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20 May 2014
Serial Bank Robber Sentenced to 14 Years in PrisonRead the Press Release
MINNEAPOLIS— Yesterday in federal court in St. Paul, United States District Court Judge
Susan Richard Nelson sentenced Sheikh Bilaal Muhammad Arafat, formerly known as Mark
Edward Wetsch, to 168 months in federal prison for committing a series of bank robberies in
2011 and 2012. In late April and early May 2013, Arafat, dubbed the “Man-in-Black” bank robber, pleaded guilty to six counts of bank robbery. Arafat also admitted responsibility for 25 additional bank robberies that occurred in the southern half of Minnesota in 2011.In his plea agreement, Arafat admitted that from January 11, 2011, to January 3, 2012, he robbed 31 banks in Minnesota while wearing a black mask and brandishing a firearm believed to be real.
During the e robberies, Arafat took more than $110,000, in total, from the 31 banks.This case was the result of an investigation by the Federal Bureau of Investigation and the police departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord, Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St.
Peter, and Shakopee; the sheriff’s departments of Carver, Dakota, Hennepin, Ramsey, Nicollet, Nobles, Sibley, and Wright counties; and with assistance from the Minnesota State Patrol. The case was prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and
Kevin S. Ueland.Sacramento Man Sentenced for Sex Trafficking of A MinorRead the Press Release
SACRAMENTO, Calif. — Justin Isaac Jackson, 24, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 11 years and four months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January to April 2009, Jackson acted as a pimp for a 16-year-old runaway girl in Sacramento and Santa Cruz. Although he was aware of her age, he purchased motel rooms for her use, drove her to meetings with customers, and provided her with a phone to use to coordinate her prostitution activities. In exchange, Jackson received some of the money that she earned. On April 26, 2009, police stopped Jackson while he was driving a car with the girl and an adult prostitute and arrested him.
At sentencing, Judge Mendez told Jackson that the 135-month sentence was warranted because his conduct reflected “a level of callousness and cultural acceptance of juvenile prostitution that is alarming. As an adult, Jackson thought nothing of promoting the prostitution activities of a young girl he knew to be troubled. Where others would seek to protect, Jackson chose to exploit.”
Supervisory Special Agent Maria Johnson of the Sacramento FBI stated: “Jackson used his victim’s vulnerability and naiveté to coerce her into an exploitive and abusive situation that no minor should ever experience. The FBI and its Child Exploitation Task Force partners are united and committed to identifying and recovering victims of child sex trafficking. We hope that a sense of normalcy will eventually be restored to these minors.”
This case is the product of an investigation by the Federal Bureau of Investigation’s Innocence Lost Task Force, a task force composed of the FBI, the Sacramento Police Department, and the Sacramento County Sheriff. Assistant United States Attorney Kyle Reardon prosecuted the case.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rutland Man Sentenced to 46 Months in Federal Prison for Firearms OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on May 19, 2014, Thomas J. Rougier, Jr., 23, of Rutland, Vermont, was sentenced to 46 months in prison for possessing stolen firearms. United States District Judge J. Garvan Murtha, sitting in Brattleboro, Vermont also ordered Rougier to serve two years of supervised release following his prison sentence.
According to court records, in September of 2013, Rougier stole approximately seven handguns from a residence in Weybridge, Vermont. Shortly thereafter, Rougier traded a number of the stolen handguns to drug dealers in the Rutland area for heroin and cocaine. Law enforcement was able to recover three of the stolen handguns.
Rougier was arrested on September 6, 2013 and a federal grand jury in the District of Vermont returned an indictment against him on September 19, 2013. Rougier pled guilty to possessing stolen firearms on January 27, 2014. He has been in custody since his arrest.
The statutory maximum for Rougier’s offense is ten years in prison. Pursuant to the advisory U.S. Sentencing Guidelines, Rougier faced between 57 and 71 months in prison. Because of the gravity of Rougier’s offense and his significant criminal record, which includes multiple instances of violent or threatening conduct, the United States asked Judge Murtha to impose a term of 70 months. In sentencing Rougier to a term of imprisonment 11 months below the low end of the Guidelines range, Judge Murtha noted, among other factors, Rougier’s difficult childhood.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Rutland City Police Department, and the Vermont State Police for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr.
Rougier is represented by Assistant Federal Public Defender Steven Barth.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.Rosebud Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on May 12, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Melvin Floyd Hollow Horn Bear, age 39, was sentenced to time served, 1 year of supervised release, and was ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
In March 2013, at Pine Ridge, Hollow Horn Bear struck a man repeatedly with a blunt object, causing cuts on the man’s face and head that required stitches.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Rochester Man Pleads Guilty to Making False Statements on Naturalization ApplicationRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, pleaded guilty to making a false statement on an immigration document before U.S. District Court Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity, including a different name and date of birth.
During the investigation, officials from the Department of Homeland Security conducted an immigration interview with the defendant. During this interview, the defendant was again asked several times about his identity, and he repeatedly denied ever using another name to try to enter the United States.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the United States Department of State, Diplomatic Security Service, under the direction of Resident Special Agent in Charge, Andrew Wright.
Sentencing is scheduled for August 22, 2014 before Judge Siragusa.Rochester Man Pleads Guilty to Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chauncee McFarland, 35, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to defraud the United States, and a scheme to defraud insurance premium finance companies. The charges carry a maximum sentence of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from 2010 to 2012, McFarland owned McFarland Tax Company, a tax return preparation business. The defendant conspired with an employee, Kenyatta Hubbard, to prepare false income tax returns for clients. McFarland and Hubbard reported fictitious employment in order to increase the Earned Income Tax Credit refunds claimed on behalf of the clients. As a result of the scheme, the Internal Revenue Service paid tax refunds totaling $391,888.
Thereafter, from September 2012 to September 2013, acting on his own as a licensed insurance broker, McFarland devised a scheme to defraud premium finance companies. Premium finance companies engage in the business of lending money to finance insurance policy premiums for clients. McFarland prepared fraudulent premium finance agreements that falsely represented that he was seeking to obtain financing for purported clients. Based upon the fraudulent documents, the companies provided the requested financing. The defendant then diverted the financing to his personal use, and did not use it to purchase insurance policies for any clients. McFarland obtained $29,634 through this scheme.
Kenyatta Hubbard was convicted for her role in the conspiracy to prepare false income tax returns for clients and is awaiting sentencing.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski, and Investigators of the New York State Department of Financial Services, under the direction of Superintendent Benjamin Lawsky.
McFarland will be sentenced on September 9, at 10:00 a.m. before Judge Larimer.Poland Man Sentenced to Probation for Stealing VA Travel BenefitsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Steven
Chartier, 58, of Poland, Maine, was sentenced yesterday in U.S. District Court by Judge Nancy
Torresen to three years of probation with six months of home detention for submitting false claims to the U.S. Department of Veterans Affairs (VA) for travel benefits. He was also ordered to pay $10,448.06 in restitution. Chartier pled guilty to the crime on September 26, 2013.
According to court records, the defendant claimed travel benefits for 64 260 mile trips from Limestone, Maine, in Aroostook County, to the Togus V.A. Medical Center, in Gardiner, for the purpose of receiving medical treatment. In fact, the defendant lived in Poland, Maine, which is about 40 miles from the VA hospital. As a result, the defendant received $10,448.06 more than he was entitled to for travel.
In fashioning the sentence, Judge Torresen observed that fraud was not new to the defendant and stated that she would have jailed him but for the cost to the taxpayers given his deteriorated, wheelchair-bound, medical condition.
The case was investigated by the VA, Office of Inspector General.Pittsburgh Man Sentenced to 12 Years in Prison for Sex Trafficking of A ChildRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 144 months imprisonment, to be followed by five years of supervised release, on his conviction of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on William Miller, 37.
The superseding indictment in the case charged that from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a homeless, 15-year-old minor, Jane Doe, to engage in a commercial sex acts and produced visual depictions of the minor engaged in sexually explicit conduct. Miller was arrested when he drove and accompanied the minor to a date with an undercover City of Pittsburgh Police Detective at the Quality Inn Hotel in Oakland. At sentencing, Judge Ambrose stated that the 12-year sentence should be a “general deterrent but also a personal deterrent to Mr. Miller.”
