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9 May 2014
Crack Cocaine Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Javaris Bloodser, age 33, of Forsyth, Georgia, was sentenced on May 8, 2014, to 13 years in federal prison. Mr. Bloodser had previously entered a guilty plea to possession with intent to distribute crack cocaine. As part of the written plea agreement, Mr. Bloodser stipulated that on June 5, 2013, he was a passenger in a car which was stopped for a traffic violation in Forsyth. After Mr. Bloodser exited the vehicle, officers found a small quantity of marijuana in his pocket. Mr. Bloodser was detained and placed in the rear of a patrol vehicle. After he had been placed in the car, officers noticed that Mr. Bloodser appeared to be making suspicious movements inside the vehicle. One of the officers approached Mr. Bloodser and found him attempting to hide 29 grams of crack between the seats.The investigation was conducted by agents from the GBI and officers from the Monroe County Sheriff’s Office. Assistant United States Attorney Charles L. Calhoun appeared on behalf of the Government.
“This defendant, an admitted crack cocaine distributor, is off our streets because of the great cooperation between local, state and federal law enforcement. The truth that Mr. Bloodser now realizes - and what any other drug dealers should learn - is that if you deal drugs in Middle Georgia, you are going to end up in jail,” said U.S. Attorney Michael Moore.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Columbus Clothing Store Operator Indicted for Allegedly Selling Counterfeit MerchandiseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Rami Hisham Mohammad, 33, of Hilliard, Ohio, charging him with trafficking in counterfeit goods or services for conspiring to obtain and sell allegedly counterfeit apparel, jewelry and DVDs from his business, Rock Star Fashions.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) announced the indictment today.
The indictment alleges that Mohammad conspired with others between December 2008 and January 2012 to obtain shipments and/or truckloads of clothing, purses, jewelry and shoes bearing counterfeit marks including Nike, Timberland, Polo/Ralph Lauren, Coach, Louis Vuitton, Ugg, Ed Hardy, Gucci and True Religion brand apparel. Mohammad also is alleged to have concealed the majority of the counterfeit merchandise in an adjoining warehouse space that was accessed through a disguised doorway behind a mirror in a bathroom that opened into a storage area.
During the execution of a search warrant in January 2012, investigators seized more than 5,400 pairs of counterfeit Nike shoes, more than 200 counterfeit Coach purses, as well as jeans, watches, sunglasses, wallets, and NY Yankees ski caps.
Mohammad allegedly sold the merchandise at prices well below the retail price of legitimate merchandise. Mohammad also allegedly sold bootleg movie DVDs at the store. U.S. Attorney Stewart said the investigation continues into how Mohammad obtained the counterfeit items.
The indictment charges Mohammad with one count of conspiracy and five counts of trafficking in counterfeit goods. Each count is punishable by up to ten years in prison. The indictment also seeks forfeiture of all proceeds of the crimes and property used to facilitate the crime.
U.S. District Judge James L. Graham will issue a summons for Mohammad to appear in federal court.U.S. Attorney Stewart commended the investigation of this case by HSI and the Columbus Police, and Assistant U.S. Attorney Deborah A. Solove, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
City Dispatcher and Three Tow Truck Operators Charged in Bribery ConspiracyRead the Press Release
PHILADELPHIA – An indictment was unsealed yesterday charging four people, including a Philadelphia Police Department (“PPD”) dispatcher, in a conspiracy to give an unfair advantage to certain tow truck operators in exchange for bribes, announced United States Attorney Zane David Memeger. Dorian Parsley, 44, of Philadelphia, Stepfon Flowers, 24, of Philadelphia, William Cheeseman, 42, of Delran, NJ, and Chad Harris, 22, of Philadelphia, are charged with conspiracy and bribery. Parsley, who was the dispatcher, and Flowers, are also charged with honest services fraud.
According to the indictment, between February 2011 and December 2013, Parsley used her position as a civilian radio dispatcher to provide confidential police information, such as locations of automobile accidents, locations of PPD squad cars, and vehicle registration information, to tow truck operators who provided her with cash bribe payments. Stepfon Flowers, who worked for K&B Autocraft in Philadelphia, allegedly paid Parsley $100 to $150, weekly, for the confidential information.
In September 2012, the indictment alleges, Flowers connected William Cheeseman, an owner of K&B Auto Body, with Parsley so that Cheeseman could also receive the confidential police information in exchange for cash bribe payments. In April 2013, Chad Harris, a tow truck driver for K&B Auto Body, also received Parsley’s contact information allegedly for the same purpose. According to the indictment, Parsley would surreptitiously text information that came into PPD dispatch from her personal cellphone directly to those tow truck operators. For an additional cash fee, Parsley allegedly agreed to provide certain tow truck operators with the name and address of a vehicle owner by running the license plate and vehicle registration through the PPD dispatch computer. PPD computers automatically access the National Crime Information Center (“NCIC”) located in West Virginia when a vehicle registration was inputted.
Flowers allegedly collected some of the weekly bribe payments for Parsley.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cedar Rapids Felon Sentenced to Ten Years' Imprisonment for Possession of A Stolen HandgunRead the Press Release
A convicted drug felon who was found in possession of a stolen firearm was sentenced today to ten years in federal prison. Joseph Griffin-Cooke, age29, from Cedar Rapids, Iowa, received the prison term after a February 6, 2014, guilty plea to one count of being a felon in possession of a firearm and ammunition.
In a plea agreement, Griffin-Cooke admitted that police approached him on October 2, 2013, at 4:00 am when they saw him driving in a suspicious manner in a neighborhood. Griffin-Cooke refused to cooperate with officers, then began reaching under the seat of the car in which he was sitting. Officers restrained Griffin-Cooke after a struggle in which one officer was injured. In the car, near the area where Griffin-Cooke was reaching, officers found a stolen, loaded .380 caliber pistol, marijuana packaged for sale, and cash. Griffin-Cooke was barred from possessing a firearm because he was a felon, having been convicted in 2007 in the Iowa District Court for Linn County of delivery of crack cocaine.
Griffin-Cooke was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Griffin-Cooke was sentenced to the statutory maximum sentence of 120 months’ imprisonment. The court based the sentence, in part, upon Griffin-Cooke’s serious criminal history which included multiple violent assaults. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Griffin-Cooke is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was a result of the Cedar Rapids Safe Streets Task Force and was in furtherance of the Project Safe Neighborhoods initiative.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-90.
California Sub-Contractor Pleads Guilty to Fraud Involving Boeing ContractsRead the Press Release
St. Louis, MO – WILLIAM BOOZER, a Boeing sub-contractor, pled guilty to wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts during November 2009 through February 2013.
Globe Dynamics International, Inc., Santa Ana, California, is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to Boozer’s plea agreement, between November 2009 and February 2013, Boozer requested the Procurement Officer for Boeing, Deon Anderson, provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis, Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids, Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000. The net benefit to Globe Dynamics on those seven purchase orders was approximately $116,339
Boozer, Hacienda Heights,CA, pled guilty to one felony count of wire fraud before United States District Judge Henry Autrey. Sentencing has been set for August 15, 2014.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The following co-defendants were indicted on related charges and are facing trial:
- DEON ANDERSON, St. Louis, Missouri
- JEFFREY LAVELLE, Mukilteo, Washington
- ROBERT DIAZ, JR., Alta Loma, California
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.
Byron Center Man Guilty of $46,000,000 Investment FraudRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Patrick Miles announced today that David W. McQueen, age 43, of Byron Center, Michigan, was convicted of six counts of mail fraud, six counts of money laundering and three tax counts stemming from a $46,000,000 Ponzi scheme that spanned three years. He was acquitted of one fraud count and two money laundering counts. The scheme affected more than 800 families, and preyed upon unsophisticated, often elderly investors. He faces up to 20 years on each fraud count, up to 20 years on some of the money laundering counts (up to 10 years on others) and one year on each tax count.
The evidence at trial showed that, as with many investment frauds, McQueen likely did not set out to create a criminal enterprise that would result in a financial tragedy for his investors. In 2006, McQueen, who made an adequate living in sales, used borrowed funds to invest in a company called Multiple Return Transactions (“MRT”). MRT was owned and operated by Jim Clements. Clements promised returns of 10% per month or higher to McQueen. After a few months of making such returns, McQueen decided to capitalize on his apparent investment success and invited others to invest through him. McQueen created a company called Accelerated Income Group (“AIG”), through which he promised returns as high as 5-6% to investors. In addition, McQueen recruited insurance agents to sell his investments to their clients. For a short time, AIG was very successful (at least on paper). McQueen used MRT’s promised returns of 10%, to make AIG’s promised returns of 5%. McQueen could meet his 5% obligations to his investors and then keep 5% for himself.
In mid-2007, MRT stopped making payments and meeting redemption requests. MRT was merely a Ponzi scheme, and their money was gone and would never be recovered. Instead of notifying AIG investors that MRT had failed, however, McQueen continued to tell investors that their money was safe and growing. Without MRT making its monthly payments, McQueen and AIG could not meet their 5% monthly obligations to investors based on investment earnings. Instead, McQueen used the only funds he had available to make promised interest payments – money from new investors.
Instead of shutting down AIG, or at least notifying his investors of MRT’s cessation of interest payments, McQueen falsely touted his investment success and raised millions of dollars of additional money. In addition to AIG, McQueen created three other funds, International Opportunity Consultants (“IOC”), Diversified Liquid Asset Holdings (“DLAH”) and Diversified Global Finance (“DGF”), that were nothing more than sham corporations designed to raise millions of dollars from investors. McQueen commingled the investor money between his various and purportedly distinct funds and used it to make bogus interest payments and redemption requests to investors, pay commissions to agents that sold the funds on McQueen’s behalf, or simply spend the money. Despite knowing that he had absolutely no revenue coming in, McQueen took $100,000 of investor money per month tax free for his own personal use and enjoyment.
Recognizing that his scheme would collapse without actual investment success, McQueen placed approximately 30% of the investor funds in a series of highly speculative investments or scams. Unsurprisingly, this effort did not generate significant returns, and many lost all of the funds invested.
To perpetuate his fraud, McQueen sent out monthly or quarterly account statements communicating to investors that their investments were safe and growing. Investors relied on those account statements and believed they accurately depicted the balance in their accounts. McQueen promised investors that they could liquidate their accounts at any time, but most did not because they believed that their account statements were accurate and that they had made a solid investment. In July and August 2009, McQueen sent out his final account statements showing that investors had tens of millions of dollars safe and growing in their “separate accounts.” Those statements concealed the truth – that McQueen had nearly run out of money.On August 24, 2009, the IRS and FBI executed search and seizure warrants signed by Magistrate Hugh W. Brenneman. The government seized approximately $430,000 from McQueen’s accounts. Unbeknownst to the government, McQueen later brought the remaining investor funds (approximately $440,000) back from an account located in New Zealand and used it for personal expenses and to make some last ditch investments, which failed.
After the jury rendered their verdict, Defendant McQueen was remanded to the custody of the U.S. Marshals Service. A sentencing date has not been set.
This case was investigated by the IRS and FBI and prosecuted by Assistant U.S. Attorneys Matthew G. Borgula, Sally J. Berens and Heath Lynch and Securities and Exchange Commission Trial Attorney Timothy Leiman.
END
Buffalo Man Sentenced on Child Pornography ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Daniel Cay, 26, of Buffalo, N.Y., who was convicted of possession of child pornography, was sentenced to 10 years in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the Buffalo Police Department received information that the defendant possessed child pornography on a computer. Cay was subsequently arrested in January of 2013. A forensic examination of the computer revealed over 300 images of child pornography. Some of the images depicted violence against children.
The defendant was previously convicted in 2006 for Sexual Assault of a Minor 2nd Degree in Connecticut.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Biloxi Woman Sentenced for Oil Spill FraudRead the Press Release
Gulfport, Miss. – Brandy Ann Jarrell, 38, of Biloxi, Mississippi, was sentenced by U. S. District Judge Sul Ozerden to six months in federal prison and six months home confinement with electronic monitoring followed by three years of supervised release for oil spill fraud, announced U.S. Attorney Gregory K. Davis. Jarrell was also ordered to pay $28,800 in restitution and perform eighty hours of community service.
