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Wednesday 2 April 2014
Former Federal Contract Employee Sentenced to 13 Months in Prison for Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former federal contract employee, was sentenced today to 13 months in prison for the unauthorized disclosure of national defense information, announced Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim pleaded guilty on Feb. 7, 2014, in the U.S. District Court for the District of Columbia, to one count of making an unauthorized disclosure of national defense information. The plea agreement, which was contingent upon the Court’s approval, called for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. The Honorable Colleen Kollar-Kotelly accepted the plea today and sentenced Kim accordingly.
Kim, 46, was a Lawrence Livermore National Laboratory employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed to a reporter TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) relating to the national defense.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, a news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Stephen Kim was a sophisticated consumer of intelligence who knew the enormous damage that could be done by disclosing highly classified information about North Korea’s military capabilities,” said U.S. Attorney Machen. “He is now headed to federal prison to pay the price for betraying the trust of his country and placing our nation’s security at risk. Hopefully this prosecution will deter others who are considering compromising our nation’s most sensitive secrets.”
“As a federal contract employee to the State Department, Kim abused his position of trust and put the security of our nation at risk by knowingly disclosing Top Secret information,” said Assistant Director in Charge Parlave. “Today’s sentence serves as a warning to anyone who has access to information held by the U.S. government and would consider compromising our nation’s secrets – we will continue to take all necessary steps to investigate and prosecute those who illegally divulge national security information.”
Kim was indicted in August 2010. According to court documents that were filed at the time of the plea, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office with the assistance of the State Department’s Diplomatic Security Service. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-077Former Federal Contract Employee Sentenced to 13 Months in Prison for Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former federal contract employee, was sentenced today to 13 months in prison for the unauthorized disclosure of national defense information, announced Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim pleaded guilty on Feb. 7, 2014, in the U.S. District Court for the District of Columbia, to one count of making an unauthorized disclosure of national defense information. The plea agreement, which was contingent upon the Court’s approval, called for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. The Honorable Colleen Kollar-Kotelly accepted the plea today and sentenced Kim accordingly.
Kim, 46, was a Lawrence Livermore National Laboratory employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed to a reporter TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) relating to the national defense.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, a news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Stephen Kim was a sophisticated consumer of intelligence who knew the enormous damage that could be done by disclosing highly classified information about North Korea’s military capabilities,” said U.S. Attorney Machen. “He is now headed to federal prison to pay the price for betraying the trust of his country and placing our nation’s security at risk. Hopefully this prosecution will deter others who are considering compromising our nation’s most sensitive secrets.”
“As a federal contract employee to the State Department, Kim abused his position of trust and put the security of our nation at risk by knowingly disclosing Top Secret information,” said Assistant Director in Charge Parlave. “Today’s sentence serves as a warning to anyone who has access to information held by the U.S. government and would consider compromising our nation’s secrets – we will continue to take all necessary steps to investigate and prosecute those who illegally divulge national security information.”
Kim was indicted in August 2010. According to court documents that were filed at the time of the plea, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office with the assistance of the State Department’s Diplomatic Security Service. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-077Former Dhhr Employee Indicted on Multiple Fraud and Identity Theft ChargesRead the Press Release
CHARLESTON, W.Va. – Shannon Collins, 41, of Logan, West Virginia, was indicted yesterday by a federal grand jury sitting in Charleston for committing thirty-five counts of mail fraud, access device fraud, social security fraud and aggravated identity theft while employed by the Logan office of the West Virginia Department of Health and Human Resources (DHHR). According to the indictment, Collins, also known as Shannon Varney, worked as a case worker in the Logan DHHR office in 2009. Collins is charged with using the social security numbers of two deceased individuals to establish false accounts through which she could claim benefits. Collins then accessed the accounts, filed false claims and had benefits mailed to her post office box. Collins also mailed herself two EBT Cards, formerly known as the food stamp program, which she used until December of 2009. The indictment alleges that from April of 2009 to December of 2009, Collins defrauded DHHR out of $52,000.
If convicted, Collins faces up to 20 years in prison for each count of mail fraud, and two years of mandatory incarceration for each count of aggravated identity theft. She also faces up to five years incarceration for the misuse of social security numbers and ten years for the access device fraud.
The investigation was conducted by the Office of the Inspector General for DHHR, assisted by the United States Postal Inspection Service, the Social Security Administration, and the United States Department of Agriculture. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Former Clarence Man Sentenced for Non Payment of Child SupportRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jonathan O. Dale, 62, formerly of Clarence, N.Y., who was convicted of failure to pay child support, was sentenced to six months in prison by U.S. Magistrate Judge H. Kenneth Schroeder. The defendant was also ordered to pay restitution totaling $73,250.85.
Assistant U.S. Attorney Marie P. Grisanti and Maura O’Donnell, who handled the case, stated that from May of 1999 and continuing through to the present, Dale has failed to pay court ordered child support obligations and arrears totaling approximately $90,000.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent in Charge Thomas O’Donnell.Former CNMI Senator Sentenced to 41 Months Imprisonment for Obstructing Justice and Violating the Endangered Species ActRead the Press Release
Saipan, MP – United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco, announced that JUAN MANGLONA AYUYU, former Senator for the island of Rota in the Northern Marianas Commonwealth Legislature, was sentenced on March 31, 2014, by Judge Ramona Manglona in the District Court for the Northern Mariana Islands. Ayuyu was sentenced to 41 months in federal prison followed by three years of supervised release for his convictions of Conspiring to Obstruct a Grand Jury Investigation and Conspiring to Violate the Endangered Species Act. Ayuyu was also ordered to perform 100 hours of community service.
Ayuyu and his legislative assistant, Ryan James Inos Manglona, attempted to transport eight federally protected Mariana fruit bats, or Fanihi, on board a Freedom Air flight from Rota to Saipan. The bats, however, were discovered by the Transportation Security Administration (TSA), and Ayuyu instructed Manglona to lie to a Federal grand jury investigating their involvement.
The investigation was led by Erwin T. Flores, Conservation Inspector with the CNMI Division of Fish & Wildlife, an agency under the CNMI Department of Lands and Natural Resources, together with agents of the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Garth R. Backe.
Former Bank CEO and President Charged with Bank Fraud, Conspiracy and PerjuryRead the Press Release
Earlier today, an indictment was unsealed charging Poppi Metaxas, the former Chief Executive Officer (“CEO”) and President of Gateway Bank, FSB (“Gateway”), with bank fraud, bank fraud conspiracy and perjury. According to the indictment, in 2009, Metaxas fraudulently caused Gateway to execute a sham “round trip” transaction in which the bank self-funded a down payment to make it appear that Gateway had sold toxic, non-performing mortgage loans. This morning, the defendant surrendered to federal agents in California and was arraigned at the federal courthouse in San Francisco, California.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Christy Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and David A. Montoya, Inspector General of the Department of Housing and Urban Development, Office of Inspector General (“HUD-OIG”).
The indictment alleges that in February and March 2009, Metaxas engaged in a scheme to defraud Gateway in connection with Gateway’s sale of non-performing mortgage loans to three entities in exchange for $15 million. Specifically, Metaxas caused Gateway to enter into a sham agreement to loan money to Ideal Mortgage Bankers Ltd. d/b/a Lend America (“Lend America”), a mortgage lender and Gateway’s largest mortgage lending client. Lend America in turn provided that money to the three entities that were planning to purchase the non-performing mortgage loans. Thus, Metaxas and others, through a series of wire transfers, used the proceeds of the sham loan to Lend America to satisfy the 25% down payment that the three entities owed to Gateway in connection with the sale of the mortgage loans, in order to deceive observers and regulators into believing that Gateway had successfully removed these toxic assets from its books. To conceal the fraudulent “round trip” of the loan funds, in October 2009, Metaxas provided false testimony to the Office of Thrift Supervision when she was asked about the source of the down payment.
“As alleged in the indictment, Poppi Metaxas placed herself above the interests of the bank, her board of directors, and the regulators, and lied to and misled those around her. She abused the trust placed in her by the bank, and committed fraud,” stated United States Attorney Lynch. “Other executives who mislead their company’s board or regulators should be on notice. Working with our law enforcements partners, both federal and local, we will find you, and we will hold you accountable in a court of law.” Ms. Lynch expressed her grateful appreciation to New York State Department of Financial Services and the Office of Comptroller of the Currency.
“As alleged, Metaxas engaged in a scheme to defraud her employer using lies and misrepresentations in connection with the sale of non-performing mortgage loans. The FBI, along with its law enforcement partners, remains committed to investigating those who prey upon our financial institutions and their customers. Those who engage in this type of financial fraud will be identified and held accountable,” stated FBI Assistant Director-in-Charge Venizelos.
“In the last number of years, we have seen enormous and damaging developments in the mortgage and housing markets. Indictments such as this set an important precedent that bad banker behavior will not be tolerated and will be aggressively pursued. We are deeply committed to working in partnership with other federal, state, and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the expense of the government,” said HUD-OIG Inspector General Montoya.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Martin Coffey, Walter Norkin, and John Nowak.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
POPPI METAXAS
Age: 60
Hillsborough, CA
E.D.N.Y. Docket No. 14-CR-190 (JFB)
Federal Jury Finds North Oaks Man Guilty of Defrauding Investors Out of $1.5 Million in Wind Energy ProjectRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a jury found a 52-year-old North Oaks man guilty of defrauding investors to persuade them to invest in a purported wind energy project. Instead of building the wind energy project, the defendant used the investors’ $1.5 million to pay for his personal expenses and his other wind energy projects. On April 1, 2014, following a six-day trial, the jury convicted Gregory Joseph Jaunich on five counts of mail fraud. Jaunich was indicted on July 16, 2013.
