamphetamine and Marijuana DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RALPH EUGENE JOHNSON, age 57, of Bunch, OK was sentenced to 151 months imprisonment and received a money judgment against in him in excess of $395,000.00, for Possession of a Controlled Substance with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) and 841 (b)(1)(D).
Charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in August, 2013 and pled guilty in October, 2013.
The Indictment alleged that on or about June 19, 2013 in the Eastern District of Oklahoma, RALPH EUGENE JOHNSON, did unlawfully, knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance, and a substance containing a detectable amount of Marijuana, a Schedule I Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Walters, 28, of Buffalo, N.Y., who was convicted of possession with intent to distribute, and the distribution of, oxycodone, was sentenced to 12 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on January 5, 2011, the defendant sold 144 oxycodone pills to a confidential source.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Brooklyn Man, Known as “thuggin,” Sentenced to 58 Months in Jail for Conspiring to Distribute Heroin and Cocaine BaseRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont stated that Andrew Hollins, 27, of Brooklyn, New York, was sentenced on May 19, 2014 by United States District Court Judge J. Garvan Murtha to 58 months in jail for conspiring to distribute cocaine base (crack cocaine) and heroin in Burlington, Vermont. Hollins was also sentenced to a 3-year period of supervised release after he is released from prison.
According to Court records, Hollins was arrested on June 10, 2013 at the Quality Inn at 84 South Park Drive in Colchester, Vermont after law enforcement entered Room 135 pursuant to a state court search warrant. While the officers were trying to open the hotel room door, Hollins, known on the street as “Thuggin” was trying to hold the door closed so that his associate could flush money and drugs down the toilet. His attempt to hold the door closed was unsuccessful and officers pulled $8,000 in cash, 31.8 grams of heroin and 54.3 grams of crack cocaine from the toilet.
Hollins was indicted by a federal grand jury on June 20, 2013. He was ordered to be detained in jail pending trial. On January 27, 2014, Hollins pled guilty to conspiring to distribute cocaine base and heroin. He has been detained in prison since his arrest.
This case was investigated by the Burlington Police Department. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Hollins was represented by Steven Barth of the Office of the Federal Public Defender.
Brattleboro Man Sentenced for Possessionof Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Ralph Schnyer, 46, of 213 Birge Street, Brattleboro, Vermont was sentenced on May 19, 2014 by U.S. District Court Judge William K. Sessions III, to 12 months and one day in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, Ralph Schnyer was in possession of thousands of images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on Ralph Schnyer’s computer.
Schnyer was arrested on August 13, 2013. On August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on January 21, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. Schnyer was represented by Attorney Thomas Sherrer.
Bahamian and Jamaican Nationals Sentenced for Marijuana ImportationRead 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 Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce the sentencings of Quinton Mitchell, 31, of Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas and Leroy Anthony Edwards a/k/a “Roy Anthony Elliot,” 57, of Kingston Jamaica. Both defendants were sentenced by U.S. District Judge Jose E. Martinez to five years in prison, followed by four years of supervised release.
Mitchell pled guilty on January 28, 2014, to conspiracy to import a controlled substance –100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), 963 and 960(b)(2).
Edwards pled guilty on January 28, 2014, to importation of a controlled substance – 100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), and 960(b)(2) and Title 18, United States Code, Section 2. Edwards also pled guilty to being a previously removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a)(1).
According to documents filed with the Court, on November 22, 2013, eyewitnesses observed a vessel capsize in the waters off of the Jupiter Island shoreline. Three males made it to shore. One ran away from the scene. Leroy Anthony Edwards, a Jamaican national, was rescued from the surf and resuscitated by a good samaritan. Edwards, who was in critical condition from the drowning, was transported to the hospital by a rescue team. Mitchell, who was identified as the boat captain, was captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies while in flight from the scene. Mitchell admitted to detectives that he was approached while in the Bahamas to transport the marijuana along with another Bahamian, and two Jamaican nationals to the U.S. because he had boat driving experience. Mitchell said when they arrived a few miles from the Florida coastline, they began to have engine difficulty and later when the boat entered the rough surf, it capsized. Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the two other passengers that were on-board the boat.
Immigration records reflected that Edwards was previously removed from the U.S. in 2001 under the name of Roy Anthony Elliott, and again in 2012, after presenting a fraudulent legal permanent resident card at the Port Everglades Seaport.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA. Mr. Ferrer also thanked the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Armored Car Service Employee Sentenced to 15 Months in Prison for Stealing More Than $143,000 from Bank VaultRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Christian Zorrilla, 31, of Charlotte to 15 months in prison for stealing $143,680 from a bank vault, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Zorrilla was also ordered to serve two years under court supervision and to pay $143,680 as restitution. Zorrilla pleaded guilty in March 2013 to one count of bank theft.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas joins U.S. Attorney Tompkins in making today’s announcement.
