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14 May 2014
Union County, N.J., Man Sentenced to 63 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. - A Cranford, N.J., man was sentenced today to 63 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Andrew Johnson, 30, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of distribution of child pornography. Judge Wigenton imposed the sentence today in in Newark federal court.
According to documents filed in the case and statements in court:
Johnson admitted that on Dec. 7, 2012, he made available for others to download via an online peer-to-peer, file-sharing network images and videos of child sexual abuse that were stored on his home computer. An undercover law enforcement agent successfully downloaded from Johnson one image and 14 videos of child sexual abuse via the file sharing network.
As part of his guilty plea, Johnson agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
In addition to the prison term, Judge Wigenton sentenced Johnson to serve five years of supervised release and pay restitution of $13,500.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and the Cranford Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-171
Defense counsel: Lorraine Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
Two Idaho Men Indicted for Hate CrimeRead the Press Release
Jonathan Lynn Henery, 28, and Beau Edward Hansen, 30, both of Boise, Idaho, were indicted May 13, 2014, on federal hate crime charges for their racially motivated assault of an African-American man, the Justice Department’s Civil Rights Division and U.S. Attorney Wendy J. Olson for the District of Idaho announced. An initial appearance date has not been set.
The indictment alleges that on or about Oct. 20, 2013, both men willfully caused bodily injury to an African American man based on the victim’s actual and perceived race and color.
The charge of hate crime based on race is a violation of the Matthew Shepard and James Byrd Jr. Hate Crime Prevention Act signed into law by President Barack Obama in 2009. A violation of that statute is punishable by up to 10 years in prison, a maximum fine of $250,000 and up to three years of supervised release.
The case was investigated by the FBI and the Boise City Police Department. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Idaho and the Justice Department’s Civil Rights Division.
An indictment is a means of charging a person with criminal activity. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Arrested and Charged in Alleged Mortgage Fraud Scheme Involving Federal Undercover InvestigationRead the Press Release
CHICAGO — A West suburban man and a Chicago woman were arrested on federal charges for allegedly engaging in a bank fraud scheme purporting to involve the fraudulent sale of two two-flat apartment buildings in Chicago, federal law enforcement officials announced today. The charges followed a federal undercover investigation of fraudulent mortgage loan transactions.
GEORGE DRAVILAS, 36, of Medinah, and BRIDGET HUTCHERSON, 40, of Chicago, were each charged with bank fraud in a criminal complaint filed yesterday and unsealed following their arrests yesterday. Hutcherson was released on her own recognizance while Dravilas remains in federal custody pending a detention hearing at 3 p.m. Friday before U.S. Magistrate Judge Maria Valdez in U.S. District Court.
According to the complaint affidavit by an agent with the U.S. Department of Housing and Urban Development’s Office of Inspector General, a cooperating individual (CI-1) who was arrested in January 2013 identified Dravilas as someone he had worked with to conduct fraudulent mortgage transactions. The FBI initiated an undercover investigation in which CI-1 posed as a mortgage broker who was engaged in fraud and was seeking assistance in structuring fraudulent mortgage loan transactions. Two additional cooperating individuals, including a licensed real estate appraiser, two undercover law enforcement agents who posed as straw buyers of the two properties, and a bank also participated in the investigation.
The complaint alleges that Dravilas agreed to prepare underlying documents to be submitted as part of the fraudulent mortgage loan applications to the bank for the purchase of two residential properties by straw buyers who would receive a share of the seller’s loan proceeds. The two-flats were located in the 6300 block of South Parnell Avenue and the 6600 block of South Sangamon Street in Chicago. Although Dravilas claimed not to own the properties, he allegedly supplied real estate purchase contracts, title commitments, fraudulent and inflated lease rental agreements, money to obtain fraudulently inflated appraisals, and letters extending and renewing the real estate purchase contracts, the charges allege.
Dravilas allegedly schemed to sell both apartment buildings for a fraudulently inflated sales price of $275,000 each, while purporting to kickback $100,000 on each transaction to each of the undercover straw buyers, while keeping a fee for himself and the cooperating individuals.
Hutcherson allegedly received $600 to supply one of the cooperating individuals with fraudulent W-2s, check stubs, and earnings statements in the names of the straw buyers to be used in support of the mortgage loan applications.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago. HUD-OIG and FBI agents conducted the investigation through the South Suburban Financial Crimes Task Force, which includes the Cook County Sheriff’s Police Department, the Internal Revenue Service Criminal Investigation Division, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General.
The government is being represented by Assistant U.S. Attorney Andrew S. Boutros.
Bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Two Boise Men Indicted for Hate CrimeRead the Press Release
BOISE B Jonathan Lynn Henery, 28, and Beau Edward Hansen, 30, both of Boise, Idaho, were indicted May 13, 2014, on federal hate crime charges for their racially motivated assault of an African-American man, U.S. Attorney Wendy J. Olson announced. An initial appearance date has not been set.
The indictment alleges that on or about October 20, 2013, both men willfully caused bodily injury to a victim, who is African American, because of the victim’s actual and perceived race and color.
The charge of hate crime based on race is a violation of 18 U.S.C. § 249(a)(1), the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act signed into law by President Barack Obama in 2009. A violation of that statute is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
“Hate crimes target entire communities and are designed to send messages of intolerance that are not welcome here,” said Olson. “This office, along with the Civil Rights Division and our federal and local law enforcement partners, will vigorously investigate and prosecute these crimes.” Olson noted that this is the first case charged under the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act in the District of Idaho.
“From the first responding patrol officers, to the detectives, officers realized quickly this case was a major crime, a civil rights violation, not just a battery, that demanded the attention of our federal partners,” said Chief Michael Masterson of the Boise Police Department. “Beliefs that fuel crimes based on hate are toxic to our entire community. Boise Police detectives and agents from the FBI put substantial hours into investigating this case. Their work goes to the heart of law enforcement, which is to reduce fear and allow all residents to feel secure as they go about their daily lives. Hate crimes will not be tolerated. Thankfully they are rare in our city, but when they occur, be assured they will be aggressively investigated with all available resources, which are considerable.”
The case was investigated by the Federal Bureau of Investigation and the Boise City Police Department. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Idaho and the Civil Rights Division of the Department of Justice.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Men Charged with Operating Stolen Check-cashing SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the United States Postal Inspection Service, today announced that a federal grand jury sitting in New Haven has returned an indictment charging LANGSTON XAVIER NEAL, 36, of Charlotte, North Carolina, BENJII CARR, also known as Rodrick Lawon Davis, 39, of New Haven and North Carolina, and BRANDON KEY BENTLEY, 30, of New Haven, with conspiring to commit bank fraud through a stolen check-cashing scheme. The indictment was returned on May 8, 2014, and the three defendants were arrested yesterday.
The indictment alleges that, between July 2010 and May 2011, NEAL, CARR, and BENTLEY obtained stolen checks, recruited “runners” who would cash the checks, and altered the checks to list the runners as the lawful payees. The defendants drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds.
The indictment alleges that more than $100,000 in stolen checks were altered and cashed through this scheme.
If convicted of the charge of conspiracy to commit bank fraud, each defendant faces a maximum term of imprisonment of 30 years and a fine of up to $1 million. All three defendants are currently detained.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, the Connecticut Financial Fraud Task Force, and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Southbury, Waterbury and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Texas-Based “Notary” Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Unemployment Benefit FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Cheryl Garcia, Acting Special Agent-in-Charge of the New York Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (“USDOL-OIG”), and Peter M. Rivera, Commissioner of the New York State Department of Labor (“NYDOL”), announced today that MAGDALENA VILLALOBOS pled guilty today in Manhattan federal court to orchestrating a scheme in which she facilitated the filing of fraudulent claims for millions of dollars in unemployment insurance benefits provided by states across the country. VILLALOBOS was charged in October 2013, and pled guilty today before U.S. Magistrate Judge Debra C. Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Magdalena Villalobos facilitated an unemployment benefit scheme that injected fraud into at least 26 states, inflicted millions of dollars in losses, and did a disservice to the qualified claimants across the country who actually needed the funds. I commend and thank our federal and state law enforcement partners for their work on this case.”
USDOL-OIG Acting Special Agent-in-Charge Cheryl Garcia said: “For several years, Villalobos assisted individuals in obtaining unemployment insurance benefits even though they were ineligible because they resided outside the United States. Villalobos’s submission of fraudulent claims siphoned funds intended for those who are qualified and eligible to receive the benefits. This office will continue to work with United States Attorney’s Office and our state partners to investigate fraud against the Department of Labor’s Unemployment Insurance Program.”
New York State Labor Commissioner Peter M. Rivera said: “When individuals defraud the system, they steal from all of us. They steal from law-abiding employers, from workers and their families, and from all of the taxpayers across New York State. I commend our staff members who work hard every day to prevent and detect fraud and catch the criminals who try to get away with it.”
According to the Complaint, the Indictment, and other public documents filed in Manhattan federal court:
From at least July 2006 through her arrest in 2013, VILLALOBOS, a resident of Texas and owner of a purported notary business, accepted payments from fraudulent unemployment benefit claimants in return for placing telephone calls to at least 26 different States in order to certify falsely that those fraudulent claimants were entitled to such benefits. Certain of these claimants would reside outside of the United States while receiving unemployment benefits. Through this scheme, VILLALOBOS made thousands of calls on behalf of fraudulent claimants and inflicted millions of dollars in losses to unemployment benefit funds across the United States.
VILLALOBOS, 59, of San Juan, Texas, pled guilty to one count of conspiracy to steal unemployment insurance benefits. She faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of both USDOL-OIG and NYDOL. He also thanked the Federal Bureau of Investigation and the United States Postal Service for their assistance in the Texas investigation. He added that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew C. Adams and Rebecca G. Mermelstein are in charge of the prosecution.
