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20 May 2014
Five in Meigs County Indicted for Crop Insurance FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted five people living in Meigs County, Ohio on charges of conspiracy, theft of public money, and money laundering for allegedly defrauding the federal Non-Insured Crop Assistance Program (NAP).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Derrick Hurst, Acting Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General announced the indictment today.
Named in the indictment are
Christopher T. Wolfe, 43, Racine, Ohio
Michael L. Johnson, 62, Portland, Ohio
Terry J. McNickle, 51, Racine, Ohio
Mark D. Wolfe, 41, Racine, Ohio
Joey L. Jerrell, 43, Racine, OhioNAP provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to a natural disaster. Payments are limited to $100,000 per crop year per individual or entity. The indictment alleges that Christopher T. Wolfe recruited co-conspirators to enroll in NAP. The co-conspirators would allegedly apply for payments and turn them over to Christopher T. Wolfe after keeping a portion for themselves.
All five are charged with conspiracy, which is punishable by a term of imprisonment of up to five years, and theft of public monies, which is punishable by up to ten years in prison. The indictment also charges conspiracy to commit money laundering and money laundering, crimes punishable by up to ten years in prison. Not all defendants are charged in each count of money laundering or money laundering conspiracy. The indictment seeks forfeiture of $1,563,337.30 which allegedly represents the proceeds traceable to the commission of the crimes.
The defendants will receive summonses to appear in federal court in Columbus at a time and date to be set by the court.
U.S. Attorney Stewart commended the cooperative investigation of this case by Secret Service agents and the USDA-OIG, and Assistant U.S. Attorney David J. Bosley, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #Enervest Computer Attack Draws Four-year Federal SentenceRead the Press Release
Former Charleston network engineer intentionally mounted devastating attack on employer’s computer system
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a former network engineer at Charleston-based EnerVest Operating, LLC (“EnerVest”), was sentenced to four years in federal prison for intentionally causing severe damage to his employer’s computer system. Ricky Joe Mitchell, 35, of Charleston, West Virginia, admitted that in June 2012, shortly after he learned he was going to be fired, he remotely accessed EnerVest’s computer system and reset the company’s network servers to factory settings, essentially eliminating access to all of the company’s data and applications for its eastern United States operations. Before his access to EnerVest’s offices could be terminated, Mitchell entered the offices after business hours, disconnected critical pieces of computer-network equipment, and disabled the equipment’s cooling system. As a result of Mitchell’s destructive acts, EnerVest was unable to fully communicate or conduct business operations for approximately 30 days. The company spent hundreds of thousands of dollars attempting to recover historical data from its network servers, and some of its data were lost forever.
“Imagine having your company’s computer network knocked out for a month,” said U.S. Attorney Goodwin. “In this day and age, that kind of attack is devastating. And this defendant didn’t just hurt EnerVest. He hurt his former co-workers, he hurt EnerVest’s customers, and, ultimately, he hurt consumers. The only good news here is that he didn’t get away with it.”
EnerVest manages oil and gas exploration and production operations for its parent company, EnerVest Ltd.—a major national oil and gas holding company—and for various affiliates of EnerVest Ltd.
In addition to his four-year prison sentence, Mitchell was ordered to pay $428,000 in restitution to EnerVest, plus a $100,000 fine. United States District Judge John T. Copenhaver, Jr., imposed today’s sentence.
The United States Secret Service conducted the investigation. United States Attorney Goodwin and Assistant United States Attorney Thomas C. Ryan handled the prosecution.
The case was prosecuted under U.S. Attorney Goodwin’s Business Protection Initiative, which fights fraud and other crimes against West Virginia businesses.
El Paso Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Carlos Jesus Carrasco, 24, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Carlos Carrasco and his co-defendant and cousin, Bernabe Carrasco, 34, also of El Paso, were arrested on Dec. 20, 2013, and charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute. The two men subsequently were indicted on the same two charges. According to the indictment, Carlos Carrasco and Bernabe Carrasco conspired to distribute methamphetamine on Dec. 19, 2013, and possessed methamphetamine with intent to distribute on Dec. 20, 2013. The indictment alleges that the two men committed these offenses in Otero County, N.M.
During today’s proceedings, Carlos Carrasco pled guilty to the indictment. In his plea agreement, Carlos Carrasco admitted possessing 2.07 kilograms of methamphetamine on Dec. 20, 2013, which he intended to distribute. Carlos Carrasco further admitted boarding a bus in El Paso with two packages containing methamphetamine strapped to his body which he intended to deliver to Amarillo, Texas, in exchange for $1200.
According to court filings, Carlos Carrasco and Bernabe Carrasco, who also allegedly had a package of methamphetamine strapped to his body, were apprehended by U.S. Border Patrol agents at the Border Patrol traffic checkpoint on U.S. Highway 54 near Alamogordo, N.M., during a routine immigration check of passengers.
Carlos Carrasco has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Carrasco faces a sentence of not less than ten years and not more than life in prison.
Bernabe Carrasco has entered a not guilty plea to the indictment and remains in federal custody pending trial. If convicted, he also faces a sentence of not less than ten years and not more than life in prison.
This case was investigated by the Las Cruces office of the DEA and the U.S. Customs and Border Protection, with assistance from the Doña Ana County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.Eight Arrested in Funnel Account Conspiracy Related to Marijuana TraffickingRead the Press Release
CORPUS CHRISTI, Texas - Five men and three women have been arrested today as a result of an the efforts of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Prototype,” announced United States Attorney Kenneth Magidson.
The four-count indictment was returned under seal April 23, 2014, and unsealed today upon the arrest of Francisco R. Canchola, 39, Antonio Medina Soto, 24, Efren Amescua, 39, Brenda Amescua, 19, Luz Medina, 36, Carlos Flores, 26, Maria D. Amescua, 43, all of Mission, and Prudencio Villalobos, 45, of Jackson, Ga.
The defendants have or will make their initial appearances before U.S. magistrate judges in Atlanta, McAllen and Houston, at which time the U.S. expects to seek the continued detention of all defendants without bond pending further criminal proceedings.
All are charged with conspiracy to launder monetary instruments and two counts of conspiracy to structure transactions to avoid currency reporting requirements. If convicted of the money laundering conspiracy, they each face up to 20 years in prison as well as a maximum of 10 years in federal prison for each of the structuring counts.
Canchola and Soto are charged with conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana. If convicted, they will face no less than 10 years and up to life in federal prison.
Also included in the indictment is a notice of the government’s intent to seek the forfeiture of eight bank accounts held at Wells Fargo Bank and Bank of America as well as a the intent to seek personal money judgments in the amount of $700,000 against all defendants.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mission Police Department, Border Patrol, Customs and Border Protection and the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting.
Defendants are presumed innocent unless and until convicted through due process of law.Eagle Butte Man Charged with Assault with Intent to Commit Murder and Assault by StrangulationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder and Assault by Strangulation.
Harold Picotte, III, age 40, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 20, 2014, Picotte unlawfully assaulted an adult female victim with the intent to commit murder by strangulation and suffocation.
The charge is merely an accusation and Picotte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Cheyenne River Agency. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Picotte was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Kola Eagle Hunter, age 29, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 20, 2013, Eagle Hunter unlawfully assaulted an adult male victim with a club or bat, with intent to do bodily harm to the victim.
The charge is merely an accusation and Eagle Hunter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Cheyenne River Agency. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Eagle Hunter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dinesh D’Souza Pleads Guilty in Manhattan Federal Court to Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty plea of DINESH D’SOUZA to violating the federal election campaign law by making illegal contributions to a United States Senate campaign in the names of others. D’SOUZA, whose trial was scheduled to start today, pled guilty this morning in Manhattan federal court before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “Following the Court's ruling denying Dinesh D'Souza's baseless claim of selective prosecution, D'Souza now has admitted, through his guilty plea, what we have asserted all along – that he knowingly and intentionally violated federal election laws. As our Office's record reflects, we will investigate and prosecute violations of federal law, particularly those that undermine the integrity of the democratic electoral process, without regard to the defendant's political persuasion or party affiliation. That is what we did in this case and what we will continue to do.”
According to the Indictment, prior court filings, and statements made in court:
The Federal Election Campaign Act (the “Election Act”) is designed to limit financial influence in the election of candidates for federal office, including the Office of United States Senator, and provides for the public disclosure of the financing of federal election campaigns. In particular, the Election Act limits the amount and source of money that may be contributed to a federal candidate or that candidate’s authorized campaign committee. The Election Act specifically prohibits any person from making any contribution in the name of another, including reimbursing a third person, before or after that third person’s contribution, as inducement to make that contribution.
In 2012, the Election Act limited campaign contributions to $5,000 from any individual to any one candidate. In March 2012, D’SOUZA contributed $10,000 to the Senate campaign of Wendy Long on behalf of himself and his wife, agreeing in writing to attribute that contribution as $5,000 from his wife and $5,000 from him. In August 2012, D’SOUZA directed other individuals with whom he was associated, namely his assistant and a woman with whom he was romantically involved (the “Straw Donors”), to make contributions to Wendy Long’s campaign for the United States Senate (the “Long Campaign”) on behalf of themselves and their spouses that totaled $20,000 with the promise that he would reimburse them for the contributions. Later that same day or the next day, D’SOUZA, as promised, reimbursed the Straw Donors $10,000 each in cash for the contributions. When confronted by Ms. Long, D’SOUZA initially misled the candidate before admitting what he had done.
During the plea proceeding today, D’SOUZA admitted before the Court that he caused two close associates to contribute $10,000 each to the Long Campaign with the understanding that he would reimburse them for their contributions and that he did reimburse them. D’SOUZA also admitted that he knew that what he was doing was wrong and something the law forbids. The Court then accepted the guilty plea.
Last week, Judge Berman denied a pretrial motion by D’SOUZA to dismiss the indictment for selective prosecution, ruling that there was “no evidence” to support D’SOUZA’s allegation.
D’SOUZA, 53, of San Diego, California, faces a maximum sentence of two years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the Court. He is scheduled to be sentenced by Judge Berman on September 23, 2014, at 11:00 a.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being prosecuted by the Office's Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Paul M. Krieger are in charge of the prosecution.
Dallas Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
DALLAS — Donald Record, 52, of Dallas, appeared in federal court today and pleaded guilty to an Information charging one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, law enforcement received information from the Homeland Security Investigations (HSI) Cyber Center identifying an offender in the Dallas area. The investigation led law enforcement to secure and execute a search warrant at Record’s residence on March 6, 2014. Record admitted that he used his laptop computer to trade images of child pornography on the Internet, and that he looked at child pornography when he was at his home in Dallas and at work at SMU. He admitted his age preference was 8 – 10 year olds. He further admitted that he had approximately 100 images and one video of child pornography in his email account that he had received from others.
Record faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. He will remain on bond pending sentencing, which is set for September 3, 2014, before U.S. District Judge Ed Kinkeade.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) HSI conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting.
D'Hanis Man Charged with Manufacturing Pipe BombsRead the Press Release
Earlier today, federal agents arrested 20-year-old Michael Keich, of D’Hanis, TX, for manufacturing an unregistered weapon and manufacture of an explosive without a license announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
While executing a search warrant at the defendant’s residence this morning, FBI and ATF special agents recovered a pipe bomb as well as materials used in the production of explosive devices. According to the criminal complaint filed in this case, Keich admitted that he manufactured pipe bombs despite knowing that such activity was illegal.
Upon conviction, Keich faces up to ten years in federal prison. He remains in federal custody pending a detention hearing later this week.