Jarrell knowingly devised and carried out a scheme to defraud the Gulf Coast Claims Facility which was established by BP Exploration and Production to administer, process, and settle certain claims of individuals and businesses that had been impacted by the Deepwater Horizon Oil Spill. Jarrell submitted a fraudulent claim for damages by alleging that she lost earnings, profits and work hours as an oyster and shrimp fisherman working in Gulf Coast harbors as a result of the oil spill. Jarrell received a check in the amount of $28,800.00 as the result of her false claim.
This case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Bankers and Attorney Convicted of Fraud, False Statements, and Making a False Claim Against the United StatesRead the Press Release
PANAMA CITY, FLORIDA– Late Wednesday night, a federal jury returned verdicts finding Donald Terry Dubose, a/k/a “Terry Dubose,” 66, of Panama City Beach, Florida, Elwood Ladon West, a/k/a “Woody West,” 40, of Monroeville, Alabama, and Frank Alfred Baker, 62, of Marianna, Florida, guilty of certain charges in a twelve count superseding indictment charging conspiracy to commit wire fraud, making false statements, and filing false claims against the Federal Deposit Insurance Corporation. Dubose was convicted on all twelve counts of the indictment. West was convicted on counts two through twelve of the indictment and acquitted on the first count, the conspiracy charge. Baker was convicted of the conspiracy charge and certain of the remaining wire fraud and false claim charges. The verdicts were handed down late Wednesday evening, following a trial that lasted almost three weeks.
The evidence at trial established that Coastal Community Investments (“Coastal”) was a bank holding company that owned Coastal Community Bank, based in Panama City Beach, Florida, and Bayside Savings Bank, based in Port St. Joe, Florida. Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010. Dubose was the Chairman and Chief Executive Officer of Coastal and the largest Coastal shareholder. West was the Chief Financial Officer of Coastal and a Coastal shareholder. Baker was an attorney for Coastal and was Coastal’s second largest shareholder.The case involved a fraud committed against the Government relating to the FDIC’s Temporary Liquidity Guarantee Program (TLGP), which was created at the height of the nation’s financial crisis in October 2008. The purpose of the TLGP was to encourage banks to begin lending to one another again, and thereby, help to stabilize the economy. To accomplish this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing unsecured debt, thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.
The evidence at trial showed that in October 2008, Coastal had a $3,000,000 secured loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”). At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock that secured the loan and take over Coastal Community Bank and Bayside Savings Bank. Under pressure from RBC to repay this debt, the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing for a fact that it was instead a secured loan, so that Coastal could get an FDIC-guaranteed loan under the TLGP.
The evidence at trial established that Coastal obtained a $3,750,000 loan from central Florida-based CenterState Bank. Based on the defendants’ misrepresentations, the CenterState Bank loan was guaranteed by the FDIC under the TLGP (the “TLGP Loan”), and as provided by the program, represented 125% of the RBC Loan. Coastal used the proceeds of the TLGP Loan to repay the RBC Loan.
In June 2010, Coastal defaulted on the TLGP Loan, and on August 6, 2010, CenterState Bank filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest. The FDIC paid CenterState’s claim on August 13, 2010, by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.
United States Attorney Marsh said, “These defendants – bank officers and a bank attorney – took advantage of the Temporary Liquidity Guarantee Program, which was designed to help the country avoid financial collapse, and instead used the program to enrich themselves. Such fraud committed by bank insiders against programs designed to help our citizens will not be tolerated. Not only is such conduct a breach of trust, it is harmful to our communities and our nation. My office will continue to investigate and prosecute any individual who would harm our banking system, our financial institutions, and our national economy.”
Matt Alessandrino, Assistant Inspector General for Investigations, FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney's Office and our law enforcement colleagues in investigating the fraud that led to these convictions today. It is particularly troubling to the FDIC OIG when bank insiders and other professionals affiliated with the bank violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund or harm FDIC programs designed to restore the strength of the banking system. We are committed in our efforts to maintain integrity in our nation's banks.”
“Bank executives who commit fraud impact the safety and soundness of financial institutions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “My office will continue its vigorous pursuit of those who undermine the Federal Reserve’s ability to carry out its supervisory responsibilities over banks and bank holding companies it regulates. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to these convictions.”
The defendants are facing a maximum of 30 years’ imprisonment on each count of conspiracy to commit wire fraud, wire fraud, and making false statements to the FDIC. Each defendant faces a maximum of five years’ imprisonment for causing the submission of CenterState Bank’s false claim against the United States.
This case was investigated by the Federal Reserve – Office of the Inspector General, the Federal Bureau of Investigation, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program.The case was prosecuted by Assistant U.S. Attorney Gayle Littleton and Assistant U.S. Attorney Ryan Love, with the invaluable assistance of Federal Reserve – Office of the Inspector General Special Agent Amy Whitcomb.
Baltimore Man Exiled to 10 Years in Prison for Possessing A Gun to Engage in Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Catherine C. Blake sentenced Trevor Cox, age 21, of Baltimore, today to 10 years in prison followed by five years of supervised release for possession of a firearm in furtherance of a drug-trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on January 5, 2013, Baltimore Police officers responded to the 4000 Block of Park Heights Avenue, Baltimore, Maryland after receiving a tip that a man was carrying a handgun and displaying it to individuals in that area. Officers entered a grocery store located in the area and saw an individual matching the man’s description. The man, who was later identified as Cox, acted in a manner which led the officers to believe that Cox was armed.
The officers then quickly approached Cox to secure any possible weapons and recovered a loaded .38 caliber revolver. Further examination of the revolver showed several attempts to obliterate the serial number.
After his arrest, law enforcement overheard Cox indicate in jailhouse phone calls that he possessed the gun for his own protection while engaged in a conspiracy with others to distribute drugs.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Bainbridge Island Resident Sentenced to Prison for Embezzling Nearly $150,000 from Suquamish TribeRead the Press Release
A 46-year-old Bainbridge Island woman who worked for the Suquamish Tribe in Kitsap County, was sentenced today in the U.S. District Court in Tacoma to 15 months in prison and three years of supervised release for embezzling from a tribal entity, announced U.S. Attorney Jenny A. Durkan. RENEE PEARL PELETI worked in the Suquamish Indian Tribe’s Indian Child Welfare Department for more than five years. Over that time she embezzled more than $146,496 from the tribe using fraudulent checks, vouchers and gift cards for groceries, and checks written for her own utility payments. At sentencing, U.S. District Judge Robert J. Bryan imposed $146,496 in restitution.
According to records filed in the case, the Suquamish Tribe became aware in April 2013, that benefit checks for seven clients of the Indian Child Welfare Department had been altered and cashed. The investigation revealed that PELETI, who was an Administrative Assistant in the Indian Child Welfare Department, had engaged in a lengthy embezzlement scheme. PELETI caused more than 260 fraudulent tribal checks totaling more than $90,000, to be written in the names of others which she then cashed and used for her own bills. PELETI caused 14 tribal checks to be written to Puget Sound Energy to pay more than $2,800 of her own utility bills. PELETI issued more than 125 Albertsons food vouchers that she then cashed and used for more than $36,972 in groceries for her own use. Finally, PELETI embezzled multiple vendor gift cards worth more than $11,127.
PELETI, who is a member of the Nooksack Tribe, said she took the money to pay for her own family expenses. PELETI pleaded guilty on February 14, 2014.
Tribal leaders spoke at the sentencing hearing, telling the court that the embezzlement meant that needy tribal children were denied money for food, clothing, sports equipment, or Christmas presents. The speakers noted that because of the theft, these vulnerable children had missed opportunities for fun or education that would not come again.
The case was investigated by the Suquamish Police and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Armed Bank Robber Sentenced to Serve More Than 24 Years in Federal Prison for Robbing Banks in Lubbock and Amarillo in May 2013Read the Press Release
LUBBOCK, Texas — Russell Eugene Heath, 45, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to serve a total of 295 months in federal prison, consecutive to his 24-month supervised release revocation, for his role in the takeover style robberies of two banks in May 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Heath pleaded guilty in November 2013 to one count of aggravated bank robbery and one count of possessing a firearm in furtherance of a crime of violence. Co-defendant Gabriel Tenorio, 31, also of Lubbock and the getaway driver in the robberies, pleaded guilty to one count of aggravated bank robbery and was sentenced in December 2013 to 140 months in in federal prison.
Heath’s aggravated bank robbery conviction stems from the May 1, 2013, robbery of Lubbock National Bank, located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying a firearm, entered the bank and pointed the gun at tellers, yelling at them to give him money. Heath jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio.
Heath’s conviction for possessing a firearm in furtherance of a violent crime stems from the May 20, 2013, robbery of FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas. In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money. He then ran from the bank into a waiting vehicle, driven by Tenorio.
The FBI, Lubbock Police Department, Amarillo Police Department and the Lubbock County Sheriff’s Office investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Alleged Rizzuto Organized Crime Family Associate Sentenced to 10 Years ImprisonmentRead the Press Release
Earlier today, at the United States Courthouse in Brooklyn, New York, Alessandro Taloni, an alleged associate of the Montreal-based Rizzuto organized crime family of La Cosa Nostra, was sentenced to 10 years in prison, to be followed by 5 years of supervised release. In May 2013, Taloni pled guilty to cocaine trafficking charges contained in a superseding indictment returned on April 3, 2013. As part of his sentence, Taloni will also forfeit $2,663,191 that federal agents seized from multiple locations in California that Taloni used to store narcotics and drug proceeds.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Acting Special Agent-in-Charge of the Drug Enforcement Administration, New York (DEA).
“Taloni used his connections to powerful international organized crime groups to distribute deadly narcotics, worth tens of millions of dollars, across North America. His prosecution and sentence demonstrate this Office’s unrelenting commitment to swiftly pursuing and prosecuting transnational organized crime beyond state and national borders,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Drug Enforcement Administration, the Anaheim Police Department, and the Beverly Hills Police Department for their work on the case. Ms. Lynch also expressed her appreciation to the Laval Police Service for their invaluable assistance during this multi-year international investigation.
DEA Acting Special Agent-in-Charge Hunt stated, “This sentencing is the end result of international, federal, local and state law enforcement’s collaboration. Law enforcement’s effort to thwart organized crime led to identifying Taloni and his associates’ international drug network that facilitated the Sinaloa Cartel’s cocaine distribution network in the United States.”
Taloni and ten members of a Montreal-based drug distribution organization affiliated with the Rizzuto and Bonanno crime families, the Hells Angels, and the Sinaloa Cartel were charged with narcotics and money laundering offenses in connection with trafficking over $1 billion worth of marijuana, cocaine, and ecstasy into the United States between 1998 and 2012. The organization transported tens of thousands of pounds of marijuana from outdoor growers in British Colombia to Montreal, Canada, and controlled numerous warehouses in and around Montreal for the manufacture of ecstasy and hydroponic marijuana. The drugs were smuggled into the United States using transportation networks run by the Hells Angels and Native American co-conspirators from the Akwesasne Mohawk Reservation along the U.S./Canadian border. Once the drugs were sold in the United States, much of it by distributors tied to the Bonanno crime family in New York, the organization used millions of dollars in drug proceeds to purchase more cocaine from the powerful Sinaloa Cartel in Mexico for exportation to and distribution in Canada. Taloni was personally sent from Montreal to Los Angeles, California, to receive those drug proceeds and to purchase cocaine from the Mexican sources and export cocaine to Canada.