According to the evidence presented at trial, from October 2006 through January 2007, Jaunich solicited funds from individual investors and investor groups for the purchase of membership units in Averill Wind, a company Jaunich created to develop and operate a wind energy project in Clay County, Minnesota. To induce these investments, Jaunich made false material representations concerning the project’s status, including telling them that the project was closer to completion than what was actually the case. In addition, Jaunich failed to disclose that at the time he was soliciting investments in Averill Wind, he was under criminal investigation by federal law enforcement for fraudulently overbilling Xcel Energy for wind energy production.
From October 2006 through January 2007, Jaunich received more than $1.5 million from investors. Jaunich told investors that the funds would be used to develop, operate and maintain the Averill project. Instead, Jaunich diverted almost all of the funds to his own personal use, to pay personal expenses and debts, and to pay expenses and debts relating to other wind energy projects. To keep the scheme from being discovered, in April 2007 and June 2008, Jaunich mailed letters to the investors containing false information about the status of the Averill Project and the use of the investors’ money via the United States Postal Service.
For his crimes, Jaunich faces a potential maximum penalty of 20 years in prison on each count. U.S. District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Kimberly A. Svendsen and John Kokkinen.
To learn more on how to protect yourself from mail fraud, visit http://www.stopfraud.gov/protect-massmarket.html.Federal Grand Jury Charges Clarksville Man with Producing and Passing Counterfeit U.s. CurrencyRead the Press Release
Photocopied bills circulated in Louisville, Jeffersonville and New Albany areas
CLARKSVILLE - Joseph H. Hogsett, United States Attorney, announced today that Johnathon Alan Frantz, 22, of Clarksville, Indiana, was charged by federal grand jury indictment with making, possessing and passing counterfeit United States currency following an investigation by the United States Secret Service, with assistance from the Jeffersonville and Clarksville Indiana Police Departments.
“Maintaining the integrity of our currency is a priority of my office,” said Hogsett. “Those who chose to compromise our economy with fake bills will be held accountable.
The indictment alleges that between July 7, 2013 and November, 18, 2013, Frantz produced counterfeit Federal Reserve Notes using a color copier. Frantz then used the counterfeit notes he produced to purchase goods including gift cards and debit cards to obtain change in the form of genuine United States currency. He operated this scheme at various retail outlets and restaurants in the Clarksville, New Albany, Corydon and Louisville areas. In total, Frantz passed nearly $7,000.00 in counterfeit bills.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Frantz faces a maximum of 20 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville, Indiana, before a U.S. Magistrate Judge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Export Scheme Charges Unsealed in U.S. District CourtRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, today announced that a federal grand jury sitting in Harrisburg returned an Indictment against three individuals and two corporations, charging them with smuggling technology out of the United States for use by the Pakistan Atomic Energy Commission. The Indictment was unsealed on March 31, 2014, after it was determined that none of the individuals were in the United States. The Indictment was returned by the grand jury in January of this year.
United States Attorney Peter Smith stated that the Indictment alleged that Shafqat Rana, formerly of Lancaster, Pennsylvania, along with Abdul Qadeer Rana and Shahzad Rana, both of Lahore, Pakistan, used two corporations, Optima Plus International, a Pennsylvania corporation, and Afro Asian International, a Pakistani corporation, to export goods from the United States to Pakistan. The goods were allegedly shipped through a common carrier in Dauphin County.
Shafqat Rana allegedly took orders for “dual use” items, that is, items with both a commercial and military or nuclear application, from Afro Asian and acquired the items in the United States. After the items were shipped to Pakistan, they were resold to the Pakistan Atomic Energy Commission, an arm of the Pakistani Army, in violation of United States law.
The United States Department of Commerce (DOC), has the authority to regulate the export of “dual-use” items from the United States to foreign countries, as necessary, to protect, among other things, the national security and foreign policy of the United States. These regulations include the requirement of obtaining a license from DOC, under certain circumstances, before export from the United States.
The Indictment charges that the defendants shipped and exported goods from the United States to restricted end-users in Pakistan while providing false and fraudulent invoices to the freight forwarders, thereby causing the freight forwarders to fail to file the required export declarations. The defendants also allegedly created false and misleading invoices given to freight forwarders that undervalued and mislabeled the goods and listed false purchasers and end-users of the goods.
According to the United States Attorney’s Office, Shafqat Rana has left the United States and returned to Pakistan.
The case was investigated by U.S. Department of Commerce criminal investigators and the Harrisburg office of the FBI. Assistant U.S. Attorney Gordon Zubrod coordinated the grand jury investigation and has been assigned to prosecute the case.
El Canonazo Store Owner and Four Others Sentenced in Firearms Smuggling CaseRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss El Canonazo sporting apparel and firearm accessories stores in Laredo, has been ordered to prison following his conviction of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. A federal jury in Laredo convicted Gonzalez Jan. 9, 2014, after a three-day trial and approximately nine hours of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Gonzalez a 63-month sentence. Also sentenced today were Juan Carlos Ordonez-Guzman, 28, of Nuevo Laredo, Mexico, Juan Fernando Guzman Jr., 35, a U.S. citizen living in Nuevo Laredo, Jorge Sosa, 45, and Leticia Moncada Infante, 57, both of Laredo, who all pleaded guilty for their roles in the offense. Ordonez-Guzman received a 36-month sentence, while Sosa, Guzman and Infante were each sentenced to 24-month terms of federal imprisonment.
At the hearing, additional testimony was presented from Sosa, who testified that Gonzalez had directed him to provide ammunition to Mexican couriers. Judge Marmolejo assessed Gonzalez a $7,000 fine, payable immediately. Gonzalez and the others will also be required to serve a term of three years of supervised release following completion of the prison. Ordonez-Guzman is expected to face deportations proceedings following completion of his prison term.
“Today’s sentencing sends a clear message to individuals who sell, transport and facilitate the attempted smuggling of weapons, ammunition and other related items,” said Ayala. “Preventing these items from being acquired from or delivered to the wrong hands is a top priority for HSI. Our special agents will continue working jointly with our law enforcement partners and utilize our expertise in export enforcement to keep our citizens safe and secure.”
According to testimony at trial, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to Infante at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed Infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them.
An HSI special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Sosa, a former employee of Gonzalez, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifle magazines to Guzman at Sosa’s personal storage unit. Sosa and Guzman testified that both met at Sosa’s storage unit on Dec. 7, 2012, where Guzman picked up five boxes containing a total of 360 magazines. Guzman was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa. The undercover recording had Gonzalez saying “this is the plan” before instructing Sosa to move the magazines to the storage unit, where Guzman would pick them up.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer. Gonzalez reiterated that story today.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Evelyn Linaldi-Delfin and Jesus Roberto Cisneros-Villarreal, who also pleaded guilty in the case are set for sentencing April 8, 2014. They are in custody pending that hearing.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
Previously released on bond, Gonzalezwas taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Guzman and Ordonez-Guzman will remain in custody pending their transfer, while Sosa and Moncada were allowed to remain on bond and voluntarily surrender in the near future.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
Drug User Sentenced to 5 Years Probation for Illegally Possessing PistolsRead the Press Release
JOHNSTOWN, Pa. - A resident of Patton, Pa., has been sentenced in federal court to five years probation on his conviction of unlawful possession of firearms by a user of illegal controlled substances, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John B. Zollinhofer, 43.
According to information presented to the court, on Sept. 22, 2011, Zollinhofer, who was an unlawful user of, and addicted to, illegal controlled substances, possessed two Smith and Wesson pistols, a Ruger revolver and a Rossi revolver.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Zollinhofer.
According to Mr. Hickton, Zollinhofer was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Drug Kingpin Sentenced for Operating a Criminal EnterpriseRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mohamed Taher, 35, of Lackawanna, N.Y., who was convicted following a jury trial of operating a continuing criminal enterprise, conspiracy to import marijuana into the United States, conspiracy to possess with intent to distribute marijuana, false statements and aggravated identity theft, was sentenced to 25 years in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who handled the case, stated that between late 2005 and May of 2007, Taher ran a long running, multi-faceted criminal enterprise that employed multiple narcotics traffickers. Taher and the enterprise imported marijuana into the United States from Canada, and then distributed the marijuana to others in Detroit, Chicago and Buffalo. In furtherance of the defendant’s enterprise, Taher utilized fraudulent identifications to enter into Canada to meet with his associates and his marijuana supplier. In doing so, Taher made false statements to Customs and Border Protection Officers when he claimed to be another individual when he was encountered at the U.S.-Canada border.
Defendants Abdulfatah Mosed, Salah Mohamed Ahmed, Basheer Saleh, Yasin Abdulla and Bradley Parry were previously convicted of conspiracy to possess with intent to distribute marijuana.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction Randy Howe, Acting Director of Field Operations, the New York State Police, under the direction of Major Michael Cerretto, the Michigan State Police and the Willoughby Hills, Ohio Police Department.Des Moines Pharmacist Indicted for Drug Diversion, Mail Fraud, and Tax FraudRead the Press Release
DES MOINES, IA – On April 2, 2014, an indictment charging Mark Graziano, part owner of Bauder Pharmacy, and A. Michael Enloe, was unsealed following the defendants’ arraignment, announced United States Attorney Nicholas A. Klinefeldt. The sixteen-count indictment charges both Graziano and Enloe with the charge of conspiracy to distribute hydrocodone, a controlled substance, and further charges Graziano with eleven counts of mail fraud and four counts of tax evasion.
The charge of conspiracy to distribute a controlled substance, in violation of Title 21, United States Code, Section 846, carries a maximum penalty of ten years in prison and a maximum fine of $500,000. The charge of mail fraud, in violation of Title 18, United States Code, Section 1343, carries a maximum penalty of ten years in prison and a maximum fine of $250,000. The charge of tax evasion, in violation of Title 26, United States Code, Section 7201, carries a maximum penalty of five years in prison and a maximum fine of $100,000.