This investigation is being conducted by agents with the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco Firearms and Explosives, Uvalde County Sheriff’s Office, and the Medina County Sheriff’s Office. Bombs squads from the FBI and San Antonio Police Department rendered the suspected device safe outside the defendant’s residence. Special Assistant United States Attorney Carah Helwig is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Commercial Armed Robbers Arrested in Multi-Agency InvestigationRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Shamorcus Brandan Nesbitt (27, Tampa) and England Alexander Wilson (32, Tampa) have been charged in a criminal complaint with conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during and in relation to and in furtherance of a crime of violence. If convicted, each faces a maximum sentence of 20 years’ imprisonment for each robbery, and mandatory minimum consecutive sentences of 7 years, up to life imprisonment for each related firearms offenses.
After being arrested on May 20, 2014, Nesbitt and Wilson made their initial appearances in federal court, before United States Magistrate Judge Thomas B. McCoun, III in Tampa. They were detained pending further proceedings.
According to the criminal complaint, multiple law enforcement agencies have been investigating a series of 19 commercial armed robberies that have occurred in the Tampa Bay area between December 2013 and May 20, 2014. The robberies were unique in that they occurred around closing time and that the robbers would smash the stores’ glass with a brick or rock to gain access to the store. Once inside the store, the robbers would hold the employees at gunpoint, while demanding money. Based on the patterns of the armed robberies, investigators identified Nesbitt and Wilson as the potential perpetrators and identified the vehicles that they were believed to be using to commit the robberies. At approximately 12:40 a.m. on May 20, 2014, Nesbitt and Wilson used one of those vehicles to commit an armed robbery of a pizza chain on West Waters Avenue in Tampa. Further investigation led law enforcement to Nesbitt’s residence, in Tampa, where both individuals were ultimately taken into custody.
A criminal complaint is merely an informal 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 is a joint investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco Firearms & Explosives, the Citrus County Sheriff’s Office, Hernando County Sheriff’s Office, Pasco County Sheriff’s Office, Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
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Cherokee County Man Guilty in Armed Robbery Crime SpreeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Jacksonville, Texas man has pleaded guilty in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Jonathan Roshard Brown pleaded guilty to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and possessing a firearm during a crime of violence today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Brown and three co-defendants conspired to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law. Specifically, they committed four armed robberies in Jacksonville during a crime spree which began on Oct. 2, 2011 when Brown and two others stole $9,465 from the Wal-Mart Supercenter in Jacksonville. On Nov. 2, 1012, Brown and two others robbed the Razorback Grocery on Hwy 69 in Jacksonville. Brown brandished a handgun and demanded money from the owner. Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets. On Nov. 16, 2012, Brown and two others again robbed the owner of the Razorback Grocery while he was waiting in the commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville. During the robbery Brown fired a handgun, striking the victim. The bullet passed through the victim’s hand, throat and shoulder. The victim survived after being airlifted to a Tyler hospital. The defendants obtained an undetermined amount of cash from the victim’s vehicle. The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank. On Nov. 23, 2012, Brown and another person attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville. The owner was able to strike Brown and flee.
Brown faces up to 20 years in federal prison for the Hobbs Act violation and a minimum of 10 years in federal prison for the firearms violation. A sentencing date has not been set.
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This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Richard Moore.Cheektowaga Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jeffrey Turner, 24, of Cheektowaga, N.Y., who was convicted of bank robbery, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $4,639 in restitution.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on June 13, 2013, Turner entered M&T Bank, located at 788 Tonawanda Street in Buffalo. The defendant passed the teller a demand note threatening the use of a weapon. The teller gave Turner a specific amount of money.
On July 1, 2013, the defendant entered the M&T Bank, located at 1580 Hertel Avenue in Buffalo. Turner passed the teller a demand note threatening the use of a weapon. The teller gave him a specific amount of money.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force.Charleston Man Indicted for Impersonating A Federal Law Enforcement OfficerRead the Press Release
CHARLESTON, W. Va. – A federal grand jury today charged John E. Swain II, of Charleston, with falsely assuming and pretending to be a federal law enforcement officer. According to the grand jury’s indictment, Swain impersonated a United States Deputy Marshal on April 14, 2014, in Charleston.
If convicted, Swain faces up to three years’ incarceration and a $250,000 fine.
The United States Marshals Service and the Kanawha County Sheriff’s Department conducted theinvestigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Note: An indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Chapmanville Meth Dealer Sentenced to Federal PrisonRead the Press Release
Charleston, W.Va. – Chad Randall Davis, 20, of Chapmanville, Logan County, West Virginia, was sentenced today to six months in federal prison for distributing methamphetamine, United States Attorney Booth Goodwin announced. Davis previously pleaded guilty in January 2014, admitting that he sold methamphetamine to what proved to be a confidential informant working with the U.S. 119 Drug Task Force. The drug sale occurred at Davis’ Chapmanville residence on November 16, 2012. Davis was arrested on January 21, 2013, and provided a statement to law enforcement admitting he sold approximately $3000 worth of methamphetamine during the three- to four-month period prior to his arrest.
United States District Judge John T. Copenhaver, Jr., imposed today’s sentence, which includes a three-year term of supervised release following Davis’ prison term.
Cape Canaveral Man Sentenced to 25 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Travis Garrett Robinson (27, Cape Canaveral) to 25 years in prison for two counts of production of child pornography and one count of possession of child pornography. As part of his sentence, Robinson was also ordered to serve a life-term of supervision and register as a sex offender, following his release from prison.
Robinson pleaded guilty on February 26, 2014.
According to court documents, this investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in downloading child pornography. Law enforcement determined the location of the IP address and interviewed Robinson. Robinson not only admitted to downloading and possessing child pornography, but also admitted to producing child pornography. While Robinson was a guest in a friend’s home, he exploited young boys. Robinson waited until the boys were sleeping, and on different occasions, exposed them and took several pictures with his cell phone and camera.
Robinson’s computer, external hard drive and cameras were seized and searched pursuant to a search warrant. The investigation revealed that Robinson, using a peer-to-peer software program (“Shareaza”), had downloaded and viewed child pornography for approximately ten years. The forensic examination of his cell phones showed that Robinson produced more than ten images of child pornography of minor victims. The forensic examination further revealed that his computer, external hard drive, and cell phones contained a total of 992 image files and 261 movie files of child pornography. Included in these additional images were images involving bondage and/or penetration of children who were under 12 years old.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement, Orlando Regional Operations Center. It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Baltimore Crack Cocaine Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karl McDonald, age 30, of Baltimore, today to 151 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Quarles enhanced McDonald’s sentence upon finding that he is a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to McDonald's plea agreement, from at least 2010 through June 2013, McDonald conspired with others to obtain cocaine from suppliers in Arizona and Texas. Once the cocaine arrived in Baltimore, McDonald converted the powder cocaine to crack cocaine for street level distribution. McDonald operated a distribution shop in Baltimore where the crack cocaine was sold. During the spring of 2013, DEA agents intercepted phone calls of members of the drug trafficking organization, including McDonald. On June 6, 2013, law enforcement executed search warrants at locations used by the organization in the Baltimore metropolitan area. DEA seized approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.
McDonald admits that he is responsible for the distribution of between 28 and 112 grams of crack cocaine.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
A Federal Jury Convicts A Boston Man of Sex Trafficking of A MinorRead the Press Release
BOSTON – A federal jury today convicted a Boston area man of sex trafficking a 16-year-old girl.
Following a five-day trial, Michael Gemma, 30, of Dorchester was convicted of using force, fraud and coercion to cause a minor to engage in prostitution and transporting a minor across state lines for the purpose of prostitution. He was indicted in May 2012. Sentencing is scheduled for September 9, 2014.
The investigation into the defendant’s sex trafficking activities began in 2011 when a Trooper with the Massachusetts State Police stopped Gemma for speeding. During the stop, the Trooper recovered the 16-year-old female victim who reported that the defendant had driven her to New York and New Jersey for purposes of prostitution.During the trial, the jury heard testimony from the trafficking victim who testified about how the defendant and another pimp took suggestive pictures of her which they used in advertisements that offered sex with her for a fee. Gemma posted those advertisements on various Internet sites including Backpage.com. Gemma and another pimp drove the minor victim and other young women to motels in Massachusetts, New York and New Jersey, where they were prostituted. The victim testified how Gemma and the other pimps would control the prostitutes by threatening them and, at times, beating them.
Gemma faces a minimum sentence of 15 years in prison and a maximum of a lifetime, five years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz, Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division and Colonel Timothy Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Leah Foley and Miranda Hooker who are members of Ortiz’s Civil Rights Enforcement Team.
24 Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 24 defendants charged with conspiracy to possess with intent to distribute controlled substances. The Drug Enforcement Administration (DEA) the Puerto Rico Police Department (PRPD) are the agencies in charge of the investigation.
The indictment returned by a federal grand jury on May 15, 2014, and unsealed in federal court today, charges 24 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine. Beginning on a date unknown, but not later than the year 2009, the object of the conspiracy was to possess and distribute kilogram quantities of controlled substances, mainly cocaine, in Puerto Rico for further distribution in the continental United States, all for significant financial gain and profit.
As part of the manner and means by which the defendants and their associates accomplished the objects of the conspiracy, they recruited individuals to use them as “mules” or couriers in order to transport kilograms of cocaine from the Luis Muñoz Marín International Airport (“LMMIA”), located in San Juan, Puerto Rico, to the continental United States. The defendants used residences located within the area of Orlando and Kissimmee, Florida, in order to stash large amounts of U.S. Currency and drugs.The co-defendants and their co-conspirators concealed kilogram quantities of cocaine using the children’s toy “Lite Brite” and DVD players of different brands. It was further part of the manner and means of the conspiracy that the co-defendants and their co-conspirators would travel, or cause others to travel in commercial airline flights, from Puerto Rico to the continental United States, carrying kilogram quantities of cocaine hidden in suitcases; and their co-conspirators would receive kilogram quantities of cocaine in the continental United States for further distribution.
The co-defendants and their co-conspirators often used the recruited couriers and the same containers to transport the profits generated from the drug sales back to Puerto Rico. They invested part of the profits of the sales in the purchase of more narcotics, to further their drug trafficking activities. The leaders of the conspiracy used part of the proceeds of the illegal activity to purchase legitimate assets and services, including but not limited to, real estate properties, nightclubs, motor vehicles, vessels, clothing, trips, hotel accommodations, private parties and plastic surgery.
The defendants are: Heriberto Burgos-Martínez, aka “Spowell;” Saul Guzmàn-Font, aka “Saul Peluca;” Michael Aponte-Pinto, aka “Lito;” Hector Tapia-Rodríguez, aka “Hugo;” Roberto Ramírez-Rodríguez, aka “Rockero;” Xavier Rodríguez-Casado, aka “Bebo Gran;” Roberto Baez-Figueroa, aka “Potro;” Lonnie Tapia-Rodríguez, aka “Cascote;” José W. Telleria-Arriaga, aka “Gordo;” Max J. Acevedo-Andino, aka “Max Joel;” Victor Rivera-Mercado, aka “Poke;” Mecsac Ramírez-Rodríguez, aka “Messak;” Ángel García-Trinidad, aka “Angelito;” Paulette Concepción-Díaz, aka “Pao;” Yamira Díaz-Algarín; Landy Y. Castro-Flores; Luis F. Villegas-Nieves, aka “Blon Blon;” Neftali Galindo-Isaac, aka “Fifty;” Allan Rodríguez-Crispin, aka “Love;” Jesús E. Miranda-Lugo, aka “Shaka;” José Oliveras-Ruiz, aka “Cascara;” Hector M. Robles-Alvira; Lefty Méndez-Valentin, aka “Zurdo;” and Edwin M. Rosario-Rodríguez, aka “Toto.”
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Today we have stopped a criminal organization from funneling significant quantities of cocaine into the continental United States using commercial airlines from Puerto Rico to the state of Florida. This operation will have significant effects, not only in Puerto Rico, but in the streets and communities in Florida which were used by this organization to further their drug distribution activities.”