U.S. v. Magdalena Villalobos Indictment
Texas Man Indicted for Federal Hate Crime and Kidnapping Charges for Assault Based on Victim’s Sexual OrientationRead the Press Release
A federal grand jury returned a two count indictment against Brice Johnson, 19, of Springtown, Texas, charging him with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person and with kidnapping, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Northern District of Texas and the FBI Dallas Division announced today.
On Feb. 19, 2014, a federal criminal complaint was unsealed charging Johnson with a hate crime. The indictment charges Johnson with the same hate crime offense and further charges that Johnson’s actions included kidnapping.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their chat communications, Johnson said that he was interested in engaging in sexual activity with A.K. and he invited A.K. to his home. Johnson gave A.K. his cell phone number and address and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s house. Based on ligature marks on A.K.’s wrists, it appears that he was bound while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove A.K. to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name and Johnson later stated that he was playing a prank on A.K. because of A.K.’s sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
An indictment merely establishes probable cause and Johnson is presumed innocent unless proven guilty. Each count carries a maximum statutory sentence of life in prison and a $250,000 fine.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Tennessee Salvage Company Owner and Operator Pleads Guilty to Conspiring to Violate the Clean Air ActRead the Press Release
The owner and operator of a Tennessee salvage and demolition company, A&E Salvage Inc., pleaded guilty today in federal court in Greeneville, Tennessee, for conspiring to violate the Clean Air Act.
Mark Sawyer pleaded guilty before U.S. District Court Judge Greer for the Eastern District of Tennessee to one criminal felony count for conspiring to violate the Clean Air Act’s “work practice standards” salient to the proper wetting, stripping, bagging and disposal of asbestos. According to the charges, Sawyer, along with other co-conspirators, engaged in a multi-year scheme in which substantial amounts of regulated asbestos containing materials were improperly removed from components of the former Liberty Fibers Plant or were illegally left in place during demolition.
Sawyer faces up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss to the victims. Sawyer is the last of five charged co-defendants to plead guilty. Sawyer, Eric Gruenberg, Nick Smith, Armida DiSanti and Milto DiSanti are due to be sentenced on Nov. 19, 2014.
Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos.
This case was investigated by Special Agents of the Environmental Protection Agency’s Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Morris of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney Todd W. Gleason of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Tennessee Salvage Company Owner and Operator Pleads Guilty to Conspiring to Violate the Clean Air ActRead the Press Release
WASHINGTON – The owner and operator of a Tennessee salvage and demolition company, A&E Salvage Inc., pleaded guilty today in federal court in Greeneville, Tennessee, for conspiring to violate the Clean Air Act.
Mark Sawyer pleaded guilty before U.S. District Court Judge Greer for the Eastern District of Tennessee to one criminal felony count for conspiring to violate the Clean Air Act’s “work practice standards” salient to the proper wetting, stripping, bagging and disposal of asbestos. According to the charges, Sawyer, along with other co-conspirators, engaged in a multi-year scheme in which substantial amounts of regulated asbestos containing materials were improperly removed from components of the former Liberty Fibers Plant or were illegally left in place during demolition.
Sawyer faces up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss to the victims. Sawyer is the last of five charged co-defendants to plead guilty. Sawyer, Eric Gruenberg, Nick Smith, Armida DiSanti and Milto DiSanti are due to be sentenced on Nov. 19, 2014.
Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos.
This case was investigated by Special Agents of the Environmental Protection Agency’s Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Morris of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney Todd W. Gleason of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Tampa Woman Sentenced to 12 Years in Prison as Leader of Credit Card Fraud RingRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Viviana Reyes (40, Tampa) to 12 years’ imprisonment for conspiracy to commit credit card fraud, conspiracy to commit bank fraud, credit card fraud, bank fraud, aggravated identity theft, and identity theft. The Court also ordered Reyes to pay $599,744.11 in restitution to the victims of her crimes and entered a forfeiture money judgment in the amount of $725,267.44, which represents the proceeds of the crimes.
A federal jury found Reyes guilty of all counts on December 12, 2013, after a four-day trial. Four of her co-conspirators previously pleaded guilty. Three have been sentenced and one remains a fugitive.
According to testimony and evidence presented at trial, Michel Lermos-Hernandez, Danay Crespo-Rodriguez, Norma Cabezas-Hernandez, and Viviana Reyes ran a credit card fraud ring. Lermos and Reyes were the leaders. Lermos, aided by others, obtained credit card numbers by placing key loggers on credit card terminals at the International Mall in Tampa, one in particular at the Haagen-Dazs ice cream store, that intercepted and stored swiped credit and debit card account information. Lermos and others then created counterfeit credit cards using the stolen credit and debit card account numbers. Lermos obtained blank credit card stock, embossing machines and magnetic stripe re-encoders from Reyes. He also sold stolen credit and debit card numbers taken from the key loggers to her.
After making the credit cards, Lermos provided the counterfeit credit cards to his co-conspirators, including his sister, Norma Cabezas-Hernandez, his girlfriend, Danay Crespo-Rodriguez, and at least two other separately-charged individuals (Lazaro Rodriguez and Abel Osorio-Cuok). Using the counterfeit cards, they bought electronics and gift cards at Tampa area retailers. The conspirators then took these items to Reyes= house, where she paid them in cash for the fraudulently obtained merchandise. Reyes directed the co-conspirators on what to buy – such as Target gift cards, Wal-Mart gift cards, and Apple electronics, based upon what she could most easily sell on the street. When Reyes purchased the items from her conspirators, she paid them approximately 50% of the retail value of the items before reselling them for approximately 60% of the retail value. Reyes advertised the items via text message and email.
A search of Reyes’ house in February 2013 revealed a credit card skimming device and two thumb drives filled with hundreds of stolen credit and debit card numbers, many of which were compromised at Haagen Dazs. Agents also recovered three counterfeit Florida drivers’ licenses indicative of those that Reyes sold to others in order to open lines of credit at area stores. A search of Reyes’ phone revealed pictures of merchandise such as Apple computers and tablets for sale, along with numerous text messages advertising electronics and gift cards for sale, at greatly reduced prices. Agents estimate that the loss, to date, to the affected financial institutions exceeds $700,000 and that the conspirators stole thousands of account numbers from affected credit and debit card account holders.
On March 13, 2014, Norma Cabezas-Hernandez was sentenced to five years in federal prison. Danay Crespo-Rodriguez’s sentencing hearing is scheduled for June 2014. Michel Lermos-Hernandez remains a fugitive. Lazaro Rodriguez was sentenced in January 2014 to three years and one month in federal prison. On February 21, 2014, Abel Osorio-Cuok was sentenced to five years’ probation for his role in this case.
This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement and the United States Secret Service, all of whom are members of the USSS’s credit card fraud and identity theft task force. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Tahlequah Woman Sentenced to 60 Months Probation and Restitution for Assault with A Dangerous Weapon in Indian CountryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARSHA RENEE WRIGHT, age 29, of Tahlequah, Oklahoma, was sentenced to 5 years of probation for Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153. The defendant was also ordered to pay $5,100.00 in restitution.
Charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.. The defendant was indicted in September, 2013 and pled guilty in November, 2013.
The Indictment alleged that on or about August 29, 2013, within the Eastern District of Oklahoma, within Indian country, on land held in Trust by the United States of America on behalf of the Cherokee Nation, the defendant herein, an Indian, did knowingly and intentionally assault an individual with intent to cause bodily harm, by ramming the vehicle Defendant was driving into a vehicle occupied by the other individual.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Dean Burris represented the United States.
Sunnyside Man Sentenced to 174 Months in Federal Prison for Methamphetamine TraffickingRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Trinidad Jesus Suarez, age 26, of Sunnyside, Washington, was sentenced for possession with intent to distribute methamphetamine. Senior United States District Court Judge Edward F. Shea sentenced Suarez to a 174 month term of imprisonment, to be followed by a 60 month term of court supervision upon release from Federal prison.
According to information disclosed during the court proceedings, in October, 2012, the Yakima County Law Enforcement Against Drugs Task Force (LEAD) made multiple purchases of narcotics from Suarez. On November 2, 2012, officers executed state search warrants for Suarez' vehicles and known residences. Suarez was arrested at his girlfriend's residence in Sunnyside, where officers found over 250 grams of actual methamphetamine. Suarez was arrested that day and was been in custody since the arrest. Suarez has multiple prior felony drug offense convictions and admitted to possessing the methamphetamine with intent to distribute. Suarez pleaded guilty to the charge on February 6, 2014.
Michael C. Ormsby said, "I commend the officers of the Yakima County LEAD Task Force, Yakima County Sheriff's Office, Grandview Police Department, Sunnyside Police Department, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney's Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities."
This case was investigated by the cooperative efforts of the Yakima County LEAD Task Force, Yakima County Sheriff's Office, Grandview Police Department, Sunnyside Police Department, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Drug Enforcement Administration. The case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-2044-EFS
Statement from the Department of Justice and Office of Director of National Intelligence on the Declassification of Additional Documents Regarding the Collection of Bulk Telephony Metadata Under Section 215 of the USA Patriot ActRead the Press Release
WASHINGTON—Today, the Department of Justice and Office of the Director of National Intelligence released, in redacted form, a previously classified series of Foreign Intelligence Surveillance Court filings and orders from 2009-2010 concerning the collection of bulk telephony metadata under Section 215 of the USA Patriot Act. These documents relate to a robust interaction that occurred between the Department of Justice and a telecommunications service provider that included the provider’s review of prior FISC applications, orders and opinions, regarding lawful compliance with those orders.