Today’s indictment is the result of an investigation conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
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Danville Man Pleads Guilty to Fiduciary Fraud SchemeRead the Press Release
SAN JOSE – Leo Joshua Kennedy pleaded guilty in federal court in San Jose today to committing wire fraud, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Kennedy admitted to fraudulently transferring money out of Backhouse Fiduciary Services trust accounts. Kennedy worked as an accountant at Backhouse Fiduciary Services, a San Jose-based company engaged in the business of administering beneficiary trust accounts. Kennedy further admitted to having stolen an amount of money between $7 million and $20 million from various beneficiary trust accounts at Backhouse Fiduciary Services. Kennedy made these illegal transfers without account-holders? permission and used the funds to pay for his personal investments and living expenses.
Kennedy, 62 of Danville, was indicted by a federal Grand Jury on October 31, 2012. He was charged with ten counts of wire fraud in violation of 18 United States Code Section 1343. Under the plea agreement, Kennedy pled guilty to one count of wire fraud.
Kennedy is currently released on bond. Bail was set in the amount of $50,000.
Kennedy’s sentencing hearing is scheduled for August 20, 2014 before The Honorable Lucy Koh, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of wire fraud in violation of 18 United States Code Section 1343 is 20 years imprisonment and a fine of $250,000, plus restitution in the amount of $13,787,151. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
DME Owner Convicted on All CountsRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been convicted today of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. The jury returned its verdicts this afternoon following three days of trial and less than two hours of jury deliberation.
Tellison, the director of operations, chief compliance officer and co-owner of Texas Durable Medical Company was charged in March 2013 with health care fraud and aggravated identity theft in relation to the submission of approximately $1.48 million worth of enteral nutrition and enteral feeding supply claims to Medicare.
During trial, jurors heard the testimony of six Medicare beneficiaries detailing that they did not need tube feedings and did not receive tube feeding supplies despite Tellison billing thousands of dollars for those items. They also heard from seven Houston area physicians who stated they did not order tube feedings or tube feeding supplies for the Medicare beneficiaries and that they did not authorize Tellison to use their names and UPIN numbers to submit claims to Medicare and Medicaid for those items.
The government presented evidence including many forms that had been signed by Tellison indicating that Medicare beneficiaries needed tube feedings and tube feeding supplies. However, evidence demonstrated she did not order those items for delivery despite billing Medicare for the 29,113 tube feeding supply kits.
Special Agents from the Railroad Retirement Board (RRB) and the FBI testified that in a 2011 interview, Tellison admitted both knowledge of the false and fraudulent claims and the insufficient inventory for delivery to Medicare beneficiaries. A Forensic accountant from the FBI further testified that Tellison not only failed to purchase the 29,113 tube feeding supply kits, but that she also failed to purchase sufficient quantities of nutritional products for delivery. Various representatives from Medicare and Medicaid contractors provided supporting testimony about how these federally funded programs operate and the claims submitted by Tellison.
U.S. District Judge Lee Rosenthal, who presided over the trial, permitted Tellison to remain on pending sentencing to be held later this year. At that time, she faces up to 10 years in federal prison on each count of health care fraud and a mandatory two-year-term for each count of aggravated identity theft which must be served consecutively to each other and to any other prison term imposed.
The investigation into Tellison was the result of a joint investigation conducted by agents from the FBI, RRB - Office of the Inspector General, Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Julie Redlinger and Tina Ansari prosecuted the case.
Convicted Felon Gets 15 Years for Robbing Neighborhood StoreRead the Press Release
Kareem McBride, a/k/a "Alif Holmes," 32, of Philadelphia, PA, was sentenced today to 15 years in prison for robbery and gun charges. McBride pleaded guilty on May 20, 2013 to robbery which interferes with interstate commerce, using and carrying a firearm during a crime of violence, and being a convicted felon in possession of a firearm.
On October 12, 2012, McBride robbed the Wyalusing Food Market, at 54th and Wyalusing, at gunpoint. The store is owned by a husband and wife. McBride entered the store wearing a black knit hat pulled down over his face, brandishing a loaded black revolver that he pointed directly at the female store owner who had been working behind the counter. McBride forced the victim to give him money from the cash register, then pointed his gun at the male store owner who had been in the back of the store. The male store owner had a gun of his own and when McBride pointed his gun at him, the victim shot McBride. The male store owner then detained McBride on the street outside of the store until the police arrived.
McBride was charged with convicted felon in possession of a firearm because he had previously been convicted of a felony. He had amassed nine separate convictions between 1999 and 2011 for drugs, robbery and firearms crimes before robbing the Wyalusing Food Market.
In addition to the prison term, seven years of which is mandatory, U.S. District Court Judge Mary McLaughlin ordered three years of supervised release and a $300 special assessment.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Thomas Zaleski.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chimayo Woman Sentenced to Three Years in Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dora Martinez, 50, of Chimayo, N.M., was sentenced in federal court this afternoon to three years in federal prison followed by three years of supervised release for her heroin trafficking conviction.
Martinez was arrested on Aug. 5, 2013, on an indictment charging her with possession of heroin with intent to distribute. According to the indictment, Martinez unlawfully possessed more than 100 grams of heroin on April 22, 2013 in Rio Arriba County, N.M.
Martinez entered a guilty plea to a heroin trafficking charge on Nov. 22, 2013. In entering her guilty plea, Martinez acknowledged that she was driving near Espanola, N.M., on April 22, 2013, when New Mexico State Police officers pulled her over and arrested her after observing her complete a drug transaction. Martinez admitted that at that time, she had 134.2 grams of heroin in her possession and that she intended to distribute that heroin for profit.
Chief Pete N. Kassetas of the New Mexico State Police said, “The arrest, prosecution and subsequent conviction of Dora Martinez is a significant accomplishment and is demonstrative of what can happen when law enforcement agencies work together. However, it is more significant for the community of Chimayo. It is especially disheartening when a longtime resident (Martinez) of Chimayo is found to be contributing to the heroin problem instead of helping combat as many members of her community have over the years. The New Mexico State Police is committed to the citizens of northern New Mexico and will continue to work with the community and other law enforcement agencies in combatting the drug problem.”
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Charlotte Man Sentenced to 10 Years in Prison for Discharging A FirearmRead the Press Release
CHARLOTTE, N.C. – On Tuesday, April 1, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Gerald Wayne Hairston to serve 120 months in prison for a federal firearms violation, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hairston, 30, of Charlotte, was also sentenced to five years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to court records and yesterday’s sentencing hearing, in April 2012, Hairston was a patron at a restaurant located on Pineville Mathews Road, in Pineville, N.C. Court records indicate that Hairston got into fight with at least one other patron at the restaurant. Following that fight, records show that Hairston retrieved a firearm from his car, pointed the gun at a group of patrons outside the restaurant and fired two to four shots. According to court records, Hairston then fled the scene and was later arrested by law enforcement. Officers found a Ruger, model P-5, 9 millimeter pistol with ammunition and drugs in Hairston’s car. Hairston pleaded guilty to one count of discharging a firearm in furtherance of a drug trafficking crime in May 2013.
Hairston has been in federal custody since January 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF. The prosecution for the government was handled by Assistant U.S. Attorney Ann Claire Phillips of the U.S. Attorney’s Office in Charlotte.
Caribbean Corridor Strike Force Seizes 1,774 Kilos of Cocaine, 2 Venezuelans ArrestedRead the Press Release
SAN JUAN, PR – On March 31, 2014, the Caribbean Corridor Strike Force (CCSF) intercepted a Zodiac type vessel off the coast of Dorado while attempting to smuggle a load of cocaine into Puerto Rico. Two Venezuelan nationals and 1,774 kilograms of cocaine where seized during the interdiction announced United States Attorney Rosa Emilia Rodríguez-Vélez today. Yesterday, U.S. Magistrate Camille L. Vélez-Rivé authorized a complaint charging Reny Alexander López-Meneces and Andri Rivas Rojas-Irving with conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States.
On March 31, 2014, at approximately 6:00pm, a US Customs and Border Protection (CBP) marine patrol aircraft of the Caribbean Air & Marine Branch (CAMB) detected a Zodiac vessel traveling southbound heading directly to Puerto Rico. While under surveillance, the aircraft coordinated with the CBP Marine Patrol Units to intercept the Zodiac. Upon detection of the CBP marine units, the occupants of the vessel began to jettison what appeared to be bales of contraband into the water.
Additionally, while avoiding interdiction, one of the Zodiac crew members fell overboard while in the process of throwing bales into the water. A total of three bales where recovered from the ocean along with the man that had fallen over board. The Zodiac type boat was detained with a total of 58 additional bales and one more crew member.
The contraband, in the form of brick shape objects, was field tested and yielded positive results to cocaine. A total of two crew members were placed under arrest. The crew members were later identified as Reny Alexander López-Meneces and Andri Rivas Rojas-Irving. Further, a total of 61 bales of cocaine were seized with an approximate weight of 1,774.4 kilograms.
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”
“ICE HSI is committed to working with our federal, state and local counterparts in an effort to stop the movement of contraband in the Caribbean,” said Ángel M. Meléndez, Special Agent in Charge of HSI San Juan. “Those involved in drug trafficking should know that the Caribbean is no longer an option to transship narcotics into the United States.”
“Our air and marine assets are always ready to assist all federal, state and local law enforcement partners to interdict smuggling ventures and curb criminal activity in the island,” stated Johnny Morales, Director of Air Operations at the CBP Caribbean Air and Marine Branch.
“With this significant cocaine seizure the Caribbean Corridor Strike Force proves once more its effectiveness in cutting the Caribbean pipeline of drugs between South America and the United States,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA, Caribbean Division.