“The continuous interdiction efforts of the DEA at the Luis Muñoz Marin International Airport led to the investigation the Heriberto BURGOS-Martinez Drug Trafficking Organization and subsequent arrest of 24 members of his drug trafficking organization,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division. “Also our HIDTA partners were essential in the success of this investigation. We will continue using the HIDTA resources to target other criminal organizations engaged in drug transportation activities.”
Assistant U.S. Attorneys Alberto R. López-Rocafort and Teresa Zapata-Valladares are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
19 May 2014
Young Man Gets 15+ Years for Smuggling $1 Million in MethRead the Press Release
BROWNSVILLE, Texas - Jaime Homero Guerrero, 20, has been ordered to prison for conspiracy to possess and possession with intent to distribute more than 50 grams of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury convicted Guerrero, of Brownsville and Matamoros, Mexico, on Jan. 24, 2014, following more than two days of testimony and approximately five hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Guerrero a sentence of 188 months in federal prison to be immediately followed by five years of supervised release. The court noted the sentence was imposed to reflect the seriousness of the offense, promote respect for the law, provide just punishment for the offense and afford adequate deterrence to criminal conduct.
Guerrero was a passenger in a 2010 Nissan on April 5, 2013, when it was stopped for a traffic violation on Highway 77 near Raymondville in Willacy County. At that time, officers found 36 packages containing a total of 26.16 kilograms of methamphetamine.
Guerrero initially stated he was headed from Matamoros, Mexico, to a Quincenera in Houston. He later claimed he was going to deliver the vehicle to Houston.
Also charged was Oraldo Arvey Castro-Rocha, who was driving the Nissan and later pleaded guilty. He will be sentenced June 4, 2014.
At trial, agents testified the methamphetamine Guerrero and Castro smuggled was valued at nearly $1 million in the Houston area.
Guerrero will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Drug Enforcement Administration and the Texas Department of Public Safety. Assistant United States Attorneys Carrie Wirsing and David A. Lindenmuth prosecuted the case.Wolcott Man Sentenced to Prison for Impersonating Federal Officer, Falsifying Military DocumentRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRUCE BROWN, also known as “Bruce Browne,” “Spenser Brown,” “Spenser Browne,” “Agent Brice” and “Detective Brice,” 47, of Wolcott, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by one year of supervised release, for impersonating a federal officer and falsifying a military discharge certificate.
According to court documents and statements made in open court, on August 8, 2013, BROWN, operating a Ford Crown Victoria equipped to resemble a police vehicle, entered a shoreline residential community in Old Lyme. BROWN was wearing a bullet proof tactical vest with police insignia and was carrying a weapon and handcuffs. When approached by an Old Lyme resident, Brown stated that he was a special agent of the United States Coast Guard and was sent there to observe a Coast Guard vessel that was in the area.
While in the Old Lyme community, BROWN’s fiancée asked a friend to take BROWN out on the friend’s boat. As the boat was backing out of the slip, BROWN informed the boat owner that “I am commandeering your boat. Your boat is now a U.S. Coast Guard vessel.” BROWN then directed the owner to pilot his boat toward other vessels and, at BROWN’s direction, the owner approached two boats operated by private citizens. In each instance, BROWN required the boat operators to produce their boating licenses.
BROWN then instructed the boat owner to approach an individual who was operating a jet ski. Again, BROWN asked the operator for his license. When the operator could not produce it, BROWN told him to return to the dock. The boat owner took BROWN back to the dock and then observed BROWN enter what appeared to be a police car and drive off with the emergency lights flashing. BROWN drove his car to the boat launch where the jet ski operator was removing his craft from the water and instructed the operator to obtain his license. After the operator showed BROWN the license, he was allowed to leave.
Law enforcement officers subsequently located and questioned BROWN in the Old Lyme residential community. BROWN initially told them that he was a law enforcement officer sent by the U.S. Coast Guard to photograph a Coast Guard cutter that was in the area, but eventually admitted that he was not an officer. A search of BROWN’s car revealed numerous law enforcement items, including a bulletproof/tactical vest with police insignia and a TSA badge, multiple sets of handcuffs, three handguns, loaded gun magazines, significant quantities of ammunition including hollow point bullets, a knife, and a police tactical baton. BROWN was arrested on state charges at that time.
While released on bond following his arrest, BROWN took four other law enforcement badges in his possession and threw them into the Chestnut Hill Reservoir in Wolcott. BROWN subsequently informed federal authorities of his actions and, on September 27, 2013, a dive team from the Connecticut State Police recovered the badges.
Further investigation of this matter revealed that in March 2013, BROWN offered to have a “scared straight” conversation with the sons of an acquaintance who believed BROWN was a federal law enforcement officer with experience in narcotics matters. Brown arrived at his acquaintance’s home in a Crown Victoria that resembled a police vehicle, displayed a badge and had a holstered gun and handcuffs secured on his belt. BROWN individually introduced himself to the minors as “Agent Brice” and “Detective Brice.” After some initial conversation, BROWN escorted the minors up to their rooms. Their mother tried to follow, but was ordered by BROWN to stay downstairs. She heard raised voices and later learned from her son that BROWN had drawn his gun and handcuffed her son while BROWN searched his room.
Eventually, BROWN walked downstairs with one of the minors and entered the garage. BROWN removed the weapon from his holster and pointed it in proximity of the minor as they prepared to enter the garage. BROWN returned with a backpack that contained about $200, a small amount of what appeared to be marijuana and a pipe. After confirming with the mother that the money was from a legitimate source, BROWN gave her the money and took the backpack and all of its contents. While in the house, BROWN indicated that he had conducted surveillance on the boys in the prior week and related several incidents to them that seemed to authenticate that claim.
The investigation further revealed that in April 2002, BROWN was discharged from the U.S. Coast Guard “under other than honorable conditions.” In February 2013, BROWN submitted a Pistol Permit Application to the Connecticut State Police Special Licensing and Firearms Unit. In the military history section of the application, BROWN stated that he had not been discharged from the United States Armed Forces with less than an Honorable Discharge. The form required BROWN to attach a copy of his Department of Defense Discharge Form, DD-214. In box 24 of his DD-214, BROWN obliterated the words “under other than,” leaving the form to appear as if he had been discharged under “honorable conditions.”
On February 24, 2014, BROWN waived his right to indictment and pleaded guilty to two counts of impersonating a federal law enforcement officer and one count of falsifying a military discharge certificate.
BROWN was ordered to report to prison on July 9, 2014.
This matter was investigated by the Department of Homeland Security – Office of Inspector General, the U.S. Coast Guard Investigative Service, the Connecticut State Police, and the Wolcott, Bristol and Southington Police Departments. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
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(203) 821-3722 [email protected]Williamson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn May 15, 2014, a Williamson County, Ill., man pled guilty to an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Jeremieh L. Hodge, 35, of Creal Springs, pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between 2009 and March 2013 in Williamson, Saline, and Johnson Counties. Evidence at the plea hearing established that Hodge was involved with others in the manufacture of methamphetamine. Hodge participated in anhydrous ammonia thefts and other persons provided Hodge with pseudoephedrine pills for the purpose of manufacturing methamphetamine. Hodge faces a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Illinois State Police, Johnson County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Westminster Developer Sentenced for Bank FraudRead the Press Release
BOSTON – A Westminster man was sentenced today in U.S. District Court in Worcester for bank fraud.
Lance N. Korich, 53, was sentenced by U.S. District Judge Timothy S. Hillman to one year and one day in prison, two years of supervised release, and ordered to pay $593,617 in restitution. In December 2013, Korich pleaded guilty to four counts of bank fraud.
From 2008 to 2010, Korich applied for and obtained four construction loans at Colonial Cooperative Bank in Gardner, Mass. In support of those loans, Korich submitted false and fraudulent purchase and sale agreements. In particular, Korich fabricated the names of the purported home buyers and forged their signatures on the purchase and sale agreements.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Karin M. Bell and Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Wayne Woman Pleads Guilty in Major Federal Drug InvestigationRead the Press Release
Huntington, W.Va. – Ariell Varney, 23, of Wayne, West Virginia, pleaded guilty today in federal court to a charge of possession with intent to distribute MDMA, commonly known as Ecstasy, United States Attorney Booth Goodwin announced. On November 20, 2013, Varney was pulled over for a traffic violation in the 600 block of 8th Street in Huntington by members of the Huntington Police Department. During the stop, a drug dog gave a positive alert on the trunk of Varney’s car. During a subsequent search of the car, a pill bottle was located that contained an empty capsule and a similar capsule that contained a substance that field tested positive for MDMA. Also in the bottle were eight other tablets with no markings.
At the time of the stop, Varney was being investigated by the Drug Enforcement Administration for her connection to the drug trafficking activities of Kenneth Dewitt Newman, also known as “K-Kutta.” As a result of the investigation, Newman and 14 other individuals were charged with various offenses related to a drug trafficking conspiracy in the Huntington area. Varney was living in Miami, Florida, during the investigation, and is believed to have been a supplier of MDMA to the Newman organization. In addition to MDMA, Newman’s organization was responsible for selling cocaine, heroin, prescription pills, marijuana, and crack cocaine.
Varney faces up to 20 years in prison and a $1 million fine when she is sentenced on August 18, 2014. Chief United States District Judge Robert C. Chambers is presiding over the case.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
U.S. Charges Five Chinese Military Hackers for Cyber Espionage Against U.S. Corporations and a Labor Organization for Commercial AdvantageRead the Press Release
A grand jury in the Western District of Pennsylvania (WDPA) indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.
The indictment alleges that the defendants conspired to hack into American entities, to maintain unauthorized access to their computers and to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises (SOEs). In some cases, it alleges, the conspirators stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen. In other cases, it alleges, the conspirators also stole sensitive, internal communications that would provide a competitor, or an adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.
“This is a case alleging economic espionage by members of the Chinese military and represents the first ever charges against a state actor for this type of hacking,” U.S. Attorney General Eric Holder said. “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets. This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”
“For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries,” said FBI Director James B. Comey. “The indictment announced today is an important step. But there are many more victims, and there is much more to be done. With our unique criminal and national security authorities, we will continue to use all legal tools at our disposal to counter cyber espionage from all sources.”
“State actors engaged in cyber espionage for economic advantage are not immune from the law just because they hack under the shadow of their country’s flag,” said John Carlin, Assistant Attorney General for National Security. “Cyber theft is real theft and we will hold state sponsored cyber thieves accountable as we would any other transnational criminal organization that steals our goods and breaks our laws.”
“This 21st century burglary has to stop,” said David Hickton, U.S. Attorney for the Western District of Pennsylvania. “This prosecution vindicates hard working men and women in Western Pennsylvania and around the world who play by the rules and deserve a fair shot and a level playing field.”
Summary of the Indictment
Defendants : Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, who were officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army (PLA). The indictment alleges that Wang, Sun, and Wen, among others known and unknown to the grand jury, hacked or attempted to hack into U.S. entities named in the indictment, while Huang and Gu supported their conspiracy by, among other things, managing infrastructure (e.g., domain accounts) used for hacking.
Victims : Westinghouse Electric Co. (Westinghouse), U.S. subsidiaries of SolarWorld AG (SolarWorld), United States Steel Corp. (U.S. Steel), Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.
Time period : 2006-2014.
Crimes : Thirty-one counts as follows (all defendants are charged in all counts).
Count(s)
Charge
Statute
Maximum Penalty
1
Conspiring to commit computer fraud and abuse
18 U.S.C. § 1030(b).
10 years.
2-9
Accessing (or attempting to access) a protected computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
18 U.S.C. §§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2.
5 years (each count).
10-23
Transmitting a program, information, code, or command with the intent to cause damage to protected computers.
18 U.S.C. §§ 1030(a)(5)(A), 1030(c)(4)(B), and 2.
10 years (each count).
24-29
Aggravated identity theft.
18 U.S.C. §§ 1028A(a)(1), (b), (c)(4), and 2
2 years (mandatory consecutive).
30
Economic espionage.
18 U.S.C. §§ 1831(a)(2), (a)(4), and 2.
15 years.