According to charging documents and statements made during the sentencing hearing, from 2005 through May 2012, Zorrilla was employed by an armored car service as a driver, messenger, and vault custodian. According to court records, between December 2011 and April 2012 and while working as vault custodian, Zorrilla stole a total of $143,680 from the armored car service. Court records indicate that Zorrilla’s responsibilities as vault custodian included coordinating cash storage at the bank’s vault and changing out security tapes. According to court documents, Zorrilla used the delay between the changing of security tapes to take cash out of sealed bags in the vault and to reseal the bags. Zorrilla stole funds in this manner on approximately six occasions, court records show. According to information contained in filed documents and statements made during the sentencing hearing, Zorrilla used the stolen money to pay for vehicles and to pay off a second mortgage on his home.
Zorrilla remains released on bond and upon designation of a federal facility he will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The investigation into Zorrilla was handled by HSI. The case was prosecuted by Assistant U.S. Attorney Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
Anthony, N.M., Man Sentenced to Forty-Six Months for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Victor Manuel Carreon, 23, of Anthony, N.M., was sentenced in federal court in Las Cruces, N.M., this morning to 46 months in prison for his conviction for being a felon in possession of a firearm and ammunition. Carreon will be on supervised release for three years after he completes his term of incarceration.
Carreon and his brother Javier Orozco, 30, also of Anthony, were arrested on Sept. 5, 2013, based on a criminal complaint charging them with being felons in possession of firearms and ammunition. The two were subsequently indicted on these charges on Dec. 11, 2013. The indictment alleges that Carreon and Orozco unlawfully possessed firearms and ammunition in Doña Ana County, N.M., on June 19, 2013. At the time, the brothers were prohibited from possessing firearms or ammunition because they were convicted felons. Carreon previously had been convicted for possession of a controlled substance and aggravated fleeing from a law enforcement officer, and Orozco had been convicted for shooting at a motor vehicle and aggravated assault.
According to court filings, on June 19, 2013, Carreon and Orozco were arrested on state charges by Doña Ana County Sheriff’s deputies who were seeking to arrest Carreon on state warrants. The deputies detained Orozco in the vicinity of a truck parked outside a residence in Anthony, and arrested Carreon inside the residence. At the time of his arrest, Carreon was near a trash can that contained a loaded handgun; he admitted ownership of the handgun during a post-arrest interview. The deputies arrested Orozco after they allegedly found a large amount of cash and a plastic bag containing methamphetamine in Orozco’s pockets. During a search of the truck, which allegedly was driven primarily by Orozco, officers allegedly found additional currency and a loaded handgun.
On Jan. 7, 2014,Carreon pled guilty to Count 2 of the indictment charging him with being a felon in possession of a firearm and ammunition, and admitted that he unlawfully possessed a firearm and ammunition on June 19, 2013. Carreon entered his guilty plea without the benefit of a plea agreement.
On Feb. 11, 2014, Orozco entered a guilty plea and admitted possessing a 9 mm handgun on June 19, 2013. Orozco remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Orozco faces a maximum penalty of ten years in prison.
This case was investigated by the Las Cruces office of the FBI and the Doña Ana County Sheriff’s Office, with assistance from the 3rd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Antelope Valley Man Pleads Guilty to Federal Charge of Producing Child Pornography Related to Molestation of RelativeRead the Press Release
LOS ANGELES – An Antelope Valley man pleaded guilty this morning to a federal charge of producing child pornography, admitted that he used his camera phone to make videos while he molested a 3-month-old relative.
Robert Dale Schrader, 33, of Littlerock, pleaded guilty to charge before United States District Judge Gary A. Feess, who scheduled a sentencing hearing for August 18.
At sentencing, Schrader faces a mandatory minimum sentence of 15 years in federal prison, and he could be ordered to serve up to 30 years in custody.
According to court documents, authorities began investigating Schrader in January after he communicated via email with an undercover law enforcement officer based in England. In those emails, Schrader sent sexually explicit images of an infant , and data embedded in those images led authorities to Schrader’s Littlerock home.
On January 29, investigators executed a federal search warrant at Schrader’s residence, where they rescued the infant who had been molested. Authorities discovered approximately 200 child pornography images and videos depicting the baby.
The case against Schrader is the result of an investigation by the Child Exploitation Investigations Group, a task force based in Long Beach and spearheaded by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Other agencies actively involved in the group include the Los Angeles Police Department, the FBI and the Los Angeles County Department of Children and Family Services (DCFS).