During the course of the government's investigation, federal agents seized approximately $1 million in drug proceeds and 49 kilograms of cocaine from searches of Taloni's Mercedes Benz sedan, Beverly Hills residence, and a stash house operated by Taloni in Beverly Hills. Search warrants executed at other stash houses operated by the organization in the Los Angeles area resulted in the seizure of an additional 34 kilograms of cocaine and approximately $1,600,000. In total agents seized more than $10,000,000 in narcotics proceeds from the organization.
The government's case is being prosecuted by Assistant United States Attorneys Steven L. Tiscione, Gina M. Parlovecchio, Amir H. Toossi, and Tanisha Payne.
The Defendant:
ALESSANDRO TALONI
Age: 38
Alleged International Narcotics Trafficker Extradited from Honduras on Cocaine Distribution ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce the extradition of Honduran citizen Carlos Arnoldo Lobo, a/k/a “Negro,” 39, from Honduras to the United States to face charges in the Southern District of Florida involving conspiracy to distribute cocaine. Carlos Arnoldo Lobo arrived in the Southern District of Florida on May 8, 2014 and will make his initial appearance today at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes.
The charges announced today are the result of a multi-agency investigation that began in December 2009 into the drug smuggling activities operating near La Ceiba, Honduras. To date, the investigation has resulted in the indictment and conviction of numerous drug traffickers who worked for Carlos Arnoldo Lobo coordinating the smuggling of cocaine onto vessels for shipment from Panama to Honduras, then into Guatemala and beyond, including Mexico, and ultimately the United States, and working on the vessels for Carlos Arnoldo Lobo. The superseding indictment charges Carlos Arnoldo Lobo, a/k/a “Negro,” with conspiring to distribute cocaine, knowing that the cocaine would be imported into the United States, and conspiring to distribute cocaine on board a vessel subject to the jurisdiction of the United States.
The investigation revealed that Carlos Arnoldo Lobo allegedly owned and operated several dozen vessels off the eastern coast of Honduras which he outfitted to smuggle drugs, and used the vessels to transport drugs, primarily cocaine. The drugs were shipped from Colombia and Panama to Honduras, then into Guatemala and beyond, including Mexico, and ultimately the United States. Carlos Arnoldo Lobo allegedly controlled drug shipments into and out of the eastern coast of Honduras.
The conspiracy allegedly involved the distribution of more than 450 kilograms of cocaine.
U.S. Attorney Wifredo A. Ferrer stated, “The arrest and extradition of Carlos Arnoldo Lobo is the direct result of strong international cooperation with Honduran authorities. It also reflects the hard work, commitment, and perseverance of our Honduran and U.S. law enforcement partners to stem the flow of cocaine into the United States. Lobo was extradited from Honduras for his alleged involvement in the distribution of hundreds of kilos of cocaine, knowing that the cocaine would be imported into the United States. Now that Lobo has been extradited, he will stand trial in the United States for the serious crimes for which he is charged.”
“The arrest of Lobo is a significant victory. Lobo’s arrest and extradition to the U.S. has led to the dismantling of an egregious trafficking organization,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “This case highlights the effective collaboration between HSI, DEA and our international law enforcement partners.”
DEA Special Agent in Charge Mark R. Trouville stated, “The DEA appreciates the cooperation of the Honduran law enforcement authorities in the arrest and extradition of Carlos Lobo. The DEA remains committed to working with our international counterparts to bring in the most significant drug traffickers to face justice for their crimes.”
The indictment of Carlos Arnoldo Lobo is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by HSI in conjunction with the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA. The Justice Department’s Office of International Affairs, the ICE-HSI Attaché’s Office in Tegucigalpa, Honduras and the DEA Attaché’s in Tegucigalpa, Honduras provided significant assistance and support during the arrest and extradition of the defendants. The case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
8 May 2014
Washington, D.C. Man Sentenced for Robbing BanksRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Keith McBride, age 25, of Washington, D.C., today to 42 months in prison followed by three years of supervised release for conspiring to commit bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, McBride, Devontae West and Stephanie Fletcher stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.
More specifically, on four occasions from March 13 to May 22, 2013, McBride and others, including juveniles, drove to the following bank branches where he stole a total of $9,093: TD Bank, PNC Bank and Citibank in Washington, D.C.; and SunTrust Bank in Forestville, Maryland. Also, on May 13, 2013 McBride and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Devontae West, age 26, of Washington, D.C., previously pleaded guilty to his participation in the conspiracy and to possession of child pornography. West and the government have agreed that if the Court accepts the plea agreement, West will be sentenced to 12 years in prison. Chief Judge Chasanow scheduled West’s sentencing for June 16, 2014.Stephanie Fletcher, age 36, of Washington, D.C., has also pleaded guilty to her participation in the conspiracy and is scheduled to be sentenced on June 2, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.
Washington State Resident Pleads Guilty to String of Bank RobberiesRead the Press Release
Follow @SDILNewsCarl F. Kieffer, 49, a resident of Spokane, Washington, pled guilty to three bank robberies on May 8, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. One of the bank robberies charged was the robbery of the Bank of O’Fallon in O’Fallon, Illinois, on October 15, 2013. By agreement with other federal districts, Kieffer also pled guilty to robbing the Lusk State Bank in Lusk, Wyoming, in the District of Wyoming, on August 26, 2013, and robbing the Fifth Third Bank in Charlotte, Michigan, in the Western District of Missouri, on October 9, 2013. All of the bank robberies are charged in separate cases but were consolidated into a single proceeding.
On each individual case, Kieffer faces a term of in federal prison of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than five (5) years. Kieffer will also be ordered to pay restitution to the financial institutions for their losses. Sentencing is scheduled for September 4, 2014, in East St. Louis, Illinois. Kieffer has been held without bond since his arrest on a criminal complaint on October 16, 2013.
With respect to the Illinois case, the offense occurred on October 15, 2013, when Kieffer entered the Bank of O’Fallon, approached one of the tellers, and placed several manila envelopes on the counter in front of her. “No dye pack” and “he has a weapon” was written on one of the envelopes. Kieffer told the teller he wanted hundreds, fifties and twenties, and the money from her bottom drawer. When the teller informed Kieffer that she only had ones in her bottom drawer, Kieffer left the bank. Law enforcement officers were notified of the robbery and provided a description of the suspect. O’Fallon police officers in an unmarked police vehicle saw a car driven by a male who matched the description of the suspect and who appeared suspicious. The driver of the vehicle, later identified as Kieffer, fled from the officers when they tried to conduct a traffic stop. He began speeding and driving erratically, which almost caused at least one crash. He was also passing cars on the shoulder of a roadway and cars that were stopped at a red light. Officers lost the vehicle near Old Collinsville Road in Swansea, Illinois.
A Belleville police officer found Keiffer’s vehicle abandoned in a cornfield off of Smelting Works Road in Swansea, Illinois. Keiffer was found hiding in the cornfield. He thanked the officers for not shooting him while being escorted to the police vehicle. Inside his car was a deposit slip from the Bank of O’Fallon which had a handwritten note that read “I have a gun 100’s 50’s 20’s.” $3,330 was removed from Keiffer’s person. When the money was being removed, Kieffer stated that this was the money he got from the bank.
Kieffer also admitted robbing several other banks over a period of less than two months. A subsequent investigation revealed that, in addition to the robbery of the Bank of O’Fallon on October 15, 2013, Kieffer robbed the following banks:
Lusk State Bank, Lusk, Wyoming, on August 26, 2013 Chase Bank, Novi, Michigan, on September 5, 2013 New Carlisle Federal Savings Bank, Tipp City, Ohio, on September 13, 2013 Bank and Trust of Farmersville, Farmersville, Illinois, on September 16, 2013 Huntington National Bank, Bolivar, Ohio, on October 3, 2013 Fifth Third Bank, Charlotte, Michigan, on October 9, 2013
The Wyoming offense occurred on August 26, 2013, when Kieffer handed the teller a note written on a deposit/savings slip that read “This is a robbery, give me your money.” When the teller asked him if it was “for real,” Kieffer replied that it was and gestured toward a black bulge on his right side belt area, which the teller took to mean he had a gun. After taking the money, he also took the note and the pen he used to write the note.
In an interview with the FBI on October 15, 2013, Keiffer admitted that the Lusk State Bank was his first bank robbery.
The Fifth Third Bank robbery in Charlotte, Michigan, was also accomplished by handing a teller a manila envelope which had “I have gun. All 100’s, 50’s, 20’s. Now act normal. When done go to bathroom two min. or someone get hurt.” written on it.
The Illinois case was investigated by the O’Fallon Police Department, the Belleville Police Department, the Swansea Police Department, the Fairview Heights Police Department, the Shiloh Police Department, the St. Clair County Sheriff’s Department, the Illinois State Police, and the Federal Bureau of Investigation. In Wyoming, the case was investigated by the Lusk Police Department, the Wyoming Office of the Attorney General, Division of Criminal Investigation, and the Federal Bureau of Investigation. In Michigan, the case was investigated by the Charlotte Police Department, Michigan State Police, the Eaton County Prosecuting Attorney’s Office, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Upper Ohio Valley Sexual Assault Help Center Honored by United States AttorneyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistOutgoing SAHC Director Linda Reeves also honored
WHEELING, WEST VIRGINIA – The Upper Ohio Valley Sexual Assault Center was honored this week in Wheeling for its efforts to end sexual violence. United States Attorney William J. Ihlenfeld, II recognized the Center for its thirty-five years of service to the Ohio Valley and presented the group with a 2014 United States Attorney’s Award.
“The Upper Ohio Valley Sexual Assault Center is one of the most important social service organizations in our region,” said Ihlenfeld. “This group of dedicated individuals strives daily to provide healing for children, adults and families affected by sexual assault, and works to end sexual violence through counseling, education and advocacy. Thanks to the Center, victims of sexual violence have a place to go for support as they begin the very long and difficult road to recovery.”
Linda Reeves was recognized separately and was presented with a United States Attorney’s Award for her exceptional service to the Center for the past two decades, including 13 years as its executive director.
“Linda’s dedication to helping survivors is unmatched and her tireless efforts over the last twenty years have greatly improved the response to sexual assault in the Ohio Valley,” said Ihlenfeld.
The Upper Ohio Valley Sexual Assault Help Center opened in 1978 and is a non-profit organization dedicated to providing assistance to the community in dealing with the crime of sexual assault. Services include crisis intervention, advocacy, support services, individual and group counseling, and community education. The Center primarily serves Wetzel, Brooke, Marshall, Ohio and Hancock counties in West Virginia. In Ohio, Jefferson and Belmont counties are served. It does not refuse services to anyone regardless of where they reside, and all services are provided free of charge.
The Center provided direct victim services to over 1,000 children, youth, and adults in the Upper Ohio Valley in 2013. In addition, the Center provided community awareness and prevention education programs to over 2,500 children and adults on issues related to sexual violence last year.
United States Files Complaint Against Stevens-Henager College, Inc. Alleging False Claims Act Violations for Illegal RecruitingRead the Press Release
The United States has filed a complaint under the False Claims Act against Stevens-Henager College, Inc. and its owner, The Center for Excellence in Higher Education, for illegally compensating recruiters, the Department of Justice announced today. Stevens-Henager operates a chain of for-profit colleges in Idaho and Utah.
“Congress has made clear that colleges should not pay improper incentives to admissions recruiters,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “The Department of Justice and the Department of Education are working together to combat abusive recruitment practices that can harm students and result in the waste of taxpayer funds.”
In its complaint, the government alleged that the college falsely certified compliance with provisions of federal law that prohibit a university from paying incentive-based compensation to its admissions recruiters based on the number of students they recruit. Congress enacted the prohibition on such incentive compensation to curtail the enrollment of unqualified students, high student loan default rates, and the waste of student loans and grant funds.
The claims alleged by the United States were initiated by a whistleblower lawsuit filed by two former Stevens-Henager employees under the False Claims Act, which allows private citizens to file suit over false claims on behalf of the government. The act provides for the recovery of triple damages and penalties, and allows the government to intervene and take over the allegations, as it has done in this case. The whistleblower is entitled to a share of any recovery obtained in the lawsuit.