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the City of Pittsburgh Police Department for the investigation leading to the successful prosecution of Miller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pine Ridge Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Felony Child Abuse and Neglect was sentenced on May 12, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cheryl Jealous of Him, age 51, was sentenced to 14 years of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $13,846.94 in restitution to the South Dakota Crime Victims' Compensation Program.
In April 2013, at Pine Ridge, Jealous of Him caused the death of her infant grandson by subjecting him to multiple blunt force trauma. At the time of the incident, Jealous of Him was intoxicated while the grandson was under her care.
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Jealous of Him was immediately turned over to the custody of the U.S. Marshals Service.
Orlando Man Sentenced to 8 Years for Credit Card FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Sirrico Lewis (42, Orlando) to 8 years in federal prison for access device fraud. Lewis was also ordered to pay $754,864.55 in restitution and to serve a 3-year term of supervision, following his release from prison. Lewis pleaded guilty to an Information in December 2013.
According to court documents, Lewis and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs and Wal-Mart stores through the fraudulent acquisition of duplicate Sam’s Club credit cards, and the subsequent use of those credit cards. To facilitate the crimes, a conspirator would manufacture counterfeit identification documents of existing Sam’s Club customers. Lewis and others then obtained those counterfeit identification documents, took them to various Sam’s Clubs, and used them to obtain duplicate credit cards on existing accounts. The co-conspirators then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores, or they turned the cards over to another conspirator who would either make fraudulent purchases or get another person to do so. The fraudulently-purchased items would be sold, with the proceeds from those sales being divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Lewis was involved in over $750,000 in fraudulent transactions.
Lewis is the second individual to be sentenced in this case. On October 30, 2012, Reginald Holley pleaded guilty to access device fraud. Holley was sentenced to 46 months in federal prison on January 14, 2013.
These cases were investigated by the United States Secret Service. They were prosecuted by Assistant United States Attorney Roger B. Handberg.
Newark Man Sentenced on Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that David Mullie, 51, of Newark, N.Y., who was convicted of possession of child pornography, was sentencing to 60 months in prison and 20 years of supervised release by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that a family member alerted police after finding sexually explicit photos on the defendant's computer. Newark Police began an investigation and then notified Homeland Security Investigations for assistance. Federal agents executed a search warrant and seized several computers from Mullie’s home. A forensic analysis of the computers found more than 600 images of children, including prepubescent children, being sexually abused.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and officers of the Newark Police Department, under the direction of Chief David L. Christler.Nebraska LECC Criminal Justice ConferenceRead the Press Release
The 27th annual Nebraska Law Enforcement Coordinating Committee (LECC) Criminal Justice and County Attorney’s Conference is being held in Kearney, Nebraska May 21-23, 2014 with more than 300 local, state, and federal law enforcement officials and prosecutors attending.
The conference is designed to bring training to law enforcement officials and prosecutors in the latest topics impacting the criminal justice system. The conference is annually hosted by the United States Attorney's Office, Nebraska County Attorneys Association and the Nebraska Sheriffs Association.
This year’s topics include:
- Role and Function of the DMV in Fraud and Criminal Matters
- Law Enforcement and the Media
- Case Study on the Gang Recruitment Statute
- Child Porn “Pedo Board” - International Child Pornography Case Study
- Synthetic Drugs/K2 drugs
- Immigration Issues
- Preventing and Handling In-Custody Deaths
- Biohazard Concerns at Crime Scenes
- Juries and Social Media
- Hate Crimes
Awards will be presented during the Thursday evening (May19th) banquet by United States Attorney Deborah R. Gilg, to criminal justice officials for their outstanding contributions to the criminal justice system and their communities.
Mt. Morris Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Patrick Welch, 58, of Mt. Morris, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography, receipt of child pornography and distribution of child pornography. Due to a prior conviction, the charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that on May 13, 2013, the Livingston County Sheriff's Office received a lead from the Los Angeles County Sheriff's Office concerning a potential child exploitation case. A Los Angeles County Sheriff's investigator had received a cyber tip from the National Center for Missing and Exploited Children that two individuals appeared to be chatting about and trading child pornography on a certain internet site. Both individuals purported to be teenaged boys.
One of the individuals chatting used the screen name "David D." A search warrant was executed on the provided email account and images of child pornography were found. The internet protocol address for "David D" was registered to Welch's address on Scipio Road in Mt. Morris. After a search warrant was executed at the defendant's residence, a forensic review of one of Welch's computers was conducted and images of child pornography were found.
In 2003, the defendant was convicted in Livingston County of sexual conduct against a child and, following his conviction, he was required to register as a sex offender.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 9, 2014 before Judge Siragusa.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Livingston County Sheriff's Department, under the direction of Sheriff Thomas J. Dougherty, and the Los Angeles County Sheriff's Department, under the direction of John L. Scott.Missouri Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that John Mark Phillips, 50, of Springfield, Mo., pleaded guilty Monday before U.S. District Judge S. Maurice Hicks, for failing to update his sex offender registration.
According to evidence presented at the guilty plea, Phillips was convicted in Christian County Missouri on September 22, 1995, for sexual abuse of a victim under the age of 14. In 2011, he failed to register as a sex offender and was given an 18-month federal sentence for the offense. On May 2, 2013, U.S. Probation Officers in Missouri transmitted a notice that Phillips had left his Springfield, Mo., residence. On May 3, 2013, a warrant was issued for Phillips’ arrest, and Shreveport police arrested him later that same day.Phillips faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine for one count of failure to update sex offender registration. A sentencing date of September 10, 2014 has been set.
The U.S. Marshals Service, Western District of Missouri U.S. Office of Probation, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Milwaukee Man Indicted for Sex TraffickingRead the Press Release
Today a federal grand jury in Milwaukee returned a two count indictment charging Paul Carter, aka Pimpin’ Paul, with sex trafficking offenses dating from 2012 through 2013, the Justice Department announced.
Carter, 44, of Milwaukee, is charged with one count of sex trafficking of an adult female by force, threats of force, fraud and coercion. Carter is also charged with one count of sex trafficking of a minor. Carter allegedly used force, threats of force, fraud and coercion to cause the victim to engage in a commercial sex act while knowing that the victim was under the age of 18. If convicted, Carter faces a statutory maximum sentence of life in prison on each charge.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from the FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
Milwaukee Man Indicted for Sex TraffickingRead the Press Release
Today a federal grand jury in Milwaukee returned a two count indictment charging Paul Carter, aka Pimpin’ Paul, with sex trafficking offenses dating from 2012 through 2013, the Justice Department announced.
Carter, 44, of Milwaukee, is charged with one count of sex trafficking of an adult female by force, threats of force, fraud and coercion. Carter is also charged with one count of sex trafficking of a minor. Carter allegedly used force, threats of force, fraud and coercion to cause the victim to engage in a commercial sex act while knowing that the victim was under the age of 18. If convicted, Carter faces a statutory maximum sentence of life in prison on each charge.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from the FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
McLaughlin Man and Wakpala Man Sentenced for Sexual Contact with A Person Incapable of ConsentingRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man and a Wakpala, South Dakota, man were convicted of Sexual Contact with a Person Incapable of Consenting and were sentenced on May 19, 2014, by U.S. District Judge Charles B. Kornmann.
Joseph Mark Eagle of McLaughin, age 28, was sentenced to 12 months and a day of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Justin Howard of Wakpala, age 31, was sentenced to 18 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Eagle and Howard were indicted by a federal grand jury on August 22, 2012. They both pled guilty to a Superseding Information on December 23, 2013. The convictions stem from an assault which occurred on August 2, 2008, when both Eagle and Howard sexually assaulted an adult female who was incapable of appraising the nature of the sexual contact and was physically incapable of declining participation in the sexual contact.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Howard and Eagle were immediately turned over to the custody of the U.S. Marshals Service to begin serving their sentences.
Marshall County Man Convicted of Sexual Exploitation of MinorsRead the Press Release
Peoria, Ill. — Following a two-day bench trial before Chief U.S. District Judge James E. Shadid, Brian A. Miller, 36, of Varna, Ill., was convicted today of 22 counts of sexual exploitation of a minor. Judge Shadid scheduled sentencing for Miller on Sept. 16, 2014
Since Miller was arrested and charged in a criminal complaint, filed Aug. 29, 2013, he has remained detained in the custody of the U.S. Marshals Service.