The case was investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr., announced today that Angel Gonzalez, 38, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum 40 years, a fine of $5,000,000.00, or both.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between 2006 and December 2010, the defendant conspired with two co-defendants to possess and distribute cocaine in Buffalo. The defendants stored cocaine and the proceeds of drug sales at Gonzalez’s residence on Auburn Avenue in Buffalo. The defendant was paid for allowing the money and drugs to be stored at his residence.
“This case should serve as a reminder to criminals that you don’t have to be the individual selling drugs in our community to be arrested,” said U.S. Attorney Hochul. “If you assist others in filling the streets with dangerous and potentially deadly narcotics, you will be prosecuted as if you committed the crime yourself.”
The defendant was arrested in December 2012 along with Renwick Samuel and Mica Donadelle. Charges are pending against Samuel and Donadelle. 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.
The plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation.
Sentencing is scheduled for July 16, 2014 at 10:00 a.m. before Judge Skretny.Belcourt Pleads Guilty to Bribery and EmbezzlementRead the Press Release
The United States Attorney's Office announced that Tony James Belcourt, the former Chief Executive Officer of the Chippewa Cree Construction Corporation entered pleas today in four of the six indictments handed down by the Grand Jury charging him with wide-ranging public corruption. Belcourt is also a former member of the Chippewa Cree Tribal Business Council and a former member of the Montana State House of Representatives from Box Elder. Belcourt appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Belcourt pled guilty to embezzlement in one count of United States v. Belcourt, et al, CR-13-39-GF-BMM which alleged the embezzlement of over $300,000, in the first half of 2010, using a pipe shipping contract that more than doubled the actual cost of shipping. Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-82-GF-BMM which alleged that in November 2009 he accepted a $100,000 payment from Hunter Burns Construction, a company awarded a $1.7 million construction contract four months after the payment to Belcourt. Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
In a separate hearing earlier in the day before Judge Morris, Hunter Burns and Hunter Burns Construction, LLC, each pled guilty to conspiracy to file false claims in United States v. Belcourt, et al, CR-13-99-GF-BMM which alleged that four months later, in April 2010, Hunter Burns Construction made a $100,000 false claim to the Chippewa Cree Construction Corporation and against federal project funds based on mobilization costs that had not been incurred. Additional details can be found in the government's Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-98-GF-BMM which alleged that he accepted a $300,000 payment from K & N Consulting, a company doing business with the Chippewa Cree Tribe after the floods of 2010. Belcourt served as the Tribe's Emergency Incident Commander and awarded insurance and FEMA contracts in connection with the recovery and reconstruction efforts after the flooding. Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, CR-14-17-GF-BMM which alleged that Belcourt committed tax fraud in the filing of his 2009 tax return which failed to disclose $135,000 in income received by Belcourt and his wife that year. The Offer of Proof for case number CR-13-82 contains the details.
Air Force Senior Airman Convicted of Child Sex OffenseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Air Force Senior Airman Jason Alan Hargrove (27, Brandon) guilty of attempted enticement of a child for sex. He faces a mandatory minimum sentence of 10 years, up to a maximum penalty of life in federal prison. His sentencing hearing is scheduled for June 23, 2014. Hargrove was indicted on January 8, 2014.
According to testimony and evidence presented at trial, Hargrove posted an advertisement on a public website soliciting members of the public for sex. He attached a picture of his genitalia to the posting. An undercover officer, posing as a 14-year-old female in the 9th grade, responded to Hargrove’s posting, expressing interest. Upon learning the purported “child’s” age, Hargrove attempted to induce the “child” to engage in sexual acts with him, and discussed various sex acts with the “child.” Additionally, Hargrove repeatedly requested to visit the “child’s” home when he believed her mother wasn’t present. On October 27, 2013, Hargrove drove to what he believed to be the “child’s” home to engage in sexual acts with the “child” and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Tuesday 1 April 2014
“Shattered Window Bandit” Sentenced to 193 Years for Multiple Armed RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven yesterday sentenced Demetrius Renaldo Bowers (29, Tampa) to 193 years in federal prison for a string of eight armed robberies that he committed between September and November 2012 throughout the Tampa Bay area.
On June 26, 2013, a federal jury found Bowers guilty of sixteen robbery and firearms offenses.
According to evidence presented at trial, between September 23, 2012 and November 4, 2012, while armed with a black semi-automatic handgun, Bowers robbed eight fast-food franchise restaurants in Hillsborough, Pinellas, and Hernando counties near the time the restaurants were closing. In each robbery, Bowers used a concrete block to smash the window of the victim business, wore a black ski mask covering his face, and held the victim-employees at gunpoint while demanding money. After the robbery of a Papa John's restaurant off of Gunn Highway in Tampa, law enforcement recovered the ski mask worn by the robber. DNA recovered from the ski mask positively matched Bowers. Law enforcement then obtained other evidence which identified him as the perpetrator of the other armed robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff's Office, the Tampa Police Department, the Largo Police Department, and the Hernando County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Josephine W. Thomas and Carlton C. Gammons.
Widespread Group of Defendants Charged with Securities FraudRead the Press Release
An indictment charging a market manipulation scheme was unsealed today against six defendants in connection with the trading of stock in Super Nova Resources, Inc. (“SNRR”), announced United States Attorney Zane David Memeger. Charged with conspiracy, wire fraud, and securities fraud are: Carl Marciniak, 50, of California, Jeffrey Weinfurter, 46, of Yorba Linda, CA, James Wheeler, 54, of Corona, CA, Daniel Starczewski, 67, of Cornelius, NC, Danny Colon, 46, of Edgewater, NJ, and Louis Buonocore, 59, of Woburn, MA. According to the indictment, the defendants ran the scheme with the intent to cause approximately $150 million in losses to participants in the over-the-counter U.S. securities market.
If convicted, each defendant faces a maximum statutory penalty of 55 years in prison, three years of supervised release, a $5.5 million fine, and a $300 special assessment.
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Judy Smith and Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525U.S. Attorney Hickton Statement on Adam BusbyRead the Press Release
PITTSBURGH - David J. Hickton, United States Attorney for the Western District of Pennsylvania, issued the following statement today regarding Adam Busby, charged in connection with a series of hoax bomb threats against the University of Pittsburgh in late March and April 2012:
"On March 21, 2014, Adam Busby was released from detention in Ireland while he awaits a hearing before Ireland’s Supreme Court on his appeal of his extradition to Scotland to face terror charges in that country. He had been continuously incarcerated on a European Union warrant since July 2012. We have taken all available legal action to extradite him to face charges in Western Pennsylvania after he faces pending charges in the U.K. We have been informed that he is residing in a Dublin hostel and the bail conditions dictate that he has no access to the Internet. We are closely monitoring the proceedings overseas and are working to obtain his extradition to the U.S. on the charges pending here."
Two Plead Guilty in New Jersey Federal Court to Roles in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendants Managed “Cash Out” Crews for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – An alleged member of an international cybercrime, identity theft and credit card fraud conspiracy admitted today to using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, the second member of the conspiracy to plead guilty this week, U.S. Attorney Paul J. Fishman announced.
Robert Dubuc, 40, of Malden, Mass. – who was in court today – and Oleg Pidtergerya, 49, of Brooklyn, N.Y. – who was in court yesterday, March 31, 2014 – each pleaded guilty to an information charging one count of wire fraud conspiracy, and one count of conspiracy to commit access device fraud and identity theft. Both defendants entered their guilty pleas before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Dubuc and Pidtergerya were asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 33, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Pidtergerya managed a cash out crew in New York for Sharapka and Yanovitsky, and defendant Dubuc controlled a cash out crew in Massachusetts for the organization.
Pursuant to the scheme, conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated “cash out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds from the Fraudulent Accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
During their guilty plea proceedings, Pidtergerya and Dubuc admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. Both men admitted coordinating ATM and bank withdrawals of the stolen funds. In addition they admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison, and the conspiracy to commit access device fraud and identity theft count carries a maximum potential penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 7, 2014, for Pidtergerya and July 8, 2014, for Dubuc.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation. He also thanked the Department of Homeland Security’s Customs and Border Protection for assistance with the Yarmolitsky arrest.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning alleged conspirators are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-112
Defense counsel:
Oleg Pidtergerya: Mitchell Elman Esq., Port Washington, N.Y.
Robert Dubuc: Angelo Servidio Esq., Nutley, N.J.Pidtergerya, Oleg Information
Dubuc, Robert InformationTwo Honduran Nationals Sentenced for Conspiring to File False Claims for IRS RefundsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt, sentenced MARDOQUEO MEJIA FAJARDO and JORGE ERNESTO TINOCO to more than 4 years incarceration and ordered them to pay restitution of approximately $1.4 million to the United States Department of Treasury for their participation in a conspiracy to file false claims for IRS refunds.
According to the charging document, both these men are citizens of the Republic of Honduras and were illegally residing in the United States. From June 2011 to March 2013, FAJARDO and TINOCO conspired with others to defraud the United States by filing fraudulent income tax returns with the Internal Revenue Service. These returns were filed under the Individual Taxpayer Identification Number program, which was initiated for resident and nonresident aliens to file returns and pay the taxes they owed. The returns filed by members of this conspiracy were fictitious. Wage and tax statements were fabricated to make it appear that the named taxpayers worked for legitimate companies, earning income and paying taxes. The refund checks were directed to Post Office boxes in eastern North Carolina that were opened in the name of fictitious individuals with fraudulent forms of identification.
IRS-Criminal Investigation Special Agent in Charge, Jeannine A. Hammett said, “We are committed to the pursuit of those who undermine the federal tax system by filing fraudulent returns claiming refunds. These two defendants sought to enrich themselves by essentially stealing from all of us who pay our taxes honestly.”