31
Trade secret theft.
18 U.S.C. §§ 1832(a)(2), (a)(4), and 2.
10 years.
Summary of Defendants’ Conduct Alleged in the Indictment
Defendant
Victim
Criminal Conduct
Sun
Westinghouse
In 2010, while Westinghouse was building four AP1000 power plants in China and negotiating other terms of the construction with a Chinese SOE (SOE-1), including technology transfers, Sun stole confidential and proprietary technical and design specifications for pipes, pipe supports, and pipe routing within the AP1000 plant buildings.
Additionally, in 2010 and 2011, while Westinghouse was exploring other business ventures with SOE-1, Sun stole sensitive, non-public, and deliberative e-mails belonging to senior decision-makers responsible for Westinghouse’s business relationship with SOE-1.
Wen
SolarWorld
In 2012, at about the same time the Commerce Department found that Chinese solar product manufacturers had “dumped” products into U.S. markets at prices below fair value, Wen and at least one other, unidentified co-conspirator stole thousands of files including information about SolarWorld’s cash flow, manufacturing metrics, production line information, costs, and privileged attorney-client communications relating to ongoing trade litigation, among other things. Such information would have enabled a Chinese competitor to target SolarWorld’s business operations aggressively from a variety of angles.
Wang and Sun
U.S. Steel
In 2010, U.S. Steel was participating in trade cases with Chinese steel companies, including one particular state-owned enterprise (SOE-2). Shortly before the scheduled release of a preliminary determination in one such litigation, Sun sent spearphishing e-mails to U.S. Steel employees, some of whom were in a division associated with the litigation. Some of these e-mails resulted in the installation of malware on U.S. Steel computers. Three days later, Wang stole hostnames and descriptions of U.S. Steel computers (including those that controlled physical access to company facilities and mobile device access to company networks). Wang thereafter took steps to identify and exploit vulnerable servers on that list.
Wen
ATI
In 2012, ATI was engaged in a joint venture with SOE-2, competed with SOE-2, and was involved in a trade dispute with SOE-2. In April of that year, Wen gained access to ATI’s network and stole network credentials for virtually every ATI employee.
Wen
USW
In 2012, USW was involved in public disputes over Chinese trade practices in at least two industries. At or about the time USW issued public statements regarding those trade disputes and related legislative proposals, Wen stole e-mails from senior USW employees containing sensitive, non-public, and deliberative information about USW strategies, including strategies related to pending trade disputes. USW’s computers continued to beacon to the conspiracy’s infrastructure until at least early 2013.
Sun
Alcoa
About three weeks after Alcoa announced a partnership with a Chinese state-owned enterprise (SOE-3) in February 2008, Sun sent a spearphishing e-mail to Alcoa. Thereafter, in or about June 2008, unidentified individuals stole thousands of e-mail messages and attachments from Alcoa’s computers, including internal discussions concerning that transaction.
Huang
Huang facilitated hacking activities by registering and managing domain accounts that his co-conspirators used to hack into U.S. entities. Additionally, between 2006 and at least 2009, Unit 61398 assigned Huang to perform programming work for SOE-2, including the creation of a “secret” database designed to hold corporate “intelligence” about the iron and steel industries, including information about American companies.
Gu
Gu managed domain accounts used to facilitate hacking activities against American entities and also tested spearphishing e-mails in furtherance of the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI conducted the investigation that led to the charges in the indictment. This case is being prosecuted by the U.S. Department of Justice’s National Security Division Counterespionage Section and the U.S. Attorney’s Office for the Western District of Pennsylvania.
Related Materials:
Indictment
U.S. Charges Five Chinese Military Hackers for Cyber Espionage Against U.S. Corporations and A Labor Organization for Commercial AdvantageRead the Press Release
First Time Criminal Charges are Filed Against Known State Actors for Hacking
WASHINGTON—A grand jury in the Western District of Pennsylvania (WDPA) indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.
The indictment alleges that the defendants conspired to hack into American entities, to maintain unauthorized access to their computers and to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises (SOEs). In some cases, it alleges, the conspirators stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen. In other cases, it alleges, the conspirators also stole sensitive, internal communications that would provide a competitor, or an adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.
“This is a case alleging economic espionage by members of the Chinese military and represents the first ever charges against a state actor for this type of hacking,” U.S. Attorney General Eric Holder said. “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets. This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”
“For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries,” said FBI Director James B. Comey. “The indictment announced today is an important step. But there are many more victims, and there is much more to be done. With our unique criminal and national security authorities, we will continue to use all legal tools at our disposal to counter cyber espionage from all sources.”
“State actors engaged in cyber espionage for economic advantage are not immune from the law just because they hack under the shadow of their country’s flag,” said John Carlin, Assistant Attorney General for National Security. “Cyber theft is real theft and we will hold state sponsored cyber thieves accountable as we would any other transnational criminal organization that steals our goods and breaks our laws.”
“This 21st century burglary has to stop,” said David Hickton, U.S. Attorney for the Western District of Pennsylvania. “This prosecution vindicates hard working men and women in Western Pennsylvania and around the world who play by the rules and deserve a fair shot and a level playing field.”
Summary of the Indictment
Defendants: Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, who were officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army (PLA). The indictment alleges that Wang, Sun, and Wen, among others known and unknown to the grand jury, hacked or attempted to hack into U.S. entities named in the indictment, while Huang and Gu supported their conspiracy by, among other things, managing infrastructure (e.g., domain accounts) used for hacking.
Victims: Westinghouse Electric Co. (Westinghouse), U.S. subsidiaries of SolarWorld AG (SolarWorld), United States Steel Corp. (U.S. Steel), Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.
Time period: 2006-2014.
Crimes: Thirty-one counts as follows (all defendants are charged in all counts).
Count(s) Charge Statute Maximum Penalty1
Conspiring to commit computer fraud and abuse
18 U.S.C. § 1030(b).
10 years.
2-9
Accessing (or attempting to access) a protected computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
18 U.S.C. §§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2.
5 years (each count).
10-23
Transmitting a program, information, code, or command with the intent to cause damage to protected computers.
18 U.S.C. §§ 1030(a)(5)(A), 1030(c)(4)(B), and 2.
10 years (each count).
24-29
Aggravated identity theft.
18 U.S.C. §§ 1028A(a)(1), (b), (c)(4), and 2
2 years (mandatory consecutive).
30
Economic espionage.
18 U.S.C. §§ 1831(a)(2), (a)(4), and 2.
15 years.
31
Trade secret theft.
18 U.S.C. §§ 1832(a)(2), (a)(4), and 2.
10 years.
Summary of Defendants’ Conduct Alleged in the Indictment
Defendant Victim Criminal ConductSun
Westinghouse
In 2010, while Westinghouse was building four AP1000 power plants in China and negotiating other terms of the construction with a Chinese SOE (SOE-1), including technology transfers, Sun stole confidential and proprietary technical and design specifications for pipes, pipe supports, and pipe routing within the AP1000 plant buildings.
Additionally, in 2010 and 2011, while Westinghouse was exploring other business ventures with SOE-1, Sun stole sensitive, non-public, and deliberative e-mails belonging to senior decision-makers responsible for Westinghouse’s business relationship with SOE-1.
Wen
SolarWorld
In 2012, at about the same time the Commerce Department found that Chinese solar product manufacturers had “dumped” products into U.S. markets at prices below fair value, Wen and at least one other, unidentified co-conspirator stole thousands of files including information about SolarWorld’s cash flow, manufacturing metrics, production line information, costs, and privileged attorney-client communications relating to ongoing trade litigation, among other things. Such information would have enabled a Chinese competitor to target SolarWorld’s business operations aggressively from a variety of angles.
Wang and Sun
U.S. Steel
In 2010, U.S. Steel was participating in trade cases with Chinese steel companies, including one particular state-owned enterprise (SOE-2). Shortly before the scheduled release of a preliminary determination in one such litigation, Sun sent spearphishing e-mails to U.S. Steel employees, some of whom were in a division associated with the litigation. Some of these e-mails resulted in the installation of malware on U.S. Steel computers. Three days later, Wang stole hostnames and descriptions of U.S. Steel computers (including those that controlled physical access to company facilities and mobile device access to company networks). Wang thereafter took steps to identify and exploit vulnerable servers on that list.
Wen
ATI
In 2012, ATI was engaged in a joint venture with SOE-2, competed with SOE-2, and was involved in a trade dispute with SOE-2. In April of that year, Wen gained access to ATI’s network and stole network credentials for virtually every ATI employee.
Wen
USW
In 2012, USW was involved in public disputes over Chinese trade practices in at least two industries. At or about the time USW issued public statements regarding those trade disputes and related legislative proposals, Wen stole e-mails from senior USW employees containing sensitive, non-public, and deliberative information about USW strategies, including strategies related to pending trade disputes. USW’s computers continued to beacon to the conspiracy’s infrastructure until at least early 2013.
Sun
Alcoa
About three weeks after Alcoa announced a partnership with a Chinese state-owned enterprise (SOE-3) in February 2008, Sun sent a spearphishing e-mail to Alcoa. Thereafter, in or about June 2008, unidentified individuals stole thousands of e-mail messages and attachments from Alcoa’s computers, including internal discussions concerning that transaction.
Huang
Huang facilitated hacking activities by registering and managing domain accounts that his co-conspirators used to hack into U.S. entities. Additionally, between 2006 and at least 2009, Unit 61398 assigned Huang to perform programming work for SOE-2, including the creation of a “secret” database designed to hold corporate “intelligence” about the iron and steel industries, including information about American companies.
Gu
Gu managed domain accounts used to facilitate hacking activities against American entities and also tested spearphishing e-mails in furtherance of the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI conducted the investigation that led to the charges in the indictment. This case is being prosecuted by the U.S. Department of Justice’s National Security Division Counterespionage Section and the U.S. Attorney’s Office for the Western District of Pennsylvania.
Two Men Plead Guilty in Cases Involving Guns and DrugsRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced guilty pleas in two separate cases prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and State of Idaho to address gang crimes. Nathan John Vert, 30, of Caldwell, Idaho, pleaded guilty today in United States District Court to unlawfully possessing a firearm. In a separate case, Esteban Villegas-Gamez, 39, a Mexican national living in Bellevue, Idaho, pleaded guilty today to distribution of methamphetamine.
At today’s hearing, Vert admitted that he unlawfully possessed a 12-gauge shotgun. Vert was involved in a traffic accident on October 21, 2013. Officers with the Nampa Police Department arrived at the scene. During the investigation of the traffic accident, officers discovered a 12-gauge shotgun inside the vehicle that Vert was driving. Vert was prohibited from possessing firearms because he was previously convicted of the felony crime of delivery of a controlled substance in 2003 in Canyon County, Idaho.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm. Vert is scheduled to be sentenced on July 28, 2014, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Villegas-Gamez, who also pleaded guilty today, admitted he sold methamphetamine and firearms to a person assisting law enforcement as a confidential informant. Villegas-Gamez sold the informant methamphetamine and firearms on numerous occasions beginning in November 2013 until January 2014. Villegas-Gamez admitted that the combined total he sold the informant during the different transactions was in excess of 50 grams of methamphetamine.
The charge is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release. Villegas-Gamez is set for sentencing on August 11, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Blaine County Narcotics Enforcement Team. Other agencies that assisted with the investigation include the U. S. Immigration and Customs Enforcement’s (ICE) and Idaho State Police. The Blaine County Narcotics Enforcement Team includes the Blaine County Sheriff’s Office, Sun Valley Police Department, Hailey Police Department, Ketchum Police Department, and Bellevue Marshal’s Office.
Both cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Toledo Man Sentenced to 15 Years in Prison for Human TraffickingRead the Press Release
A Toledo man was was sentenced to 15 years in prison for sex trafficking involving children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Brady Jackson, 28, was convicted last year on two counts of sex trafficking of children following a jury trial.