During the two days of trial, the government presented evident to demonstrate that from at least July 2011 through May 2012, on at least 22 occasions, Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower.
At sentencing, for each count of sexual exploitation of a minor in the production of child pornography, the statutory penalty is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charges are the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Manhattan U.S. Attorney Announces Indictment of Rikers Island Correction Officer for Civil Rights Offense That Led to the Death of an InmateRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that a federal grand jury returned an Indictment against TERRENCE PENDERGRASS, a correction officer and former captain, on a civil rights charge arising out of his deliberately ignoring the urgent medical needs of a Rikers Island inmate who had ingested a corrosive disinfectant and later died, in violation of the inmate’s rights under the United States Constitution. PENDERGRASS was arrested on March 24, 2014, on a Complaint alleging the same charge.
According to the allegations contained in the Complaint and the Indictment:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Jason Echevarria was an inmate incarcerated on Rikers Island in the Mental Health Assessment Unit for Infracted Inmates, a unit housing inmates who have committed infractions while incarcerated and who have been identified as needing mental health treatment.
On the afternoon of August 18, 2012, Echevarria swallowed a powerful disinfectant/detergent combination in powder form, commonly referred to as a “soap ball,” sometimes provided to inmates to assist in the cleaning and disinfecting of cells. The soap ball contained, among other things, ammonium chloride, a corrosive chemical that is life threatening if ingested.
After Echevarria swallowed the soap ball, Echevarria told a correction officer what had occurred and that he needed medical attention. That correction officer in turn informed PENDERGRASS, the captain – a supervisory correction officer – on duty at that time. PENDERGRASS responded that the correction officer should only call on PENDERGRASS if he needed help with the extraction of an inmate from a cell or if there was a dead body. A second correction officer similarly informed PENDERGRASS that Echevarria needed medical help. Notwithstanding these reports, PENDERGRASS failed to contact any medical personnel about Echevarria’s condition. The next morning, Echevarria was found dead in his cell.
PENDERGRASS, 49, of Howard Beach, New York, is charged in the Indictment with one count of deprivation of rights under color of law. He faces a maximum sentence of ten years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PENDERGRASS is scheduled to appear before District Judge Ronnie Abrams, to whom the Indictment has been assigned, on May 29, 2014, at 3:00 p.m.
The case is being handled jointly by the Office’s Civil Rights Unit and Public Corruption Unit. Assistant U.S. Attorneys Lara K. Eshkenazi and Daniel C. Richenthal are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Man Posing as A Highly Decorated Navy Seal Charged with Defrauding Mchenry County CharityRead the Press Release
ROCKFORD — A California man was indicted today by a federal grand jury in Rockford on fraud charges. WILLIAM J. BURLEY, 34, of Yucaipa, Cal., was charged with three counts of wire fraud in connection with a scheme to defraud International Aid Services – USA, Inc. (“IAS America”), a non-profit charity formed in Idaho and based in Crystal Lake, Ill., and International Aid Services (“IAS”), a charitable international non-governmental organization headquartered in Stockholm, Sweden, of $30,000.
According to the indictment, four IAS employees were assaulted in Somalia, and three of the employees were then kidnaped. Burley, the indictment alleges, claimed he was an experienced operative who would assist IAS in negotiating with the Somalia captors and in rescuing the captured IAS employees. The indictment charges that in order to induce IAS and IAS America into hiring the defendant and his company, Burley falsely claimed to have been a highly decorated Navy SEAL, to have graduated from the Universities of Delaware and Maryland, to have attended numerous training facilities, to have been a consultant for the Navy, Department of Defense, and State Department, and to have been a law enforcement officer.
According to the indictment, as a result of the defendant’s false and fraudulent pretenses, representations, and promises, he received a total of $30,000 in the form of three wire transfers sent from the Crystal Lake Bank and Trust to the Bank of America in Redlands, California. One wire for $5,000 was sent on Aug. 20, 2012, and two wires for a total of $25,000 were sent on Aug. 30, 2012.
Each count of wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorney John G. McKenzie.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
Man Charged with Possessing a Firearm at the Rainbow BridgeRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Varapong Ruengvivatanakij, 33, formerly of Washington, D.C., was arrested and charged by criminal complaint with being a convicted felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on May 18, 2014, the defendant attempted to enter the United States at the Rainbow Bridge. During a secondary inspection by Customs and Border Protection officers, it was determined Ruengvivatanakij was a convicted felon and in possession of a 9 mm semi-automatic handgun in the trunk of his vehicle.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. on May 19, 2014 and was ordered detained.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and officers of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Makers of Oxywater Indicted for Wire Fraud, Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Preston J. Harrison, 42, of Lewis Center, Ohio and his business partner, Thomas E. Jackson, 39, of Powell, Ohio alleging that they defrauded their company’s investors and diverted investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 41, are also charged with conspiracy and filing a false income tax return.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the indictment today following the defendants’ arrests.
According to court documents, Harrison and Jackson operated Westerville, Ohio-based Imperial Integrated Health Research and Development, LLC and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The indictment alleges that defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Preston Harrison and Jackson allegedly produced and sent false and fraudulent statements intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company and misappropriate it for their own personal use and household expenditures including the purchase of jewelry, an Escalade, a BMW, weapons, clothing and a swimming pool.
Jackson and Preston Harrison allegedly misappropriated more than $2 million of the investors’ funds between August 2010 and spring 2013. The indictment says that defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of defendants’ alleged conduct, investors lost approximately $9 million.
The indictment charges the Harrisons with conspiracy to obstruct the IRS and with filing a false tax return. Preston Harrison allegedly misappropriated approximately $1.1 million from his company. The indictment charges that he and his wife placed the money in an account in the name of Lovena Harrison’s daycare business, used the money for personal expenses, and did not report the money as income on their 2011 income tax return.
The 34-count indictment charges Preston Harrison and Jackson with one count of conspiracy to commit wire fraud and nine counts of wire fraud, each punishable by up to 20 years in prison. They are also charged with one count of conspiracy to commit money laundering and 20 counts of money laundering, each punishable by up to ten years in prison. The indictment charges each of the Harrisons with one count of conspiracy to obstruct the IRS and one count of filing a false tax return. Each count is punishable by up to five years in prison. Lovena Harrison is charged with one count of structuring financial transactions to evade reporting requirements, also punishable by up to five years in prison.
The indictment seeks a total of $1,134,250 in forfeiture from Preston Harrison and Jackson, including two vehicles, eight weapons, cash and the contents of a bank account, alleging that the amount represents the proceeds of the crimes.
The defendants appeared before U.S. Magistrate Judge Elizabeth Preston Deavers in Columbus today and were released on recognizance bonds. Senior U.S. District Judge James L. Graham is presiding over the case and will schedule all future proceedings.
U.S. Attorney Stewart commended the cooperative investigation by the IRS and FBI, and Assistant U.S. Attorney Laura Fulton, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Machine Shop Worker Charged with Causing $1 Million Loss to Former EmployerRead the Press Release
VICTORIA, Texas - A federal grand jury in Victoria has indicted Jack Kennedy, 55, of Houston, for perpetrating a multi-year mail and wire fraud scheme, announced U.S. Attorney Kenneth Magidson. Kennedy’s fraud is alleged to have resulted in more than a $1 million loss to his former employer, Alcoa World Alumina, aka Alcoa – Point Comfort Operations, located in Calhoun County.
Kennedy was arrested yesterday. The indictment was returned under seal May 14, 2014, and unsealed today as he made his initial appearance before U.S. Magistrate Judge Jason B. Libby in Corpus Christi. At that time, he was ordered into custody pending a detention hearing and arraignment set for Friday, May 23, 2014, at 9:30 a.m.
According to the indictment, Kennedy was employed in the Alcoa machine shop, where he was responsible for inventorying and ordering parts, tools and supplies. For nearly four years, he allegedly ordered large quantities of these expensive items, many of which were not needed. According to the charges, Kennedy would then steal the items and sell them at a wholesale discount to a metalworking supply and salvage company in Tonawanda, N.Y.
The indictment further alleges that between 2008 and 2011, the N.Y. company routinely sent checks to Kennedy’s home address in Victoria via United Parcel Service totaling approximately $650,000. Kennedy would, in turn, mail boxes of the tools, parts and supplies from a Home Depot retail location near his home in Victoria, according to the indictment.
If convicted, Kennedy faces up to 20 years in federal prison without parole and a fine of up to $250,000.