Release No. 14-064
19 Arrested in International Round up on Federal Fraud ChargesRead the Press Release
Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin and Indiana, pursuant to an eight-count federal indictment on fraud charges filed in the Southern District of Mississippi. A total of 19 individuals were arrested across the United States and internationally on charges brought by federal prosecutors in Mississippi, South Carolina and Georgia.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi, Raymond Parmer Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans and Robert Wemyss, U.S. Postal Inspection Service Inspector in Charge made the announcement.
Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Three defendants in South Carolina were arrested in Charleston, pursuant to a nine-count indictment, and the U.S. Attorney’s Office for the Northern District of Georgia has filed related criminal complaints in Atlanta against two additional defendants. All of the indictments and complaints were unsealed yesterday.
The indictments allege the involvement of a West African transnational organized crime enterprise engaged in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011, by HSI agents in Gulfport, Mississippi, after U.S. law enforcement officers were contacted by a female victim who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
Today’s arrests were the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, and the remaining defendants were arrested in the United States.
The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, and will be scheduled for trial after extradition of the defendants to Mississippi. The South Carolina prosecution will be handled by Department of Justice Organized Crime and Gang Section trial attorneys Leshia Lee-Dixon and Robert Tully. The Georgia cases will be prosecuted by Assistant U.S. Attorney Shanya J. Dingle of the Northern District of Georgia.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.19 Arrested in International Round up on Federal Fraud ChargesRead the Press Release
Contact: (202) 514-2007
Washington, DC ----- Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin and Indiana, pursuant to an eight-count federal indictment on fraud charges filed in the Southern District of Mississippi. A total of 19 individuals were arrested across the United States and internationally on charges brought by federal prosecutors in Mississippi, South Carolina and Georgia.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi, Raymond Parmer Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans and Robert Wemyss, U.S. Postal Inspection Service Inspector in Charge made the announcement.
Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Three defendants in South Carolina were arrested in Charleston, pursuant to a nine-count indictment, and the U.S. Attorney’s Office for the Northern District of Georgia has filed related criminal complaints in Atlanta against two additional defendants. All of the indictments and complaints were unsealed yesterday.
The indictments allege the involvement of a West African transnational organized crime enterprise engaged in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011, by HSI agents in Gulfport, Mississippi, after U.S. law enforcement officers were contacted by a female victim who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
Today’s arrests were the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, and the remaining defendants were arrested in the United States.
The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, and will be scheduled for trial after extradition of the defendants to Mississippi. The South Carolina prosecution will be handled by Department of Justice Organized Crime and Gang Section trial attorneys Leshia Lee-Dixon and Robert Tully. The Georgia cases will be prosecuted by Assistant U.S. Attorney Shanya J. Dingle of the Northern District of Georgia.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.14-542
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
20 May 2014
Wyatt Detention Facility Detainee Convicted of Possession of Makeshift Weapon in PrisonRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted Ernesto Monell, 36, of Taunton, Mass., with possession of contraband - a makeshift weapon, while incarcerated at the Donald W. Wyatt Detention Facility in Central Falls, R.I., announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
According to the government’s evidence presented to the jury, on August 16, 2013, correctional officers assigned to the L-Pod at the Wyatt Detention Facility observed a disturbance break out involving numerous detainees attacking one another. Monell was observed attacking two or more detainees using a homemade weapon/shank. The disturbance was recorded on the facility’s video surveillance system. Monell can be seen on the video, which was introduced as evidence and played for the jury, swinging his arm in a stabbing type motion. An object can be seen in his hand.
According to the government’s evidence, the correctional staff brought the situation under control by using chemical spray, and noted that Monell suffered injuries to his hand consistent with holding a makeshift type weapon. A search of the L-Pod was undertaken and a makeshift weapon/shank was recovered from a second tier waste can. A correctional officer who first observed the disturbance break out identified the item as the weapon Monell was using to carry out his assaults.
Detainees who were seen on the video being struck by Monell were examined and found to have puncture and scratch like injuries consistent with having been inflicted by the shank.
At the time of the incident, Monell was detained at the Wyatt Detention Facility on a charge of being a felon in possession of a firearm brought by the U.S. Attorney’s Office for the District of Massachusetts.
Monell is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 12, 2014. Possession of contraband in prison is punishable by a statutory penalty up to 3 years in federal prison and a fine of up to $250,000.The case is being prosecuted by Assistant U.S. William J. Ferland.
The matter was investigated by the Wyatt Detention Center Investigative Unit, with the assistance of the United States Marshals Service.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Wisconsin Man Charged with Robbing Three Banks in Cedar RapidsRead the Press Release
Jeffrey Haydock, 57, from Watertown, Wisconsin, has been charged with three counts of bank robbery. The charges are contained in an Indictment filed on April 23, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 30, 2009, and again on or about November 12, 2009, Haydock robbed the First Federal Credit Union in Cedar Rapids. The Indictment also alleges that, on or about February 17, 2010, Haydock robbed the Linn Area Credit Union in Cedar Rapids.If convicted on all charges, Haydock faces a possible maximum sentence of seventy-five years’ imprisonment, a $750,000 fine, $300 in special assessments, and fifteen years of supervised release following any imprisonment.