“Human trafficking is a despicable crime,” Dettelbach said. “This defendant targeted vulnerable people for the sole purpose of profiting off them in the commercial sex industry.”
Anthony said: “The sexual human trafficking of minors for profit is an injustice that will not be tolerated. The FBI continues to aggressively pursue and bring to justice those who violate the rights of our most vulnerable of the community.”
Jackson advertised on backpage.com in in Septmber 2011 that the two girls, ages 16 and 15, were available for prostitution. Jackson told the girls that he would take all the money they would make from prostitution but that he would take them shopping and get their hair and nails done, according to court records.
This case is being prosecuted by Assistant United States Attorneys Carol M. Skutnik and Ava Dustin following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force (NWOVCACTF).
The NWOVCACTF, directed by the FBI Resident Agency in Toledo, Ohio, includes special agents of the FBI, and agents and officers from the Ohio Bureau of Criminal Identification and Investigation, Ohio Highway Patrol, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office. Toledo Office of the Federal Bureau of Investigation.
Three Deming Residents Appear in Federal Court on Kidnapping and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jessie A. Hopper, Jr., 29, Jessie Hopper, Sr., 53, and Polly Hopper, 60, all of Deming, N.M., made their initial appearances this morning in federal court in Las Cruces, N.M., on a criminal complaint charging them with kidnapping and firearms charges. The three defendants remain in custody pending preliminary hearings and detention hearings which are scheduled for May 21, 2014.
The criminal complaint charges the three defendants with kidnapping a woman and her two young children and transporting them in interstate commerce. It also charges and Hopper, Jr., and Hopper, Sr., with brandishing a firearm during and in relation to a crime of violence. According to the complaint, Hopper, Jr., and Hopper, Sr., allegedly kidnapped the victims in Hot Springs, Ark., on May 8, 2014, with the assistance of Polly Hopper. Hopper, Jr., allegedly handcuffed the adult victim and brandished a firearm at her to force her to comply with his demands, including a demand that she telephone family members to assure them that she was voluntarily leaving Arkansas with Hopper, Jr.
The criminal complaint alleges that on May 8 and 9, 2014, the three defendants drove the victims from Arkansas to the defendants’ residence in Deming. It further alleges that on May 9 and 10, 2014, Hopper, Jr., and Hopper Sr., sexually assaulted the adult victim several times. On May 9, 2014, Hopper, Jr., allegedly brandished a firearm at the victim to force her to submit to a sexual assault by Hopper, Sr.
The three defendants were arrested by the New Mexico State Police on state charges on May 10, 2014. They remained in state custody until they were transferred to federal custody on May 16, 2014, to face the charges in this case. The state charges, which are being pursued by the 6th Judicial District Attorney’s Office for the State of New Mexico, are still pending.
If convicted on the federal kidnapping charges, each defendant faces a statutory maximum penalty any term of years to life imprisonment. If convicted on the firearms charges, Hopper, Jr., and Hopper, Sr., each face seven years in prison that must be served consecutive to any sentence imposed on the kidnapping charges.
This case was investigated by the Las Cruces office of the FBI, the New Mexico State Police, and the Luna County Sheriff’s Office, with assistance from the 6th Judicial District Attorney’s Office for the State of New Mexico. The FBI in Little Rock, Ark., the Garland County (Arkansas) Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of Arkansas also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Statement by U.S. Attorney Jenny A. Durkan on Nomination of New Seattle Police ChiefRead the Press Release
The Department of Justice congratulates nominee Kathleen O’Toole. Commissioner O’Toole has a reputation for strong, effective and community based policing. She has experience running a large police department and also has recently worked with a police department operating under a consent decree with the DOJ.
If confirmed, Commissioner O’Toole will inherit a police department that has dedicated officers and civilian staff, but is undergoing profound change. In recent months, the Seattle Police Department has adopted new policies that touch every important part of policing: data collection, use of force, stops and detentions, crisis intervention and bias policing. SPD is now actively training staff and officers on these policies, which are built to serve communities throughout Seattle. The sheer logistics and effort to implement these changes cannot be overstated: virtually every officer will undergo intensive training in the coming months. Entire new data and computer systems must come on-line. Progress is being made every day but there is still work to be done.
We applaud Commissioner O’Toole’s pledge to continue this work. Her commitment to the men and women working at SPD is equally important. We have great respect for SPD officers and are confident they will continue to address issues raised in the DOJ investigation. On May Day they showed that even as the organization was being remade, they could implement strong and effective policing strategies.
SPD and City leadership understands and has demonstrated that constitutional policing and public safety go hand in hand. Public confidence and community trust are key elements that ensure officers have the tools necessary to solve crime and protect the community.
2014 is a pivotal year for SPD. Conducting and finishing training, beefing up supervision and collecting more data will require great effort. But they are essential to be able to more quickly and transparently monitor progress towards better policing and increasing public safety.
The Department of Justice looks forward to working with Commissioner O’Toole and the City of Seattle in building a police department that is a natural leader in urban policy.Statement by Attorney General Eric Holder <br /> on the Conviction of Abu Hamza al-MasriRead the Press Release
Attorney General Eric Holder issued the following statement today in response to a federal jury in Manhattan unanimously reaching a guilty verdict against Abu Hamza al-Masri:
“In both word and deed, Abu Hamza supported the cause of violent extremism. His conviction is as just as it was swift. This case is all the more noteworthy since it continues a trend of successful prosecutions of top terrorism suspects in our federal court system. With each efficiently delivered guilty verdict against a top al Qaeda-linked figure, the debate over how to best seek justice in these cases is quietly being put to rest.”
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of Mustafa Kamel Mustafa, A/k/a “Abu Hamza”Read the Press Release
“Once again the men and women of this office and the FBI have brought a notorious terrorist before the bar of American justice and once again the men and women of an American jury, having weighed the evidence, have found him guilty beyond a reasonable doubt. We are gratified that the jury has returned a unanimous verdict of guilt against Mustafa Kamel Mustafa, also known as “Abu Hamza.” The defendant stands convicted, not for what he said, but for what he did. Abu Hamza was not just a preacher of faith, but a trainer of terrorists. Once again our civilian system of justice has proven itself up to the task of trying an accused terrorist and arriving at a fair and just and swift result. As we have seen in the Manhattan federal courthouse in trial after trial – of Ahmed Ghailani, of Suleiman Abu Ghayth, and now of Abu Hamza – these trials have been difficult, but they have been fair and open and prompt. These trials demonstrate that in an American civilian courtroom, the American people and all the victims of terrorism can be vindicated without sacrificing our principles. And that is one reason our civilian court system is admired the world over.”
Southwest City Man Sentenced for Illegally Reentering U.S.Read the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for illegally reentering the United States after having been deported.
Isaac Elias Rodriguez-Nava, 27, a citizen of Mexico residing in Southwest City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to four years and nine months in federal prison without parole.
Rodriguez-Nava, who pleaded guilty on Dec. 11, 2013, was arrested at the Tyson Foods plant in Noel, Mo., where he was employed. Rodriguez-Nava came to the attention of federal law enforcement after his fingerprints were taken at the Southwest City jail when he was arrested for driving without a valid license.
Rodriguez-Nava was deported from the United States on Jan. 5, 2012, after serving a prison sentence in Texas for aggravated robbery with a deadly weapon and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
South Loop Condo Developer and Two Attorneys Among Six Defendants Indicted in $22.8 Million Mortgage Fraud SchemeRead the Press Release
CHICAGO — A south loop condominium developer and two attorneys are among six defendants facing federal charges for allegedly engaging in a $22.8 million mortgage loan fraud scheme, federal law enforcement officials announced today. The defendants allegedly caused buyers to fraudulently obtain approximately 60 mortgages from various lenders to purchase condominiums at Vision on State, a 250-unit building located at 1255 South State St.
Real estate developer WARREN N. BARR, III, was a member of 13th & State, LLC, which obtained a $55.7 million loan in 2005 to finance the development and construction of Vision on State between 2004 and 2008. Barr, 62, of Riverside, was charged with nine counts of bank fraud and four counts of making false statements on loan applications in a 13-count indictment that was returned by a federal grand jury last Thursday.
Also indicted were: ROBERT D. LATTAS, 37, of Oak Brook, an attorney who represented 13th & State at condo closings, seven counts of bank fraud and three counts of making false statements; JEFFREY A. BUDZIK, 37, of Miami Beach and formerly of Chicago, an attorney who represented individuals purchasing condos at Vision on State, one count of bank fraud; ASIF A. ASLAM, 43, of Irvine, Calif., and formerly of Lincolnwood, six counts of bank fraud and one count of making false statements; LEONARDO V. SANDERS, 51, of Chicago, who similar to Aslam recruited individuals to purchase condos and then lease them to renters, two counts of bank fraud and one count making false statements; and JAMES J. CARROLL, 63, of Naperville, who was chief financial officer and a member of 13th & State, one count of bank fraud.
The indictment also seeks forfeiture of $22,872,527 from Barr, Lattas, Aslam, and Sanders.
Barr is believed to be living temporarily in Saudi Arabia and a warrant was issued for his arrest. The other five defendants are scheduled to be arraigned at 10 a.m. Wednesday, or on other dates to be determined, in U.S. District Court.
Between March 2007 and July 2012, the defendants allegedly caused buyers to obtain mortgages to purchase condos at Vision on State by making false statements to lenders in loan applications, real estate contracts, and HUD-1 settlement statements about the sales price of the units, the buyers’ employment, income, financial condition, assets, liabilities, sources of down payment, and intention to occupy the condos, and the funds that 13th & State was providing such as the buyers’ down payments, buyers’ incentives, and commissions.
According to the indictment, Barr, Lattas, and Carroll determined the minimum prices that 13th & State should receive for the condos and facilitated the sale of those units at inflated prices, knowing the difference between the two prices, or “the spread,” would be paid to Aslam, Sanders and others to recruit buyers with incentives that were not disclosed in loan documents.
All six defendants allegedly caused false documents to be prepared that concealed from lenders that funds represented as the buyers’ down payments were actually provided by 13th & State, so that the buyers were contributing little or no equity, and that the purchase prices were inflated. Aslam and Sanders allegedly received funds from Barr and others at Barr’s direction, and, knowing this was not disclosed to lenders, kept some of the funds for themselves and used some of the funds to pay condo buyers’ assessments and closing costs.
The indictment also alleges that Barr purchased a condo at Vision on State and that he, Lattas, and Carroll knew that loan documents contained false information about the sales price and the source of Barr’s down payment, as well as false information about his assets and liabilities.
The lenders allegedly defrauded include AmTrust Bank, Bank of America, First Tennessee Bank, JP Morgan Chase Bank, and Wells Fargo.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency.
The government is being represented by Assistant U.S. Attorney Christopher R. McFadden.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, or an alternate fine of twice the loss or twice the gain, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Snohomish County Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
A 35- year-old Arlington, Washington man pleaded guilty today in U.S. District Court in Seattle to distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. CHRISTOPHER DAVID DOGGETT, faces a mandatory minimum 15 years in prison and up to 40 years in prison when sentenced by Chief U.S. District Judge Marsha J. Pechman on August 15, 2014. DOGGETT has a 2003 conviction for possession and distribution of child pornography triggering the mandatory minimum sentence.
According to the plea agreement, when Snohomish County Sheriff’s deputies searched DOGGETT’s home on January 22, 2010, they discovered more than 600 images of child pornography on his digital media devices that he had distributed via computer. On DOGGETT’s smartphone, investigators found images of him molesting a young child. DOGGETT was convicted in Snohomish County Superior Court of dealing child pornography and was sentenced to 90 months in prison in February 2011. Chief Judge Pechman will determine whether the state and federal sentences will run concurrently.
Under the terms of the plea agreement, DOGGETT will be required to register as a sex offender and will undergo a psycho-sexual evaluation.