Motion to Unseal Records (Jan. 7, 2010) including prior FISC applications, orders and opinions, for the purpose of disclosing and discussing with the recipient the Section 215 order.
Joint Motion for Enlargement of Time (Jan. 8, 2010) allowed under FISC rules for the recipient if the Section 215 secondary order to file a petition challenging that order pursuant to 50 U.S.C. § 1861(f), filed by the government and the recipient of the secondary order.
FISC Order Granting Enlargement of Time (Jan. 8. 2010).
FISC Order Granting Motion to Unseal Records (Jan. 8, 2010).
Motion for Amended Secondary Order (Jan. 11, 2010) requesting that the FISC amend a secondary order to the recipient to expressly incorporate the findings of the FISC in three specific respects as described in the motion. This motion was granted Jan. 12, 2010, when the court issued an amended secondary order in the form proposed by the government.
Statement by Attorney General Holder on the Planned <br /> Departure of Deputy Director of Public Affairs Gina TalamonaRead the Press Release
Attorney General Eric Holder issued the following statement today on the planned departure of Deputy Director of Public Affairs Gina Talamona, who will begin work as the Communications Director of the Securities and Exchange Commission next month:
“For 27 years, Gina Talamona has been a tremendous asset to the Department of Justice and an exceptionally dedicated public servant. She’s been the backbone of our dedicated Office of Public Affairs team, providing leadership and sound guidance to Attorneys General and other leaders from administrations of both parties. Although I join my colleagues in congratulating Gina on her important new role at the Securities and Exchange Commission – and wish her nothing but the best – I will miss her wise counsel, her sense of humor, and her considerable contributions on behalf of the American people. She is a dear friend upon whom I have relied during all my time at the Department.”Springtown, Texas, Man Indicted on Federal Hate Crime and Kidnapping Charges for Assault Based on Victim’s Sexual OrientationRead the Press Release
FORT WORTH, Texas — A federal grand jury returned a two-count indictment against Brice Johnson, 19, of Springtown, Texas, charging him with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person and with kidnapping, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Northern District of Texas and the FBI Dallas Division announced today.
On Feb. 19, 2014, a federal criminal complaint was unsealed charging Johnson with a hate crime. The indictment charges Johnson with the same hate crime offense and further charges that Johnson’s actions included kidnapping.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their chat communications, Johnson said that he was interested in engaging in sexual activity with A.K., and he invited A.K. to his home. Johnson gave A.K. his cell phone number and address, and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s house. Based on ligature marks on A.K.’s wrists, it appears that he was bound while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove A.K. to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name, and Johnson later stated that he was playing a prank on A.K. because of A.K.’s sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
An indictment merely establishes probable cause and Johnson is presumed innocent unless proven guilty. Each count carries a maximum statutory sentence of life in prison and a $250,000 fine.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
(Download Factual Basis)
Springdale Pharmacy Technician Sentenced to Five Years in Prison for Stealing Drugs from Walter Reed HospitalRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Issa Wasco Koroma, age 62, of Springdale, Maryland to five years in prison followed by three years of supervised release for conspiring to steal prescription drugs from two federal military hospitals.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.Koroma admitted that from January 2008 to July 11, 2013, he conspired with others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed). They re-sold the stolen pharmaceuticals for profit.
Koroma was a pharmacy technician at Walter Reed. No later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed. From August 2011 to June 2013, Koroma and his co-conspirators stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.
Koroma and a co-conspirator also stole other prescription medications from the pharmacies at Fort Belvoir, Walter Reed and Old Walter Reed, which Koroma gave or sold to friends and acquaintances. These included Viagra, Cialis, Diovan, Humulin, Levitra and Lipitor.
On June 11, 2013, law enforcement officers executed a search warrant at Koroma’s residence and seized over 1,500 bottles and packages of prescription medications, including over 100,000 individual pills. A number of stolen prescriptions had been filled but not delivered to individual patients. Those thefts compromised the names, medical history and other personal identifying information of at least 10 patients treated at Walter Reed.
Koroma also stored stolen medications at a private storage unit he abandoned in 2009 or 2010. At the time that the storage unit was abandoned, it contained approximately 600 individual bottles and packages of prescription medication stolen from the pharmacies at Walter Reed and Old Walter Reed.
The total loss to the United States caused by Koroma and his co-conspirators was at least $4,467,000.
Two co-conspirators have been charged federally for their participation in the conspiracy. Their charges are pending.
United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.
Sioux Falls Man Sentenced for Health Care FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Making False Statements Relating to Health Care Matters was sentenced on May 12, 2014, by U.S. District Judge Karen E. Schreier.
Ricky Dean Johnson, age 59, was sentenced to 2 years of probation and fined $250.
Johnson was indicted by a federal grand jury on July 9, 2013, for False Statements Relating to Health Care Matters and Obtaining Controlled Substances By Fraud. He pled guilty to the false statements charge on February 19, 2014.
Johnson, a Medicare beneficiary, presented himself to multiple physicians at multiple health care facilities, complaining of pain and seeking prescription pain medications, including Hydrocodone and Oxycodone. To obtain the prescriptions from the different doctors, he falsely represented to each treating physician that he was not taking any other prescription pain medications.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Shippensburg Man Federally Charged with Unlawful Distribution of CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dante Kaleek Darby, 32, of Shippensburg, Pennsylvania, was indicted today by a federal grand jury in Harrisburg charging him with four counts of distribution of a controlled substance, cocaine, between September 2012 and October 2013 in Franklin County.
If convicted, Darby faces a statutory maximum of 20 years imprisonment and a $1 million fine.
This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Franklin County Drug Task Force. This case is being prosecuted by Special Assistant United States Attorney Laura J. Kerstetter, of the Franklin County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is 20 years imprisonment and 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.
****Rochester Woman Sentenced for Threatening to Kill the PresidentRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Christine Wright-Darrisaw, 38, of Rochester, N.Y., who was convicted following a jury trial of making a direct threat to kill the President of the United States and then lying to United States Secret Service Agents investigating the case, was sentenced to 33 months in prison today by U. S. District Court Judge Frank P Geraci.
Assistant U.S. Attorneys Craig R. Gestring and Grace M. Carducci, who handled the prosecution of the case, stated that the defendant threatened to kill President Barack Obama during a telephone call to the White House on February 24, 2012. At trial, the Government called the White House Operator who took the call from the defendant and she graphically described the “brutality” and the “violence” of Darrisaw’s words. The Operator stated that she has answered thousands of calls while serving as an operator with the White House Comments Line, but that this call stood out in her memory, almost two years later.
Secret Service Agents from Washington and Rochester also testified at trial about their investigation and how they were able to identify the defendant as a suspect. Agents in Rochester linked Wright-Darrisaw to the cellular telephone used to make the threat, and conducted an interview with her. During that interview, the defendant made several false statements to the Secret Service which were material to and impacted their investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.Retired Chicago Official Arrested on Federal Bribery Charge for Taking Cash and Personal Benefits to Steer $124 Million in City Contracts to Redflex for Red Light Camera ProgramRead the Press Release
CHICAGO — A retired City of Chicago official who managed the city’s red light camera program for nearly a decade was arrested today for allegedly accepting cash and personal benefits totaling hundreds of thousands of dollars to steer $124 million in city contracts to Redflex Traffic Systems, Inc., to establish, operate and expand the program. The defendant, JOHN BILLS, allegedly received cash bribes, other forms of payment, and an Arizona condominium, all funneled from Redflex through unnamed Individual A, Bills’ one-time friend who received $2 million in salary, bonuses, and commissions as a consultant to Redflex.
Bills, 52, of Chicago, was charged with one count of federal program bribery in a criminal complaint that was filed yesterday and unsealed today. Bills was scheduled to appear at 3 p.m. before U.S. Magistrate Judge Maria Valdez in Federal Court.
Between 2003, when the city awarded Phoenix-based Redflex its initial contract, and 2011, Bills allegedly received from Individual A cash and checks directly and indirectly for his benefit, including to repay loans, for his retirement party, and catering for another party. Individual A also purchased for Bills a Glendale, Ariz., condominium for $177,000, which Bills, often with friends and family, visited 22 times between May 2008 and 2012.
Bills, who retired in 2011 as managing deputy commissioner of the city’s transportation department after 32 years with the city, managed the city’s red light program and served as a member of the city’s contract evaluation committee.
According to an FBI affidavit supporting the charges, in October 2003, the city awarded a contract to Redflex for the installation, maintenance and operation of the city’s first Digital Automated Red Light Enforcement Program (DARLEP), which used cameras to automatically record and ticket drivers who ran red lights. Between 2004 and 2008, the city paid Redflex approximately $25 million under this contract, and Redflex installed and maintained 136 camera systems in Chicago intersections, and assisted in reviewing and processing violations. Bills, then assistant transportation commissioner, was a voting member of the city’s request for proposal (RFP) evaluation committee that recommended awarding the contract to Redflex after a one-month trial run of competing systems by Redflex and another finalist. In February 2008, the city awarded a new, non-competitive contract to Redflex to operate and maintain the previously installed 136 camera systems, and paid Redflex approximately $33 million under that contract.
Also in February 2008, following the competitive RFP process, the city awarded a new DARLEP contract to Redflex that was similar to the first. Bills was an advisory member of this RFP evaluation committee. The city paid Redflex approximately $66 million under this contract, which resulted in approximately 248 red light cameras being installed, bringing the total number of Redflex cameras to 384 and the total amount the city has paid Redflex to approximately $124 million.
By 2010, Chicago had the largest red light camera program in the United States, representing 20 percent of the total camera systems that Redflex operated nationwide. For Redflex, a subsidiary of Australian-based Redflex Holdings Ltd., the Chicago contract was its most important because of the revenue it generated and the name recognition it gave the company, according to the affidavit.