Haydock appeared today in federal court in Cedar Rapids and was held without bond. Haydock’s next appearance for trial is set for July 21, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0047.
Wellpinit Man Sentenced to Federal Prison for Domestic AssaultRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Charles Joseph Reevis, age 24, of Wellpinit, Washington, was sentenced on Tuesday, May 20, 2014 after having previously pleaded guilty on February 20, 2014 to Assault With a Dangerous Weapon. United States District Court Chief Judge Rossana Malouf Peterson sentenced Reevis to a forty-one month term of imprisonment, to be followed by a three year term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on April 24, 2012, Reevis was at the home of the victim, who is the mother of his three children. Reevis became angry because the victim did not prepare his dinner quickly enough. Reevis left the home but quickly returned and began choking the victim. He then grabbed a large kitchen knife and threatened to kill the victim and would not allow her to leave the house. The victim managed to escape with her children but Reevis jumped in the victim's vehicle and again choked the victim. The victim drove to a family member's house and Reevis fled. He was arrested a short time later.
Michael C. Ormsby stated, "The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively domestic violence crimes that occur in this District over which federal jurisdiction exists, including Indian Country. Domestic violence in Indian Country demands the attention of law enforcement, families, social service programs, and the community at large."
This investigation was conducted by FBI and the Spokane Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-00103-RMP
Webster Accountant Pleads Guilty to Bank Fraud, Identity TheftRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Karl Muller, 54, of Webster, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to bank fraud and aggravated identity theft. The charges carry a mandatory minimum sentence of two years in prison, a maximum of 30 years, a fine of $1,000,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Muller was an accountant in Webster who provided services to clients, including preparing tax returns. From April 2012 to August 2013, the defendant used personal identifying information that he stole from a client to prepare 46 fraudulent checks drawn on the client’s bank accounts. Muller then deposited the fraudulent checks into an account that he controlled, reaping a total of $127,287.
This plea is the culmination of an investigation by Special Agents of the Secret Service under the direction of Special Agent in Charge Tracy Gast.
Sentencing is scheduled for September 10, at 2:00 p.m. before Judge Larimer.Wanblee Man Sentenced for Assault and Making False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and False Statements Relating to Health Care Matters was sentenced on May 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert George Quiver, Jr., age 22, was indicted by a federal grand jury on August 27, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. The charges related to Quiver and others using a hard blunt object and shod feet to repeatedly strike another male in the head during a fight on October 15, 2012. As a result of this assault, the victim suffered skull and nasal bone fractures requiring a craniotomy, and he remains permanently injured. Quiver pled guilty to the Assault Resulting in Serious Bodily Injury charge on February 5, 2014, and has been sentenced to 12 months and 1 day in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Quiver was also indicted by a federal grand jury on December 3, 2013, for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud. The charges related to Quiver presenting a false prescription for hydrocodone to a pharmacist at the Indian Health Services Pharmacy in Wanblee on July 11, 2013. He pled guilty to the False Statements Relating to Health Care Matters charge on February 5, 2014, and was sentenced to time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
This case was investigated by the Department of Health and Human Services, Office of Inspector General.
The sentences in each case were ordered to run concurrently. Assistant U.S. Attorney Kathryn N. Rich prosecuted the cases.
Quiver was immediately returned to the custody of the U.S. Marshals Service.
U.S. Navy Petty Officer Based in Japan Pleads Guilty<br /> in International Bribery ScandalRead the Press Release
U.S. Navy Petty Officer First Class Daniel Layug pleaded guilty in the Southern District of California today to accepting more than $10,000 in cash, consumer electronics and travel expenses from a foreign defense contractor in exchange for classified and internal Navy information.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement.
Layug, 27, entered his plea before U.S. Magistrate Judge Karen S. Crawford to one count of conspiracy to commit bribery. He is the sixth defendant charged – and the third to plead guilty – in the alleged bribery scheme involving Singapore-based defense contractor Glenn Defense Marine Asia (GDMA), which provided port services to U.S. Navy ships in the Asia Pacific region.
“Today, U.S. Navy Petty Officer First Class Dan Layug admitted that he swapped classified U.S. Navy information for cash, luxury travel perks and electronic gadgets from a defense contractor,” said Acting Assistant Attorney General O’Neil. “In taking these under-the-table bribes, Layug put his own financial interests above those of the Navy and the country he vowed to serve. The Criminal Division, with our law enforcement partners, is committed to holding responsible those who were part of this massive fraud and bribery scheme that cost the U.S. Navy more than $20 million.”