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 case was investigated by the Snohomish County Sheriff’s Department and was prosecuted by Assistant United States Attorney Jerrod Patterson.
San Gabriel Valley Teacher Who Pleaded Guilty to Child Exploitation Offenses and Admitted Molestation Sentenced to over 23 YearsRead the Press Release
LOS ANGELES – A former teacher and athletic coach at Royal Oak Middle School in Covina, who pleaded guilty to producing child pornography and using the Internet to entice a minor to engage in sex, was sentenced today to 282 months in federal prison.
John David Boyle, 52, of Glendora, received the 23½-year sentence from United States District Judge Stephen V. Wilson.
At today's hearing, Judge Wilson said Boyle’s crimes were “horrendous” and that “the damage done to the victims is incalculable.”
Boyle, who in addition to teaching was also an athletic coach, pleaded guilty in March to enticement of a minor to engage in criminal sexual activity, admitting that he molested a 14-year-old boy who he met online. Boyle also pleaded guilty to production of child pornography, distribution of child pornography, and possession of child pornography.
Boyle “spent years collecting child pornography from the Internet, traded child pornography over e-mail, participated in sexually explicit conversations in Internet chat rooms in which he enticed underage boys to engage in sexually explicit conduct, and personally molested multiple underage boys,” prosecutors wrote in a sentencing brief filed with the court.
During the course of the investigation, Boyle engaged in online chats with an undercover agent, believing that the undercover agent shared his sexual interest in young boys, according to court documents. Boyle set up an in-person meeting with the undercover agent in his classroom at the school on a Sunday, believing that the purpose of the meeting was to engage in sexual activity while watching child pornography together.
After being confronted by authorities in June 2013, Boyle allowed them to access several of his online accounts. Investigators then discovered that Boyle had used one of his accounts to distribute child pornography. Following Boyle’s arrest, further investigation by agents revealed that Boyle had abused at least one other underage victim in the late 1980s.
“Simply put, defendant is a sexual predator, who has avoided detection by law enforcement for many years and poses an extreme danger not just to the community, but also to the most vulnerable in it – namely, young children,” prosecutors stated in their sentencing brief.
The investigation into Boyle was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Internet Crimes Against Children Task Force (ICAC).
Release No. 14-063
Robbers Targeting Gas Stations and Hotels Along I-95 Plead GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Julie Leon, Special Agent in Charge, ATF, Tampa/Orlando Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Wayne Ivey, Sheriff, Brevard County Sheriff’s Office, John A. Bolduc, Chief, Port St. Lucie Police Department, and Frank J. Kitzerow, Chief, Jupiter Police Department, announce that Yubran Alvarez Vasquez, 22, of Bluffton, South Carolina, and Matthew Emmanuel Vasquez, 24, of Savannah, Georgia, pled guilty today to charges stemming from six armed robberies targeting gas stations and hotels along I-95 from Melbourne to Jupiter. Each defendant pled guilty to two counts of possessing, brandishing, and discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii & iii).
According to the terms of the plea agreements, the defendants must serve a minimum of 35 years in prison but may be sentenced to life in prison. Sentencing is scheduled for August 27, 2014 at 1:30 p.m. in Fort Pierce, before U.S. District Judge Jose E. Martinez.
The defendants admitted to targeting gas stations and hotels just off exits on I-95 from Melbourne to Jupiter. The defendants participated in one robbery spree that lasted five hours commencing on February 14, 2013, through the early morning hours of February 15, 2013, during which the defendants robbed at gunpoint two gas stations and two hotels. The defendants brandished guns in all the robberies and during the robbery of the Holiday Inn Express in Vero Beach, a firearm was fired. No one was seriously injured.
Mr. Ferrer commended the investigative efforts of ATF, the Indian River County Sheriff’s Office, the Brevard County Sheriff’s Office, the Port St. Lucie Police Department, and the Jupiter Police Department. The case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Remarks as Prepared for Delivery by Deputy Attorney General James M. Cole Announcing Guilty Plea in Credit Suisse Offshore Tax Evasion Case Washington, D.c.Read the Press Release
After an exhaustive, multi-year investigation into the use of illegal offshore bank accounts at Credit Suisse, today we have announced an historic guilty plea by the bank and the largest monetary penalty of any criminal tax case ever.
Today's guilty plea is an appropriate resolution, given the duration and breadth of Credit Suisse's conduct. Credit Suisse engaged in serious wrongdoing, first, when it aided and abetted U.S. tax evasion, and then when it failed to take immediate steps to remedy this conduct and cooperate in our investigation. Today Credit Suisse has admitted that conduct and faces significant consequences for it. Its agreement to pay fines and restitution in excess of 2 and a half billion dollars reflects both the significance of the problem at the bank and the bank's acceptance of responsibility for it.
Credit Suisse is taking the appropriate steps to put its criminal conduct behind it and move toward a new era of compliance. Through this guilty plea and Credit Suisse's civil resolutions with the Securities and Exchange Commission, the Federal Reserve, and the New York Department of Financial Services, Credit Suisse has committed to working with U.S. law enforcement and banking regulators in order to ensure that its wrongdoing remains in the past. We acknowledge Credit Suisse's efforts in this regard, and I expect that as the Bank moves forward, it will continue on its new path of compliance with U.S. tax laws.
In coming to today's resolution, we are mindful that guilty pleas by a bank can have impacts far beyond the parties to the plea. This plea demonstrates that the Department of Justice and bank regulators are prepared hold banks and their relevant employees accountable while being mindful of the impacts on depositors and the American public. The coordination required for this result can take considerable time, as in this case, but it is work that we deem important.
In several public statements, I have promised additional public developments with respect to the Department's investigations into the use of secret offshore bank accounts in Switzerland and elsewhere, and one of those developments has come to pass with today's plea. But there have been many other notable actions in the past few months in our ongoing efforts to combat the use of foreign bank accounts to evade U.S. taxes. Eight individuals affiliated with Credit Suisse have been indicted by the United States Attorney's office for the Eastern District of Virginia for their role in conspiring to assist U.S. clients in concealing their income and assets from the IRS. Two of them have pleaded guilty in recent weeks. In January 2013, Wegelin Bank, another Swiss bank, pled guilty to conspiracy to evade taxes. We have targeted 13 other Swiss banks for similar conduct. Just recently, a Swiss asset management firm, Swisspartners Group, entered into a multi-million-dollar settlement with the U.S. Attorney's Office for the Southern District of New York, and produced account files of its clients. We have also had over 100 Swiss banks come forward as part of a program we put in place with the support of the Swiss government. Under this program, these banks, which were not under investigation, will pay penalties for the violations of US law that were committed at their institutions, and provide us with information that will lead to the identification of their US clients who evaded paying their taxes. We also have had over 43,000 US taxpayers enter into the IRS voluntary disclosure program and pay over $6 billion in back taxes and penalties to the United States Treasury.
The Department is committed to robust enforcement in the offshore area, not just in Switzerland, but wherever in the world it is found. We have taken public actions in India, Israel, Luxembourg, the Cayman Islands and several other Caribbean countries. And we are engaged in law enforcement actions around the world that are not yet public. The Department's approach to investigating and prosecuting these cases is multi-faceted, and we are committed to using the many law enforcement tools at our disposal - from grand jury subpoenas to John Doe summonses, to whistleblowers and cooperating witnesses - to gather information and evidence to identify wrongdoers and hold them to account.
While today's action is a significant milestone in our law enforcement efforts, our work in the offshore area is far from done, and we expect additional public actions in this area in the coming months.
Today I commend the efforts of the Tax Division led by Assistant Attorney General Kathryn Keneally, and the U.S. Attorney's Office for the Eastern District of Virginia, led by U.S. Attorney Dana Boente. I also applaud the work and support of the Internal Revenue Service, especially intensive investigative efforts of the Criminal Investigation Division, led by Chief Richard Weber. We also appreciate the efforts of the Swiss government and banking regulators in reaching a just result and bringing the Credit Suisse matter to a close.
I would now like to turn things over to Assistant Attorney General of the Tax Division, Kathryn Keneally, who will provide additional comments on today's action and our law enforcement efforts in the offshore area.
Remarks as Prepared for Delivery by Attorney General Eric Holder Announcing Guilty Plea in Credit Suisse Offshore Tax Evasion Case Washington, D.c.Read the Press Release
Good afternoon – and thank you all for being here. I am joined today by Deputy Attorney General Jim Cole; Assistant Attorney General for the Tax Division Kathryn Keneally; U.S. Attorney Dana Boente, from the Eastern District of Virginia; and Commissioner John Koskinen of the Internal Revenue Service. We are here to announce a major step forward in our ongoing effort to protect the American people from financial misconduct – and to hold accountable any individual, bank, or other institution that violates our laws and abuses the public trust.
Today, the Department of Justice filed a criminal information against Credit Suisse AG –a bank that is one of the largest wealth managers in the world. In the course of our painstaking, years-long investigation, the Department discovered that Credit Suisse and its subsidiaries engaged in an extensive and wide-ranging conspiracy to help U.S. taxpayers evade taxes. The bank actively helped its account holders to deceive the IRS by concealing assets and income in illegal, undeclared bank accounts. These secret offshore accounts were held in the names of sham entities and foundations. This conspiracy spanned decades. In the case of at least one wholly-owned subsidiary, the practice of using sham entities to conceal funds began more than a century ago. Credit Suisse not only knew about this illegal, cross-border banking activity; they willfully aided and abetted it. Hundreds of Credit Suisse employees, including at the manager level, conspired to help tax cheats dodge U.S. taxes.
In the course of these activities, Credit Suisse deceived the IRS, the Federal Reserve, the Securities and Exchange Commission, and the Department of Justice. The bank went to elaborate lengths to shield itself, its employees, and the tax cheats it served from accountability for their criminal actions. They subverted disclosure requirements, destroyed bank records, and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credit and debit cards to repatriate funds. They failed to take even the most basic steps to ensure compliance with tax laws. And when the bank finally began to feel pressure to correct illegal practices and comply with the law – as a result of the Justice Department's investigation, of which they were notified in 2010 – Credit Suisse failed to retain key documents, allowed evidence to be lost or destroyed, and conducted a shamefully inadequate internal inquiry.
Today, I can announce that Credit Suisse has agreed to plead guilty to criminal charges related to this pervasive illegal activity. This is the largest bank to plead guilty in 20 years. The bank will pay a total of $1.8 billion in the form of a fine of over $1.13 billion and nearly $670 million in restitution to the IRS. They have admitted criminal wrongdoing in a detailed Statement of Facts filed alongside the information in this case. And they have stopped these activities, fundamentally changed their business operations, and agreed to provide critical information that will aid in our enforcement efforts - so the bank can move forward in full compliance with the law.
This plea agreement caps a years-long investigation that has already led to law enforcement actions with respect to several individual employees Credit Suisse. Since 2011, the Department has indicted eight employees at the bank, including some at the manager level; two of these have so far pleaded guilty.
This announcement should send a firm and unequivocal message to anyone who would engage in dishonest or illegal financial activity that the Justice Department does not, and we will not, tolerate such activities. When a bank engages in misconduct this brazen, it should expect that the Justice Department will pursue criminal prosecution to the fullest extent possible, as has happened here.
This case shows that no financial institution, no matter its size or global reach, is above the law. When the Department of Justice conducts investigations, we will always follow the law and the facts wherever they lead. We will never hesitate to criminally sanction any company or individual that breaks the law. A company's profitability or market share can never and will never be used as a shield from prosecution or penalty. And this action should put that misguided notion definitively to rest.
This resolution, and today's announcement, were conducted in close coordination with the bank's financial regulators - in this case, the Board of Governors of the Federal Reserve, which today announced a $100 million penalty; the New York State Department of Financial Services, which announced a resolution totaling $715 million; and the SEC, to which Credit Suisse paid $196 million this past February.