“Fighting fraud and protecting federal tax dollars from abuse is a priority for this office,” said Wendy Olson, U.S. Attorney for the District of Idaho. “The False Claims Act is an important tool for doing just that. Whistleblowers are necessary to our ongoing efforts to combat fraud, waste and abuse.”
This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Idaho, and the Department of Education, Office of Inspector General. The case is captioned United States ex rel. Brooks v. Stevens-Henager College, Inc., et al., Case No. 1:13-CV-00009-BLW (D. Id.). The claims asserted are allegations only, and there has been no determination of liability.This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Idaho, and the Department of Education, Office of Inspector General. The case is captioned United States ex rel. Brooks v. Stevens-Henager College, Inc., et al., Case No. 1:13-CV-00009-BLW (D. Id.). The claims asserted are allegations only, and there has been no determination of liability.
United States Files Complaint Against Stevens-Henager College, Inc. Alleging <br /> False Claims Act Violations for Illegal RecruitingRead the Press Release
The United States has filed a complaint under the False Claims Act against Stevens-Henager College, Inc. and its owner, The Center for Excellence in Higher Education, for illegally compensating recruiters, the Department of Justice announced today. Stevens-Henager operates a chain of for-profit colleges in Idaho and Utah.“Congress has made clear that colleges should not pay improper incentives to admissions recruiters,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Department of Justice and the Department of Education are working together to combat unlawful recruitment practices that can harm students and result in the waste of taxpayer funds.”
In its complaint, the government alleged that the college falsely certified compliance with provisions of federal law that prohibit a university from paying incentive-based compensation to its admissions recruiters based on the number of students they recruit. Congress enacted the prohibition on such incentive compensation to curtail the enrollment of unqualified students, high student loan default rates, and the waste of student loans and grant funds.
The claims alleged by the United States were initiated by a whistleblower lawsuit filed by two former Stevens-Henager employees under the False Claims Act, which allows private citizens to file suit over false claims on behalf of the government. The act provides for the recovery of triple damages and penalties, and allows the government to intervene and take over the allegations, as it has done in this case. The whistleblower is entitled to a share of any recovery obtained in the lawsuit.
“Fighting fraud and protecting federal tax dollars from abuse is a priority for this office,” said U.S. Attorney Wendy Olson for the District of Idaho. “The False Claims Act is an important tool for doing just that. Whistleblowers are necessary to our ongoing efforts to combat fraud, waste and abuse.”
This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Idaho, and the Department of Education, Office of Inspector General. The case is captioned United States ex rel. Brooks v. Stevens-Henager College, Inc., et al., Case No. 1:13-CV-00009-BLW (D. Id.). The claims asserted are allegations only, and there has been no determination of liability.USAF Captain Indicted on Child Pornography ChargesRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, Attorney for the Eastern District of Arkansas announced that Shane Padilla, age 30, of Jacksonville, a Captain in the United States Air Force, was indicted by a federal grand jury Wednesday, May 7, 2014,on one count of distribution of child pornography and one count of possession of child pornography.
Padilla was arrested on a Criminal Complaint, Friday, April 4, 2014. After a bail hearing Tuesday, April 8, 2014, Padilla was released from custody on the condition that he surrenders his passport and his pilot’s license. The conditions also imposed home detention. He is not allowed internet access and is to have no contact with minors.
“Having to prosecute these types of cases is always difficult,” stated Thyer. “It is even more difficult when the indictment is against a member of our armed forces sworn to protect the United States. I am committed to, and consider it one of my highest duties as United States Attorney to prosecute to the full extent of the law those, no matter their position in society, who exploit the innocence of our children.”
According to the Criminal Complaint, this investigation began in May of 2013 as part of a larger investigation conducted by Homeland Security Investigation (HSI) agents in Savannah, Georgia. Subsequently, HSI in Little Rock was notified that Padilla, a Captain in the United States Air Force stationed at the Little Rock Air Force Base, had received child Pornography at his email account. A federal search warrant was issued and data regarding Padilla’s email account was provided by Yahoo, Inc. After review of the information, the Complaint alleges that numerous email messages between May 2013 and July 2013 were found to contain images and/or videos of minors engaged in sexually explicit acts.
The United States Air Force Office of Special Investigations (AFOSI) was contacted and a military agent was assigned to participate in the investigation. A U.S. Military search warrant was issued and several electronic devices were seized from Padilla. The devices were turned over to an HSI Computer Forensics Analyst after a federal search warrant was issued for the devices. According to the Complaint, the analyst determined that over 1,000 images and 100 videos depicting minors engaged in sexually explicit acts were found on the devices. An arrest warrant was issued and Padilla was arrested April, 4, 2013.
The Indictment alleges that on or about March 27, 2013, Padilla knowingly distributed child pornography. The second charge in the Indictment alleges that from February, 2013, through March 27, 2013, Padilla possessed child pornography.
If convicted, Padilla faces not less 5 years’ imprisonment with a maximum of 20 years’ imprisonment and/or up to a $250,000 fine followed by 5 years of supervised release for the Distribution of Child Pornography charge. The possible sentence for Possession of Child Pornography is not more than 20 years’ imprisonment and/or up to a $250,000 fine followed by 5 years of supervised release.
The investigation was conducted by Homeland Security Investigations with substantial assistance from the United States Air Force Office of Special Investigations. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
The charges set forth in an Indictment are allegations. The defendant is presumed innocent until proven guilty.
US Attorney’s Visit with County Attorneys and Law Enforcement in St. CloudRead the Press Release
MINNEAPOLIS— United States Attorney Andrew M. Luger will meet with county attorneys and law enforcement officials from the central and north central regions of the state on Tuesday, May 13, 2014 in St. Cloud to discuss federal law enforcement priorities and opportunities for local, state, and federal law enforcement to work together.
Issues of regional concern will be discussed, including Mr. Luger’s focus on human trafficking as well as drug prosecutions, long a focus of federal law enforcement. Hosted by Stearns County Attorney Janelle Kendall and Stearns County Sheriff, John Sanner, the planned discussion is a law enforcement only working session to create efficiency, strengthen partnerships, and increase the effectiveness of local, state, and federal public safety resources.U.S. Attorney’s Office Announces Award RecipientsRead the Press Release
New Employee Also Recognized at Courthouse Ceremony
Baltimore, Maryland - Thirteen employees of the United States Attorney’s Office and thirteen law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed a new Assistant U.S. Attorney and other employees who have joined the Office since last year.
Former United States Attorney, Maryland U.S. District Judge Catherine C. Blake served as the keynote speaker for the event. Judge Blake was an Assistant U.S. Attorney for ten years and served as U.S. Attorney from 1985 to 1986.
“These award recipients sought justice with exceptional skill and dedication,” commented U.S. Attorney Rod J. Rosenstein. “As the U.S. Attorney’s Office works with our partners in local, state and federal law enforcement to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”
Annual Awards
The following awards were announced for accomplishments over the past year:
Gary Jordan Award
Recipient: Roann NicholsGary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.
Barnet D. Skolnik Award
Recipients: Martin J. Clarke
Sandra WilkinsonBarnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.
Employee of the Year Award
Recipient: Elizabeth GardnerThe Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.
Pete Twardowicz Award
Recipients: Michael Baier
Michael Corcoran
Karen Franks
Lynn Grant
Erika Jenson
David Lee
Sarah LewisThe Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.
Excellence in Civil Advocacy
Recipient: Thomas H. BarnardThe U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.
Excellence in Prosecution of Fraud
Recipients: Kevin V. DiGregory
Kristi N. O’MalleyThe U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.
Excellence in Prosecution of Violent Crime
Recipient: Paul E. Budlow
Mark W. CrooksThe U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.
Excellence in Prosecution of Organized Crime
Recipient: Ayn B. Ducao
Robert R. HardingThe U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.
Excellence in Legal Support
Recipient: Gerry ZinserThe U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.
Outstanding Contributions to a Law Enforcement Initiative
Recipient: John Allen
Patrick Dugan
Bonnie S. Greenberg
Earl Jenkins
John SheridanThe U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.
Carl S. Lackl Award
Recipient: Michael Baier
Michael Groth
Patrick Michaels
The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.New Employees
In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorney Zachary Myers and Special Assistant U.S. Attorneys: Frank Balsamello; Nathaniel Cohen; Anthony Enright; Piper McKeithen; James Pearce; and Jennifer Sykes. Non-Attorney Staff: Joanna Neubauer.
U.S. Attorney Bill Nettles Announces S.C. Drug Endangered Children (DEC) AllianceRead the Press Release
Contact Person: Anne Frate (803) 929-3000
Columbia, South Carolina ----- U.S. Attorney Bill Nettles, announced today that 22 federal, state and local leaders have entered into an alliance to identify and protect drug endangered children in the State of South Carolina.
The South Carolina Alliance for Drug Endangered children includes professionals – various law enforcement agencies, social services specialists, child advocates, prosecutors, physicians, fire fighters, and local community groups – who are striving for an effective way to identify and protect those children removed from drug environments, who are in danger of physical, mental and emotional abuse, as well as, exposure to the use of firearms, violence or other dangerous items associated with drug manufacturing and distribution.
“Drug Endangered Children are at greater risk of death, developmental problems, supervisory, educational and emotional neglect, as well as physical and sexual abuse. It is the goal of the DEC Alliance to coordinate the response to these children’s needs in order to break the cycle of drug and child abuse,” said Bill Nettles.
“Children discovered in drug environments have critical physical, behavioral and mental health needs that if not properly addressed will have long-term impact in their lives. These guidelines address timely and proper intervention,” said Dr. Olga Rosa, of the U.S.C School of Medicine.
Importantly, these guidelines do not require additional funding in order to be successful. This interdisciplinary model utilizes existing social infrastructure and creates the framework needed for each agency to not work within their own silo, but to instead work together toward a common goal; happy, healthy, protected children.
U.S. Attorney Bill Nettles said, “This is yet another progressive program instituted by our office assembling a broad based coalition to make the citizens of SC safer and healthier and break the circle of violence. We thank everyone who has participated in this process. I am proud of the results.”
The following agencies have endorsed the State Guidelines and were integral to their completion: For Law Enforcement and Prosecution: The U.S. Attorney’s Office – Bill Nettles, U.S. Attorney
S.C. Attorney General – Alan Wilson, Attorney General
S.C. Law Enforcement Division – Chief Mark Keel
S.C. Sheriff’s Association – Jeff Moore, Executive Director
S.C. Department of Public Safety – Leroy Smith, Director
S.C. Police Chief’s Association – Terrence Green, Chief
S.C. Commission on Prosecution Coordination – David Ross, Executive Director
S.C. Solicitor’s Association – Chrissy Adams, President
For Child Protection and Victim Services: S.C. Department of Social Services – Lillian Koller, Director
S.C. Crime Victims’ Council – Laura Hudson, Director
S.C. State Office of Victim Assistance – Dr. Larry Barker, Director
S.C. Network of Children’s Advocacy Centers – Kim Hamm, Executive Director
U.S.C. School of Law, Children’s Law Center – Harry Davis, Director
Medical Response and Treatment
U.S.C. School of Medicine – Olga Rosa, M.D. FAAP, Director
S.C. Children’s Advocacy Medical Response System - Olga Rosa, M.D. FAAP, Director
S.C. Chapter of the American Academy of Pediatrics – Deborah Greenhouse, M.D., President
S.C. Department of Alcohol and Other Drug Abuse Services – Robert “Bob” Toomey, Director
The Medical University of South Carolina
Fire/HAZMAT, and Emergency Response
S.C. State Association of Fire Chiefs – Chief Tracy Wallace, President
S.C. Department of Health and Environmental Control – Catherine Templeton, Director
S.C. EMS Association – Derek Kinney, President
S.C. Firefighter’s Association – Joe Palmer, Executive DirectorTwo Plead Guilty in Prescription Drug Diversion SchemeRead the Press Release
Charles Jeffrey Edwards, 52, of Houston, Texas, and Brenda Elise Edwards, 43, of Houston, Texas, pleaded guilty yesterday, in U.S. District Court, to participating in a prescription drug diversion scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Brenda Edwards pleaded guilty to one count of conspiracy, for which she faces up to five years in prison and a fine of $250,000. Charles Edwards pleaded guilty to one count of mail fraud and one count of money laundering. Mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine and money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine. Both defendants will be sentenced on November 24, 2014.