“Every service member is entrusted with the enormous responsibility of protecting this country at all costs,” said U.S. Attorney Duffy. “Because of greed, Daniel Layug fell woefully short of that high calling, and this guilty plea holds him accountable for a painful betrayal.”
“The guilty plea of U.S. Navy Petty Officer First Class Dan Layug is part of an ongoing effort by the Defense Criminal Investigative Service and its law enforcement partners to bring to justice individuals who seek to enrich themselves at the expense of U.S. taxpayers,” said Deputy Inspector General Burch. “While the conduct of the vast majority of service members is beyond reproach, Defense Criminal Investigative Service will vigorously pursue individuals who betray the trust bestowed upon them.”
“Petty Officer Layug sold sensitive Navy information for monetary gain,” said NCIS Director Traver. “In doing so, he compromised the integrity of his position and the safety of his shipmates. NCIS will continue to work with DCIS and the U.S. Attorney's Office in investigating and prosecuting these crimes to the fullest extent possible.”
According to allegations in court documents, GDMA owner and CEO Leonard Glenn Francis and his cousin, GDMA executive Alex Wisidigama, enlisted the clandestine assistance of Navy personnel – including Layug, Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, and Naval Criminal Investigative Service Special Agent John Beliveau – to provide classified ship schedules and other sensitive U.S. Navy information in exchange for cash, travel expenses, and consumer electronics. GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million in port services.
Court records state that Layug worked secretly on behalf of GDMA, using his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to classified U.S. Navy ship schedules and then provided this information to GDMA’s vice president of global operations. Layug admitted he also provided pricing information from one of GDMA’s competitors.
In return, according to the plea agreement, GDMA gave Layug envelopes of cash on a regular basis. Layug admitted that he accepted a $1,000 monthly allowance from GDMA. On May 21, 2012, GDMA’s vice president of global operations instructed a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.” Layug also admitted that he received luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand.
Further according to the plea agreement, Layug asked GDMA for consumer electronics. In an email on March 9, 2012, Layug asked the vice president of global operations, “What are the chances of getting the new iPad 3? Please let me know.” In the plea agreement, Layug admitted that GDMA then provided him with an iPad 3.
In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini. Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
Francis was previously charged with conspiring to bribe U.S. Navy officials. Wisidagama pleaded guilty on March 18, 2014, to defrauding the U.S. Navy.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have been charged separately with bribery conspiracies involving GDMA. On Dec. 17, 2013, NCIS Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty to conspiracy and bribery charges for regularly tipping off Francis to the status of the government’s investigation into GDMA.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil, the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.U.S. Attorney Steven Dettelbach Honored for Efforts to Combat HeroinRead the Press Release
“The compassionate work of the individuals and programs we honor are truly inspiring,” remarked Harvey A. Snider, Esq., Board Chair, as nearly 350 guests witnessed the Alcohol, Drug Addiction and Mental Health Services (ADAMHS) Board of Cuyahoga County present awards during its Annual Meeting on Monday, May 19, 2014. “Their extraordinary contributions are helping children and adults with mental illness and addictions on their path to recovery.”
William M. Denihan, Chief Executive Officer, noted that “The actions of each of our recipients are helping to alleviate the stigma that is still too often associated with mental illness and addictions. Their achievements embody what community treatment and support is all about.”
The award recipients are:
Addiction Treatment Professional of the Year – Dennis Madden, Chief Executive Officer of Stella Maris for melding his human services, advocacy and leadership experience to help people living with heroin and other substance abuse issues, playing a significant role in the discussion to bring more sober beds to Cuyahoga County and for helping Stella Maris achieve yet another level of excellence.
Mental Health Professional of the Year - Barb Obiaya, Director of Family Support Services at the Achievement Centers for Children to honor her 38 years of experience assisting children and families cope and recover from mental illness, recognizing the importance of intervening as early as possible to take advantage of the critical developmental stages of children and educating others on the importance of this vulnerable age group.
Community Partner Collaboration Awards – Steven Dettelbach, US Attorney General for the Northern District of Ohio for his remarkable leadership and partnership with public systems to serve the community to end the heroin epidemic in Northeast Ohio by ensuring that there is a balance between the judicial system and the treatment system so that people abusing heroin will get the help they need, and that people selling this deadly drug will be taken off of the streets and for protecting children from the effects of violence through the Defending Childhood project.
Wally Clevenger for the tremendous amount of volunteer work he has exhibited in bringing young people who are in recovery from heroin addiction together to support one another and to share their stories with thousands of high school students about the consequences of heroin.