Because criminal charges involving a financial institution have the potential to trigger serious follow-on actions by regulatory agencies, this coordination was imperative. As the regulators have conveyed this afternoon, notwithstanding this plea agreement, the bank will move forward. And although I cannot comment on, or specify the targets of, other ongoing investigations, I am confident that this robust cooperation will serve us well in the weeks and months ahead.
I'd like to thank everyone who made today's announcement possible – particularly Assistant Attorney General Keneally, her colleagues in the Tax Division, and U.S. Attorney Boente and his colleagues in the Eastern District of Virginia. Thank you for your tireless work on this important matter. At this time it's my privilege to introduce Deputy Attorney General James Cole, who will provide additional details on today's announcement.
Remarks as Prepared for Delivery by Assistant Attorney General for the Tax Division Kathryn Keneally Announcing Guilty Plea in Credit Suisse Offshore Tax Evasion Case Washington, D.c.Read the Press Release
The central mission of the Tax Division is to enforce our nation's tax laws fairly and consistently. This is a responsibility that we owe to every honest taxpayer who pays his or her fair share.
As part of this mission, we are committed to using all enforcement tools against those who seek to avoid their legal obligations, and their responsibilities to their fellow citizens and taxpayers, by hiding their assets in foreign bank accounts. We are also committed to investigating and holding responsible financial institutions, bankers, and other professionals who facilitate this conduct.
Credit Suisse has now acknowledged that it acted in both the United States and Switzerland to aid and abet the use of secret Swiss bank accounts for the evasion of U.S. taxes. As set out in the statement of facts, Credit Suisse assisted its clients in using sham entities, soliciting IRS forms that falsely stated that those sham entities were the beneficial owners of assets in accounts with the bank, and facilitating access to the funds in those accounts in a manner designed to keep the accounts secret. It also failed to preserve documents that would have aided in our investigation. The plea agreement that has been announced today imposes serious consequences on Credit Suisse for this conduct.
We appreciate that Credit Suisse has taken this significant step to accept the consequences of these acts. We also recognize that Credit Suisse has ceased this conduct, and has changed its business operations to ensure that U.S. taxpayers will no longer be able to hide their assets at Credit Suisse. Also, through the information that Credit Suisse has agreed to provide, the Internal Revenue Service and the Department of Justice will be able to make treaty requests to Switzerland for account records. For those account holders who closed their accounts knowing that our investigations were focusing on Credit Suisse, we are obtaining information that is enabling us to follow the funds to other Swiss banks or to banks in other tax haven and bank secrecy countries. By its plea today, Credit Suisse has addressed its past conduct, and is in a position to move beyond these criminal activities.
We also appreciate that Switzerland has taken important steps to ensure that its banking community will no longer be a haven for U.S. tax evasion. Switzerland's ratification, in September 2009, of the Protocol amending U.S.-Swiss tax treaty, and its inter-govermental agreement with the United States concerning FATCA implementation, were significant steps toward this goal. We are also grateful for the support of the Swiss Financial Market Supervisory Authority, FINMA, and the Swiss government for the Swiss Bank Program that the Department announced in August 2013. Through this program, Swiss banks are cooperating to provide valuable information that will further our global investigations, and those Swiss banks in turn have a path to resolution for past activities.
I also take this opportunity to thank the Attorney General and the Deputy Attorney General for the support and assistance that the Tax Division received throughout this investigation and in all our our enforcement activities, to recognize and thank United States Attorney Dana Boente for the excellent work by his office in the Eastern District of Virginia, to recognize and thank the IRS Commissioner John Koskinen and the IRS Criminal Investigation Division for the important work of the IRS in this law enforcement priority, and to recognize and thank all of the prosecutors and investigative agents who have done excellent work throughout this investigation, and in particular to recognize Mark Lytle, Assistant United States Attorney for the Eastern District of Virginia, Mark Daly, Senior Litigation Counsel, and Nanette Davis, Assistant Chief, with the Tax Division, and IRS Special Agent James O'Leary.
I would like now to turn to IRS Commissioner John Koskinen for additional comments.
Rand Man Pleads Guilty in Major Federal Investigation of Huntington Drug TraffickingRead the Press Release
Huntington, W.Va. – Brandon Appleton, 25, of Rand, West Virginia, pleaded guilty today in federal court in Huntington to possessing cocaine and the drug MDMA, commonly known as Ecstasy, with the intent to distribute them, United States Attorney Booth Goodwin announced. On January 20, 2014, investigators working with the Drug Enforcement Administration conducted a search at 1814 Artisan Avenue in Huntington, which was the residence of Kenneth Dewitt Newman, also known as “K-Kutta.” At the time of the search, Appleton was in the residence. Appleton was in possession of a sandwich-style bag that contained smaller bags of both MDMA and cocaine, which Appleton intended to sell.
The investigation into Newman’s drug trafficking revealed that Appleton distributed drugs for Newman from approximately December 2013 until the January search. Additional amounts of cocaine and MDMA, as well as heroin, marijuana, and prescription pills, were seized in the residence. As a result of the investigation, Newman and 14 other individuals were charged with various offenses related to a drug trafficking conspiracy in the Huntington area.
Appleton faces up to 20 years’ imprisonment and up to a $1 million fine when he is sentenced on August 18, 2014. Chief United States District Judge Robert C. Chambers is presiding over the case.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Penn Yan Man Indicted for Conspiring and Attempting to Obtain Money from Bank by Extortion and Lying to the FBIRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a four-count indictment charging Jonathan A. Karcher, 21, of Penn Yan, N.Y., with conspiring and attempting to extort money from the Lyons National Bank in Penn Yan on June 5, 2013 and later lying to the Federal Bureau of Investigation during the investigation into the incident. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that according to the indictment, on June 5, 2013, a member of the conspiracy called the manager of Lyons National Bank and demanded that the manager take $15,000 in cash and leave it by a dumpster behind the Rite Aid store across the street from the bank. During that conversation, the caller threatened the bank manager by informing her that the caller knew where the manager lived, how many children the manager had and that the car of one of the children was at the house that day. The indictment also alleges that Karcher drove to the area of the Lyons National Bank that day, parked in the Rite Aid parking lot and later walked by the dumpster where the manager had been directed to leave the $15,000.
The indictment further alleges that during a subsequent interview during the investigation, the defendant provided materially false statements to the FBI.
The indictment is the culmination of a joint investigation on the part of the Penn Yan Police Department, under the direction of Chief Mark Hulse, and the Federal Bureau of Investigation.
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.Passaic County, N.J., Man Pleads Guilty to Conspiring to Defraud the U.S. Treasury Department of More Than $2.5 MillionRead the Press Release
NEWARK, N.J. - A Passaic County, N.J., man today admitted his role in defrauding the U.S. Department of Treasury of more than $2.5 million in income tax return checks, U.S. Attorney Paul Fishman announced today.
Reyes Flores-Perez, 32, of Passaic, N.J., pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to defraud the United States and one count of knowingly transferring false identification documents.
According to documents filed in this case and statement made in court: Citizens of the Commonwealth of Puerto Rico typically do not file tax returns with the IRS as long as all of their income is derived from sources in Puerto Rico. Members of the conspiracy filed or caused to be filed phony individual income tax returns with the IRS using the identity information of other individuals, including citizens of the Commonwealth of Puerto Rico. The IRS processed the false returns as if they were legitimate and issued refund checks, which were obtained by Flores-Perez’ conspirators. Flores-Perez’ role in the scheme was to produce fraudulent identification documents that matched the identities of the payees on the treasury checks, which his conspirators used to negotiate the treasury checks. Flores-Perez admitted the total loss from the conspiracy was more than $2.5 million.
The conspiracy charge to which Flores-Perez pleaded guilty carries a maximum potential penalty of five years in prison. The transferring fraudulent identification documents charge carries a maximum potential penalty of 15 years in prison. Both charges also carry a potential $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Sept. 10, 2014.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Cari Fais of the General Crimes Unit and Andrew J. Bruck of the Organized Crime/Gangs Unit in Newark.
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Defense counsel: John Whipple Esq., Morristown, N.J.Flores-Perez, Reyes, Information
Pasco Man Sentenced for Distribution of MethamphetamineRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kenneth Richard Rowell, a resident of Pasco, Washington, was sentenced after having previously pleaded guilty to Distribution of Methamphetamine. Senior United States District Judge William Fremming Nielsen sentenced Rowell to a 120 month term of imprisonment and a 60 month term of court supervision following his release from Federal prison.
According to information disclosed during the court proceedings, Rowell distributed over 5 grams of pure methamphetamine. The case began with an investigation by the Tri-City Metro Drug Task Force, which conducted a controlled purchase of methamphetamine from the Defendant. Special Agents with the Drug Enforcement Administration provided assistance and, on April 11, 2013, Rowell distributed 24.6 grams of pure methamphetamine.
Michael C. Ormsby said, "This prosecution is yet another example of the cooperation between members of the Tri-City Metro Drug Task Force and the Drug Enforcement Administration in the Tri-Cities. The corrosive effects of methamphetamine upon the community are well known. These state and federal law enforcement officers work together every day to investigate drug trafficking in the Eastern District of Washington and work closely with the United States Attorney's Office to prosecute aggressively individuals involved in such criminal activity. "
This investigation was conducted by the Tri-City Metro Drug Task Force and the Drug Enforcement Administration, and the prosecution was coordinated by Task Force Officer Kevin Barton. This case was prosecuted by Alexander C. Ekstrom, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-6070
Operation Dirty GlassRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing a large amount of PCP for distribution and for illegally possessing firearms.
Today’s sentence is a result of Operation Dirty Glass, a multi-agency investigation into a large-scale PCP and crack cocaine drug-trafficking organization in Kansas City that resulted in a series of 10 indictments that charged 20 defendants in separate but related cases.
Damond S. Hill, also known as “Day Day,” 35, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 19 years in federal prison without parole.
On July 1, 2013, Hill pleaded guilty to possessing one kilogram or more of PCP with the intent to distribute. Hill also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Law enforcement officers executed a search warrant at Hill’s residence following a controlled purchase of marijuana from Hill by an informant. Officers discovered nearly five kilograms of PCP packaged for distribution in various-sized bottles (including eye-droppers, gallon jugs and 32-ounce plastic bottles). Officers also found two .40-caliber pistols and a .45-caliber pistol, more than $3,000 and additional packaging material and items associated with drug trafficking.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Ohio Man Who Distributed Heroin Inters Federal Guilty PleaRead the Press Release
CHARLESTON, W.Va. – An Ohio man who distributed heroin to an informant in October 2013 pleaded guilty today to a federal drug charge, announced United States Attorney Booth Goodwin. Keith Irons, 25, of Marion, Ohio, pleaded guilty to distribution of heroin. Irons entered his guilty plea in a hearing before United States District Judge Thomas E. Johnston.
Irons admitted selling heroin to an informant working for the Parkersburg Police Department on two occasions in October 2013.
Irons faces up to 20 years in federal prison when he is sentenced on August 26, 2014.
The Parkersburg Police Department and the Washington County, Ohio Major Crimes Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Newfields Woman Sentenced to 12 Months and One Day ForRead the Press Release
Stealing Veteran’s Benefits
CONCORD, NEW HAMPSHIRE – Amy Greeley, 43, of Newfields, was sentenced in United States District Court for the District of New Hampshire to 12 months and one day in federal prison after pleading guilty to one count of misappropriating a veteran’s benefits and using them for her personal benefit, announced United States Attorney John P. Kacavas.
Greeley served as the fiduciary for benefits paid by the Department of Veterans Affairs on behalf of her father during the period from September 2002 through June 2011. As her father’s fiduciary, Greeley was obligated to use the funds solely for her father’s benefit. Beginning in May 2005 through June 2011, Greeley transferred the funds from the fiduciary account to accounts she controlled and spent the funds for her personal benefit. Greeley filed false annual reports with the VA indicating that the funds were in the fiduciary account. Those reports included the forged signatures of bank officials purportedly certifying the accuracy of the reports. Greeley was removed as the fiduciary in June 2011, after having stolen approximately $251,534 in benefits. The VA was reimbursed in its entirety before Greeley was sentenced.