The FBI investigated. Assistant U.S. Attorneys Jeffrey D. Preston and Hugo R. Martinez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Lawyer Pleads Guilty to Felony OffenseRead the Press Release
Defendant Admitted Committing Perjury in Relation to a Bankruptcy Proceeding
DALLAS — Aaron Rene Ramirez, 43, of Plano, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of making a false statement under penalty of perjury, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Ramirez filed a voluntary petition under Chapter 13 of Title 11 in which he forged the signature of the listed debtor. He also falsely represented to the Court that the listed debtor had signed and authorized the filing of the petition and other bankruptcy related documents when he well knew that the petition was completely fraudulent and that the listed debtor did not authorize, nor have any knowledge of, the petition’s filing.
Aaron Ramirez faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, for which a date has not yet been set.
The U.S. Postal Inspection Service is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Lawrence Man Pleads Guilty to Stealing Federal Tax Refund ChecksRead the Press Release
BOSTON - A Lawrence man pleaded guilty today to theft of more than $230,000 in U.S. Treasury tax refunds.
Wilson Santana, 40, pleaded guilty to 34 counts of theft of public money. He was indicted in January of 2013 and is scheduled to be sentenced by U.S. District Judge George A. O’Toole on Sept. 4, 2014.
Between November 2011 and March 2012, Santana provided Robert Montero, a bank teller at Metro Credit Union in Lawrence, with 30 U.S. Treasury checks containing fraudulently obtained tax refunds to be negotiated through various bank accounts controlled by or associated with Santana. The U.S. Department of Treasury had issued the checks based on tax returns that later were determined to contain false information. For example, although the tax returns contained biographical information of real people in Puerto Rico, their addresses were falsely listed in New York and Massachusetts. The tax returns also contained false employment information. Santana, knowing that the tax return checks had been issued based on false information, negotiated them with Montero’s help at Metro West Credit Union in return for a fee. The 30 tax refund U.S. Treasury checks were worth $211,214.
Between March and April 2012, Santana sold four more U.S. Treasury checks containing fraudulently obtained tax refunds to Montero. Unbeknownst to Santana, those transactions were monitored by federal agents. The four U.S. Treasury checks contained $26,227 in tax refunds. In total, Santana stole or attempted to steal $237,227 of fraudulently obtained tax refunds. Montero pleaded guilty to theft of public money last September.
The maximum sentence under the statute is 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Stephen Marks, Acting Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Law School Admission Council Agrees to Systemic Reforms and $7.73 Million Payment to Settle Justice Department’s Nationwide Disability Discrimination LawsuitRead the Press Release
The Justice Department filed a joint motion today for entry of a landmark consent decree to resolve allegations that the Law School Admission Council (LSAC) engaged in widespread and systemic discrimination in violation of the Americans with Disabilities Act (ADA). Under the proposed consent decree, LSAC will pay $7.73 million in penalties and damages to compensate over 6,000 individuals nationwide who applied for testing accommodations on the Law School Admission Test (LSAT) over the past five years. The decree also requires comprehensive reforms to LSAC’s policies and ends its practice of “flagging,” or annotating, LSAT score reports for test takers with disabilities who receive extended time as an accommodation. These reforms will impact tens of thousands of test takers with disabilities for years to come.
The United States intervened in DFEH v. LSAC Inc., which was originally brought on behalf of California test takers in the U.S. District Court for the Northern District of California. The United States’ intervention expanded the case to ensure comprehensive and nationwide relief under Title III of the ADA for individuals with disabilities who request testing accommodations for the LSAT – a required examination for anyone seeking admission to an American Bar Association approved law school in the United States. The allegations in the complaint detail LSAC’s routine denial of testing accommodation requests, even in cases where applicants have a permanent physical disability or submitted thorough supporting documentation from qualified professionals and demonstrated a history of testing accommodations since childhood. Without the necessary accommodations, test takers with disabilities are denied an equal opportunity to demonstrate their aptitude and achievement level. The lawsuit further alleged that LSAC engages in discrimination prohibited by the ADA through its practice of flagging the LSAT score reports of individuals who received extended time as a testing accommodation, thereby identifying to law schools that the test taker is a person with a disability.
“This landmark agreement compels systemic reforms to LSAC’s treatment of test takers with disabilities and brings an end to LSAC’s stigmatizing practice of flagging the score reports of individuals with disabilities who require certain testing accommodations,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “If entered by the court, this decree will impact tens of thousands of Americans with disabilities, opening doors to higher education that have been unjustly closed to them for far too long. We congratulate LSAC for signing this agreement, which will compensate victims of past discrimination and provide a model for the provision of testing accommodations to test takers with disabilities on standardized examinations.”
“The participation of the U.S. Attorney’s Office in this important litigation sends a strong message that no discrimination of any kind will be tolerated in this district,” said U.S. Attorney Melinda Haag for the Northern District of California. “We are fully committed to ensuring equal access to all opportunities society has to offer, including education.”
Under the consent decree, LSAC has agreed to:
- put a permanent end to the practice of flagging the LSAT score reports of individuals with disabilities who take the LSAT with the common testing accommodation of extended time;
- pay $7.73 million to be allocated for a civil penalty, compensation to individuals named in the United States’ and other plaintiffs’ complaints, and a nationwide victims’ compensation fund;
- streamline its evaluation of requests for testing accommodations by automatically granting most testing accommodations that a candidate can show s/he has previously received for a standardized exam related to post-secondary admissions (such as the SAT, ACT or GED, among others); and
- implement additional best practices for reviewing and evaluating testing accommodation requests as recommended by a panel of experts (to be created by the parties).
Individuals who applied for testing accommodations from LSAC between Jan. 1, 2009, and May 20, 2014, may be eligible to receive a monetary award from a nationwide victims’ compensation fund. The claims administrator for the fund has not yet been determined; this information will be posted on LSAC’s website following entry of the consent decree by the court. Questions about the victims’ compensation fund should be directed to the claims administrator.
For more information or for a copy of the consent decree, please visit the ADA website. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Law School Admission Council Agrees to Systemic Reforms and $7.73 Million Payment to Settle Justice Department’s Nationwide Disability Discrimination LawsuitRead the Press Release
SAN FRANCISCO – The Justice Department filed a joint motion today for entry of a landmark consent decree to resolve allegations that the Law School Admission Council (LSAC) engaged in widespread and systemic discrimination in violation of the Americans with Disabilities Act (ADA). Under the proposed consent decree, LSAC will pay $7.73 million in penalties and damages to compensate over 6,000 individuals nationwide who applied for testing accommodations on the Law School Admission Test (LSAT) over the past five years. The decree also requires comprehensive reforms to LSAC’s policies and ends its practice of “flagging,” or annotating, LSAT score reports for test takers with disabilities who receive extended time as an accommodation. These reforms will impact tens of thousands of test takers with disabilities for years to come.
The United States intervened in DFEH v. LSAC Inc., which was originally brought on behalf of California test takers in the U.S. District Court for the Northern District of California. The United States’ intervention expanded the case to ensure comprehensive and nationwide relief under Title III of the ADA for individuals with disabilities who request testing accommodations for the LSAT – a required examination for anyone seeking admission to an American Bar Association approved law school in the United States. The allegations in the complaint detail LSAC’s routine denial of testing accommodation requests, even in cases where applicants have a permanent physical disability or submitted thorough supporting documentation from qualified professionals and demonstrated a history of testing accommodations since childhood. Without the necessary accommodations, test takers with disabilities are denied an equal opportunity to demonstrate their aptitude and achievement level. The lawsuit further alleged that LSAC engages in discrimination prohibited by the ADA through its practice of flagging the LSAT score reports of individuals who received extended time as a testing accommodation, thereby identifying to law schools that the test taker is a person with a disability.
“This landmark agreement compels systemic reforms to LSAC’s treatment of test takers with disabilities and brings an end to LSAC’s stigmatizing practice of flagging the score reports of individuals with disabilities who require certain testing accommodations,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “If entered by the court, this decree will impact tens of thousands of Americans with disabilities, opening doors to higher education that have been unjustly closed to them for far too long. We congratulate LSAC for signing this agreement, which will compensate victims of past discrimination and provide a model for the provision of testing accommodations to test takers with disabilities on standardized examinations.”