Rev. Dr. Howard Pippin, Jr., the pastor of Aldersgate United Methodist Church for making it clear that activities supportive of mental health and substance abuse recovery are welcome, striving to erase the stigma of mental health and addiction issues in the community and for promoting the relationship between spirituality and the recovery process.
Consumer/Client Involvement Award - Urban Goodness – a collaborative program of Connections; Health, Wellness, Advocacy that is a therapeutic community farming project operated by 20 people living with mental illness and/or substance abuse issues.
Family Involvement Award - Rob Brandt of Robby’s Voice for developing a prevention program to honor his son who died by heroin overdose and sharing their personal family story with the world in order to help others to not experience the same tragedy.
Legislator of the Year: Local Level – Cleveland City Councilman Joe Cimperman for his willingness to publically share his family’s story of dealing with his mother’s bi-polar disorder and how it affected his family to help others understand the importance of treatment and support services.
Legislator of the Year Award: State Level – State Representative Nickie Antonio for her concern with the quality of life for all people, working for human rights and equality and advocating for mental health and addiction issues in the State Budget Mid-biennium Review.
Contract Agency Collaboration - Seasons of Hope operated by Hitchcock Center for Woman for its uniqueness in offering a place where women with alcohol or drug-addiction who are in distress can go for help without feeling ashamed or alienated, and receive information about treatment when they are ready and serving over 400 individual women through 640 visits.
Media Award - Rita Andolsen, Director of Advocacy & Community Initiatives, WKYC TV3 for taking on the Heroin epidemic as one of the stations advocacy efforts and for organizing the “Heroin Epidemic, The Next Step” meeting consisting of representatives from the provider community, justice system and elected officials to discuss a strategy to combat heroin and for sitting on the Juvenile Safe Surrender planning committee.
Two Men Plead Guilty in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – Saleh H. Fakhoury, age 48, formerly of Lutherville, Maryland, pleaded guilty today to his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty on May 16, 2014 to his participation in the conspiracy.
The guilty pleas were 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; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to their plea agreements Fakhoury owned a home in Lutherville Maryland. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed.
Fakhoury and Hammoud discussed their financial arrangement for the arson. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 and the money would be sent overseas.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claiming over $3 million in compensatory damages. As part of his plea agreement, Fakhoury has agreed to dismiss the lawsuit.
Fakhoury and Hammoud face a maximum sentence of 20 years in prison followed by three years of supervised release and a $250,000 fine for conspiring to use fire to commit a federal felony. U.S. District Judge James K. Bredar scheduled Fahhoury’s sentencing for September 4, 2014 at 2:00 p.m. and Hammoud’s sentencing for August 25, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who are prosecuting the case.Two Admit Roles in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
TRENTON, N.J. – Two members of an alleged international cybercrime, identity theft and credit card fraud conspiracy today admitted their roles in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Richard Gundersen, 47, of Brooklyn, N.Y., pleaded guilty to an indictment charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Lamar Taylor, 38, of Salem, Mass., pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Both defendants entered their guilty pleas before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Gundersen and Taylor were asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Gundersen worked as “casher” under Pidtergerya, while Taylor performed a similar role under Dubuc.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Gundersen and Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Gundersen and Taylor admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. They admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. They also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to their immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
The conspiracy to commit wire fraud, access device fraud and identity theft count carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense. Gundersen and Taylor’s sentencings are scheduled for Sept. 3, 2014.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the
U.S. Attorney’s Office in Newark.The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’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. Attorneys’ 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.
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Defense counsel: Gundersen: Cynthia Hardaway Esq., Newark
Taylor: Bruce Rosen Esq., Florham Park, N.J.Gundersen, Richard Indictment
Taylor, Lamar InformationThree Buffalo Women Plead Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Carlique Deberry, 35, Sayonara Heath, 32, Sade Heath, 27, all of Buffalo, N.Y. pleaded guilty to bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that the defendants were part of a conspiracy to defraud local area banks by participating in a “check kiting” scheme. The defendants would open bank accounts and deposit large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks could determine that the checks were not supported by any funds, the defendants would withdraw smaller amounts from the accounts. Although the defendants made away with only $390.95, the amount of the intended loss was more than $40,000.
The pleas are the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing will be scheduled at a later date before Chief U.S. District Judge William M. Skretny.
Texas Man Pleads Guilty to Conspiring to Smuggle<br /> and Traffic Counterfeit Viagra TabletsRead the Press Release
A Texas man pleaded guilty today to conspiring to smuggle and to traffic in counterfeit and misbranded pharmaceuticals, including Viagra tablets, from China, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Nasif Baqla, 26, of Houston, pleaded guilty before U.S. District Judge Nancy F. Atlas in the Southern District of Texas to one count of conspiracy to traffic in counterfeit goods, to introduce misbranded prescription drugs into interstate commerce and to import such goods contrary to U.S. law.