This was a joint investigation conducted by the Internal Revenue Service – Criminal Investigation, the Department of Homeland Security and the United States Postal Inspection Service. Assistant United States Attorney Susan Menzer is prosecuting the case for the government.
Two Connecticut Men Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nelson Areizaga-Rosa, 38, and Ricardo Ortiz-Rosa, 42, both of Connecticut, who were convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, were each sentenced to 180 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on March 17, 2011, the defendants were stopped for speeding by a Chautauqua County Sheriff’s deputy on I-86 in the Town of Ellicott. The defendants, who are cousins, were later arrested along with two other individuals.
Law enforcement officers subsequently discovered $60,000 in U.S. currency secreted in the spare tire of the vehicle the defendants were riding in, money that represented the proceeds from the sale of two kilograms of cocaine. Officers also seized more than a kilogram of heroin, a quantity of cocaine, and multiple firearms. An additional four defendants were also arrested. During a search warrant later executed at a residence in Campbell, Ohio, officers recovered another $205,000 in U.S. currency. Five vehicles were also seized during the course of the narcotics investigation.
All eight defendants in this heroin trafficking investigation have been convicted.
The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff’s Lieutenant David Bentley, the Chautauqua County Sheriff’s Department, under the direction of Sheriff Joseph Gerace, and the Jamestown Police Department, under the direction of Harry Snellings.Two Charged in Tax Fraud Scheme Targeting More Than 600 VictimsRead the Press Release
HOUSTON - A 13-count federal indictment has been returned against Tanzanian national Amon Rweyemamu Mtaza and Dion Hatch, of Houston, alleging a stolen identity refund fraud (SIRF) scheme, announced United States Attorney Kenneth Magidson.
Hatch, 40, was taken into custody this morning and is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy today at 2:00 p.m. Mtaza, 38, was arrested upon the filing of a criminal complaint March 3, 2014. He appeared for a detention hearing Thursday, March 28, 2014, at which time he was ordered into custody pending further criminal proceedings.
The indictment, returned March 26, 2014, charges both defendants with one count of conspiracy to commit wire fraud, six counts of wire fraud and six counts of aggravated identify theft.
Mtaza and Hatch engaged in a sophisticated tax fraud/identity theft case involving the filing of hundreds of fraudulent tax returns, according to allegations. Mtaza and Hatch allegedly used stolen and unlawfully obtained personal identity information, including the names and Social Security numbers, of true persons to prepare fraudulent U.S. income tax returns. The suspects electronically filed the fraudulent federal income tax returns in order to generate and obtain tax refunds to which they were not entitled, according to the charges. Mtaza and Hatch then either directed the fraudulently obtained tax refunds to be deposited onto reloadable debit cards or disbursed as U.S. Treasury checks.
The fraudulently obtained refunds were used to obtain cash and goods for their own benefit, according to the allegations. The tax refund filings attributed to this group allegedly account for an excess of $1.8 million in losses and more than 600 victims.
Each conviction of conspiracy to commit and substantive counts of wire fraud carry a possible 20-year prison sentence as well as a possible $250,000 fine. If convicted of aggravated identify theft, the defendants also face an additional mandatory two-year prison term on each counts which must be served consecutively to any other prison term imposed.
The investigation leading up to the arrest was conducted by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Tulsa Man Pleads Guilty to Brandishing A Firearm While Robbing A Woman in Casino Parking LotRead the Press Release
TULSA, OKLAHOMA – A Tulsa man pleaded guilty today to brandishing a gun during a robbery at an Indian gaming establishment, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Dominique Amoia McDowell II, age 19, entered a plea of guilty before U.S. District Court Judge John Dowdell to the charge of Brandishing a Firearm During and in Relation to a Crime of Violence . This matter was prosecuted in United States District Court because the armed robbery occurred in Indian Country.
On January 12, 2014, McDowell approached a Native American woman in the Osage Nation Casino Tulsa parking lot and robbed her of $600 at gunpoint. Osage Nation law enforcement and casino security officials used their collective resources to identify and find McDowell immediately after the robbery. The officers found McDowell inside the casino gambling with the money he had just stolen. Osage Nation Police officers took McDowell into custody and recovered $540 and a firearm.
“The United States is committed to working together with our tribal law enforcement partners to hold accountable those who commit violent crimes in Indian Country. I commend the Osage Nation Police Department and Bureau of Indian Affairs for their quick response and joint investigative efforts,” commented United States Attorney Williams.
McDowell faces a mandatory minimum sentence of seven years and up to life imprisonment. Parole has been abolished in the Federal system.
Assistant United States Attorneys Clint Johnson and Trent Shores prosecuted this case on behalf of the United States of America.
The Government’s Response Concurring in Defendant Musto’s Motion for Temporary Release from Custody for Medical TreatmentRead the Press Release
On March 31, 2014, the United States Attorney’s Office for the Middle District of Pennsylvania filed its response to a motion filed previously on behalf of the Defendant in United States v. Musto. Both filings relate to the trial Court’s prior Amended Order of January 7, 2014 committing the Defendant to the custody of the Attorney General for mental health evaluation.
The Government’s response contains the report of the staff psychiatrist at the Federal Medical Facility at Butner, N.C. In light of that report the Government concurred in the defense motion seeking release of the Defendant from Butner temporarily for examination, medical analysis and treatment by his local physicians.
The Government further requested that the defense be directed to provide (1) the Court and the Government with an update report in one month including all appropriate medical diagnoses and decisions regarding his medical treatment;(2) if appropriate, a renewed defense motion for indefinite continuance. In the absence of such a motion, the Government requested that the Court hold a hearing to schedule the next appropriate step in the case.
Tampa Tax Fraudster Sentenced to Two Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Kesham Evans Jr. to two years in federal prison on one count of aggravated identity theft charged in connection with Evans cashing two fraudulent Treasury checks. Evans pleaded guilty on January 4, 2014.
According to court documents, on two occasions in July 2013, Evans sold a United States Treasury check, at a discounted price, to undercover law enforcement agents. These Treasury checks were issued as a result of tax returns filed in the names of individuals who were victims of identity theft. They had a total face value of more than $25,000. At least one of the victims confirmed that he did not file a tax return and that the Treasury check issued in his name was fraudulent. The victim did not know Evans nor did he authorize Evans to endorse a check issued in his name.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, Hillsborough County Sheriff’s Office and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Tampa Man Sentenced to More Than Seven Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore yesterday sentenced Alexander Lenox to 7 years and 6 months in federal prison for theft of government property and aggravated identity theft. Lenox pleaded guilty on December 31, 2013.
According to court documents, Lenox engaged in stolen identity refund fraud from April 2009 to May 2011, with two co-conspirators. In particular, in May 2011, Lenox was responsible for renting two hotel rooms where lists of identifying information and prepaid debit cards containing fraudulently-obtained tax refunds were found. Also found in both rooms were medical records that had been stolen from the James A. Haley Veterans Hospital, containing the identifying information of U.S. veterans. Lenox was later captured by surveillance video at various locations withdrawing money from the debit cards with the fraudulently-obtained tax refunds on them. At sentencing, he was found responsible for fraudulent tax returns requesting more than $400,000 of government funds and victimizing more than fifty people.
After the sentencing hearing, Special Agent in Charge Monty Stokes, Office of Inspector General, U.S. Department of Veterans Affairs, said "This case is the collective work of federal, state, and local law enforcement agencies to aggressively pursue those that commit identity theft. The fact that Lenox chose to victimize veterans is reprehensible."
"Alexander Lenox's sentencing of 7 ½ years is the result of the collaborative investigative effort of the Tampa Bay Alliance. Let this sentence be a warning to those individuals who continue to exploit members of our community and veterans," stated James Robnett, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. "IRS-Criminal Investigation and its partners will continue to investigate individuals, such as Lenox, who commit stolen identify refund fraud (SIRF)."
Lenox’s co-conspirators, James Early Smiley and Hantz Saint Marc, previously pleaded guilty for their roles in this case. On August 12, 2013, Smiley was sentenced to 61 months in federal prison. A sentencing hearing for Saint Marc is set for May 20, 2014.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney.
Statement by Attorney General Eric Holder on the Senate Confirmation of John P. Carlin to Serve as Assistant Attorney General for National SecurityRead the Press Release
Attorney General Eric Holder released the following statement today after the confirmation of John P. Carlin to serve as Assistant Attorney General for National Security:
“John Carlin is an outstanding leader and an exceptional public servant who has spent his entire legal career at the Department of Justice and its components,” said Attorney General Eric Holder. “Throughout his tenure, he has repeatedly demonstrated the skill, foresight, and vision that this position demands. I am confident that under his leadership, the National Security Division will continue to strengthen and advance its critical mission to safeguard the American people and protect this nation.”St. Robert Daughter, Mother Indicted for $1 Million Nigerian Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two St. Robert, Mo., women were indicted by a federal grand jury today for their roles in an international fraud scheme in which victims across the country were tricked into cashing counterfeit money orders.
Lisa Kaye Barwick-Majeski, 53, and her mother, Nancy Madelen Peebles, 73, both of St. Robert, were charged with aiding and abetting others to transfer more than $1 million in counterfeit obligations (postal money orders) in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Barwick-Majeski and Peebles on March 5, 2014.
According to an affidavit filed in support of the original criminal complaint, Barwick-Majeski received counterfeit postal money orders from a source in Nigeria. She allegedly sent the money orders, along with instructions on how to be a secret shopper, to numerous victims across the country. The people who received the counterfeit money orders were to cash them and then wire part of the money back to her, the affidavit says. The money orders were eventually returned against the victims’ account as not negotiable, and the victims were obligated to pay their banks for most of the money they wired to Majeski and others. Barwick-Majeski allegedly kept a portion of the money she received and wired the remaining amount to individuals in Nigeria.