“The participation of the U.S. Attorney’s Office in this important litigation sends a strong message that no discrimination of any kind will be tolerated in this district,” said U.S. Attorney Melinda Haag for the Northern District of California. “We are fully committed to ensuring equal access to all opportunities society has to offer, including education.”
Under the consent decree, LSAC has agreed to:
- put a permanent end to the practice of flagging the LSAT score reports of individuals with disabilities who take the LSAT with the common testing accommodation of extended time;
- pay $7.73 million to be allocated for a civil penalty, compensation to individuals named in the United States’ and other plaintiffs’ complaints, and a nationwide victims’ compensation fund;
- streamline its evaluation of requests for testing accommodations by automatically granting most testing accommodations that a candidate can show s/he has previously received for a standardized exam related to post-secondary admissions (such as the SAT, ACT or GED, among others); and
- implement additional best practices for reviewing and evaluating testing accommodation requests as recommended by a panel of experts (to be created by the parties).
Individuals who applied for testing accommodations from LSAC between Jan. 1, 2009, and May 20, 2014 may be eligible to receive a monetary award from a nationwide victims’ compensation fund. The claims administrator for the fund has not yet been determined; this information will be posted on LSAC’s website following entry of the consent decree by the court. Questions about the victims’ compensation fund should be directed to the claims administrator.
For more information or for a copy of the consent decree, please visit the ADA website. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Assistant U.S. Attorney Melanie Proctor prosecuted the case, with the assistance of Tiffani Chiu and Jonathan Birch. The U.S. Attorney’s Office partnered with attorneys from the Disability Rights Section of the Civil Rights Division in the U.S. Department of Justice to achieve this landmark settlement.
(LSAC joint motion )
(LSAC consent decree )
Knoxville Man Sentenced to Twelve Years Imprisonment for Workers' Compensation FraudRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Carlos Perry, 58, Knoxville, Tenn. was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon to twelve years in federal prison.
Perry was also ordered to pay restitution in the amount of $324,914.70. Perry had previously pleaded guilty to one count of mail fraud.
According to evidence presented at the sentencing and guilty plea hearings by Assistant United States Attorney Zachary T. Lee, between January 2011 and February 2014, Perry developed a scheme in which he defrauded six different insurance companies of workers’ compensation benefits using false business and fictitious employees. An investigation by the United States Secret Service determined that Perry’s scheme entailed Perry impersonating an owner of six fictitious businesses located in Wise, Va., Johnson City, Tenn., Bristol, Va., and Abingdon, Va., in order to obtain workers’ compensation insurance. Perry then filed false injury claims on behalf of the fictitious employees.Perry received the checks sent by the insurance companies and impersonated the fictitious employees at doctor’s visits and in communications with the insurance companies. The United States Secret Service discovered that Perry utilized nineteen fictitious identities in the course of his scheme and used the social security numbers of numerous real persons to execute his fraud. On January 29, 2014, Perry was arrested by the United States Secret Service and the United States Marshals Service at a doctor’s office in Kingsport, Tenn., where he was impersonating one of the fictitious employees. As a result of Perry’s scheme, six separate insurance companies sustained a combined loss of $401,649.66.
The investigation of this case was conducted by United States Secret Service, United States Marshals Service, and the Virginia State Police. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Kankakee Man Sentenced to 13 Years in Federal Prison for Distribution of Crack CocaineRead the Press Release
Urbana, Ill. -- U.S. District Judge Michael P. McCuskey today sentenced Deshawn Lewis, 36, of Kankakee, Ill., to 157 months (13 years, 1 month) in the federal Bureau of Prisons for distribution of crack cocaine. Lewis was also ordered to serve eight years of supervised release upon his release from prison.
Lewis faced a mandatory minimum sentence of 10 years to life in prison based on two prior felony drug convictions. In 1997, Lewis was convicted in Kankakee County Circuit Court for unlawful delivery of a controlled substance and was sentenced to four years in the Illinois Department of Corrections. In 2004, Lewis was convicted for armed violence and sentenced to 20 years in the Illinois Department of Corrections. Lewis was released from state prison in September 2011 and remained on state parole when he was arrested on federal charges in January 2013.
Since Lewis was arrested on Jan. 16, 2013, by agents of the Kankakee Area Metropolitan Enforcement Group (KAMEG), he has remained in the custody of the U.S. Marshals Service. A federal grand jury indicted Lewis in February 2013, and on Dec. 18, 2013, Lewis pled guilty to one count of distribution of crack cocaine. Lewis admitted that on May 15, 2012, he distributed 49.8 grams of crack cocaine at a Kankakee gas station.
The charges resulted from an investigation conducted by the Kankakee Area Metropolitan Enforcement Group (KAMEG) and the Illinois State Police, with assistance from the Kankakee County State’s Attorney's Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Justice Department Requires ConAgra, Cargill, CHS, Horizon Milling <br /> to Divest Four Significant Flour Mills to Go Forward with <br /> Ardent Mills Joint VentureRead the Press Release
The Department of Justice announced today that it will require ConAgra Foods Inc., Cargill Inc., CHS Inc., and Horizon Milling LLC to divest four competitively significant flour mills in order to proceed with the formation of Ardent Mills, a flour milling joint venture. The department said that the divestitures will preserve flour milling competition in four regions of the country encompassing large cities such as Los Angeles, Dallas, Minneapolis and the San Francisco/Oakland Bay Area, resulting in more competitive prices for wheat flour purchasers and ultimately lower prices for consumers who purchase wheat flour-based products, such as bread, cookies and crackers.
Ardent Mills would combine the flour milling assets of ConAgra Mills, a subsidiary of ConAgra Foods, and Horizon Milling, a joint venture between Cargill and CHS.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed joint venture. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. The department was assisted in its investigation by the California Attorney General’s Office.
“Without the Antitrust Division’s required divestitures, the creation of Ardent Mills would have resulted in less competition in the sale of wheat flour, resulting in customers, such as industrial bakers and food service companies, paying higher prices for wheat flour and ultimately consumers paying more for products they enjoy in their everyday lives, such as bread, cookies and crackers,” said Deputy Assistant Attorney General for the Antitrust Division Renata B. Hesse. “The divestitures will ensure that competition for hard and soft wheat flour sales is preserved in regions surrounding Los Angeles, Dallas, Minneapolis and the Bay Area.”The department said that, without the divestitures, hard wheat flour prices would be higher in Northern and Southern California, as well as Northern Texas and the Upper Midwest. Hard wheat, which has high gluten content, is well suited for baking bread, rolls, bagels, pizza dough and similar hearty baked goods.
The department also said that prices would be higher for soft wheat flour in Southern California and Northern Texas if the deal proceeded unchanged. Soft wheat flour, which has low gluten content, is well suited for baked goods that are lighter and flakier, such as cakes, cookies and crackers. Both types of flour are made and sold by flour millers – including ConAgra Mills and Horizon Milling – to industrial bakers, food processors, food service companies, distributors and retail sellers of flour for home use.
The department’s complaint alleges that, in the relevant markets, the proposed joint venture would eliminate head-to-head competition between ConAgra Mills and Horizon Milling, increase the likelihood that flour milling capacity would be closed, and increase the likelihood of anticompetitive coordination among flour millers, which would raise flour prices for customers in the relevant markets. The proposed settlement requires the companies to divest to Miller Milling Company LLC, four mills: ConAgra Mills’ Oakland, California; Saginaw, Texas; and New Prague, Minnesota mills; and Horizon Milling’s Los Angeles mill. Miller Milling has only a minimal presence in the regions of concern; its acquisition of the divestiture mills will create a substantial, independent and economically viable competitor in each relevant market. The proposed settlement also prohibits the companies from exchanging information related to wheat purchases or use by customers to which the companies have sold wheat.
ConAgra Foods is a Delaware corporation with its principal place of business in Omaha, Nebraska. ConAgra Mills is one of the three largest flour millers in the country, operating 21 mills in the United States. In 2012, ConAgra reported revenues of $13.3 billion; ConAgra Mills reported revenues of $1.8 billion.
Horizon Milling is a joint venture that is 76 percent owned by Cargill and 24 percent owned by CHS. It is headquartered in Wayzata, Minnesota, and is one of the three largest flour millers in the country, operating 20 wheat flour mills in the United States. In 2012, Horizon reported revenues of approximately $2.5 billion.