The complaint affidavit is supported by information from Confidential Source 1 (CS1), a former Redflex employee who initially provided Bills in 2002 with an unsolicited proposal to install red light cameras in Chicago. Frequent communications between CS1 and Bills led CS1 to understand that Bills was trying to determine if he could get money from Redflex in return for the company getting the red light camera contract. Shortly after a Jan. 3, 2003, pre-bid meeting that CS1 attended with other vendors, Bills asked CS1 to get him and his friends a hotel room in Los Angeles. CS1 paid for Bills’ hotel room with the approval of CS1’s superiors, believing that it would influence Bills to help Redflex get the Chicago contract. As CS1 anticipated, Bills did not offer and did not reimburse CS1 for the hotel room and instead thanked CS1, who submitted a voucher and was reimbursed by Redflex.
Between February and May 2003, during a pilot phase with Redflex and a competing vendor, Redflex paid for drinks and meals for Bills. Upon Bills’ recommendation, Redflex hired Company A as a subcontractor. In May 2003, before the city contract was awarded, Bills made comments to remind CS1 that Bills was being courted by the competing vendor. After Bills and CS1 strategized to ensure a favorable result, on May 27, 2003, the evaluation committee and city transportation commissioner recommended that Redflex be awarded the DARLEP contract, which went into effect in October 2003.
At a celebratory dinner in June 2003, Bills allegedly told CS1 words to the effect of, “It’s time to make good,” which CS1 understood to mean that Bills wanted and expected to be paid for helping Redflex win the Chicago contract. Bills allegedly floated alternative suggestions for funneling benefits to him, including suggesting that Redflex could pay him through the newly created Chicago customer liaison position. During the summer and fall of 2003 Redflex hired Individual A to fill that position and negotiated his compensation structure. In addition to salary and bonuses, Redflex payments to Individual A included commissions totaling more than $1.34 million between 2008 and 2011.
Before Bills retired, he allegedly made it known to CS1 and other Redflex employees that he wanted a job with Redflex. After it was decided that Redflex could not hire him directly, Redflex arranged for Bills to get a job with Company B, which was funded by Redflex. That job lasted through the early spring of 2012.
The affidavit alleges that between late 2003 and November 2012, Individual A and Bills used several different methods to transfer funds to Bills. In 2008, Individual A purchased the Glendale, Ariz., condominium for Bills’ use. In addition, checks written on Individual A’s bank account were used to repay debts Bills had accumulated and also to pay for personal expenses of Bills and his family. Individual A also withdrew large amounts of cash, totaling more than $643,000 between 2006 and 2011, which temporally correspond to Bills’ repayment of loans as well as Bills’ payment of numerous personal expenditures, including purchasing a $12,500 used Mercedes-Benz, with cash. Although some of Bills’ cash expenditures do not correspond to specific withdrawals by Individual A, Bills’ financial records reflect no withdrawals of cash by him to support the personal expenditures. In fact, records reflect very little cash on-hand by Bills during this time period.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Joseph Ferguson, Inspector General for the City of Chicago. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorneys Carrie Hamilton and Laurie Barsella.
Federal program bribery carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Readout of the Attorney General’s Meeting with D.C.-area College Campus Leadership on Addressing Campus Sexual AssaultRead the Press Release
Today, Attorney General Eric Holder met with campus leadership from eight Washington, D.C.-area colleges and universities: American University; Catholic University of America; Gallaudet University; Georgetown University; George Washington University; Howard University; Trinity University; and University of the District of Columbia, to discuss how administrations are addressing sexual assault on campus.
In recognition of the 20th anniversary of the Violence Against Women Act, the department’s Office of Violence Against Women (OVW) launched a campus tour from April 23-May 1 for Sexual Assault Awareness Month. Senior officials from the Departments of Justice and Education visited 11 campuses across the country, including public and private universities, community colleges, historically black colleges, and faith-based and tribal-affiliated institutions.
During today’s discussion, convened at the Department of Justice, officials shared lessons learned and feedback from the campus tour. Campus leaders shared their achievements and challenges in implementing effective prevention and intervention strategies and responses to address sexual assault, including student engagement, public education efforts, strong collaborations and a focus on campus culture. Justice officials also encouraged school leaders to take advantage of the assistance being provided by the government. Department of Justice campus assistance includes specialized training for school officials and guidance on how to improve their investigative and adjudicative protocols.
President Obama and Vice President Biden took an unprecedented step this year in the Administration’s effort to address campus sexual assault by establishing the “White House Task Force to Protect Students from Sexual Assault.” The Task Force was charged with sharing best practices, and increasing transparency, enforcement, public awareness and interagency coordination to prevent violence and support survivors. At the end of April, the Task Force issued their first report, reflecting what they had heard in the many listening sessions that were held this year, and what the government can do in the short-term to better partner with academic institutions.
Since 1999, OVW has funded approximately 400 campus-based projects, totaling more than $139 million, to address domestic violence, dating violence, sexual assault and stalking on campuses.
Associate Attorney General Tony West, Acting Assistant Attorney General for Civil Rights Jocelyn Samuels, and OVW Principal Deputy Director Bea Hanson, as well as the Department of Education’s Jamienne Studley, Deputy Under Secretary of Education, and Seth Galanter, Principal Deputy Assistant Secretary, Office for Civil Rights, also participated in today’s meeting. The roundtable discussion was organized in partnership with the DC Coalition Against Domestic Violence (DCCADV) University Leadership Initiative.
Rangeley Man Sentenced to Almost Four Years on Firearms ChargeRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Frank
J. McConnell, III, a/k/a “Frank Thompson,” 23, of Rangeley, Maine, was sentenced today in
U.S. District Court in Bangor to almost four years (46 months) of imprisonment, three years of supervised release and a $500 fine for being a felon in possession of a firearm. The defendant pleaded guilty on November 13, 2013.Court records reveal that on July 13, 2013, law enforcement officers responded to a complaint that an intoxicated man was at a home in Dallas Plantation shooting a gun. When the officers arrived, the defendant was standing outside the home firing a handgun toward the woods. The defendant was intoxicated and prohibited from possessing firearms because of prior felony convictions for domestic violence assault and a bail violation.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Rangeley Police Department, the Franklin County Sheriff’s Office, the Maine
State Police, and the U.S. Border Patrol.Raleigh Man Sentenced for Receipt of Child PornographyRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced WALLACE EDWIN PERRY, JR., 28, of Raleigh, North Carolina, to 188 months imprisonment followed by 15 years of supervised release.
A Criminal Information was filed on December 9, 2013, charging receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). On February 10, 2014, PERRY pled guilty to the charge.
According to the investigation, in February, 2012, Cary Police Department initiated an investigation related to the peer-to-peer sharing of child pornography. From February, 2012, to August, 2012, an undercover agent identified a computer offering to share files containing child pornography. A search warrant was obtained and executed in September, 2012. Computer forensics revealed over 20,000 images of child pornography.
The criminal investigation of this case was conducted by the Cary Police, the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Portland Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jason
Campbell, 39, of Portland, pled guilty today in U.S. District Court before Judge Jon D. Levy to pharmacy robbery.According to court records and evidence introduced at the plea hearing, on April 11, 2014, Campbell entered the CVS pharmacy, located on Congress Street in Portland, carrying a backpack. As he approached the pharmacy counter, he opened the backpack, said he had a
“bomb,” displayed what appeared to be a soda bottle with wires attached to it, and told the pharmacist to evacuate the CVS and to close the gate in front of the store. He demanded the opioid pain medications Duragesic (fentanyl), demerol and dilaudid and absconded after being given the narcotics. He disposed of his outer clothing and the backpack in a nearby trash can. He was located a short time later in the vicinity of his Portland residence and some of the stolen narcotics were recovered. The investigation revealed that the bomb was not an explosive device.
Campbell faces up to 20 years in prison and a $250,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Portland Police Department and the Federal
Bureau of Investigation.Pittsburgh Jeweler Sentenced to Probation for Failing to File IRS FormsRead the Press Release
PITTSBURGH - A Pittsburgh jeweler has been sentenced in federal court to three years of probation, a $12,000 fine, and 100 hours of community service on his conviction of failing to file Internal Revenue Service forms for the purpose of evading federal reporting requirements, United States Attorney David J. Hickton announced today. The first six months of probation will be served in home detention with electronic monitoring.
Senior United States District Judge Gustave Diamond imposed the sentence on Alan Kashi, 32.
According to information presented to the court during the earlier guilty plea proceeding, on March 13, 2012, Kashi, who was engaged in the jewelry business known as Kashi Jewelers located on Fifth Avenue in downtown Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following his receipt of approximately $12,500 in currency as a payment for a Breitling watch.
The charges against Kashi arose as a result of an undercover IRS investigation of Kashi's sale of high-end jewelry to known drug traffickers for cash. The investigation established that transactions exceeding $10,000 were not, as required by law, reported to the IRS on Forms 8300.
During the execution of a federal search warrant at Kashi Jewelers, $933,025 was discovered in two safes and seized by federal agents. Prior to the sentencing proceeding, Kashi agreed to the Court entering an order forfeiting the money to the United States.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Kashi.
Philadelphia Woman Admits Conspiracy to Traffic Firearms from Philadelphia to CamdenRead the Press Release
CAMDEN, N.J. – A Philadelphia woman today admitted conspiring to sell guns without a license, U.S. Attorney Paul J. Fishman announced.
Rosselyn M. DeJesus, 26, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with conspiracy to deal firearms without a license.