At the plea hearing yesterday before U.S. District Court Judge Aleta A. Trauger, both defendants admitted that, from approximately December 2006 through August 2009, Charles Edwards co-owned Cumberland Distribution, Inc., a business engaged in the wholesale distribution of prescription drugs to pharmacies throughout the United States and which maintained its headquarters in Houston, Texas. Cumberland Distribution maintained warehouses in Nashville, Tenn., located at 5425 Harding Place and at 1419 Donelson Pike and was licensed by the State of Tennessee as a wholesale distributor of prescription drugs. Brenda Elise Edwards was an employee of Cumberland Distribution.
Both defendants admitted that Cumberland Distribution purchased a portion of the prescription drugs it resold to pharmacies from individuals and entities that were not licensed to engage in the wholesale distribution of prescription drugs and were not otherwise authorized to distribute prescription drugs. The prescription drugs were acquired through various networks of “diverters” who obtained prescription drugs from other unlawful sources. As a result, Cumberland Distribution could not lawfully resell the drugs. The defendants used the Nashville warehouses to receive deliveries of prescription drugs, where they were sorted and repackaged and shipped to pharmacies that had made purchases from Cumberland. Generally, the diverted drugs included drugs used to combat HIV/ AIDS medication, antipsychotic, anti-depression, as well as acid reflux, blood pressure medication, and diabetes medication.
Charles Edwards further admitted that as part of the scheme, he created a layer of distribution between the diverted pharmaceuticals and Cumberland Distribution by incorporating or causing others to incorporate various separate businesses, and caused the pharmaceuticals to be shipped to Cumberland Distribution through intermediaries, further concealing the true origin of the drugs.
For example, Charles Edwards admitted that in January 2008, he and Jerrod Nichols Smith directed another individual to open a business in Texarkana, Arkansas, called Tristate Management Group. The purpose of Tristate Management was to make it appear as though the pharmaceuticals that Cumberland Distribution was selling had been purchased from a licensed wholesale distributor, when in fact the pharmaceuticals were purchased from unlicensed or unauthorized sources. When shipments were received at Tristate Management, the individual would place new shipping labels on the packages and send them to the Cumberland Distribution warehouse in Nashville, or he would inventory the packages before sending the contents of the shipment on to Cumberland Distribution.
Pharmacies throughout the United States purchased diverted prescription drugs from Cumberland Distribution under the premise that the prescription drugs being purchased had been in the custody of licensed wholesale distributors or other authorized distributors since being sold by the original manufacturer. Cumberland Distribution used Federal Express to ship diverted prescription drugs and inaccurate pedigree documents to the pharmacies.
Brenda Edwards further admitted that as part of the conspiracy she caused wire transfers to be made from Cumberland Distribution’s bank account into bank accounts in various names that were under her and Charles Edwards’ control, for her own use or for the use of members of her family.
On May 14, 2009, the U.S. Food and Drug Administration executed a federal search warrant at Cumberland Distribution’s Nashville warehouse. Brenda Edwards admitted that on the day the search warrant was executed, in order to place the funds out of the reach of federal agents, she caused a wire transfer in the amount of $138,709.76 from a bank account she and Charles Edwards controlled, to a bank account in Mexico that was in the name of her mother.
According to the indictment, the scheme resulted in gross proceeds of over $58 million and the defendants gained over $14 million in profits.
The indictment also charged another individual, Jerrod Nichols Smith, with conspiracy, mail fraud, and making a false statement in a matter within the jurisdiction of the United States. A trial of Jerrod Nichols Smith is scheduled for October 7, 2014, before U.S. District Court Judge Aleta A. Trauger.
An indictment is merely an accusation of guilt. Jerrod Nichols Smith is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the United States Food and Drug Administration. Assistant United States Attorneys Kathryn Ward Booth and Sandra G. Moses represent the government.
Two Men Indicted on Drug ChargesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Ricardo Melendez, aka Ricardo Sanchez, aka Pupu, 18, of Buffalo, N.Y. and Abraham Tiro-Sanchez, aka Shorty, aka Mexico, 22, of Mexico, with conspiracy to possess with intent to distribute more than a 100 grams of heroin and possession with intent to distribute 100 grams or more of heroin. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years and a 5,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on May 3, 2014, the defendants were pulled over by the New York State Police for a traffic stop. During a search of the vehicle, law enforcement officers recovered a quantity of heroin.
The defendants were arraigned this morning by U.S. Magistrate Judge H. Kenneth Schoreder. Both were ordered held and are due back in court on July 14, 2014.
The indictment is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and Immigration and Customs Enforcement, Homeland Security Investigations,
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Marinette Men Sentenced on Heroin ChargesRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on May 8, 2014, Michael David Peak (age: 40) and Shawn Allen Klatt (age: 33) both of Marinette were sentenced to 24 months and 36 months respectively by Chief United States District Judge William C. Griesbach. Each had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.
According to their plea agreements and other documents filed with the court, Peak and Klatt worked in concert with seven other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas from a primary supplier in Chicago. Peak and Klatt were the first of nine defendants facing sentencing.
The court noted the “serious and dangerous nature” of the defendants’ actions, as well as the “devastating effect” that heroin use has had in the Marinette and Menominee region. The court described the coordinated actions of Peak, Klatt, and their co-defendants as essentially “a drug co-operative” designed not for the purpose of creating a profit, but to increase purchasing power and increase the frequency of coordinated “heroin runs” to Chicago.
The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the United States Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin HIDTA Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # #Two City of Buffalo Officials Plead Guilty to Clean Air Act Violations Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that William Manuszewski, 59, and Donald Grzebielucha, 59, both of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to a negligent endangerment charge under the Clean Air Act. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.
Assistant U. S. Attorneys Aaron J. Mango and Russell T. Ippolito, who are handling the case, stated that during the asbestos abatement project at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo, both defendants were employed by the City of Buffalo as building inspectors. The asbestos abatement at Kensington Towers was conducted by Johnson Contracting of WNY, Inc., and the air monitoring was conducted by JMD Environmental, Inc.
On August 25, 2009, defendant Grzebielucha inspected building A-1 at Kensington Towers, and during the inspection, negligently allowed asbestos to be released in the air. Likewise, on January 15, 2010, defendant Manuszewski inspected building A-5 at Kensington Towers, and during the inspection, negligently allowed asbestos to be released in the air. During both inspections, the defendants admitted that they were negligent in relying on the previous inspections conducted by JMD employees that indicated all asbestos had been removed from the buildings.
Defendants Manuszewski and Grzebielucha are the seventh and eighth defendants to plead guilty as part of the Kensington Towers asbestos abatement project. Johnson Contracting supervisors Ernest Johnson and Rai Johnson, and JMD project monitors Evan Harnden, Chris Coseglia, Henry Hawkins and Brian Scott, have also been convicted. Charges are still pending against Theodore Lehmann, a public official at the time with the New York State Department of Labor, who was responsible for certifying the project’s compliance with applicable laws and regulations. The remaining defendant is due in court on May 13, 2014.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Sentencing for defendants Grzebielucha and Manuszewski is scheduled for August 18, 2014, 2014 at 12:30 p.m. and 1:00 p.m., respectively, before Judge Arcara.
Three Charged in Connection with Armed Robbery in Town of Newburgh, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas J. Cannon, the Special Agent-in-Charge of the New York Field Office of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Chief Michael Clancy of the Town of Newburgh Police Department announced the unsealing of an Indictment against three defendants in connection with the December 28, 2013, armed robbery of a store on State Route 32 in the Town of Newburgh, New York.
U.S. Attorney Preet Bharara stated: “These charges are the product of outstanding cooperation among multiple law enforcement agencies. We will continue to work with our law enforcement partners, federal and local, to bring those who participate in violent, criminal conduct to justice.”
Special Agent-in-Charge of the New York Field Office of the ATF Thomas J. Cannon stated: “The defendants have been charged as result of the information-sharing and interagency cooperation that exists between the ATF and the Town of Newburgh Police Department, Ulster County Sherriff’s Office, the Town of New Windsor Police Department, the Town of Plattekill Police Department, and the New York State Police. This investigation should serve as a model to others that when law enforcement effectively collaborates, there is nothing that cannot be achieved.”
Town of Newburgh Chief Michael Clancy stated: “The Town of Newburgh Police Department would like to thank the various law enforcement agencies that assisted in this case including the Town of Plattekill Police Department, the Town of New Windsor Police Department, the Ulster County Sheriff’s Office, and the ATF, and the New York State Police. We would also like to thank U.S. Attorney Preet Bharara and the members of his staff for their efforts in bringing about this Indictment.”
The Indictment charges ANDREW HECHT, 20, MATTHEW MACKSON, 19, and GREGORY SCOTT, 25, with conspiracy to commit robbery, robbery, and the brandishing of a firearm in furtherance of the robbery conspiracy. The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
The Indictment was unsealed yesterday. One of the defendants was arrested yesterday and one was already in state custody. They were presented in White Plains federal court yesterday before U.S. Magistrate Judge Paul E. Davison, and were ordered detained. One defendant remains at large.
Mr. Bharara praised the outstanding investigative work of the ATF, the Town of Newburgh Police Department, the Town of New Windsor Police Department, the Town of Plattekill Police Department, the Ulster County Sheriff’s Office, and the New York State Police.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tampa Woman Pleads Guilty to Assault on DHS AgentRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Latrese Brantley (40, Tampa) pleaded guilty yesterday to assaulting a federal agent. Brantley faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, on April 30, 2013, Brantley was returning to Tampa on a Jet Blue flight from San Juan, Puerto Rico. Jet Blue flight personnel reported that Brantley had been of concern during the flight, and asked for a representative to come to the gate to escort Brantley off the plane. As Brantley was being escorted from the flight by a Jet Blue employee, she punched that employee. A Department of Homeland Security agent, who was in the airport terminal at the time, heard the commotion and came over to assist. She identified herself as a federal agent. Brantley punched the agent in the face and the two struggled near the flight gate. As a result of the struggle, the agent suffered scratches and abrasions and sustained physical injury that required later medical attention.
This case was investigated by the Transportation Security Administration. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Talent Agent Sentenced in Manhattan Federal Court for Stealing over Half A Million Dollars from His Actor Clients and Ordered to Forfeit Artwork He Purchased with ProceedsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PETER STRAIN, a talent agent for film, television, and Broadway actors, was sentenced today in Manhattan federal court to three years’ probation, six months’ home confinement, and 500 hours of community service for engaging in a scheme to steal over $500,000 of his clients’ money, which he used to purchase, among other things, expensive artwork and luxury personal items. STRAIN pled guilty in March 2014 before U.S. District Judge George B. Daniels, who also imposed today’s sentence.
According to the Superseding Information and other documents filed in Manhattan federal court, and statements made at related court proceedings, including today’s sentencing:
Through his talent agency, Peter Strain & Associates (“PSA”), STRAIN represented television, film, and stage actors. As a talent agent, STRAIN received funds in trust for his clients for their acting work, and was required to remit those funds to his clients, less his commission, which was typically 10%. However, between approximately 2011 and 2013, STRAIN diverted money he received on behalf of three clients, and used it to, among other things, pay for personal luxury retail goods and artwork. In order to conceal his theft and ensure that his clients allowed him to continue receiving money on their behalf, STRAIN repeatedly lied to his clients about why he had failed to timely remit their money.