During the course of the investigation, the affidavit says, law enforcement officers seized more than $1.7 million worth of counterfeit postal money orders. Some of those counterfeit money orders were taken directly from Barwick-Majeski or Peebles and some were seized by U.S. Customs and Border Protection or intercepted en route to Barwick-Majeski or Peebles.
In addition to the counterfeit postal money orders, law enforcement officers executed a search warrant at Barwick-Majeski’s residence on Nov. 5, 2013, and seized a parcel that contained 354 counterfeit BMO-Harris Bank cashier’s checks with a total face value of more than $1 million. According to the affidavit, law enforcement officers also seized $406,800 in counterfeit Mid Missouri Credit Union cashier’s checks during the investigation.
A large number of counterfeit money orders have been cashed, the affidavit says, which total at least $212,708 cashed by 137 victims. This remains an active and ongoing investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.Springfield Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Lonnie Ray Orr, 29, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Monday, March 31, 2014, to eight years in federal prison without parole.
On Nov. 21, 2013, Orr pleaded guilty to receiving and distributing child pornography. Law enforcement officers identified a computer that was using a peer-to-peer file-sharing network to share child pornography over the Internet, which they traced to Orr.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Second Beaver Falls Man Charged in Shooters Place BurglaryRead the Press Release
PITTSBURGH - A resident of Beaver County has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, stealing firearms from the inventory of a Federally Licensed Firearms Dealer, and possession of stolen firearms, United States Attorney David J. Hickton announced today.
The three-count indictment named Jaemere Scott, 20, formerly of Beaver Falls, Pa., as the sole defendant.
According to the Indictment, in or around February of 2014, Scott, along with another individual known to the grand jury as KJ, conspired to burglarize Shooters Place, a Federally Licensed Firearms Dealer, located at 416-F Constitution Boulevard in New Brighton, Pa. The Indictment further charges that on or about Feb. 7, 2014, Scott and KJ stole and illegally possessed 14 firearms from Shooters Place.
The law provides for a maximum total sentence of 25 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Patterson Township Police Department, the Beaver County Sheriff’s Office, the Beaver County Detective Bureau, the Pennsylvania State Police, the Beaver Falls Police Department, and the New Brighton Police Department, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Russell Springs, Kentucky Business Agrees to Pay $750,000 in Restitution for Role in Contraband Cigarette TraffickingRead the Press Release
– Tantus Tobacco, LLC. Pleads guilty to a superseding information
BOWLING GREEN, Ky. – A Russell Springs, Kentucky company pleaded guilty today, before Chief Judge Joseph H. McKinley Jr., to a single charge of conspiracy to engage in contraband cigarette trafficking; and the company has agreed to pay $750,000 in restitution and forfeitures; announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tantus Tobacco, LLC pleaded guilty to a Superseding Information and will pay restitution in the amount of $200,000 to the Kentucky Revenue Cabinet in lost taxes and $60,000 to the Kentucky Attorney General’s Office for its assistance in the investigation. Tantus Tobacco, LLC will forfeit $490,000 to the United States.
Tantus Tobacco, a cigarette manufacturing facility located in Russell Springs, Kentucky, acting by and through its officers and employees, aided and abetted by Jerry Burke and Charles Wells, pleaded guilty to making false material statements in reports required to be made to governmental tobacco regulatory divisions of the United States and the State of Mississippi between October 2007 through July 2008.
According to the plea agreement, from at least January 2008 to May 2008, Tantus Tobacco manufactured Berley and Berkley brand cigarettes, which they sold to Charles Wells, a cigarette wholesale distributor in Kentucky. Escrow payments are due on the Berley cigarettes, but not the Berkley. Wells would obtain the cigarettes directly from the Tantus Tobacco facility located in Russell Springs, Kentucky. However, Tantus Tobacco aided and abetted the creation of false documentation indicating that the cigarettes had been sold to J&B Wholesale (owned and operated by Jerry Burke) in Mississippi, which false documents were submitted to the State of Mississippi. These false documents allowed Tantus Tobacco to avoid making manufacturer Non-Participating Manufacturer escrow payments on the subject cigarettes and to sell the cigarettes to Wells at a discount. J&B Wholesale, in turn, submitted false and fraudulent Mississippi Tobacco Excise Returns reporting that the cigarettes were received and sold in Mississippi to the State Tax Commission in Mississippi in violation of tobacco sales reporting requirements. These false Mississippi Tobacco Excise Returns were submitted, in whole or in part, due to the cigarette diversion scheme described above in which Tantus Tobacco was an active participant.
A wholesaler selling cigarettes in Mississippi must file a monthly Tobacco Excise Return with the State Tax Commission showing the number of unstamped cigarettes received that month, plus the cigarettes stamped and available for sale that month, plus the cigarettes sold to licensed wholesalers and exempt persons that month, as well the cigarettes shipped or sold out of state, and the net taxable cigarettes and other pertinent information.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) Mississippi Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Registered Sex Offender Sentenced to 35 Years in Prison for Possessing, Receiving, and Distributing Child Pornography and for Transferring Obscene Material to A MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JONATHAN DELAURA, 39, was sentenced to 35 years in prison by United States District Judge Kenneth M. Karas for receiving and distributing child pornography over the Internet, possessing child pornography, and sending obscene material to a 15-year-old boy.
U.S. Attorney Preet Bharara stated: “This case underscores the need for law enforcement to remain vigilant in protecting children from those who might prey on them over the Internet. As today’s sentencing demonstrates, we will use every tool available to law enforcement to find, prosecute and punish those who possess and distribute child pornography.”
According to documents filed in this case and statements made in related court proceedings:
On October 7, 2009, DELAURA, of Jefferson Valley, Westchester County, New York, pled guilty in Bronx County Court to sexual misconduct. His victim was a 12-year-old boy. He was sentenced on December 16, 2009, to six years of probation and registered with the New York State Sex Offender Registry.
On December 14, 2010, after Westchester Probation Department discovered that DELAURA was teaching tennis to children in Putnam County, New York, under an alias “Jon Dulak,” his probation was revoked and he was sentenced to a one-year term of imprisonment.
DELAURA was released from prison in April 2011. From May 5, 2011, through May 10, 2011, DELAURA distributed files containing images and videos of child pornography over the Internet via a Peer-to-Peer networking program.
In November 2011, DELAURA contacted a 15-year-old boy (the “Victim”) in an Internet chat room using the screen name “sillyrabbit” and claimed to be a 17-year-old girl. After an exchange of messages, DELAURA sent obscene photographs to the Victim. Thereafter, DELAURA sexually abused the Victim. On February 2, 2012, DELAURA was arrested by officers from the Putnam County Sheriff’s Department (“PCSD”). After DELAURA was arrested, PCSD officers executed a search warrant at his residence and recovered an iPod, which contained approximately 162 videos containing images of child pornography and approximately 5 still photos of images containing child pornography. The iPod also contained the obscene photographs that were sent to the Victim.
On December 12, 2012, DELAURA pled guilty in Putnam County Superior Court to two counts of Criminal Sexual Act in the 3rd Degree. Those charges related to DELAURA’s abuse of the Victim. On April 2, 2013, DELAURA entered a guilty plea in Federal Court to (1) receiving and distributing child pornography in May 2011, (2) possessing child pornography in February 2012, (3) transferring obscene material to the Victim in November 2011 and (4) doing so while registered as a sex offender.
Following DELAURA’s arrest in February 2012, an additional victim disclosed repeated sexual abuse by DELAURA in 2010 that began when the victim was 14 years old and DELAURA was the victim’s tennis instructor.
In sentencing DELAURA, Judge Karas stated that the defendant caused “indescribable pain” to the victims and their parents.
DELAURA has not yet been sentenced in Putnam County. Pursuant to his agreement with the Putnam County District Attorney’s Office, Putnam County will recommend consecutive sentences of one-and-a-third to four years on each of the counts to run concurrent with the federal sentence.
Mr. Bharara praised the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New York, the Putnam County Sheriff’s Department, the Yorktown Police Department, the Putnam County District Attorney’s Office, and the Westchester County District Attorney’s Office in connection with this investigation.
The case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Portland Man Receives 30-Month Federal Sentence for Hurling Molotov Cocktail at Portland Police CarRead the Press Release
PORTLAND, Ore. – Yesterday, U.S. District Judge Marco A. Hernandez sentenced Sergey Yefimovich Turzhanskiy, 26, to 30 months in federal prison for possession of an unregistered destructive device. Turshanskiy pleaded guilty to using the device, a Molotov cocktail, in a 2012 attack on a Portland Police Bureau (PPB) patrol car.
Turzhanskiy entered PPB’s North Precinct parking lot at 449 North Emerson Street at about 1:30 am on November 5, 2012. He ignited the Molotov cocktail (a glass beer bottle with fuel and a cloth wick), and hurled it at a parked patrol car. The device bounced off the hood of the car onto the ground and initially failed to break. Turzhanskiy picked up the device and threw it a second time at the vehicle. It hit the pavement, broke and caused a fire next to the car. Turzhanskiy fled on a bicycle but was apprehended by the police a few blocks away.
A native of Ukraine, Turzhanskiy immigrated to the United States as a child, became a U.S. citizen, and grew up in Chicago, Illinois. He had lived in Portland a short time when the crime occurred.
After serving the prison sentence, Turzhanskiy will be on supervised release for three years. In light of Turzhanskiy’s prior associations, Judge Hernandez ordered as a special condition of supervised release that he “shall have no communication or contact with anarchist groups or affiliates” in the future. He has already paid $1,314.12 in restitution to the City of Portland for damage to the patrol car.
“We are pleased with the sentence imposed by Judge Hernandez,” stated United States Attorney Amanda Marshall. “Violent attacks such as this one on law enforcement deserve substantial punishment as a deterrent to similar conduct by others.”