According to documents filed in this case and statements made in court: Between June 30, 2012, and July 19, 2012, DeJesus bought five pistols from Philadelphia-area gun shops, which she then transferred for resale to her conspirator, Michael Wayne Lee, also of Philadelphia. Lee, a previously convicted felon, resold them. Two of the five weapons were sold by a third individual, Ammie Steward, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). These two weapons are now in the custody of law enforcement.
On Feb. 19, 2014, Lee pleaded guilty before Judge Bumb to one count of conspiring with DeJesus, Steward, and others to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced Sept. 29, 2014.
On Dec. 19, 2012, Steward, pleaded guilty before Judge Bumb to dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced Sept. 19, 2014.
Also in connection with this investigation, on May 5, 2014, ATF agents arrested Wendelle L. Ford, 40, of Camden. Ford was charged with conspiracy to deal firearms without a license.
From January 2012 through July 2012, Ford obtained firearms from different sources, who purchased them in gun shops in Philadelphia and pawn shops in North Carolina. Ford then resold the firearms, including at least two firearms to Steward, who in turn sold the weapons to an ATF informant. In total, Ford dealt 15 firearms without a license.
Ford made his initial appearance in court on May 5, 2014, before U.S. Magistrate Judge Karen M. Williams and was released on bond.
The count of conspiracy to illegally deal firearms to which DeJesus pleaded guilty, and with which Ford is charged, carries a maximum potential penalty of five years in prison and a $250,000 fine. DeJesus is scheduled to be sentenced Sept. 5, 2014.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Robin Shoemaker, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaint against Ford are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: DeJesus: Frederick Klepp Esq., Cherry Hill, N.J.
Lee: Stanley King Esq., Woodbury, N.J.
Ford: Mark Catanzaro Esq., Moorestown, N.J.DeJesus, Resselyn Information
Lee, Michael Wayne Information
Steward, Ammie Information
Ford, Wendelle ComplaintPatient Recruiter Sentenced in Detroit for Role in $14.5 Million Medicare Fraud SchemeRead the Press Release
A patient recruiter who participated in a Medicare fraud scheme that totaled almost $14.5 million was sentenced in Detroit yesterday to serve 86 months in prison.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, 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.
Richard Shannon, 41, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Shannon was sentenced to serve three years of supervised release and was ordered to pay more than $1.6 million in restitution, jointly and severally with his co-defendants.
On Oct. 26, 2012, Shannon, a patient recruiter for a network of fraudulent home health care companies, was found guilty at trial of one count of conspiracy to commit health care fraud.
According to evidence presented at trial, Shannon and his co-conspirators caused the submission of false and fraudulent claims to Medicare through All American and Patient Choice, two Oak Park-based home health care companies, which purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
The evidence showed that Shannon acted as a patient recruiter, paying Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. The owners of Patient Choice and All American then paid physicians to sign referrals and other therapy documents necessary to bill Medicare. Physical therapists and physical therapist assistants would then create fake medical records using the blank, pre-signed forms obtained by Shannon and other patient recruiters to make it appear as if physical therapy services had actually been rendered.
Shannon recruited destitute beneficiaries from housing projects and soup kitchens in the Detroit area, obtaining their patient information in exchange for cash and promises of prescription narcotics prescribed by co-conspirator physicians.
This case was investigated by the FBI, HHS-OIG and the Internal Revenue Service 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 was prosecuted by Deputy Chief Gejaa Gobena, Assistant Chief Catherine Dick and Trial Attorney Niall O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged almost 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Parmelee Man Sentenced for Abusive Sexual Contact by ForceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on May 12, 2014, by U.S. District Judge Roberto A. Lange.
Daryl Plumman, age 21, was sentenced to 5 years in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $44.46 in restitution.
Plumman was indicted for Abusive Sexual Contact by Force by a federal grand jury on May 15, 2013. He pled guilty on February 20, 2014.
The conviction stems from an incident that took place in July 2011 at Parmelee, when Plumman began to kiss the victim and she attempted to end the encounter. Plumman held her down while he removed her pants and touched her inappropriately.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Plumman was immediately turned over to the custody of the U.S. Marshals Service.
Owner and Operator of New Jersey-Based Real Benefits Association LLC Admits Selling Bogus Health InsuranceRead the Press Release
TRENTON, N.J. - An insurance broker who allegedly stole nearly $1 million while continuing to sell health care coverage he knew was fake pleaded guilty today in connection with the scheme, U.S. Attorney Paul J. Fishman announced.
David Clark, 70, of Morristown, N.J., entered his guilty plea to an information, charging him with conspiracy to commit wire fraud, before U.S. District Judge Michael Shipp in Trenton federal court.
According to documents filed in this case and statements made in court: Clark owned and operated Real Benefits Association, LLC (RBA), a New Jersey limited liability company he incorporated on Dec. 17, 2003, under a similar name. Clark established RBA as a purported labor organization and as a way to market and sell health insurance to the general public through the RBA Welfare Plan. Initially, the Welfare Plan was fully insured through Perfect Health, a licensed New York insurance company. Participants paid insurance premiums to bank accounts of RBA and/or the Welfare Plan, which Clark then remitted to Perfect Health.
Perfect Health was purchased by Health Insurance Programs (HIP) in 2008, and HIP discontinued its insurance policy with the RBA Welfare Plan. The federal government notified Clark that RBA did not qualify as a labor organization and was required to cease operating.
Nonetheless, Clark continued to market and sell the health insurance plans to unsuspecting participants. Eventually participants began to complain to their respective state insurance departments when their medical claims were not being paid, which prompted various departments throughout the United States to issue cease and desist orders.
Clark and conspirators continued to market and sell bogus health insurance, and from December 2008 to July 2011, they collected approximately $1,789,596 in premiums for RBA health insurance coverage. Clark diverted approximately $962,027 from the premiums paid by RBA participants for his personal use, including by using victims’ premiums to fund personal debit and credit card purchases, college tuition payments and deposits to a relative’s bank account.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Aug. 20, 2014.
U.S. Attorney Fishman credited special agents of the U. S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia; and the U.S. Department of Labor Employee Benefits Security Administration (EBSA), under Jonathan Kay, Regional Director; as well as postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, with the investigation leading to the plea.
The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
If you have information or think you might be a victim of this scheme, please contact (866) 444-3272 to speak to an EBSA benefits advisor.14-170
Defense counsel: John P. McDonald Esq.; Somerville, N.J.
Clark, David Information
Omak Mental Health Counselor Sentenced to Five Years Probation for Filing False Income Tax ReturnRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Debra Van Brunt-Oreiro, age 59, of Omak, Washington, was sentenced today for filing a false income tax return. United States District Court Chief Judge Rosanna M. Peterson sentenced Van Brunt-Oreiro to a five-year term of probation. The Court ordered Van Brunt-Oreiro to pay $250,172 to the IRS in unpaid taxes, to perform 10 hours of community service on a weekly basis during her entire term of probation, and to pay a $100 penalty assessment. The Court also ordered that any proceeds Van Brunt Oreiro may receive from the sale of property she owns, which is held in trust by the Colville Confederated Tribe, will be garnished and distributed to the IRS.
According to information disclosed during court proceedings, Van Brunt-Oreiro was the owner-operator of ADJR Counseling Services in Omak, Washington, and provided mental health counseling and therapy services to Colville Confederated Tribal (CCT) members and non-members. Van Brunt-Oreiro was an independent contractor and not a tribal employee. According to court documents, Van Brunt-Oreiro filed false Federal income tax returns with the IRS for the years 2006, 2007 and 2008 which underreported income she received from the CCT by approximately $575,616. She also failed to file a 2009 Federal income tax return, even though she earned approximately $233,737 in income that year.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, "The privilege of living well in the United States carries certain burdens, one of which is the voluntary payment of taxes. The system only works when everyone truthfully reports their income and pays their fair share of taxes."
"When someone gives in to greed and cheats on their taxes, they cheat and steal from all of us," said Kenneth Hines, Special Agent in Charge of IRS Criminal Investigation's Seattle Field Office. "This sentencing demonstrates the committed efforts of the IRS and the United States Attorney's Office to bring to justice to those who shirk their duties as American citizens."
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
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Olympia Man who Preyed on 16-Year-Old Convicted of Production and Possession of Child PornographyRead the Press Release
A 47-year old Olympia, Washington man was found guilty late yesterday of production and possession of child pornography following a two day bench trial in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. MICHAEL T. LAURSEN, supplied a 16-year-old with drugs and photographed her in sexually explicit conduct. U.S. District Judge Robert J. Bryan found LAURSEN guilty and set sentencing for August 8, 2014. LAURSEN faces a mandatory minimum 15 years to 30 years in prison.
According to records filed in the case, the victim was known to LAURSEN through her relatives. She first met LAURSEN when she was 12-years-old. After she turned 16 years old in 2012, LAURSEN initiated a sexual relationship with her, supplied her with drugs, and encouraged her to miss school. In June 2012 and October 2012, LAURSEN took photographs of the victim, including photographs of his sexual conduct with her. LAURSEN encouraged the victim to run away from home, and then had her stay with him in motel rooms, apartments, and other person’s homes, while also directing her to engage in sexually explicit acts and taking photographs of her.
The case was investigated by the Washington State Patrol-Missing and Exploited Children’s Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)-South Sound Investigative Task Force, Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Special Assistant United States Attorney Seth Wilkinson.
Odessan Pleads Guilty to Federal Drug ChargeRead the Press Release
Kelly Jay Duarte, the 22-year-old former proprietor of Urban City, a retail business in Odessa, faces up to 20 years in federal prison after pleading guilty earlier today to one count of possession of a synthetic cannabinoid with intent to distribute announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
By pleading guilty, Duarte admitted that in May 2013, synthetic cannabinoids packaged under the names of “Diablo,” “KMA,” “Mad Hatter,” and “Hypnotic Haze” were knowingly sold to customers at his business in violation of federal law.