Between July 2011 and December 2011, STRAIN received more than $1.4 million in an account held in trust for his clients (“the Trust Account”) on behalf of an actor who earned that money for work on a currently broadcast television series (“Client-1”). However, STRAIN failed to remit approximately $500,000 of this money to Client-1, and diverted it for his own personal use. In order to conceal his theft from Client-1, when STRAIN and Client-1 discussed the missing payments by telephone, STRAIN asked Client-1 if he could delay making the payments because, according to STRAIN, he was short on funds as a result of his partners at PSA embezzling money from the firm. STRAIN further claimed that he had recently won a lawsuit against his partners related to the supposed embezzlement, and that he was waiting to receive settlement payments from his partners.
STRAIN’s statements to Client-1 regarding the lawsuit were false. In truth, as STRAIN well knew, STRAIN’s partners had filed a lawsuit accusing STRAIN of embezzling funds from PSA, and STRAIN agreed to settle the lawsuit by paying his partners more than $250,000 for their shares in PSA. Moreover, in order to make a payment required under the settlement, instead of using his own money, STRAIN withdrew $30,000 from the Trust Account.
Ultimately, during 2012, STRAIN repaid Client-1 by stealing money from a different client, Client-2, an actor who has appeared in several television shows, including a currently broadcast television series. STRAIN then lied to Client-2 in order to conceal his theft. Among other things, STRAIN falsely told Client-2 that STRAIN had recently hired a new business management team and that the new team must have misplaced Client-2’s money. In truth and in fact, as STRAIN well knew, STRAIN had used Client-2’s money to repay the money he had stolen from Client-1. STRAIN never fully repaid the money he took from Client-2, and still owes Client-2 in excess of $350,000.
In July 2012, STRAIN failed to timely remit over $200,000 in additional payments to Client-1 for Client-1’s television acting work. In an email to Client-1 asking for additional time to remit the money, STRAIN repeated his false claim that he had “won” the lawsuit with his partners and was waiting for his partners to pay him. STRAIN further falsely claimed that he had Client-1’s money in his possession, but that he was restricted from accessing the money due to court orders. Contrary to his representations to Client-1, STRAIN had not “won” the lawsuit, was not restricted from accessing the funds owed to Client-1, and did not have sufficient funds in the Trust Account to pay Client-1. In fact, in the same month that STRAIN claimed he was unable to access Client-1’s money, STRAIN withdrew more than $80,000 from the Trust Account, leaving the account overdrawn by more than $9,000.
Between November 2012 and February 2013, STRAIN also stole tens of thousands of dollars from another client who has appeared in several television shows, including a currently broadcast television series (“Client-3”). To cover up his theft, STRAIN offered several false excuses to Client-3 for why he had failed to remit Client-3’s money. For example, in November 2012, STRAIN falsely claimed that Client-3’s payments had been lost in the mail. STRAIN also later falsely told Client-3 that the delays in remitting Client-3’s money were caused by a lawsuit, but that a confidentiality clause prevented STRAIN from discussing the details.
STRAIN used the money he stole from his clients to, among other things, pay operating expenses of PSA and to pay for personal luxury retail goods and artwork, some of which he purchased in New York using client money from California bank accounts. Between July 2011 and August 2012, using his clients’ money, STRAIN bought more than $161,000 in jewelry, more than $310,000 in artwork, and more than $57,000 at luxury goods retailers.
Mr. Bharara praised the outstanding investigative work of the FBI.
In addition to probation, STRAIN, 64, of Los Angeles, California, was ordered to forfeit all artwork obtained as part of the fraud, and to pay $384,128.52 in restitution.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys James Pastore, Jr., and Jason Hernandez are in charge of the prosecution.
Stamford Man Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that TAIMUR AURORA, 40, of Stamford, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in Bridgeport to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AURORA participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. As part of the scheme, AURORA and his co-conspirators provided to mortgage lenders materially false information, including false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms. AURORA also directed the actions of various “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. At times, AURORA acted as a straw buyer himself.
Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions, and lenders suffered losses of more than $7 million. The loss attributed to AURORA’s role in this scheme totals approximately $4.2 million.
AURORA pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced on September 17, 2014, and faces a maximum term of imprisonment of 30 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
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(203) 821-3722 [email protected]Sonoma Man Pleads Guilty in $1.6 Million Fraud SchemeRead the Press Release
SAN FRANCISCO - Michael Thomas Hamilton, a/k/a Thomas Smith, pleaded guilty today in federal court in San Francisco to two counts of wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Hamilton admitted that he engaged in a scheme to obtain money and property by means of materially false and fraudulent representations regarding Small Leaf, a book-selling business he owned and operated. Between February 2011 and continuing through October 2013, Hamilton solicited Small Leaf investors through Craigslist and other means. As part of the scheme, Hamilton falsely represented that: (1) investors would earn high rates of return through the sale of books on Amazon.com and other platforms; (2) if investors did not recoup their investment by a certain date, Small Leaf would reimburse the investor with interest of 10%; and (3) his book-selling business generated more than one million dollars in yearly revenue. In truth, Hamilton’s book-selling business generated a minimum amount of revenue. To induce investors to turn over their money and to lull them into falsely believing their investment was profitable, he made periodic payments to investors, which he claimed were royalties earned on the sale of books through Amazon. Most of the payments made to investors, however, were from investments by new investors or additional investments by existing investors.
According to the plea agreement, by October 2013, Hamilton had solicited approximately $1,616,000 from more than 20 investors in Calif., Ore., and Mass.
Hamilton, 49, of Sonoma, Calif., was indicted by a federal grand jury on Nov. 19, 2013. He was charged with 22 counts of mail fraud, wire fraud, and money laundering. He is currently released on a $75,000 bond.
Hamilton’s sentencing hearing is scheduled for Sept. 4, 2014, at 1:30 p.m., before the Honorable William H. Orrick, United States District Court Judge, in San Francisco. The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Mary Mallory and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
(Hamilton indictment )
Sentencing for May 5 - 8, 2014Read the Press Release
Bryan S. Everly, 20, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 8, 2014, for conspiracy to possess stolen firearms. Everly was arrested in Gillette, Wyoming. He received 54 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joseph Edward Fowles, 42, of Rozet, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 7, 2014, for possession of child pornography. Fowles was arrested in Rozet, Wyoming. He received time served, to be followed by ten years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Robert James Truby, 62, of Laramie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 5, 2014, for being a felon in possession of a firearm and for possession of an unregistered firearm. Truby was arrested in Laramie, Wyoming. He received 57 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rochester Woman Sentenced for Workers Compensation FraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Amelia Jackson, 43, of Rochester, N.Y., who was convicted of workers compensation fraud, was sentenced to five years of probation, with the first six months on home detention, by U.S. District Court Judge Charles J. Siragusa. The defendant was also ordered to pay $14,524 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant claimed to have sustained a work related injury in August of 2008 while employed by the United States Department of Veterans Affairs. As part of this claim, Jackson was limited in the amount of hours that she could work each day and was required to regularly report all outside income and employment. The defendant would regularly certify under oath that she was not engaged in any outside employment and that she was not receiving any other income. However, during this same time, Jackson opened and operated a liquor store in Rochester called “Last Call Liquors.”
Federal investigators observed the defendant going to her liquor store directly from her job at the VA during times she was falsely claiming to be home resting. During the times she was observed, Jackson did not seem to have any difficulty navigating the short staircase, reaching for, picking up, replacing bottles, or carrying the bag containing bottles to the door to give to customers. On at least one occasion, the defendant was recorded wearing her VA Identification while she was working in the liquor store.
As part of the investigation, Jackson appeared for an interview with a Workers Compensation Program representative to review her compensation file and current medical condition. Unknown to the defendant, the Workers Compensation Representative was actually an undercover federal agent. During this recorded interview, the defendant denied having any outside employment or income. At no time during this interview did Jackson disclose her ownership of a liquor store or any other employment outside of her federal job at the VA. During this interview, the defendant also falsely certified a Current Medical Assessment Evaluation denying outside employment or income. As a result of the defendant’s conduct, Jackson received $14,524.14 in Workers Compensation Benefits she would not otherwise be entitled to.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Department of Labor, New York Regional Office, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Cheryl Garcia, Acting Special Agent in Charge.
Richard Joseph SalonSpa Owners Agree to Plead Guilty to Tax Fraud ConspiracyRead the Press Release
BIRMINGHAM -- The owners and operators of Richard Joseph SalonSpas in the Birmingham area have agreed to plead guilty to a tax fraud conspiracy for failing to pay employment taxes to the IRS that they withheld from employees' wages over eight years, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
RICHARD JOSEPH SMITH, 54, and TIMOTHY EUELL BROWN, 55, both of Hoover, together have agreed to pay $1.4 million in restitution to the IRS as part of their plea agreements with the government. Smith and Brown acknowledge in their plea agreements that they withheld employment taxes from salon employees but did not report and pay those taxes over to the IRS. They also acknowledge that they skimmed money from the businesses for personal use.
The $1.4 million represents only the payroll taxes withheld from employees, not the employer portion of payroll taxes, which also went unpaid. Smith and Brown have agreed to cooperate with the IRS in determining their liability for the employer taxes and for unpaid personal taxes.
"These defendants have lived lavish lifestyles at the expense of the employees in their salons, who they cheated out of more than $1 million worth of Social Security and Medicare contributions by keeping the payroll taxes they deducted from employees' wages," Vance said. "Hardworking Americans receive the protection they deserve with prosecutions like this."
"Richard J. Smith and Tim E. Brown had a significant obligation to collect and remit all IRS withholding taxes," Hyman-Pillot said. "The failure to pay over withheld taxes defrauds the tax system and impacts employee benefits such as Social Security, Medicare and Unemployment Compensation," she said. "IRS Criminal Investigation recognizes that employment tax fraud is a heinous offense and will aggressively pursue individuals who engage in these schemes to defraud the government."
The U.S. Attorney's Office charged Smith and Brown in an information filed today in U.S. District Court, along with plea agreements for both men. They both agree to plead guilty to one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison and a $250,000 fine.
Richard Joseph SalonSpa has been a prominent business for more than two decades with several locations in north Alabama. Smith was a master stylist at the salon's original location in Mountain Brook, and Brown was the business manager who handled finances, including payroll, according to the plea agreements.The plea agreements outline how Smith and Brown carried out their tax fraud conspiracy as follows:
Beginning in 1991, a company called Smith, Hobart & Brown operated Richard Joseph SalonSpa in Mountain Brook, and Brown was the sole owner and registered agent of SHB. SHB operated the spa from 1991 to July 2006. SHB owed more than $300,000 in employment taxes to the IRS by the third quarter of 2006. The IRS began notifying Brown of payroll tax deficits and requesting payment in 2004. When a revenue officer met with Brown and his accountant in 2007, Brown said he had closed his salon in July 2006 and no longer worked at Richard Joseph SalonSpa.
While the daily operation and management of Richard Joseph SalonSpa never changed, Smith incorporated a new company, RJSS Inc., in June 2006, listing himself as the registered agent. RJSS took over operation of Richard Joseph SalonSpa in Mountain Brook, and Smith and Brown opened a business checking account together for RJSS. Both men were listed as owners and had signature authority for RJSS.
In August 2008, Smith incorporated another business, Richard Joseph Redmont Group Inc., and he and Brown together opened a business checking account for it. In July 2009, Smith and Brown opened a Richard Joseph Salon on U.S. 280 in Inverness, and operated it through the Redmont Group.
"Between the third quarter of 2006 and the third quarter of 2013, Smith and Brown withheld from employees of RJSS Inc., and Redmont Group and failed to pay over a total of $1,408,504.68 in employment taxes to the IRS," the plea agreements states. Since RJSS's inception in 2006, Smith and Brown have not timely reported or paid to the IRS the taxes withheld from RJSS employees, and neither did they timely report or pay to the IRS the taxes withheld from Redmont Group employees since its inception in 2008, according to the plea agreements.