Baqla was indicted on Aug. 22, 2012, as were two other individuals – Jamal Khattab, 49, of Katy, Texas, and Fayez Al-Jabri, 45, of Chicago – in a separate, but related case. Khattab and Al-Jabri each pleaded guilty on Dec. 3, 2013, and March 21, 2014, respectively, to the same conspiracy charge as Baqla, as well as trafficking in counterfeit goods and introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.
According to court documents, in July 2010, a package of counterfeit Viagra tablets was shipped from China to Houston, intended for Baqla and Khattab. The package was intercepted by Customs and Border Protection officers. Baqla claimed the pills were his and that he received them on behalf of a friend. Although the tablets were marked with trademarks substantially indistinguishable from the genuine marking on a legitimate Viagra pill, the drugs in the package were counterfeit and misbranded.
This matter was investigated by Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, Diplomatic Security Service and police departments in Houston and Chicago. The case is being prosecuted by Assistant Deputy Chief for Litigation John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kebharu Smith of the Southern District of Texas.Tampa Woman Indicted on 24 Counts of Tax FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Erica Lambert with one count of conspiracy to defraud the United States Treasury and to commit wire fraud, 15 counts of wire fraud, and eight counts of aggravated identity theft, all in connection with filing fraudulent tax returns in other people’s names. If convicted, she faces a maximum penalty of five years in federal prison on the conspiracy charge, ten years on each wire fraud charge, and 2 consecutive years’ imprisonment on the aggravated identity theft offenses. The indictment also notifies Lambert that the United States intends to forfeit any assets that are alleged to be traceable to proceeds of the offense. Lambert was arrested and made her initial appearance on May 19, 2014.
According to the indictment, Lambert, and others, electronically filed false tax returns, each claiming fraudulent refunds, using stolen and fraudulently-obtained means of identification of others. Lambert and others kept track of the fraudulently-filed returns and refunds in detailed ledgers. The fraudulent tax refunds came in the form of U.S. Treasury checks and debit cards, which Lambert and others used to obtain cash and goods for their other personal use.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Hillsborough County Sheriff’s Office and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
This case was brought as part the Tampa Bay Identity Theft Alliance, an initiative dedicated to combating the scheme of using stolen identities to file fraudulent federal income tax refund claims. The United States Attorney's Office for the Middle District of Florida, the United States Secret Service, the United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the Tampa Police Department and the Hillsborough County Sheriff's Office are working together on this joint investigative and enforcement effort.
Star Man Sentenced to More Than Twenty Years in Federal Prison for Drug Conspiracy and Shooting Someone in Furtherance of the ConspiracyRead the Press Release
Two Defendants Sentenced in Large Drug Case
BOISE – U.S. Attorney Wendy J. Olson announced sentencing of Jeramie Ethan Mahler, 27, of Star, Idaho, and Carlos Eberardo Tovar, 28, of Nampa, Idaho. U.S. District Judge Edward J. Lodge sentenced Mahler to 247 months in prison for conspiring to distribute methamphetamine and for discharging a firearm in furtherance of the drug trafficking crime. He pleaded guilty to the charges on March 3, 2014. Judge Lodge sentenced Tovar to 87 months in prison for distributing methamphetamine. He pleaded guilty to the charge on March 3, 2014.
Mahler admitted that he and other co-defendants agreed to distribute methamphetamine beginning in approximately January 2013. Mahler and others continued to distribute methamphetamine for several months. Mahler admitted that the conspiracy involved over 500 grams of methamphetamine. Mahler faced a ten-year mandatory minimum sentence for the drug conspiracy because of the large amount of methamphetamine involved. Mahler also admitted that he shot another person on March 25, 2013, in furtherance of the drug conspiracy, because of a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Mahler and two co-defendants fled the scene leaving the injured man behind. A Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving eight days later, on April 2, 2013. Mahler was arrested and the vehicle was searched. Inside, deputies found two handguns and approximately one-quarter pound of methamphetamine. A forensic examination later confirmed that one of the handguns located in the vehicle was the same gun used in the shooting on March 25. Mahler faced a consecutive mandatory sentence of ten years for discharging the firearm in furtherance of the conspiracy. In addition to the 250 month prison sentence, Mahler was sentenced to five years of supervised release.
According to court documents, Tovar conspired with Mahler and others to distribute methamphetamine. Tovar sold methamphetamine to an undercover police officer on several occasions. On February 7, 2013, Tovar sold the officer approximately four ounces of methamphetamine for $3,700. The Drug Enforcement Administration later tested the methamphetamine and determined it was 99% pure.