Cargill is a privately held company incorporated in Delaware, with its headquarters in Wayzata. Cargill produces agricultural products and food ingredients; it also markets wheat to flour mills. Horizon Milling currently operates 15 former Cargill wheat flour mills, which Cargill contributed to Horizon when it was formed in 2002. In 2012, Cargill reported revenues of $133.8 billion.
CHS is a Delaware corporation headquartered in Inver Grove Heights, Minnesota. Its lines of business include the sale of grains and grain marketing services, animal feed, and food and food ingredients; it also markets wheat to flour mills. CHS owns five wheat flour mills in the United States, which it leases to the Horizon Milling joint venture. In 2012, CHS reported revenues of $40.1 billion.
Miller Milling Company LLC, which is headquartered in Minneapolis, is a subsidiary of Nisshin Seifun Group Inc., which is headquartered in Tokyo.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning this proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed settlement upon a finding that it is in the public interest.
Jordanian Shipping Company Pleads Guilty to Illegally Discharging Oily WasteRead the Press Release
Jordan-based Arab Ship Management Ltd. pleaded guilty today in federal court in Wilmington, Delaware, to one count of violating the Act to Prevent Pollution from Ships, the Justice Department and the U.S. Coast Guard announced.
In accordance with the terms of the plea agreement, Arab Ship Management Ltd. was sentenced to pay a criminal penalty totaling $500,000 and be placed on probation for two years, during which time ships operated by the company will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “This conviction ensures that the defendant is held accountable with a criminal fine and a contribution to conservation efforts in coastal Delaware, as well as a two-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“This case demonstrates one way the Coast Guard acts to protect the environment,” said Captain Kathy Moore, U.S. Coast Guard Commander of Sector Delaware Bay. “Marine Inspectors detected serious problems with the ship’s operations. They dove into the details and worked with the Department of Justice and the Coast Guard Investigative Service to bring this case to an appropriate resolution.”
According to court documents and statements made in court, Arab Ship Management Ltd. operated the M/V Neameh, a 6,398 gross ton ocean-going livestock carrier. On March 28, 2013, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed heavy oil sludge inside the piping on the discharge side of the pollution prevention equipment leading directly overboard, where no oil sludge should be if the pollution prevention equipment is operated properly. Inspectors also discovered that the vessel’s piping arrangement had been modified in a prohibited manner so as to allow oil sludge to be pumped directly overboard. This prohibited piping arrangement was removed prior to the vessel’s arrival in Delaware. Also during the inspection, Coast Guard officers were presented with two oil record books which are required by law to be accurately maintained onboard the vessel. These two oil record books contained different and contradictory entries for the time period of Nov. 30, 2011, through Jan. 2, 2012, as well as fake oily waste disposal receipts.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.Jordanian Shipping Company Pleads Guilty to Illegally Discharging Oily WasteRead the Press Release
WASHINGTON – Jordan-based Arab Ship Management Ltd. pleaded guilty today in federal court in Wilmington, Delaware, to one count of violating the Act to Prevent Pollution from Ships, the Justice Department and the U.S. Coast Guard announced.
In accordance with the terms of the plea agreement, Arab Ship Management Ltd. was sentenced to pay a criminal penalty totaling $500,000 and be placed on probation for two years, during which time ships operated by the company will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “This conviction ensures that the defendant is held accountable with a criminal fine and a contribution to conservation efforts in coastal Delaware, as well as a two-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“This case demonstrates one way the Coast Guard acts to protect the environment,” said Captain Kathy Moore, U.S. Coast Guard Commander of Sector Delaware Bay. “Marine Inspectors detected serious problems with the ship’s operations. They dove into the details and worked with the Department of Justice and the Coast Guard Investigative Service to bring this case to an appropriate resolution.”
According to court documents and statements made in court, Arab Ship Management Ltd. operated the M/V Neameh, a 6,398 gross ton ocean-going livestock carrier. On March 28, 2013, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed heavy oil sludge inside the piping on the discharge side of the pollution prevention equipment leading directly overboard, where no oil sludge should be if the pollution prevention equipment is operated properly. Inspectors also discovered that the vessel’s piping arrangement had been modified in a prohibited manner so as to allow oil sludge to be pumped directly overboard. This prohibited piping arrangement was removed prior to the vessel’s arrival in Delaware. Also during the inspection, Coast Guard officers were presented with two oil record books which are required by law to be accurately maintained onboard the vessel. These two oil record books contained different and contradictory entries for the time period of Nov. 30, 2011, through Jan. 2, 2012, as well as fake oily waste disposal receipts.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
Johnson County Man Sentenced for Tampering with Federal WitnessRead the Press Release
KANSAS CITY, KAN. – A Johnson County man was sentenced Tuesday to 36 months imprisonment for tampering with a witness in a federal criminal case, U.S. Attorney Barry Grissom said.
A jury found Gary Sparks, 61, Edgerton, Kan., guilty of one count of tampering with a witness. During trial, prosecutors presented evidence that Sparks attempted to persuade a thirteen-year-old child to lie to investigators who were investigating his daughter, Stacy Ashley, on drug charges. Ashley pleaded guilty to one count of distributing Oxymorphone. In her plea, she admitted that on July 30, 2011, she distributed Oxymorphone to Joshua Auclair, who died from a drug overdose. Ashley was sentenced to 60 months imprisonment.
Grissom commended the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.Jackson County Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn May 15, 2014, Willie Joe Strayhorn, a/k/a “Jo Jo,” 47, of Murphysboro, pled guilty to a one-count indictment charging Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between November 1, 2010, and September 4, 2013, in Jackson County. Evidence at the plea hearing established that Strayhorn was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA), because of a 1993 conviction for Aggravated Criminal Sexual Abuse in Jackson County Circuit Court. In July 2011, members of the United States Marshals Service Task Force found Strayhorn hiding in a closet in a Dyersburg, Tennessee, residence. Strayhorn had not registered in Illinois since August 2010 and never registered in Tennessee.
The offense carries a penalty of up to 10 years’ imprisonment, to be followed by a term of supervised release from 5 years to life, and a fine of $250,000. Strayhorn is currently being held without bond pending his September 12, 2014, sentencing hearing.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Murphysboro Police Department. The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
International Round-up Has Fifteen Arrested on Mississippi Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin, and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans. Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Both the indictment and complaint were unsealed today.
The indictment alleges a West African transnational organized crime enterprise involved 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 Department of Justice Organized Crime Gang Section has filed a related indictment against three individuals in Charleston, South Carolina, and the U.S. Attorney’s Office for the Northern District of Georgia has a related complaint in Atlanta against two additional defendants.
The investigation was initiated in October, 2011, by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi 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.
“Financial fraud is a danger to all Americans and a threat to everyone,” said U.S. Attorney Gregory K. Davis. “This round-up is continuing and powerful evidence of our commitment in federal law enforcement to aggressively identify, investigate and prosecute those who, through violation of federal criminal laws, pose a threat to the financial security of our citizens, communities and financial institutions. It is also evidence of the cooperation and partnership that exists between federal law enforcement and their international partners. Our special thanks go out to the various federal and international officers who not only assisted in the arrests of these individuals, but contributed significantly to the investigation that led us to this prosecution.”
“Financial crimes that threaten the health of our national economy and criminals who attempt to cheat law-abiding citizens out of their hard-earned money will continue to be a major investigative priority for HSI,” said Special Agent in Charge Raymond R. Parmer Jr. “This case illustrates HSI's practice of leveraging to the fullest extent possible domestic and international law enforcement partnerships in pursuit of justice.” Parmer oversees a five-state area of operations to include Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
“Postal Inspectors have relentlessly pursued operators of illegal lotteries for more than 140 years, so these arrests are not the first and certainly won't be the last in our efforts to protect the public from these scams," said Inspector in Charge Robert Wemyss. Wemyss oversees a four-state area of operations to include Mississippi, Alabama, Louisiana and Texas.
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.
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.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Indictment Unsealed Charging Eight Individuals with Conspiracy to Distribute Oxycodone, Money LaunderingRead the Press Release
Aaron Peila Charged With Engaging In A Continuing Criminal EnterpriseSALT LAKE CITY - A federal indictment unsealed Monday afternoon in U.S. District Court in Salt Lake City charges eight individuals with conspiracy to distribute oxycodone, conspiracy to commit money laundering and money laundering. The indictment is the fifth and final indictment following a significant oxycodone distribution investigation. Including the defendants charged in the indictment unsealed Monday, 31 individuals have been charged as a part of the case.