IRS Criminal Investigation Division investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Richard Joseph SalonSpa Owners Agree to Plead Guilty to Tax Fraud ConspiracyRead the Press Release
BIRMINGHAM -- The owners and operators of Richard Joseph SalonSpas in the Birmingham area have agreed to plead guilty to a tax fraud conspiracy for failing to pay employment taxes to the IRS that they withheld from employees' wages over eight years, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
RICHARD JOSEPH SMITH, 54, and TIMOTHY EUELL BROWN, 55, both of Hoover, together have agreed to pay $1.4 million in restitution to the IRS as part of their plea agreements with the government. Smith and Brown acknowledge in their plea agreements that they withheld employment taxes from salon employees but did not report and pay those taxes over to the IRS. They also acknowledge that they skimmed money from the businesses for personal use.
The $1.4 million represents only the payroll taxes withheld from employees, not the employer portion of payroll taxes, which also went unpaid. Smith and Brown have agreed to cooperate with the IRS in determining their liability for the employer taxes and for unpaid personal taxes.
"These defendants have lived lavish lifestyles at the expense of the employees in their salons, who they cheated out of more than $1 million worth of Social Security and Medicare contributions by keeping the payroll taxes they deducted from employees' wages," Vance said. "Hardworking Americans receive the protection they deserve with prosecutions like this."
"Richard J. Smith and Tim E. Brown had a significant obligation to collect and remit all IRS withholding taxes," Hyman-Pillot said. “The failure to pay over withheld taxes defrauds the tax system and impacts employee benefits such as Social Security, Medicare and Unemployment Compensation,” she said. "IRS Criminal Investigation recognizes that employment tax fraud is a heinous offense and will aggressively pursue individuals who engage in these schemes to defraud the government.”
The U.S. Attorney's Office charged Smith and Brown in an information filed today in U.S. District Court, along with plea agreements for both men. They both agree to plead guilty to one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison and a $250,000 fine.
Richard Joseph SalonSpa has been a prominent business for more than two decades with several locations in north Alabama. Smith was a master stylist at the salon's original location in Mountain Brook, and Brown was the business manager who handled finances, including payroll, according to the plea agreements.The plea agreements outline how Smith and Brown carried out their tax fraud conspiracy as follows:
Beginning in 1991, a company called Smith, Hobart & Brown operated Richard Joseph SalonSpa in Mountain Brook, and Brown was the sole owner and registered agent of SHB. SHB operated the spa from 1991 to July 2006. SHB owed more than $300,000 in employment taxes to the IRS by the third quarter of 2006. The IRS began notifying Brown of payroll tax deficits and requesting payment in 2004. When a revenue officer met with Brown and his accountant in 2007, Brown said he had closed his salon in July 2006 and no longer worked at Richard Joseph SalonSpa.
While the daily operation and management of Richard Joseph SalonSpa never changed, Smith incorporated a new company, RJSS Inc., in June 2006, listing himself as the registered agent. RJSS took over operation of Richard Joseph SalonSpa in Mountain Brook, and Smith and Brown opened a business checking account together for RJSS. Both men were listed as owners and had signature authority for RJSS.
In August 2008, Smith incorporated another business, Richard Joseph Redmont Group Inc., and he and Brown together opened a business checking account for it. In July 2009, Smith and Brown opened a Richard Joseph Salon on U.S. 280 in Inverness, and operated it through the Redmont Group.
"Between the third quarter of 2006 and the third quarter of 2013, Smith and Brown withheld from employees of RJSS Inc., and Redmont Group and failed to pay over a total of $1,408,504.68 in employment taxes to the IRS," the plea agreements states. Since RJSS's inception in 2006, Smith and Brown have not timely reported or paid to the IRS the taxes withheld from RJSS employees, and neither did they timely report or pay to the IRS the taxes withheld from Redmont Group employees since its inception in 2008, according to the plea agreements.
IRS Criminal Investigation Division investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Real Estate Developer Pleads Guilty to <br /> $50 Million Securities Fraud SchemeRead the Press Release
A commercial real estate developer pleaded guilty for his role in a $50 million securities fraud scheme, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
Bradley Holcom, 55, entered his plea before United States District Judge Cathy Ann Bencivengo in San Diego, admitting that he committed wire fraud in connection with the sale of approximately $50 million worth of promissory notes which he sold to investors located throughout the United States.
According to court documents, Holcom solicited investors to provide funds for commercial and residential development through an investment program he operated called the Trust Deed Investment Program. Holcom falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a lien on a specific piece of property he was developing and that the lien would enable them to take priority over any other potential liens or interests in the property.
However, Holcom admitted that he never provided investors with a lien in the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow them to foreclose on the property to protect their investment. In addition, while he promised investors that their purported lien would be in first position, he subsequently solicited investments for properties that he knew were already encumbered by first position liens. Holcom also sold properties that were supposedly serving as security for investors without informing investors that the property they had financed for development was sold. In 2008 and 2009, he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money.
As part of his plea, Holcom admitted that his conduct caused approximately $50 million in losses to over 50 victims. Sentencing is scheduled for July 25, 2014.
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section and by Assistant United States Attorney Mark Pletcher of the United States Attorney’s Office for the Southern District of California. The Department appreciates the substantial assistance of the U.S. Securities and Exchange Commission.Real Estate Developer Pleads Guilty to $50 Million Securities Fraud SchemeRead the Press Release
SAN DIEGO – A commercial real estate developer and mortgage broker pleaded guilty today for his role in a $50 million securities fraud scheme.
Bradley Holcom, 55, entered his plea before U.S. District Judge Cathy Ann Bencivengo, admitting that he committed wire fraud in connection with the sale of approximately $50 million worth of promissory notes which he sold to investors located throughout the United States.
According to court documents, Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he operated called the Trust Deed Investment Program. Holcom admitted that he falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a first-position lien on a specific piece of property he was developing.
However, as Holcom further admitted, he never provided investors with a lien in the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, he admitted that while he promised investors that their purported lien would be in first position, he subsequently solicited investments for properties that he knew were already encumbered by first position liens.
According to court documents, Holcom also sold properties that were supposedly serving as the security for investors without informing investors that the property they had financed for development was gone. Holcom admitted that in 2008 and 2009, even though his financial condition had seriously deteriorated, he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money.
As part of his plea, Holcom admitted that his conduct caused approximately $50 million in losses to over 50 victims. Holcom faces a maximum prison sentence of 20 years. Holcom is scheduled to be sentenced on July 25, 2014.
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and by Assistant United States Attorney Mark Pletcher of the United States Attorney’s Office for the Southern District of California. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
DEFENDANT Case Number: 13-CR-01723-CAB Bradley Holcom Age: 55 Escondido, CA CHARGESTitle 18, United States Code, Section 1343 -- Wire Fraud
INVESTIGATING AGENCY
Maximum penalties: 20 years’ imprisonment, $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss (whichever is greatest), $100 special assessment, 3 years of supervised release, restitution, and forfeiture.Federal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Quincy Man Charged with Stealing Former Employer’s Intellectual PropertyRead the Press Release
BOSTON – A Quincy man was charged yesterday in connection with a scheme to steal valuable intellectual property from his former employer, Daedalus Software, Inc., of Cambridge.
Nabeel Memon, 29, of Quincy, was indicted today on wire fraud.
According to the indictment, in 2011, Memon worked for Daedalus as a software developer while living in Pakistan, and again in 2013 at Daedalus’s Cambridge office. Daedalus provides the health care industry with software that manages the storage and analysis of biological samples. In December 2013, Memon copied the source code for Daedalus’s product, called “BTM Research,” onto a personally-owned hard drive. When asked by Daedalus’s CEO if he was copying any company information, he lied and said that he was not.
The indictment alleges that the next day, Memon quit his job at Daedalus and went to work for a company, identified in the indictment only as Company A, that is not a competitor of Daedalus’s but also designs software for analysis of large volumes of data. Daedalus’s source code could allegedly be extremely valuable to a software designer at Company A. When an attorney for Daedalus sent Memon a letter demanding that he return all Daedalus information in his possession, he responded by falsely stating, in an e-mail, that he no longer had any Daedalus information. In fact, he continued to possess the entire BTM Research source code months after he quit his job at Daedalus.
If convicted, Memon faces a statutory maximum penalty of 20 years in prison and three years of supervised release.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant United States Attorney Adam J. Bookbinder of Ortiz’s Cybercrime Unit. The U.S. Attorney’s office thanks Daedalus for cooperating with the investigation.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Woman Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh woman pleaded guilty in federal court to a charge of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
Cindy A. Elsesser, 45, pleaded guilty to one felony count before United States District Judge David S. Cercone.
According to information presented to the Court at the guilty plea, Elsesser, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up the fact that she was employed. Elsesser’s fraudulent conduct resulted in compensation payments totaling approximately $4,771.41 being issued to her during the period from April 1, 2011, to March 11, 2013, payments Elsesser knew she was not entitled to receive.
Judge Cercone scheduled sentencing for Sept. 15, 2014 at 10 am. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Elsesser on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, conducted the investigation leading to the plea of guilty in this case.
Philadelphia Man Sentenced to 38 Months in Federal Prison for Gun and Drug Crimes in BarreRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on May 2, 2014, Gregory Johnson, 30, of Philadelphia, Pennsylvania, was sentenced to 38 months in prison for his participation in cocaine base distribution and the possession of firearm. Chief United States District Judge Christina Reiss, sitting in Burlington, also ordered Johnson to serve a term of three years of supervised release following his prison sentence.
According to court records, in late 2010 and early 2011, Johnson and his Barre associates, including Terry Bahner, Bahner’s wife, Bethany Pastuszak, and Bahner’s stepfather, Lestly Westcott, trafficked cocaine base from Philadelphia to Barre, Vermont where they resold it to local customers. Johnson admitted to possessing a handgun during the conspiracy.
A federal grand jury in the District of Vermont returned an indictment against Johnson on September 6, 2012. Johnson was arrested in Philadelphia on December 19, 2012 on an unrelated outstanding warrant from Pennsylvania. Once his Pennsylvania case was resolved, Johnson was transferred to the District of Vermont and appeared for arraignment in federal court in Burlington on August 7, 2013. On January 13, 2014, Johnson pled guilty to conspiring to distribute cocaine base.Pursuant to the advisory U.S. Sentencing Guidelines, Johnson faced between 46 and 57 months in prison. In determining the appropriate sentence, Judge Reiss considered, among other factors, the gravity of Johnson’s conduct and its negative impact on the community. Judge Reiss also considered Johnson’s lack of a significant criminal record.
Johnson is the sixth defendant to be sentenced in a series of related Barre cases. On January 5, 2012, Judge Reiss sentenced Bethany Pastuszak to four months of imprisonment and four months of home confinement, followed by a one-year term of supervised release, for making a false statement in connection with her purchase of a handgun.
On July 25, 2012, Judge Reiss sentenced James Beatrice, of Barre, to 33 months in federal prison, followed by a three-year term of supervised release, for illegally possessing a firearm as a convicted felon.
On August 8, 2012, Judge Reiss sentenced Ronald Newton, from Philadelphia, to 160 months in federal prison for his role in a cocaine distribution conspiracy and his possession of a handgun in furtherance of that conspiracy. Newton was also ordered to serve 10 years of supervised release following his prison term.
On September 19, 2012, Judge Reiss sentenced Lestly Westcott to serve 30 months in federal prison, followed by a three-year term of supervised release, for possessing a firearm as a convicted felon and distributing controlled substances.
On October 22, 2012, Judge Reiss sentenced Terry Bahner to serve 85 months in prison, followed by a three-year term of supervised release, for conspiring to distribute cocaine and illegally transferring a firearm.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Montpelier Police Department, the Vermont State Police, the U.S. Marshals, and the U.S. Border Patrol for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr.