Duarte remains on bond pending sentencing. A sentencing date has yet to be scheduled.
This investigation was conducted by the Federal Bureau of Investigation and the Odessa Police Department with lab assistance provided by the Drug Enforcement Administration. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.North Carolina Seafood Distributor Pleads Guilty to Tax EvasionRead the Press Release
Jeffrey Wayne Scott, 48, of Wilmington, North Carolina, pleaded guilty to tax evasion in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today. Scott was indicted on Nov. 25, 2013, for five counts of personal income tax evasion and one count of filing a false corporate tax return. He pleaded guilty to one count of willfully attempting to evade his personal income tax for tax year 2007.
According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995. For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns. Scott provided his return preparer with handwritten summaries of gross receipts and categorized expense items for the wholesale and retail fish distribution businesses as well as tax documents provided by financial institutions. Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period. During these five years, however, the Scotts spent far in excess of this reported taxable income on personal expenditures.
According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS. This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott also made a monthly transfer of $10,000 from GLS’ business account into a personal brokerage account. After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from GLS’ business account to pay the mortgage and related expenses. Through a bank deposit and expenditure analysis, the IRS calculated that Scott failed to report taxable income for these five years in excess of $1,151,642 and owed at least $390,678 in additional taxes. For the 2007 tax year, Scott failed to report $328,754 in taxable income with an additional tax due and owing of $113,967.
According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free. Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming the painting of his personal residence, repair work by a plumber at his personal residence, and health bills related to his family dog as business expenses.
Chief U.S. District Judge James C. Dever III scheduled the sentencing for the term of court to begin Aug. 18, 2014. Scott faces a statutory maximum prison term of five years and a maximum fine of $250,000.
This case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Susan B. Menzer and Trial Attorney Todd A. Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
North Carolina Seafood Distributor Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – Jeffrey Wayne Scott, 48, of Wilmington, North Carolina, pleaded guilty to tax evasion in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today. Scott was indicted on Nov. 25, 2013, for five counts of personal income tax evasion and one count of filing a false corporate tax return. He pleaded guilty to one count of willfully attempting to evade his personal income tax for tax year 2007.
According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995. For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns. Scott provided his return preparer with handwritten summaries of gross receipts and categorized expense items for the wholesale and retail fish distribution businesses as well as tax documents provided by financial institutions. Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period. During these five years, however, the Scotts spent far in excess of this reported taxable income on personal expenditures.
According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS. This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott also made a monthly transfer of $10,000 from GLS' business account into a personal brokerage account. After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from GLS' business account to pay the mortgage and related expenses. Through a bank deposit and expenditure analysis, the IRS calculated that Scott failed to report taxable income for these five years in excess of $1,151,642 and owed at least $390,678 in additional taxes. For the 2007 tax year, Scott failed to report $328,754 in taxable income with an additional tax due and owing of $113,967.
According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free. Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming the painting of his personal residence, repair work by a plumber at his personal residence, and health bills related to his family dog as business expenses.
Chief U.S. District Judge James C. Dever III scheduled the term of court to begin Aug. 18, 2014. Scott faces a statutory maximum prison term of five years and a maximum fine of $250,000.
This case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Susan B. Menzer and Trial Attorney Todd A. Ellinwood of the Justice Department's Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Nine Trey Gangster Member Sentenced to 30 Years in Federal PrisonRead the Press Release
RICHMOND Va. – Clyde Maurice Neblett, III, 23, of Richmond, Virginia, a member of the Nine Trey Gangsters, was sentenced today on three firearms offenses. A jury convicted Neblett in January of possession of three firearms by a felon and also, in a separate incident, of possessing a fourth gun while a felon. He was sentenced today to ten years on each of those two counts, with the sentences to run consecutively. In addition, Neblett pled guilty today to discharging a firearm during an attempted robbery in April 2013, and received an additional ten year sentence, consecutive to the earlier firearms charges, for a total sentence of 30 years. In the Statement of Facts filed with the Court in conjunction with his plea today, Neblett admitted that he also engaged in two additional home-invasion style robberies in Richmond and Chesterfield County between December 2012 and January 2013.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Chief Douglas A. Middleton, Henrico County Police Division, made the announcement today after the sentence was imposed by United States District Court Judge Henry E. Hudson.
Neblett was a high-ranking officer in the Nine Trey Gangsters (“NTG”) and is one of nearly four dozen members of that gang to be convicted on federal charges since 2012. NTG is part of the United Blood Nation (UBN), the first unified Blood gang alliance on the East Coast. The gang started on Riker’s Island in the New York City jail system. Since its inception, NTG has been one of the most active East Coast Blood gang sets, and has spread across the eastern United States. The FBI and numerous dedicated gang task forces have undertaken a long-term investigation of NTG activities in Virginia and neighboring states.
This case was initiated and investigated by the Federal Bureau of Investigation as part of its Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New York Man Pleads Guilty to Part in Scheme to Use Counterfeit Access Devices to Steal from CasinosRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Benfen Zhang, 43, of Flushing, N.Y., pleaded guilty before U.S. District Judge Richard T. Haik to conspiracy to use counterfeit access devices to receive cash advances from Louisiana casinos.
According to evidence presented at the guilty plea, Zhang and three Chinese nationals obtained cash advances using unauthorized access devices from November 2012 to September 2013. Zhang drove his co-conspirators to casinos and provided the counterfeit access devices. The co-conspirators would then get cash advances from the casinos, gamble briefly, and then move to the next casino. The total amount of loss to the casinos is believed to be $103,624.81. Illegal cash advances were obtained from the Coushatta Casino Resort in Kinder, L=Auberge Casino in Lake Charles, El Dorado Casino in Shreveport, and Horseshoe Casino in Bossier City.Zhang faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and restitution for one count of conspiracy to possess more than 15 counterfeit or unauthorized access devices.
The Federal Reserve defines an access device as a card, code or other means of access to a consumer’s account or a combination of these used by the consumer to initiate Electronic Fund Transfers (EFT). Access devices include debit cards, personal identification numbers (PINs), telephone transfer and telephone bill payment codes, and other means to initiate EFT or to form a consumer account.
The U.S. Secret Service and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
New Iberia Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Rodger Dale Seilhan, 63, of New Iberia, La., pleaded guilty before U.S. District Judge Richard T. Haik to charges that he failed to update his sex offender registration.
According to evidence presented at the guilty plea, after failing to report his whereabouts to authorities for two years, the U.S. Marshals Service and other law enforcement agencies located Seilhan in New Iberia at a relative’s residence. He was arrested on March 11, 2014. The Travis County Sheriff’s Office in Texas arrested Seilhan on January 21, 1982 for aggravated sexual assault of a child, and he was later sentenced to 15 years in prison. After being released from prison, Seilhan reported residence changes to authorities while he lived in Texas until September 5, 2012. He was found to not be living at his last known address in Willis, Texas, after a sex offender verification check was conducted.Seilhan faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine for one count of failure to update sex offender registration. A sentencing date was not set.
The U.S. Marshals Service, Travis County Sheriff’s Office, Texas Department of Public Safety, Montgomery County Sheriff’s Office, and Louisiana State Police conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Mission Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 13, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Colin Whirlwind Solider, age 21, was sentenced to 30 months in custody, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $7,560.68 in restitution.
Whirlwind Soldier was indicted for Involuntary Manslaughter by a federal grand jury on November 14, 2013. He pled guilty on February 20, 2014.
The conviction stems from an incident that took place on September 18, 2013, when Whirlwind Soldier was driving a motor vehicle while under the influence of alcohol. Whirlwind Soldier drove between 65 and 69 miles per hour in a 35-mile per hour zone, failed to keep the vehicle on the roadway, and rolled. The victim was ejected from the vehicle and killed as a result of blunt force trauma sustained in the crash. Whirlwind Soldier had a blood alcohol level of .178.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher prosecuted the case.
Whirlwind Solider was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 13, 2014, by U.S. District Judge Roberto A. Lange.
Reno Roubideaux, age 40, was sentenced to 84 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Roubideaux was indicted for Assault Resulting in Serious Bodily Injury by a federal grand jury on August 21, 2013. He pled guilty on March 10, 2014.
The conviction stems from an incident that took place on July 1, 2013, in Todd County, when Roubideaux assaulted a man while he was asleep. Roubideaux hit the victim with his fists, while others also assaulted him with their fists and a cane. As a result of the assault, the victim suffered a large laceration to his scalp that required staples to repair.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Minister Pleads Guilty to Child Pornography ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today TIMOTHY JACK STRICKLAND, 42, of Mount Olive, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to being in receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). A Federal Grand Jury returned a Criminal Indictment on February 18, 2014.
According to the investigation, in March, 2013, while attending training, a Federal Bureau of Investigation Task Force Officer engaged in a chat with STRICKLAND, who it was determined later, was a Pentecostal minister. During the chat the agent observed that STRICKLAND’s directory contained child pornography files. A search warrant was later executed at STRICKLAND’s home, where a laptop, several hard drives and other media devices were seized. Computer forensics revealed approximately 11,000 images of child pornography.
At sentencing, set for August 18, 2014, STRICKLAND faces up to 20 years imprisonment. If it is determined that he has had prior convictions related to sexual abuse, abusive sexual conduct with a minor, or an offense related to child pornography or sex trafficking of children, he faces up to 40 years imprisonment.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Milford Resident Admits Embezzling $108k from EmployerRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LIPTAK, 49, of Milford, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in Bridgeport to one count of interstate transportation of money obtained by fraud.