Aaron Peila, age 31, who has lived in Utah and Nevada, is charged with engaging in a continuing criminal enterprise in the first count of the indictment. The indictment alleges Peila obtained substantial income and resources through his violations of federal drug and money laundering laws and that his actions were undertaken in concert with at least five other persons over whom he occupied a position of organizer, supervisor, or any other position of management.
Peila, who is serving a federal prison sentence for a firearms conviction, allegedly set up a distribution network for oxycodone in Utah. Many of the distributors involved in the network were previously indicted as a part of the ongoing investigation.
Also charged in the indictment unsealed Monday are Jonas Newell, age 29, of Provo; Candace Newman, age 27, of Las Vegas; Mark Jaffe, age 33, of Salt Lake City; Carolyn Barrera, age 30, of Salt Lake City; Kevin Lynch, age 53, of Las Vegas; and Jason Junior, age 45, and Syndi Junior, age 33, both of Pleasant Grove. Jaffe, Barrera, and Newell appeared in federal court Monday in Salt Lake City. Barrera was released on conditions. A detention hearing will be held Wednesday for Jaffe. Newell’s detention hearing will be Friday. Other defendants are making appearances in Idaho and Las Vegas this week.
The majority of counts in the indictment charge Peila and others named in the indictment with conspiracies to distribute oxycodone and conspiracy to commit money laundering from about May 2007 through various periods of time up to June 2012.
The continuing criminal enterprise charge carries a mandatory-minimum 20- year penalty with a maximum penalty of life and a maximum fine of $2 million. The drug trafficking conspiracy counts each have 20-year potential penalties with fines of $2 million. The money laundering counts carry a maximum penalty of 20 years and fines of up to $500,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the DEA and IRS and Salt Lake City police officers. It is being prosecuted by the U.S. Attorney’s Office in Utah.
Huntington Man Pleads Guilty in Major Federal Drug SweepRead the Press Release
Huntington, W.Va. – George Antonio Newman, 37, of Huntington, pleaded guilty today to possession of cocaine with intent to distribute, United States Attorney Booth Goodwin announced. On April 15, 2013, as part of a larger investigation of Huntington-area drug activity, agents of the Drug Enforcement Administration (DEA) conducted a search of Newman’s residence, located at 1302 18th Street in Huntington. During the search, agents seized approximately an ounce of cocaine from the top of Newman’s refrigerator. Newman intended to distribute the cocaine. Agents also seized a loaded Taurus .410 handgun found on top of the cocaine.
As a result of the DEA investigation, Newman, his brother Kenneth Dewitt Newman (also known as “K-Kutta”), and 13 other individuals were indicted for their various roles in the distribution of cocaine, crack cocaine, prescription pills, heroin, MDMA (commonly known as Ecstasy) and marijuana. George Newman faces up to 20 years’ imprisonment and a $1 million fine when he is sentenced on August 18, 2014.
Chief United States District Judge Robert C. Chambers conducted today’s plea hearing.
Hudson County, N.J., Contractor Arrested, Charged with Paying Bribes to Fire OfficialRead the Press Release
NEWARK, N.J. – The owner of a general contracting company in West New York, N.J., was arrested at home in North Bergen, N.J., this morning by special agents of the FBI and charged with bribing a fire official to eliminate more than $8 million in outstanding fines on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, of North Bergen, is charged by criminal complaint with one count of paying a bribe to a local government agent. He is scheduled to appear before U.S. Magistrate Judge Joseph A. Dickson this afternoon in Newark federal court.
According to the complaint filed today:
Two West New York buildings – one owned by Coca and one owned by a friend of his – had outstanding fines for fire code violations. Coca’s friend’s building – called “Building 1” in the complaint – had approximately $14,500 in fines, and Coca’s building – called “Building 2” in the complaint – had approximately $8.73 million in outstanding fines and penalties.
Coca paid a West New York Bureau of Fire Prevention official – who is cooperating with the government – cash bribes to reduce or eliminate the outstanding fines, paying $2,000 to eliminate the $14,500 debt on Building one. For Building 2, Coca paid a $5,000 cash bribe to the official, making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.
The charge carries maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
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 ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-181Defense counsel: Zak Aljaludi, Union City, N.J.
Coca, Victor Complaint
Houston Man Pleads Guilty to Conspiring to Smuggle and to Traffic in Counterfeit Viagra TabletsRead the Press Release
HOUSTON - A Houston man pleaded guilty today to conspiring to smuggle and to traffic in counterfeit and misbranded pharmaceuticals, including Viagra tablets, from China, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Nasif Baqla, 26, of Houston, pleaded guilty before U.S. District Judge Nancy F. Atlas 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, 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 U.S. Attorney Kebharu Smith and Assistant Deputy Chief for Litigation John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.
Georgia Man Admits Cashing Fraudulently Obtained IRS Refund ChecksRead the Press Release
PITTSBURGH - A resident of the state of Georgia pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Edward Claude Hammitt, 67, of Summerville, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Hammitt agreed to accept and negotiate for cash fraudulently obtained IRS refund checks for tax years 2010 and 2011 from conspirators, which were obtained from a larger stolen identity refund fraud scheme.
Judge Fischer scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Hammitt.
Gentleman’s Club Owner Indicted on Tax Evasion ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Fred Bedran (61, Jacksonville) with tax evasion. If convicted on all counts, Bedran faces a maximum penalty of three years in federal prison and a $100,000 fine.
According to the indictment, Fred Bedran is the owner and operator of J.R. Cocktails, Inc., a Gentleman’s club in Jacksonville, Florida. From 2007 through 2010, Bedran, underreported his personal income and the gross receipts/sales being generated from his business, to avoid paying the full amount of his personal and corporate income taxes.
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 Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Malisa Chokshi.
Gates Man Pleads Guilty to Child PornographyRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gino A. Sava, 53, of Gates, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant came to the attention of law enforcement in April 2013, following a referral from the Enfield, Connecticut Police Department. According to the referral, an individual in Connecticut was found to be trading and discussing images of child pornography with another individual in the Western District of New York via Yahoo! Instant Messenger. As a result of the investigation, members of the FBI’s Cyber Task Force conducted a search warrant at the defendant’s residence and seized numerous items of digital media, including computers and CDs. The images included prepubescent minors and minors being subjected to violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 4, 2014 at 10:00 a.m. before Judge Larimer.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Cyber Task Force, comprised of FBI Special Agents, as well as members of the Monroe County Sheriff’s Department, under the direction of Patrick O’Flynn and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Four Arlington, Texas, Residents, Including A Social Security Administration (SSA) Employee, Arrested on Federal Charges Including Conspiracy to Defraud the SSARead the Press Release
DALLAS — Four Arlington, Texas, residents have been charged in a federal indictment, returned by a grand jury in Dallas earlier this month and unsealed yesterday, with conspiracy to defraud the United States, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lead defendant Carwin Shaw, 33, along with co-defendants Amanda Johnson, 35, and April Harvey, 36, were arrested on May 8, 2014, by special agents with the Social Security Administration – Office of Inspector General (SSA-OIG) and appeared before a U.S. Magistrate Judge. Each defendant pleaded not guilty and was released on bond. Deputy U.S. Marshals arrested the fourth defendant named in the indictment, Lanusha Lemmons, 25, on Friday. She made her initial appearance in federal court yesterday afternoon and pleaded not guilty. She was released on bond.
Specifically, each defendant is charged with one count of conspiracy to defraud the United States and one count of theft of government funds. A trial date of July 28, 2014, before Chief U.S. District Judge Sidney A. Fitzwater, has been set.
The indictment alleges that Shaw, a Service Representative employed by SSA in the Mid-Cities Field Office in Grand Prairie, Texas, accessed the SSA’s system, cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then accessed the system and waived the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor Social Security beneficiary. Other co-conspirators not named in the indictment are expected to plead guilty in the near future.