Co-defendant Juan Luis Mojica-Barragan will be sentenced on May 21, 2014, for his part in the conspiracy. He pleaded guilty on February 27, 2014. The charge that Mojica-Barragan pleaded guilty to is punishable by up to twenty years in prison, a $1 million fine, and at least three years of supervised release.
Mahler, Tovar, Mojica-Barragan, and eight other individuals were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. The defendants are responsible for distributing pounds of methamphetamine within the community. During the investigation, law enforcement agents seized twelve firearms, including a stolen firearm, and an illegal fully-automatic machine gun. All eleven defendants have pleaded guilty. Co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced to 84 months in prison; Nearia Pinnell was sentenced to 33 months in prison; Daniel Vaughan was sentenced to 80 months in prison; Darrell Zirschky was sentenced to 168 months in prison; and Michelle Ritch was sentenced to 120 months. Mojica-Barragan, Hernan Gomez-Gutierrez, and Scott Hernandez have not been sentenced yet.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
St. John Man Arrested and Charged with Bank FraudRead the Press Release
St. Thomas, USVI – Davidson L. Alfred, 51, of St. John was arrested today and charged with bank fraud, announced United States Attorney Ronald W. Sharpe. Alfred appeared in District Court before U.S. Magistrate Judge Ruth Miller on Wednesday and was remanded to the custody of the United States Marshals Service pending a detention hearing scheduled for Wednesday, May 21, 2014.
According to the criminal complaint filed in District Court, Alfred presented forged checks to Banco Popular and FirstBank branches in St. Thomas, Virgin Islands. More specifically, Alfred presented eight fraudulent checks totaling $23,150 to Banco Popular and two checks totaling $6,300 to First Bank during a two-month period of time.
If convicted of the offenses charged in the criminal complaint, Alfred faces a statutory maximum sentence of 30 years in prison.
The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Sioux Falls Man Sentenced for 26 Investment Fraud FeloniesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of 26 felony fraud charges was sentenced on May 19, 2014, by U.S. District Judge Karen E. Schreier.
Randal Kent Hansen, age 66, was sentenced to 108 months in custody, 3 years of supervised release, and a $2600 special assessment to the Federal Crime Victims Fund. Restitution of an amount to be determined will be decided in the next ten days.
Hansen was indicted for Conspiracy to Commit Wire Fraud and Mail Fraud, and also Wire Fraud and Mail Fraud by a federal grand jury on May 8, 2013. On January 22, 2014, a federal jury found him guilty of Conspiracy to Commit Wire Fraud and Mail Fraud, four counts of Wire Fraud, and 21 counts of Mail Fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership, and RAHFCO Growth Fund, Limited Partnership. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money would be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011, when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion, with new investor money being used to pay off existing investors seeking to withdraw funds. Ultimately, investor losses have exceeded $18 million.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Hansen is to self-surrender to the U.S. Marshals Service in June 2014 to begin serving his sentence.
Sex Offender Sentenced to More Than 17 Years in Prison for Distributing Child PornographyRead the Press Release
OAKLAND – Terry Howell was sentenced yesterday to 210 months in prison for distribution of child pornography, announced United States Attorney Melinda Haag and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Howell pleaded guilty on Feb. 10, 2014, to distributing child pornography to a person in another state, using his e-mail account. According to the plea agreement, Howell also admitted that he received child pornography images and videos through his email account on five occasions. Howell admitted that his cellular telephone, at the time he was arrested, contained over 80 videos and over 550 images depicting minors engaging in sexually explicit conduct, including minors being subjected to sadistic conduct.
Court documents indicate that Howell was trading child pornography materials with another man who had two prior convictions for child pornography offenses, and that Howell’s email messages contained graphic descriptions of his desire to commit extreme violence against a child. At the time Howell committed the child pornography offenses charged in this case, he had prior convictions for sexual offenses against a child.
“This case should serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity,” said Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement ICE Homeland Security Investigations HSI. “Online predators should be on notice that ICE Homeland Security Investigations will do everything in its power and use every tool at its disposal to track them down and ensure that they are brought to justice.”
The sentence was handed down by the Honorable Claudia Wilken, Chief United States District Court Judge, following a guilty plea to a violation of distribution of child pornography, in violation of 18 U.S.C. 2252(a)(2). Judge Wilken also sentenced Howell to a ten year period of supervised release. Special conditions of Howell’s supervised release include: sex offender-specific treatment; registration with the state sex offender registration agency; suspicionless search of Howell’s residence and property; and no contact with any child under the age of 18. The defendant has remained in custody since his arrest on Sept. 13, 2013, and will begin serving the sentence immediately.
Christina McCall is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant and Noble Hughes. The prosecution is the result of an investigation by ICE HSI.
(Howell indictment )