According to court documents and statements made in court, LIPTAK was employed by Consolidated Management Group (“CMG”) of Westport. CMG provided management services to condominium associations, including managing the bank accounts and expenses of the associations. From approximately June 2008 to March 2012, LIPTAK embezzled approximately $108,000 from CMG.
Judge Meyer scheduled sentencing for August 6, 2014, at which time LIPTAK faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the United States Secret Service and the Westport Police Department. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Meth Defendant Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Lee Anthony Guidry, 48, of Robertsdale, was sentenced today in federal court to 130 months imprisonment for his role in a conspiracy to manufacture methamphetamine. Guidry pled guilty to the charge in June of 2013. United States District Court Judge William H. Steele imposed the sentence this morning, ordering that Guidry would serve a three-year term of supervised release following the completion of his prison term. Judge Steele ordered that Guidry pay $100 in special mandatory assessments, but did not impose a fine.
The case was investigated by the Baldwin County Sheriff’s Office and the Bay Minette Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Member of the Granados-Hernandez Sex Trafficking Organization, Samuel Granados-Hernandez, Sentenced to 15 Years in PrisonRead the Press Release
Earlier today, Samuel Granados-Hernandez was sentenced before Judge Kiyo A. Matsumoto in U.S. District Court in Brooklyn, New York, to 15 years’ imprisonment, to be followed by five years of supervised release, for his involvement in sex trafficking.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“This defendant took advantage of young women who were seeking a better life, tricking them into trusting him and then forcing them into sexual slavery. He also used violence to achieve his ends, including forcing one of his victims to have an abortion when she became pregnant,” stated United States Attorney Lynch. “This sentence sends a message to would-be traffickers that we will not tolerate trafficking of women and girls, and we stand firm in our commitment to eradicate human trafficking.” Ms. Lynch extended her grateful appreciation to the organizations that provided services and advocacy to the victims in this case, including Sanctuary for Families, Safe Horizon, My Sister’s Place, and the law firm of Steptoe & Johnson.
On July 24, 2012, Granados-Hernandez pled guilty to a superseding information charging that between October 2000 and April 2011, he smuggled three victims from Mexico illegally into the United States and forced each of them to engage in prostitution. Granados-Hernandez, who kept the prostitution proceeds earned by the victims, engaged in a pattern of abuse for over a decade.
According to court documents, Granados-Hernandez smuggled each of the victims with the intent to force then into prostitution. For example, soon after he smuggled the victim identified as Jane Doe #6 to New York from Mexico in early 2010, Granados-Hernandez insisted that she work as a prostitute. When she refused, Granados-Hernandez threatened her mother who was in Mexico. As a result of continued threats, Jane Doe #6 worked for the Granados-Hernandez in multiple states through the summer of 2010.
Similarly, in 2010, Granados-Hernandez smuggled the victim identified as Jane Doe #7 into the United States under the guise of a promise of a better life. After their arrival to New York, Granados-Hernandez told her that because of a debt owed to the smugglers, she had to work as a prostitute. Shortly after she began working as a prostitute, Jane Doe #7 became pregnant. Granados-Hernandez became violent, including choking and hitting her, and forced her to have an abortion.
In May 2010, Granados-Hernandez recruited Jane Doe #8 and smuggled her into the United States shortly thereafter. Similar to his other victims, she was forced into prostitution and worked for the Granados-Hernandez as a prostitute in New York, Maryland, and Virginia until January 2011.
At the sentencing, a letter written by a fourth victim of Granados-Hernandez was read to the Court. This victim described how Granados-Hernandez was “physically, verbally and sexually abusive,” and how Granados- Hernandez “took away my youth, my innocence and my ability to trust and caused me an immeasurable amount of pain.”
Granados-Hernandez’s brother Eleuterio Granados-Hernandez and his cousin, Angel Cortez-Granados, also smuggled young women from Mexico illegally into the United States, forced them to work as prostitutes in New York City and elsewhere, and collected profits from their activities. Both pleaded guilty to sex trafficking. In September 2013, Cortez-Granados was sentenced to 15 years in prison. In March 2014, Eleuterio Granados-Hernandez was sentenced to 22 years in prison. In total, six members of the Granados family have been prosecuted and convicted in the United States.
The government’s case was prosecuted by Assistant United States Attorney Soumya Dayananda.
The Defendant:
SAMUEL GRANADOS-HERNANDEZ
Age: 33
Mexico
E.D.N.Y. Docket No. CR-11-297 (S-5) (KAM)
Mass City Man gets over 11 Years in Federal Prison for Selling Powerful "Bath Salts"Read the Press Release
MARQUETTE, MICHIGAN – U.S. District Judge R. Allan Edgar sentenced three people for their involvement in distributing two powerful “bath salts” – alpha-pyrrolidinopentiphenone, which is commonly known as alpha-PVP, and pentylone – for human consumption in the Upper Peninsula.
Scott Bernard Will, age 56, of Mass City, Michigan, received a sentence of 137 months (11 ½ years) in federal prison. Last December, a federal jury in Marquette found Will guilty of distributing and conspiring to distribute alpha-PVP and pentylone in Baraga and Houghton Counties. In imposing the sentence, Judge Edgar commented on Will’s extensive criminal history, noting that Will was a “walking crime wave.” Also sentenced were Derrick John Guzek, age 34, also of Mass City, and Kristen Ellen Bergeron, age 31, of Pelkie, Michigan. Guzek received a sentence of 16 months in prison while Bergeron was sentenced to 18 months.
The term “bath salts” refers to a group of substances containing synthetic cathinones that all have similar chemical properties. These substances have a powerful amphetamine-like effect on the central nervous system when consumed. Synthetic cathinones are chemically similar to the natural drug cathinone, a drug that comes from khat plants in east Africa.
The evidence presented at trial showed that Will began selling bath salts in the Marquette area in 2011. He was jailed for his activities from June 2011 until November 2012. But, upon release from jail, he went back to selling the substances. Will’s sales of alpha-PVP and pentylone in Baraga and Houghton Counties in early 2013 drew the attention of the Upper Peninsula Substance Enforcement Team and the U.S. Bureau of Indian Affairs. An undercover officer made a number of purchases of these substances from Mr. Will and his co-conspirators in March and April 2013. He and his co-conspirators were arrested in April 2013. Guzek and Bergeron pled guilty and testified for the government. Will went to trial in Marquette on December 9, 2013.
As part of its case, the government presented testimony from users who said that the bath salts sold to them by Will were extremely powerful and addictive. They reported staying up for days after injecting the substances, and experiencing psychosis, paranoia and suicidal thoughts. Judge Edgar noted that the users were “physically wrecked by these drugs.”
The evidence at trial showed Will specifically targeted people with drug problems by offering the substances for free. Once the user was hooked, Will charged up to $200 per gram.
This case was investigated by the Michigan State Police as part of the Upper Peninsula Substance Enforcement Team and the Bureau of Indian Affairs. Assistant U.S. Attorneys Maarten Vermaat and Paul D. Lochner prosecuted the case.
END
Man sentenced to Prison for Abusive Sexual Contact with a Person Under the Age of 12 YearsRead the Press Release
United States Attorney James L. Santelle announced today that Leslie A. Miller, (age: 50), of Keshena, Wisconsin located on the Menominee Indian Reservation, was sentenced on April 15, 2014, to 42 months of imprisonment, followed by a term of 10 years on supervised release. The sentence was the result of a guilty plea by Miller on January 17, 2014, to a federal indictment charging him with abusive sexual contact with a person under the age of 12 years.
The investigation revealed that around January 1, 2013, Leslie A. Miller, an enrolled member of the Menominee Indian Tribe of Wisconsin, his wife, and a 10-year-old female were watching a movie while lying in bed. After his wife went to sleep, Miller sexually assaulted the child. During a subsequent interview, Miller admitted that he assaulted the child.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Benjamin L. Whittemore. .
Man Sentenced for Beauty Supply Store ArsonRead the Press Release
LAS VEGAS, Nev. – A local man who maliciously attempted to destroy a Las Vegas beauty supply store by fire and explosive devices, was sentenced today to five years in prison, three years of supervised release, and ordered to pay nearly $1.7 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Reynaldo Staana, 48, of Las Vegas, who pleaded guilty in February to one count of arson of property used in or affecting interstate commerce, was sentenced by U.S. District Judge James C. Mahan.
“Defendant Staana caused over $1 million in property damage and destruction,” said U.S. Attorney Bogden. “It is very fortunate that his dangerous actions did not also result in injury or the loss of human life.”
According to the court records filed in the case, Staana was an assistant manager at Beauty Supply Warehouse located at 3310 South Nellis Boulevard in Las Vegas, but was terminated from his position in August 2013. On about Sept. 8, 2013, Staana entered the business after hours without permission in order to commit theft of property, and while inside the business, intentionally and maliciously used fire to ignite a flammable liquid with intent to destroy the business. The fire caused more than $1 million in damage to structure and contents.
Staana has been in custody since his arrest in September 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.Man Pleads Guilty to Enticing a ChildRead the Press Release
Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced that William E. Miller, 52, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer, to coercing and enticing a child to engage in sexual activity. The charge carries a mandatory minimum term of imprisonment of 10 years and a maximum of life, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant came to the attention of law enforcement in August 2012 when members of the Rochester Police Department conducted a robbery investigation at the defendant’s residence. During the course of that investigation, members of the joint RPD and FBI Child Exploitation Task Force discovered images of child pornography. As part of his plea, the defendant admitted to using a cellular telephone to entice and coerce a child under the age of 16 to engage in sexual activity and that the child was used, persuaded and coerced into and for the production of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents and Task Force Officers of the Federal Bureau of Investigation Child Exploitation Task Force, including members of the FBI, under the direction of Special Agent in Charge, Brian P. Boetig, Rochester Police Department under the direction of Chief Michael A. Ciminelli, and Monroe County Sheriff’s Office under the direction of Patrick M. O'Flynn.