“The SSA-OIG will vigorously investigate and bring to justice those SSA employees and other individuals who intentionally defraud the SSA programs,” said Robert Feldt, Special Agent in Charge, SSA-OIG, Dallas Field Division.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine, and the theft of government funds count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
(Download Factual Basis)
Fort Hall Man Sentenced for Assaulting A Federal OfficerRead the Press Release
POCATELLO – Cody Preacher, 20, of Fort Hall, Idaho, was sentenced today in United States District Court to five months in prison, followed by six months in a residential rehabilitation center and three years of supervised release, for assaulting a federal officer, U.S. Attorney Wendy J. Olson announced. He was indicted on October 22, 2013 and pleaded guilty to the charge on March 10, 2014.
On July 17, 2013, Preacher was arrested on the Fort Hall Indian Reservation for intoxication and for an active arrest warrant from the Fort Hall Tribal Court. He was being placed in a police car for transport to the Fort Hall Jail when he kicked the arresting officer, Jeremy Ball of the Fort Hall Police Department, in the groin. Officer Ball was treated at the hospital.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Fort Hall Man Sentenced for Abusive Sexual Contact of MinorRead the Press Release
POCATELLO — Austin Del Broncho-Timbana, 21, of Fort Hall, Idaho, was sentenced today in United States District Court to 15 months in prison, followed by five years of supervised release, for abusive sexual contact, U.S. Attorney Wendy J. Olson announced. Broncho-Timbana was charged by information on January 17, 2014, and pleaded guilty to the charge on February 27, 2014.
According to the plea agreement, Broncho-Timbana admitted that on January 20, 2013, he had abusive sexual contact with a 14-year-old girl at a residence on the Fort Hall Indian Reservation. According to the plea agreement, a relative contacted police after finding the girl partially unclothed in a back bedroom. Broncho-Timbana left the house through the bedroom window. He was later contacted by police at his home.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former White Sulphur Springs Mail Carrier Admits to Distributing Drugs on the JobRead the Press Release
Shady Spring man pleads guilty to separate drug offenses
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jack Edwin Morris, 30, of White Sulphur Springs, West Virginia, and Douglas Edward Morris, 42, of Shady Spring, West Virginia, entered guilty pleas in federal court in Charleston to separate drug offenses. McCoy pleaded guilty to using a communication facility to facilitate a felony drug offense. He admitted that on February 20, 2014, he used a telephone in or near Lewisburg to have a conversation with a person to set up a drug transaction. Later that day, McCoy carried out the drug transaction at Ronceverte, distributing a suboxone strip to the person, who was cooperating with law enforcement authorities. McCoy was working a shift as a mail carrier with the United States Postal Service when he engaged in this conduct. He is no longer employed by the Postal Service. McCoy faces up to four years in prison and a $250,000 fine. The case was investigated by the United States Postal Service Office of Inspector General and the Greenbrier Valley Drug and Violent Crime Task Force.
Morris pleaded guilty to traveling in interstate commerce to facilitate a crime and also to possession of a controlled substance, admitting that on or about April 9 and April 10, 2013, he traveled from Shady Spring to Camden, New Jersey, where he obtained heroin and returned with it to his residence in Shady Spring. He admitted distributing some of the heroin and hiding some of it, intending to distribute it later. Morris also admitted that on May 15, 2013, he possessed a quantity of heroin in his residence with the intent to use it. Morris faces up to seven years in prison and a fine of between $2,500 and $500,000. The case was investigated by the West Virginia State Police Bureau of Criminal Investigations, the Raleigh County Sheriff’s Department Drug Unit, and the Federal Bureau of Investigation.
United States District Judge Irene Berger has scheduled sentencing hearings for both defendants for August 28, 2014.
Former Navy Nuclear Systems Administrator Pleads Guilty to Hacking into U.S. Navy and over 50 Other Computer SystemsRead the Press Release
WASHINGTON - Two leaders of a massive computer hacking conspiracy today pleaded guilty in federal court to participating in a plan to hack into the U.S. Navy, the National Geospatial-Intelligence Agency (NGA), and over 50 public and private computer systems to steal thousands of individuals’ personal information, obstruct justice, and damage protected computers, announced U.S. Attorney Danny C. Williams Sr.
Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Dix, Illinois, pleaded guilty to a one-count information containing the allegations, and each face up to five years in prison, a fine of $250,000, and restitution to the victims. Sentencing is scheduled for August 27, 2014 before U.S. District Judge James H. Payne.
“Cybercriminals think the anonymity of the Internet can obscure their illegal activities and make it impossible to find and apprehend them. That is not true,” said U.S. Attorney Williams. “Criminals cannot hide in cyberspace. We will find you, charge you, and prosecute you to the fullest extent of the law.”
Records indicate that investigators with the Naval Criminal Investigative Service (NCIS), later joined by the Defense Criminal Investigative Service (DCIS), identified Knight and Krueger as the co-founders of a hacking group known as Team Digi7al (pronounced “Digital”), which was responsible for hacking into the U.S. Navy’s Smart Web Move (SWM) database. Prior to this breach, the SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. As a result of the breach, over 700 deployed members of the military could not access logistical support for transfers for more than 10 weeks. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.
The United States advised the court that the defendants, and at least three minors and a citizen of Canada, coordinated their hacking activities over email, IRC chat, and Facebook private messages, including one message in which Knight told Krueger “if anything happens . . . send me a message saying goodbye so we know one of us is caught.” After discovering that Knight regularly accessed the Team Digi7al Twitter account from within the Navy’s network, NCIS cyber investigators conducted a sting operation in a controlled environment aboard the USS Harry S. Truman, the aircraft carrier on which Knight worked as a systems administrator in the nuclear reactor department. During the sting, Knight hacked into a fake database, which he believed to be real while NCIS monitored his activity.
According to the United States, Knight and Krueger later confessed to leading the Team Digi7al conspiracy. Victims of the Team Digi7al conspiracy include the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- MobiTv
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant U.S. Attorney Ryan Souders.
Former Bank Manager Sentenced to Federal Prison for Conspiring to Steal Government FundsRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Emmanuel Marty (32, Lehigh Acres) to two years in federal prison for his role in a conspiracy to commit theft of government funds. The Court also ordered Marty to pay $1,460,063.16 in restitution to the Internal Revenue Service. The sentence also included a money judgment in that same amount, $1,460,063.16, representing the proceeds of the offense.
Marty pleaded guilty on January 7, 2014.
According to court documents, Marty was employed as a bank manager at a bank in Fort Myers. While employed at that bank, he used his position to override internal controls and cash approximately $1,460,063.16 worth of United States Treasury Checks that were generated as refund checks, as a result of fraudulent tax returns filed with the Internal Revenue Service. The tax returns were filed utilizing stolen personal identification information.
This case was investigated by the Internal Revenue Service - Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Former Auburn City Clerk Charged with EmbezzlementRead the Press Release
TOPEKA, KAN. – The former city clerk of Auburn, Kan., was charged in federal court here Tuesday with embezzling from the city, U.S. Attorney Barry Grissom said.
Alice Riley, 61, Topeka, Kan., is charged with one count of interstate transportation of stolen funds. A criminal information alleges the embezzlement began in 2009 while Riley was city clerk of Auburn, Kan., a town of 1,200 in Shawnee County. She issued duplicate payroll checks to herself and other unauthorized checks which she deposited into her personal accounts. She covered up the embezzlement by creating false entries in the city’s books and bank statements. She is alleged to have embezzled at least $186,000 from the city.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Florida Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
MINNEAPOLIS— Last week in federal court in St. Paul, a 59-year old Leesburg, Florida man pleaded guilty to defrauding investors and investment fund managers out of more than $2,500,000.
Gary Richard Vibbard, formerly of Wayzata, pleaded guilty to Mail Fraud. Vibbard, who was indicted on August 21, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.In his plea agreement, Vibbard admitted that from 2008 to 2010, he engaged in a scheme to defraud investors and investment fund managers through the sale of investments in R. Capital Advisors
(RCA), a Minnesota company created, owned, and managed by Vibbard. Vibbard admitted that, instead of paying investors their profits as planned, RCA resorted to repaying earlier investors with funds provided by later investors. In the plea agreement, Vibbard acknowledged that the scheme defrauded more than 10 victims of funds totaling between $2,500,000 and $7,000,000.The U.S. Attorney’s Office and Vibbard have agreed to recommend a 63-month prison sentence to Judge
Magnuson. In addition, Vibbard will be ordered to pay restitution and could be ordered to pay a fine. A sentencing hearing is yet to be scheduled.This case is the result of an investigation by the United States Postal Inspection Service and the
Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.