In addition to the Portland Police Bureau, investigative work in the case was performed by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen F. Peifer.
Physician Pleads Guilty for Role inDetroit-area Medicare Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today for her role in a $7 million health care fraud scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Adelina Herrero, 72, of Ann Arbor, Mich., pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date.
According to court documents, beginning in approximately April 2010 and continuing through approximately April 2013, Herrero and others agreed that she would refer Medicare beneficiaries whom she had never seen or treated to Advance Home Health Care Services Inc. (Advance) and Perfect Home Health Care Services LLP (Perfect), which were both owned by co-conspirators. Herrero signed medical documents, such as home health care certifications and plans of care for these beneficiaries, falsely certifying that they were under her care and that they required home health care. Advance, Perfect and other home health agencies then used Herrero’s false documents to support their claims to Medicare for home health services — including physical therapy services — that were never rendered and/or not medically necessary. Herrero knew the medical documents she signed for her co-conspirators would be used to support false claims to Medicare. Herrero admitted that in exchange for signing the home health care documents, she accepted kickback payments from a co-conspirator.
The false and fraudulent claims to Medicare arising from Herrero’s conduct total approximately $1,382,208 in billings for home health services and physician services, of which Medicare paid $1,321,372.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Special Trial Attorney Katie R. Fink and Trial Attorney Patrick J. Hurford of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .PG&E Charged with Multiple Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO, Calif. – On April 1, 2014, a federal grand jury for the Northern District of California returned an indictment charging Pacific Gas and Electric Company (“PG&E”) with multiple violations of the Natural Gas Pipeline Safety Act of 1968 (“PSA”), announced U.S. Attorney Melinda Haag, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, and FBI Special Agent in Charge David J. Johnson. PSA violations were uncovered in the course of an investigation initiated after the fatal San Bruno natural gas pipeline explosion in 2010.
The indictment alleges that PG&E knowingly and willfully violated the PSA and its regulations between 2003 and 2010. According to the indictment, the charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The indictment alleges that PG&E failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete.
The indictment also alleges that PG&E failed to identify threats to its larger natural gas pipelines and that PG&E did not take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. In addition, the indictment alleges that PG&E failed to adequately reprioritize and assess threatened pipelines after the pipelines were over pressurized as required by the PSA and its regulations.
“The citizens of Northern California deserve to have their utility providers put the safety of the community first,” said U.S. Attorney Haag. “Today’s indictment of PG&E for violating the minimum safety standards established by the Natural Gas Pipeline Safety Act reflects the company’s failure to follow that very basic principle. This investigation is the result of strong collaboration among federal, state, and local law enforcement authorities, the California Attorney General’s Office, and the San Mateo County District Attorney’s Office. I look forward to continuing to work closely with these partners in our efforts to hold PG&E accountable for their disregard for the safety of our community.”
“Today’s indictment is an important step in providing justice for the individuals, families and community devastated by the 2010 pipeline explosion and fire in San Bruno,” said California Attorney General Kamala D. Harris. “As alleged in the indictment, PG&E knowingly and willfully failed to identify and evaluate threats to its transmission pipelines, including Line 132 underneath much of San Bruno. When allegedly faced with evidence of transmission line problems, PG&E knowingly and willfully chose not to assess and remediate the problems. My office will continue our work with local and federal partners in prosecuting this matter in federal court and holding PG&E accountable for its alleged conduct."
“The indictment returned by the Grand Jury is an important step in holding PG&E criminally responsible for their willful misconduct,” said San Mateo County District Attorney Stephen M. Wagstaffe. “The San Bruno Police Department and my office will continue to support and work closely with the offices of the United States Attorney and the California Attorney General to bring PG&E to justice.”
“Pipeline safety is a top priority for the Department of Transportation and the Office of Inspector General,” said William Swallow, DOT OIG regional Special Agent-in-Charge. “The lasting impacts among families and the community stemming from the tragic explosion in San Bruno remind us of why it is important to exercise vigorous management and oversight. The DOT OIG will continue to work with our law enforcement and prosecutorial colleagues to ensure that parties responsible for protecting public health and safety are held to the highest standards.”
“The Federal Pipeline Safety Act is designed to guard against risks to life or property in the course of distributing goods and services to entrusting consumers,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “This office has the responsibility not only to uphold and enforce the criminal laws of the United States but also to do everything we can to protect the public. The charges alleged in this indictment should be symbolic of the FBI’s commitment to serving justice no matter how long it takes.”
PG&E is charged with 12 separate violations of the PSA. The maximum statutory penalty for each count for a corporation is $500,000 or a fine based on the gain the corporation made as a result of the violation or the loss caused to victims.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The prosecution is the result of a three-year investigation conducted by the U.S. Attorney’s Office for the Northern District of California, the California Attorney General’s Office, the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the city of San Bruno Police Department.
Arraignment on the indictment in the United States Magistrate Court has not yet been scheduled. Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
(PG&E indictment )
New York Man Charged with Attempting to Rob A Milford Convenience StoreRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a Criminal Information in U.S. District Court in Scranton charging Jeremiah Anderson, age 29, of Port Jervis, New York, with the attempted robbery of a convenience store in Milford, Pennsylvania.
According to United States Attorney Peter J. Smith, Anderson and Daviandra Green entered the Hilltop Sunoco / Extra Mart, in Milford, Pennsylvania on October 5, 2011, and attempted to rob it without success. Green was also charged with the offense and pleaded guilty on January 8, 2014. She is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation; the Eastern Pike Regional Police Department; and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New London Heroin Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that XAVIER CLUFF, 41, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. According to court documents and statements made in court, CLUFF was intercepted over court-authorized wiretaps ordering 100-gram quantities of heroin from his drug supplier, Luis Ariel Capellan Maldonado, for distribution purposes. CLUFF was identified as one of Capellan Maldonado’s largest and most frequent customers.
CLUFF has been detained since his arrest on April 3, 2013. On December 13, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Capellan Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]Nevada Sex Offender Pleads Gulty to Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
David Lee Knowles, 55, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an April 2, 2013, federal indictment. Knowles is a registered sex offender as a result of his 1997 conviction for sexual assault.
By pleading guilty today, Knowles admitted that he received and distributed child pornography between May 31, 2012, and Jan. 3, 2013. A law enforcement officer was conducting an undercover investigation into the distribution of child pornography with peer-to-peer, file-sharing networks. Knowles’s computer was identified as sharing videos of child pornography over the Internet.
Knowles must forfeit to the government any property used to commit the offense, including an iPad2, a desktop computer, an iPhone and an external hard drive.
Under federal statutes, Knowles is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Navajo Man Sentenced to 20 Years in Prison for Sexually Abusing 11 Year-old GirlRead the Press Release
PHOENIX. – On March 31, 2014, Henry Yazzie, 43, of Tuba City, Ariz., on the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 20 years in prison followed by lifetime supervised release. Yazzie previously pleaded guilty to one count of abusive sexual contact of a minor.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-08197-PCT-DGC
RELEASE NUMBER: 2014-020_YazzieFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Fanderick Chiquito, 22, an enrolled member of the Navajo Nation who resides in Upper Fruitland, N.M., pleaded guilty today to an indictment charging him with involuntary manslaughter. Chiquito entered his guilty plea without the benefit of a plea agreement.
Chiquito was arrested on Dec. 31, 2013, based on a criminal complaint alleging that he killed a Navajo woman on Dec.23, 2013, while driving under the influence of alcohol in a location within the Navajo Indian Reservation. According to court filings, Chiquito caused a three-vehicle collision near mile marker 25 on Navajo Route 36 when he tried to pass a line of vehicles and struck another vehicle head on while driving in the oncoming lane. Both vehicles spun out of control on impact and one of the vehicles struck a third vehicle. The victim, a passenger in Chiquito’s vehicle, died of internal injuries after she was transported to a hospital in Farmington, N.M. After Chiquito was treated for minor injuries, he was arrested on tribal charges based on blood test results indicating a .29 BAC.
On Jan. 22, 2014, Chiquito was charged with involuntary manslaughter in an indictment alleging that he killed the victim while driving a vehicle under the influence of intoxicating liquor and operating a vehicle carelessly and in wanton disregard for the rights and safety of others. Chiquito pleaded guilty to the indictment during this morning’s proceedings.
At sentencing, Chiquito faces a maximum penalty of eight years in federal prison followed by three years of supervised release. His sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Murrysville Woman Sentenced to Prison for Defrauding Employer, Stealing Credit CardsRead the Press Release
PITTSBURGH - A Murrysville resident has been sentenced in federal court to 42 months imprisonment followed by three years supervised release on convictions of mail fraud, access device fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Dawn Penzera-Lackey, 41.
According to information presented to the court, Penzera-Lackey engaged in two separate schemes to steal money. In the first scheme, while employed as a food manager at a country club, Penzera-Lackey stole an $1,800 check from her employer that she was supposed to use to pay a vendor. After depositing the check into her personal bank account, Penzera-Lackey attempted to defraud the vendor by mailing to the vendor a bogus check drawn on an account that had long been closed. In the second scheme, Penzera-Lackey stole three credit cards from friends, who were owners of a small business. Penzera-Lackey then used the credit cards to make various purchases for her and family members totaling $16,660.30. Penzera-Lackey also admitted responsibility for uncharged conduct relating to a theft of $3284.24 from a different employer.
Prior to imposing sentence, Judge McVerry stated that Penzera-Lackey has demonstrated little respect for the law as evidenced by her history of repeated criminal conduct.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service, the Belle Acres Borough Police Department and the Pennsylvania State Police, Belle Vernon Barracks for the investigation leading to the successful prosecution of Penzera-Lackey.
Multiple Defendants Sentenced for International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that four defendants were sentenced in the past week for their roles in an international conspiracy to launder the proceeds of drug trafficking.