Sentencing is scheduled for September 3, 2014 at 2:00 p.m., before Judge Larimer.Louisiana-Pacific Corp. Abandons Its Proposed Acquisition of Ainsworth Lumber Co. Ltd.Read the Press Release
Louisiana-Pacific Corp. (LP) abandoned its plan to acquire Ainsworth Lumber Co. Ltd., its close competitor in the sale of a type of manufactured wood-based panel called oriented strand board (OSB), after the Department of Justice expressed concerns about the transaction’s likely anticompetitive effects. The department said that the transaction likely would have substantially lessened competition in the market for the production of OSB sold to customers in the Pacific Northwest and Upper Midwest regions of the United States.
According to the department, OSB is widely used in the construction and remodeling of homes and other buildings. An increase in the price of OSB would likely result in significant harm to consumers in the Pacific Northwest and Upper Midwest by making it more expensive to purchase or remodel homes, the department said.“The companies’ decision to abandon the transaction, which would likely have resulted in less competition and higher OSB prices, is a win for customers in the Pacific Northwest and the Upper Midwest,” said Renata B. Hesse, Deputy Assistant Attorney General of the Department of Justice’s Antitrust Division. “As a result of the abandonment of this transaction, consumers will continue to benefit from Ainsworth’s presence as an independent competitive force in the OSB industry.”
LP and Ainsworth are two of only four principal producers selling OSB into the Pacific Northwest, and two of only three principal producers selling OSB into the Upper Midwest. The proposed merger would have given the combined firm a 63 percent market share in the Pacific Northwest region of the United States and a 55 percent market share in the Upper Midwest.
According to the department, the merger would have allowed LP to substantially increase its market share by acquiring one of the largest suppliers of OSB in the Pacific Northwest and Upper Midwest, while also eliminating the significant head-to-head competition between LP and Ainsworth in these regions, thereby enabling LP to better target its customers in these areas for price increases. By gaining control over Ainsworth’s mills, LP would have been in a better position to restrict the amount of OSB supply available in these regions, and to coordinate output and price decisions with its few remaining principal competitors, driving prices above competitive levels.
During the course of its investigation of the transaction, the department’s Antitrust Division closely coordinated its investigation of the transaction with the merger review conducted by Canada’s Competition Bureau.
“Cooperation among competition agencies around the world enables our agencies to more efficiently and effectively achieve our shared goals of enhancing competition and protecting consumers,” said Deputy Assistant Attorney General Hesse. “The Antitrust Division and the Canadian Competition Bureau have a long history of working closely together, as reflected by the recent issuance of best practices for coordinating, among the Antitrust Division, the Canadian Competition Bureau and the Federal Trade Commission, the review of mergers affecting both the United States and Canada.”LP is a Delaware corporation with headquarters in Nashville, Tennessee. In 2013, LP had net sales of $2.1 billion, with $1.1 billion coming from its OSB business. Ainsworth is a Canadian corporation with its headquarters in Vancouver, British Columbia. In 2013, Ainsworth had sales of $488 million CAD, all of which came from OSB production.
Leaders of Violent Gang Convicted on All Counts in Racketeering and Murder CaseRead the Press Release
Yesterday, following more than two weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Anthony Mayes Jr. and Antoine Mayes on charges of racketeering – including, against Anthony Mayes Jr., three murders as racketeering acts – as well as multiple counts based on their trafficking in crack cocaine. Earlier today, the jury also rendered a special verdict authorizing the forfeiture of almost $64,000 in cash, several firearms, and more than 500 rounds of ammunition seized from the defendants’ Queens residence.
The charges arose out of the defendants’ long-time dominance of a drug crew that operated in the East New York neighborhood of Brooklyn, New York, and in Williamston, North Carolina. When sentenced by United States District Judge Allyne R. Ross, the defendants face mandatory sentences of life imprisonment.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
Between 1998 and 2010, the Mayes brothers led a group of violent drug dealers that sold crack cocaine and was based on Ashford Street in East New York. The criminal enterprise used violence and the threat of violence to maintain its source of income. Specifically, on June 18, 1999, Anthony Mayes Jr. shot and killed David Martin at a party in East New York, in retaliation for Martin having previously stabbed Mayes. This, and other acts of violence, were well known in the community and allowed the enterprise to dominate the local drug trade. After the Martin murder, Anthony Mayes Jr. moved to Williamston, North Carolina, where, using the alias Gus Rascoe Jr., he quickly came to dominate the drug trade in that area, selling crack-cocaine that he transported from New York and elsewhere. On January 27, 2003, Anthony Mayes Jr. murdered Eric Rayshawn Keel, and on February 29, 2004, he murdered Keith Cofield, both in North Carolina. Keel was murdered for purportedly stealing drugs belonging to the Mayes brothers’ criminal enterprise. Cofield was murdered because he owed a drug-related debt to the enterprise -- his corpse was dumped into a river.
Antoine Mayes was convicted of three separate counts of attempted murder based on enterprise’s drug and turf-related disputes in Brooklyn.
“For over a decade the Mayes brothers ran a violent and lucrative drug organization that held the residents of East New York hostage, forcing them to live in fear of violence. They expanded their operation to the State of North Carolina, dominating the drug trade in one corner of that state. The organization used murder as a management tool, killing those who threatened their source of income or just their stature on the street,” stated United States Attorney Lynch. “Today, their ability to earn money through crime comes to an end, and so does their rule of the streets. This verdict sends the message that that violence and drug-dealing have no place in our communities.” Ms. Lynch extended her grateful appreciation to Federal Bureau of Investigation, New York Field Office, the New York City Police Department, the North Carolina State Bureau of Investigation, the Williamston Police Department, the Martin County Sheriff’s Office, and the Edgecombe County Sheriff’s Office for their outstanding work in this case.
The government’s case was prosecuted by Assistant United States Attorneys Berit W. Berger, Richard M. Tucker, and Alicyn Cooley.
The Defendants:
ANTHONY MAYES JR.
Age: 33
Brooklyn, New York
ANTOINE MAYES
Age: 30
Brooklyn, New York
E.D.N.Y. Docket No. 12 CR 385 (ARR)
Leader of International Sex Trafficking Organization Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ISAIAS FLORES-MENDEZ, 42, of Queens, New York, was sentenced today in Manhattan federal court to life in prison in connection with his leadership of a long-running sex trafficking conspiracy that employed force, fraud, and coercion to sell young women for sex against their wills. FLORES-MENDEZ was also ordered to forfeit approximately $1.7 million, and to pay $84,000 in restitution to a victim of his crime. He was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “The defendant viciously robbed the victims in this case of their freedom, their dignity, and their fundamental human rights. Although the victims of the defendant’s crimes will never be made whole, his prosecution and today’s sentence hopefully signal to them and everyone else that such atrocities cannot be tolerated in our society and will be prosecuted and punished to the full extent of the law.”
In sentencing FLORES-MENDEZ Judge Forrest said: “On behalf of our system of justice I do want to say to the victims of this crime who are not here because of their undocumented status, because of their fear . . . I do know that no sentence can return to the victims that which has been so brutally taken from them . . . but today is a day that perhaps these victims have been waiting for – a day when our society would understand, and listen to what was happening to them, and see that this defendant, who committed such awful crimes using them, would be brought to justice and is brought to justice. The harm done to those victims is today recognized for what it is in all of its horror. For that which was taken from these women and cannot be returned by any sentence, the defendant is here today to be sentenced and to be brought to justice.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
Since at least 1999, when he was first arrested for promoting prostitution, FLORES-MENDEZ has been sexually exploiting vulnerable women for his own financial gain. His predatory crimes have ranged in scope over the years.
He used violence and threats of violence to personally force at least one young woman (“Victim-1”) to engage in prostitution against her will. At the age of 17, Victim-1 was romanced by FLORES-MENDEZ, and lured to the U.S. with the promise of a better life for her and her baby. Once in New York, Victim-1 was made to sleep on a floor with her child, was repeatedly beaten, and was verbally abused on a regular basis by FLORES-MENDEZ, who sexually enslaved Victim-1 and made her work as a prostitute against her will for his own financial gain. When she tried to resist, she was beaten and abused. On one such occasion, FLORES-MENDEZ pushed her and her young child outside on a cold winter night, locked the door, and refused to let her back in. Afraid that her baby would die, Victim-1 succumbed to FLORES-MENDEZ’s demands that she continue to be sold for sex. After she escaped, FLORES-MENDEZ and his brother Bonifacio Flores-Mendez continued to torment her, on one occasion trying to run her over with his car.
FLORES-MENDEZ also used threats of violence to force another woman (“Victim-A”) to help teach Victim-1 how to handle customers, telling Victim-A that he would “break her in half” if she didn’t comply.
In addition to his direct sex trafficking by force, fraud, and coercion, FLORES-MENDEZ also owned and operated a sprawling network of brothels in and around New York City that sexually exploited at least five women per day, each of whom was required to have sex with up to 20 customers per day under abhorrent conditions. Many of the victims of this sex trafficking-prostitution enterprise were forced to engage in prostitution against their wills.
Sixteen defendants in this case, including Bonifacio Flores-Mendez, have pled guilty, and one has entered into a deferred prosecution agreement. All but four defendants have been sentenced. The defendants who have pled to date have agreed to forfeit, in total, more than $1.7 million.
Mr. Bharara praised the outstanding investigative work of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Amanda Kramer and Rebecca Mermelstein are in charge of the prosecution.