The government requested a sentence of 24 months based on the advisory federal sentencing guideline. The court imposed the 12 months and a day sentence to be followed by a two year period of supervised release after she completes her prison sentence. During the term of supervised release Greeley’s behavior will be monitored by the United States Probation & Pretrial Services Office.
The case was investigated by the Department of Veterans Affairs Office of the Inspector General, Criminal Investigations Division and prosecuted by First Assistant United States Attorney Donald Feith.
New York Man Sentenced to 15 Months Imprisonment for Purchasing Atv in Enosburg with Counterfeit MoneyRead the Press Release
The Office of the United States Attorney for the District of Vermont that Judge William K. Sessions III, in Burlington, Vermont, today sentenced Francis Hamblin, 31, of, Fort Ann, New York to fifteen months in prison and two years of supervised release. Hamblin previously plead guilty to possessing counterfeit currency.
According to court records, on October 19, 2013, Hamblin, in response to an advertisement on Craig’s List, purchased a Yamaha ATV vehicle from a man in Enosburg with $3,500 in counterfeit U.S. currency. The seller of the ATV later became suspicious of the currency and contacted the Franklin County Sheriff’s Office who confirmed the currency was counterfeit. Investigation by the Franklin County Sheriff’s Office led to Hamblin’s arrest. Hamblin also purchased two other ATVs with counterfeit currency, one in Albany, Vermont and the other in Plattsburgh, New York. Two of the three ATVs were recovered and returned to the original owners. The third was not and Hamblin was ordered to pay $2,080 to the seller in Plattsburgh, New York. Court records show that Hamblin also passed a $20 counterfeit bill at Burger King in South Burlington, Vermont.
This case was investigated jointly by the United States Secret Service and the Franklin County Sheriff’s Office. The United States is represented by Assistant U.S. Attorney Joseph Perella. The defendant is represented by David McColgin, Esq. of the Federal Public Defender’s Office in Burlington.New Haven Man Sentenced to 3 Years in Federal Prison for Illegally Possessing Firearm and AmmunitionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEROME R. THOMAS, 22, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by three years of supervised release, for possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on January 1, 2014, members of the Yale University Police Department executed an arrest warrant for THOMAS at his girlfriend’s residence. THOMAS was apprehended after he attempted to flee the premises through a window. A search of the residence revealed a .45 caliber semi-automatic pistol, two magazines loaded with .45 caliber ammunition, and a bag containing more than 80 additional rounds of .45 caliber ammunition.
THOMAS was previously convicted in state court of criminal possession of a firearm, possession of narcotics with intent to sell, and carrying a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
THOMAS has been detained since his arrest. On February 19, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yale University Police Department. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
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(203) 821-3722 [email protected]Neptune, N.J., Man Admits Involvement in Shooting of Cab Driver, Several Armed Robberies in Monmouth CountyRead the Press Release
TRENTON, N.J. – A Neptune, N.J., man today admitted his involvement in a 24-hour crime spree that took place in five separate shore-area towns and involved the shooting of a cab driver and a number of armed robberies, U.S. Attorney Paul J. Fishman announced.
Quam Wilson, 23, pleaded guilty to committing a Hobbs Act robbery and using a firearm during a the commission of that robbery. Wilson also admitted to committing additional armed robberies, which will be taken into consideration at the time of his sentencing. Wilson entered his guilty plea before Judge Peter G. Sheridan in Trenton federal court.
Wilson was initially arrested and charged by criminal complaint with the conspiracy and firearms counts on March 13, 2013. On June 3, 2013, U.S. Magistrate Judge Lois H. Goodman remanded him to federal custody pending trial. Wilson pleaded guilty today to counts one and two of the indictment returned against him on Sept. 5, 2013.
According to the documents filed in this case and statements made in court:
Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he robbed a cab driver in Asbury Park. The driver was shot during the robbery. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. During today’s hearing, Wilson admitted he took the cab driver’s identification, taxi keys and debit card during the robbery.
After robbing the taxi driver, Wilson proceeded to a Shell gas station located in Ocean Township. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area.
Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police.At approximately 9:00 p.m., that same day, he committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.
During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint.
A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money.
Wilson was arrested at approximately 10:00 p.m. by several police officers in Asbury Park, where he had been hiding in an attic.
The robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The firearm charge carries a maximum potential penalty of life in prison and a $250,000 fine, and a mandatory minimum penalty of 10 years in prison. Sentencing is currently scheduled for Sept. 3, 2014. U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Stephanie R. Shoemaker, with the investigation. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service N.Y./N.J. Regional Fugitive Task Force for their excellent work in the investigation and apprehension of Wilson.The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, and Special Assistant U.S. Attorney Jacquelynn Seely.
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Defense counsel: David R. Oakley Esq., Princeton, N.J.
Wilson, Quam Indictment
Mustafa Kamel Mustafa, A/k/a “Abu Hamza,” Convicted of 11 Terrorism Charges in Manhattan Federal CourtRead the Press Release
Charges Based on Participation in Hostage-Taking in Yemen, Support for the Establishment of a Terrorist Training Camp in the United States, and the Facilitation of Violent Jihad in Afghanistan
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the conviction of MUSTAFA KAMEL MUSTAFA, a/k/a “Abu Hamza,” a/k/a “Abu Hamza al Masri,” (“ABU HAMZA”) for his participation in a hostage-taking in Yemen in 1998 that resulted in four deaths, a conspiracy to establish a terrorist training camp in Bly, Oregon, in 1999, and supporting violent jihad in Afghanistan in 2000 and 2001. Following a four-week trial and two days of deliberations, the jury convicted ABU HAMZA of each of the 11 charges that he faced. ABU HAMZA is scheduled to be sentenced on September 9, 2014 before U.S. District Judge Katherine B. Forrest, who presided over the trial.
Attorney General Eric Holder said: “In both word and deed, Abu Hamza supported the cause of violent extremism. His conviction is as just as it was swift. This case is all the more noteworthy since it continues a trend of successful prosecutions of top terrorism suspects in our federal court system. With each efficiently delivered guilty verdict against a top al Qaeda-linked figure, the debate over how to best seek justice in these cases is quietly being put to rest.”
Manhattan U.S. Attorney Preet Bharara said: “Once again the men and women of this office and the FBI have brought a notorious terrorist before the bar of American justice and once again the men and women of an American jury, having weighed the evidence, have found him guilty beyond a reasonable doubt. We are gratified that the jury has returned a unanimous verdict of guilt against Mustafa Kamel Mustafa, also known as ‘Abu Hamza.’ The defendant stands convicted, not for what he said, but for what he did. Abu Hamza was not just a preacher of faith, but a trainer of terrorists. Once again our civilian system of justice has proven itself up to the task of trying an accused terrorist and arriving at a fair and just and swift result. As we have seen in the Manhattan federal courthouse in trial after trial – of Ahmed Ghailani, of Suleiman Abu Ghayth, and now of Abu Hamza – these trials have been difficult, but they have been fair and open and prompt. These trials demonstrate that in an American civilian courtroom, the American people and all the victims of terrorism can be vindicated without sacrificing our principles. And that is one reason our civilian court system is admired the world over.”
As alleged in the Indictment against ABU HAMZA and established by the evidence admitted at trial:
Hostage-Taking in Yemen in December 1998
On December 28, 1998, in Yemen, hostage-takers stormed a caravan of sport utility vehicles carrying 16 tourists, including two United States citizens, and took the tourists hostage by force. Prior to the hostage-taking, ABU HAMZA issued a public warning to “infidels” not to travel to Yemen. In addition, five days prior to the hostage-taking, ABU HAMZA’s stepson and other associates of ABU HAMZA were arrested in Yemen. During the hostage-taking, the hostages told their victims that they were taken prisoner to free the hostage-takers’ “friends”.
Prior to the hostage-taking, ABU HAMZA provided the leader of the hostage-takers with a satellite telephone, and subsequently spoke with him on that satellite telephone the night before the hostage-taking and during the hostage-taking. During the call on the day of the hostage-taking, ABU HAMZA agreed to act as an intermediary on behalf of the hostage-takers. ABU HAMZA also provided advice to the leader of the hostage-takers over the telephone.
On December 29, 1998, the Yemeni military launched a rescue operation to free the hostages. The hostage-takers fought the Yemeni military, using the hostages as human shields. During the rescue operation, four of the hostages were killed and several others were wounded.
Subsequently, in a recorded interview with one of the surviving hostages conducted at his mosque, ABU HAMZA described the hostage-taking as “a good thing.”
Efforts To Create a Terrorist Training Camp in Bly, Oregon in 1999
In late 1999, ABU HAMZA and several co-conspirators, including Oussama Abdullah Kassir, Haroon Rashid Aswat, and others, attempted to create a terrorist training camp to support al Qaeda on property located in Bly, Oregon. The primary purpose of the Bly, Oregon, camp was to provide various types of terrorist training, including weapons training. In late November 1999, at ABU HAMZA’s direction, Kassir and Aswat traveled from London, England, to Bly to assist in setting up the camp. Kassir brought with him to the camp a manual on the use of sarin nerve gas and letters of appreciation to Usama bin Laden and ABU HAMZA. Aswat subsequently was present at an al Qaeda guest house in Pakistan.
On May 12, 2009, after a four-week jury trial in this District, Kassir was convicted of various criminal offenses, including conspiring to provide material support to terrorists and to al Qaeda, and conspiracy to kill persons overseas, as a result of Kassir’s participation in the efforts to establish the Bly terrorist training camp. On September 15, 2009, United States District Judge John F. Keenan sentenced Kassir to multiple terms of life in prison. The conviction was subsequently affirmed by the Court of Appeals.
Aswat was arrested in Zambia in July 2005 and then deported to England, where he was arrested at the request of the United States, pursuant to a warrant issued in this District. The extradition proceedings against Aswat are currently pending.
Facilitating Violent Jihad in Afghanistan 2000 and 2001
In November 2000, ABU HAMZA requested that Ernest James Ujaama, a London-based follower of Abu Hamza, escort another one of ABU HAMZA’s followers, Feroz Abassi, to Ibn Sheikh al-Libi, a commander at a terrorist training camp in Afghanistan. Thereafter, Ujaama and Abassi traveled from London to Pakistan. Ujaama and Abassi then separately entered Afghanistan. ABU HAMZA subsequently conveyed instructions for Abassi to contact Ibn Sheikh al-Libi, who was expecting Abassi. Thereafter, Abassi passed through an al Qaeda safe house in Afghanistan, attended al Qaeda’s al Faruq training camp, and met with senior al Qaeda leaders. In December 2001, United States forces took Abassi into custody in Afghanistan.
In addition, from the spring of 2000 through late 2001, ABU HAMZA provided goods and services to the Taliban by, among other things, directing Ujaama to deliver money to Taliban-controlled parts of Afghanistan.
Ujaama was arrested in 2002 and testified against ABU HAMZA as a cooperating witness for the Government.
ABU HAMZA, 56, a naturalized citizen of the United Kingdom, was extradited from the United Kingdom to the Southern District of New York in October 2012. The 11 offenses of conviction carry the following maximum penalties:
Click here to view chart(s)
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The arrest, extradition and conviction of ABU HAMZA was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the FBI, the NYPD, the United States Marshals Service, and New Scotland Yard in the United Kingdom.
Mr. Bharara expressed particular appreciation to the U.S. Department of Justice Office of International Affairs for its extraordinary assistance with the extradition in this case. Mr. Bharara also thanked the FBI’s Seattle Field Office, the Home Office of the United Kingdom, the U.S. Department of Justice National Security Division, and the United States Department of State for their assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim and Ian McGinley are in charge of the prosecution.