On Monday, March 31, 2014, United States District Judge Timothy M. Burgess sentenced Claritza Natera, 45, to serve 24 months in prison. Natera, of Anchorage, pled guilty to international money laundering, admitting that in 2010 and 2011 she repeatedly deposited currency that she knew to be the proceeds of drug trafficking into her bank account in Alaska and then immediately wired the funds to persons in the Dominican Republic. She admitted that she was paid cash for conducting these transactions by a person known to her to be a cocaine dealer and an illegal alien. The court also ordered Natera to forfeit $239,990 to the United States. This amount represents the funds involved in the money laundering conspiracy. The court ordered a money judgment in that amount to be entered against Natera.Also on Monday, March 31, 2014, Judge Burgess sentenced Joel Paredes Henriquez, 34, to four years of probation and ordered him to forfeit $25,500 to the United States. Joel Paredes Henriquez pled guilty to being a member of an international money laundering conspiracy, admitting that he deposited cash that he received from a man he knew to be an illegal alien and a cocaine dealer in Anchorage into his bank account, and wired the funds to the Dominican Republic. Joel Paredes Henriquez admitted that he wired over $25,000 between March 2010 and February 2011. In a plea agreement filed with the court, the defendant admitted that he knew or believed that the funds sent were the proceeds of or were intended to promote the importation and distribution of a controlled substance. It is a federal crime to transmit funds either domestically or internationally with such knowledge.
Nerido Paredes Henriquez, 38, of Anchorage, was also sentenced on Monday, March 31, 2014. Nerido, the brother of Joel, was sentenced to a three year term of probation and ordered to forfeit $15,400 to the United States. Nerido Paredes Henriquez pled guilty to one count of structuring financial transactions, admitting that he and others made several currency deposits at different bank branches to avoid the currency transaction reporting requirements of the Bank Secrecy Act. Federal law requires financial institutions to report currency transactions in excess of $10,000, and it is a federal crime to knowingly avoid those requirements.
Last Thursday, March 27, 2014, Judge Burgess sentenced Randin Paredes Henriquez, 36, to a term of time-served in jail. Randin Paredes Henriquez of Anchorage, the brother of Joel and Nerido Paredes Henriquez, pled guilty to one count of international money laundering. In December 2011, Randin flew from Anchorage to Philadelphia enroute to the Dominican Republic. Customs agents discovered that he was smuggling cash, which he admittedly knew to be the proceeds of cocaine trafficking in Alaska. Cash in the amount of $55,720 was seized and forfeited to the United States. Randin Paredes Henriquez had been in federal custody for approximately two years, since his return to Alaska from the Dominican Republic in March 2012. It is a federal crime to take more than $10,000 in currency or equivalents into or out of the United States without declaring the funds to Customs on arrival or departure.
Earlier last month, on March 14, 2014, Judge Burgess sentenced Concepcion Egea, 57, to four years of probation and fined her $5,000. Egea, of Florida, pled guilty to one count of structuring financial transactions to avoid the currency reporting requirements.
Evidence presented in court established that the defendants shared joint financial accounts, shared an address, and made multiple cash transactions in a single day or over several days at various branches to avoid suspicion. Most of the currency deposits were approximately $5000. The funds were almost always immediately wired to persons in the Dominican Republic. Randin, Joel, and Nerido Paredes Henriquez are lawful permanent residents of the United States, but remain citizens of the Dominican Republic. Concepcion Egea and Claritza Natera are naturalized U.S. citizens, and were formerly citizens of the Dominican Republic.
In a related case, United States v. Joel Santana Pierna, et al., numerous defendants were indicted in 2012 for drug trafficking, tax fraud, identity theft, passport fraud, making false claims of U.S. citizenship, bank fraud, and uttering forged U.S. Treasury checks. Seven defendants have been convicted in that case, including a former Wells Fargo Bank teller who helped facilitate the opening and use of bank accounts in fictitious names. Two defendants in the related indictment are in federal custody awaiting trial, and one remains a fugitive. Another former bank teller was charged and pled guilty in a separate case, admitting that she aided in the negotiation of forged Treasury checks.
“Joel Santana-Pierna ran a criminal enterprise that trafficked cocaine, stole the identities of honest citizens, and attempted to steal millions from the US Treasury by filing fraudulent tax returns. Santana-Pierna and the principle ringleaders of his organization already received stiff prison terms and penalties for their crimes,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation, Seattle Field Office. “The sentences handed down to Concepcion Egea, Randin Paredes Henriquez, Nerido Paredes Henriquez, Joel Paredes Henriquez, and Claritza Natera should serve as a warning to everyone that it does not pay to flirt with the criminal element. These otherwise law-abiding people got caught up in the money and lifestyle offered to them by Joel Santana-Pierna and his organization. That’s no excuse. Their actions made them criminal conspirators and now they too must pay their debt to society.”
Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Drug dealers and other criminals seek to profit from their illegal activities. Those who facilitate and participate in these criminal activities by laundering drug money and other ill-gotten gain must likewise be held accountable.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation; Homeland Security Investigations, Immigration and Customs Enforcement; and Drug Enforcement Administration for the investigation leading to the convictions in this case.
Morgan State University Professor Convicted in Scheme to Defraud the National Science Foundation and for Obtaining Kickbacks from Students’ StipendsRead the Press Release
Fraudulently Obtained $200,000 and Attempted to Obtain Another $500,000 through a National Science Foundation Small Business Program
Baltimore, Maryland - A federal jury convicted Manoj Kumar Jha, age 46, of Severn, Maryland, today of wire fraud, mail fraud, falsification of records, and theft of government property in connection with a scheme to fraudulently obtain research grants from the National Science Foundation (NSF) and kickbacks from students’ stipends.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Allison Lerner, Inspector General at the National Science Foundation.
“The Small Business Technology Transfer Program supports research performed cooperatively between small businesses and research institutions,” said Allison Lerner, National Science Foundation Inspector General. “This conviction of guilt on seven counts, including obstruction of justice and theft of government property, sends a strong signal to anyone who would seek to defraud this program and divert taxpayer dollars intended for scientific research to personal use. I commend the U.S. Attorney’s office for its strong support in this case.”
According to trial testimony, from January 2008 through July 2009, Jha fraudulently obtained $200,000 in grant funds from the National Science Foundation=s (NSF) Small Business Technology Transfer (STTR) program to fund a highway project, and attempted to obtain another $500,000 through the same program. Jha converted the funds to his personal use. For example, Jha made payments on his mortgage and personal credit card and authorized approximately $11,000 in salary payments to his wife, who performed no NSF-related work.
Jha, a full time professor at Morgan State University, incorporated Amar Transportation Research and Consulting, Inc. (ATRC), and was its president and only director. Trial evidence showed that Jha submitted funding proposals on behalf of ATRC to the STTR. The stated purpose of Jha=s proposed project was to enhance current models used by highway planners to optimize horizontal and vertical highway routes, and ultimately, to commercialize the result. In his application for STTR funding, Jha listed himself as the principal investigator and the University of Maryland as the CRI. Under the STTR, the primary employment of the principal investigator must be with the small business at the time of the award; and at least 40% of the research must be performed by the small business and 30% by a collaborating research institution (CRI), as measured by the budget.
Trial evidence was presented that in his applications, Jha falsely represented that: he would secure “release time” or negotiate other leave options with Morgan State University in order to spend time at ATRC working on the highway project; that ATRC had eight employees; and that another Morgan State professor would be working for ATRC as a Senior Scientific Advisor. In fact, Jha remained employed full time as a professor at Morgan State and that none of the statements were true. Jha also misrepresented the involvement of the University of Maryland in conducting research on the project and further misrepresented that he had obtained a $100,000 investment from a third party in order to qualify for matching funds from NSF.
On February 15, 2011, an investigator with the Office of Inspector General (OIG) for the NSF sent Jha a letter requesting copies of documents, including a list of all individuals who worked on the highway project and their time sheets, and the company=s expenditure ledger detailing all budget categories, as part of a proactive OIG review of ATRC’s compliance with laws, regulations, and conditions in connection with the NSF grant. On March 11, 2011, Jha provided, through his attorney, biweekly, signed time sheets purportedly maintained by Jha for a research scientist who worked on the highway project from October 1, 2008 until September 8, 2009. The time sheets were created by Jha only after receiving the OIG letter, and in such a way as to give the false appearance that the time sheets had been maintained and signed contemporaneously with the research scientist’s work. Jha also provided a copy of ATRC’s expenditure ledger as of September 10, 2009, in which he entered fictitious research expenses in order to conceal the fact that NSF funds had been converted to Jha’s personal use.
Finally, between March 4, 2008 and June 30, 2012, Morgan State University received federal funds under two subcontracts funded by the U.S. Department of Defense. Jha served as Morgan State’s Principal Investigator for those contracts and authorized stipend payments totaling approximately $100,000 to Morgan State University students working on those contracts. Trial evidence showed that between July 25, 2009 and July 24, 2010, Jha told some students who received stipend payments that they had to return a portion of the stipend funds to him, offering various false and misleading reasons. Some students returned a portion of their stipend to Jha, which Jha then used to pay personal expenses. The evidence showed that approximately $36,000 in stipend funds returned to Jha by Morgan State University students were deposited into Jha’s personal bank account
Jha faces a maximum sentence of 20 years in prison for each of four counts of wire fraud, and for one count each of mail fraud and falsification of records; and a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 11, 2014, at 10:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the National Science Foundation, Office of Inspector General for its work in the investigation and thanked the Department of Transportation Office of Inspector General for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Martin J. Clarke and Special Assistant U.S. Attorney Fara Damelin, Investigative Attorney with the Office of Inspector General for the National Science Foundation, who are prosecuting the case.