Johnson is represented by Assistant Federal Public Defender Steven Barth. Newton is represented by Natasha Sen. Bahner is represented by Elizabeth Mann. Westcott is represented by Karen Shingler and Pastuszak is represented by Robert Sussman. James Beatrice is represented by David Williams.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.Oregon Man Sentenced for Lacey Act ViolationRead the Press Release
Admits Aiding and Abetting Unlawful Acquisition and Transportation of Three Mountain Lions
COEUR D’ALENE – Christopher Wilson, 33, of Elgin, Oregon, was sentenced today in United States Magistrate Court to five years of probation for one count of aiding and abetting the unlawful acquisition and transportation of a mountain lion, a misdemeanor, U.S. Attorney Wendy J. Olson announced. United States Magistrate Judge Candy W. Dale ordered Wilson to pay a $500 fine and a $25 special assessment, and banned him from the use of firearms during his probation term. Additionally, Wilson is banned from hunting and fishing anywhere in the United States for a minimum of three years. The ban will extend to five years if the defendant does not earn his GED, attend hunter safety training, and serve 25 hours of community service.
According to the plea agreement, Wilson admitted that on January 19 and 20, 2012, he aided and abetted the unlawful hunting and transporting of three Pumas concolors, more commonly known as mountain lions. Wilson admitted that he allowed his Idaho tag to be put on a mountain lion taken by a hunter from North Dakota.
The case was investigated by the U.S. Fish and Wildlife Service and Idaho Fish and Game.
Oklahoma, Colorado, and Illinois Residents Among Nine Indicted for Conspiracy to Harvest Marijuana in Colorado for Distribution to Oklahoma, Illinois and Other StatesRead the Press Release
Oklahoma City, Oklahoma – Nine people have been indicted by a federal grand jury in Oklahoma City charging them with conspiracy to possess with intent to distribute marijuana, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The nine defendants charged in this conspiracy are:
- Terry Hardin Wilkerson, 71, from Oklahoma City, Oklahoma,
- William Jesse Hoge, 53, from Oklahoma City, Oklahoma,
- Curtis Frank Wagner, 49, from Crestone, Colorado,
- David A. Geubelle, 45, from Highland Park, Illinois,
- Crystal Adams, 45, from Oklahoma City, Oklahoma,
- Marty Shellabarger, 67, from Moffatt, Colorado,
- Skylar J. Freeman, 25, from Crestone, Colorado,
- Shawn N. Maminakis, 34, from Crestone, Colorado, and
- David Lincoln Steele, 48, from Crestone, Colorado.
According to the indictment, from November of 2013 through April 24, 2014, the defendants were members of a drug trafficking organization that conspired to possess and provide more than 100 kilograms of marijuana from indoor and eventually outdoor marijuana grow facilities in Colorado to be transported and redistributed in Oklahoma, Illinois, and other states. It is further alleged that the defendants frequently communicated with cell phones and used coded language such as “farm” (the grow facilities in Colorado) and “Christmas Trees,” “Trees” or “Green” (marijuana) in an attempt to conceal the illegal nature of their conversations. The indictment alleges that the defendants used, distributed, and stored marijuana at various locations in the Oklahoma City and Crestone, Colorado, areas. The indictment seeks forfeiture of over $66,000 in cash, and properties located at 4500 North West 31st Place, 2101 North West 59th Street, and 3346 Willow Brook Road, all in Oklahoma City, and a property located at 9817 Stonebridge Drive, in Yukon, Oklahoma. For more information, reference is made the attached indictment.
If convicted, the defendants face no less than five and up to 40 years in federal prison and a fine of $5,000,000. The defendants are all presumed innocent unless and until proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation "Operation Stale Smoke" led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. Valuable assistance was also provided by the United States Attorneys’ Offices for the District of Colorado and the Northern District of Illinois. This case is being prosecuted in the Western District of Oklahoma by Assistant U.S. Attorneys David P. Petermann and David L. Walling.
Ocala, Florida Man Charged with Failure to Pay Child Support for His Children Who Reside in Orange County, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Tom O’Donnell, the Special Agent-in-Charge of the New York Field Office of the Inspector General, United States Department of Health and Human Services (“OIG-HHS”), announced the arrest yesterday of KURTISS L. TOMASOVICH for failure to pay child support. TOMASOVICH was arrested and presented in federal court in Ocala, Florida, before U.S. Magistrate Judge Philip R. Lammens.
U.S. Attorney Preet Bharara stated: “As alleged, Kurtiss Tomasovich failed to pay over $100,000 in child support, allegedly choosing to spend his money on his home and businesses, rather than fulfill his court-ordered obligation to pay support for his children. Such alleged conduct represents not only a failure to Tomasovich’s children, but a federal crime. I want to thank the excellent work of our partners at OIG-HHS in this case.”
Special Agent in Charge of the New York Field Office of OIG-HHS Tom O’Donnell stated: "Parents who try to avoid paying child support by moving to another state will instead face justice for their crime. Our investigators work hard to hold deadbeat parents accountable for skipping out on their financial responsibilities to care for their children.”
According to allegations in the Complaint previously filed in White Plains federal court:
Pursuant to a judgment of the New York State Supreme Court, Orange County, beginning in 2008, KURTISS L. TOMASOVICH was obligated to pay a minimum of $3,000 a month in child support with respect to his children, who reside in Tuxedo, New York. From at least in or about February 2008 until at least in or about April 2014, TOMASOVICH, who resides in Florida, failed to pay approximately $158,708 in child support. Notwithstanding TOMASOVICH’s repeated failure to make his child support payments, he has had sufficient assets available to him to pay. For example, TOMASOVICH and his second wife have purchased and developed property in Florida, including constructing a tennis court. In addition, during the relevant time period, TOMASOVICH and his second wife have had access to substantial funds and have owned and operated several businesses in Florida.
TOMASOVICH, 51, of Ocala, Florida, is charged with one count of failing to pay child support, which carries a maximum sentence of two 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 efforts of OIG-HHS and the Orange County Sheriff’s Department and thanked the Orange County Support Collections Unit for their assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kathryn Martin is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Newark Man Sentenced to 234 Months in Prison for Three Armed CarjackingsRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 234 months in prison for his role in three armed carjackings that occurred in a one-week span in three counties across northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Rahim Braxton, 34, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to a superseding information charging him with three counts of carjacking and one count of brandishing a firearm during the course of a violent crime. U.S. District Judge Esther Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and in statements made in court:
Braxton admitted he participated with several other men in three carjackings that were committed in Essex, Hudson, and Passaic counties over a period of one week in March 2012. He said they agreed to take high-end BMW and Mercedes-Benz vehicles from their victims by force. Braxton also admitted that during each of the carjackings, at least one of the conspirators was armed with a gun that was to be used in order to threaten the drivers of the cars.
In addition to the prison term, Judge Salas sentenced Braxton to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; the Newark Police Department, under the direction of Police Director Sheilah A. Coley and Chief Ivonne Roman; the Clifton Police Department, under the direction of Chief John E. Link; and the Secaucus Police Department, under the direction of Chief Dennis Corcoran, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney James Donnelly of the Organized Crime/Gangs Unit in Newark.
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Defense counsel: Ruth M. Liebesman Esq., Paramus, N.J.Newark Man Charged with Producing Child Pornography for Recording His Sexual Abuse of GirlsRead the Press Release
NEWARK, N.J. – A Newark man made his initial court appearance today on charges that he sexually exploited two prepubescent girls after allegedly photographing himself abusing the girls, U.S. Attorney Paul J. Fishman announced.
Justin Kinney, 25, is charged by complaint with two counts of sexual exploitation of a child. He was already in state custody on related charges and had his initial appearance in Newark federal court today before U.S. Magistrate Judge Michael A. Hammer. Kinney was remanded without bail.
According to the complaint:
Law enforcement officers executed a search warrant on Kinney’s laptop computer and cellular telephone on Oct. 25, 2012. A forensic review of the equipment seized revealed several images of child sexual abuse that appear to be self-produced and allegedly depict Kinney sexually abusing two different prepubescent females.
Each charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security Investigations (HSI), Immigrations and Customs Enforcement, under the direction of Special Agent in Charge Andrew McLees; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Kinney, Justin Complaint
New Hampshire Men Sentenced for Heroin Trafficking ConspiracyRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Mitch
Merritt, 30, of Rochester, New Hampshire and Scott Woodman, 29, of Farmington, New
Hampshire were sentenced today in U.S. District Court by Judge George Z. Singal for their involvement in a heroin distribution conspiracy. Merritt was sentenced to over 12½ years (151 months) in prison and five years of supervised release. Woodman was sentenced to over 5 years
(65 months) in prison and three years of supervised release. The defendants pleaded guilty to the offense on May 7, 2013.
According to court records, from 2011 until February 2013, Merritt led a group of individuals who obtained kilograms quantities of heroin in Lawrence, Massachusetts that was distributed to customers in Maine and New Hampshire by Merritt, Woodman, and others. Numerous home burglaries and shoplifting crimes were committed by customers to pay for that heroin.This case was investigated by the United States Drug Enforcement Administration; the
Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; the New Hampshire and Maine State Police; the York County Sheriff’s Office; and the
Rochester, New Hampshire Police Department; and results from the ongoing effort of the
Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Navajo Man from Thoreau Sentenced to Seventy Months in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Aldo Jones, 31, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., was sentenced this afternoon to 70 months in federal prison followed by three years of supervised release for his conviction on two assault charges. Jones also was ordered to pay $47,574.91 to the Indian Health Services to cover the costs of medical care for the victims and $80.00 to one of the two victims.
Aldo Jones and his brother Eddie Jones, Jr., III, 23, also of Thoreau, were arrested in early Aug. 2013, based on a criminal complaint charging them with assault charges arising out of an attack on a 21-year-old Navajo man in Crownpoint, N.M., on July 28, 2013. According to court filings, Aldo Jones and Eddie Jones assaulted the victim for failing to pay a $50 debt. Aldo Jones repeatedly stabbed the victim in the head, upper back and right hand with a screwdriver, and both he and Eddie Jones pummeled the victim with their fists. The victim sustained a life-threatening injury to his head where his skull was punctured. He also sustained stab wounds to his upper back and right hand and a broken nose.
Aldo Jones and Eddie Jones subsequently were charged in a four-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon arising from the assault on the 21-year-old victim. Aldo Jones also was charged with two assault charges arising out of an attack on a second victim on July 28, 2013, in Littlewater, N.M.
On Dec. 4, 2013, Aldo Jones pled guilty to two assault charges and admitted assaulting the two victims on July 28, 2013. He admitted assaulting the first victim at approximately 5:00 p.m. by stabbing him with a screwdriver. Aldo Jones also admitted stabbing the second victim with a knife approximately two hours later when the second victim confronted him about stabbing his cousin, the first victim.
On Dec. 5, 2013, Eddie Jones entered a guilty plea to assaulting the first victim. In his plea agreement, Eddie Jones admitted beating the victim who also was stabbed by Aldo Jones. At sentencing, Eddie Jones faces a maximum penalty of ten years in prison for each assault charge. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Naples Man Sentenced for Lacey Act ViolationRead the Press Release
Admits Aiding and Abetting Unlawful Acquisition and Transportation of Three Mountain Lions
COEUR D’ALENE – Jacob R. Navarro, 22, of Bonner County, Idaho, was sentenced today in United States Magistrate Court to five years of probation for one count of aiding and abetting the unlawful acquisition and transportation of a mountain lion, a misdemeanor, U.S. Attorney Wendy J. Olson announced. United States Magistrate Jude Candy W. Dale also ordered Navarro to pay a $750 fine and a $25 special assessment, and banned him from the use of firearms during his probation term. Additionally, Navarro is banned from hunting and fishing anywhere in the United States for a minimum of three years. The ban will extend to five years if the defendant does not earn his GED, attend hunter safety training, and serve 50 hours of community service.
According to the plea agreement, Navarro admitted that on January 19 and 20, 2012, he aided and abetted the unlawful hunting and transporting of three Pumas concolors, more commonly known as mountain lions. Navarro admitted that he allowed his Idaho tag to be put on a mountain lion taken by a hunter from North Dakota.
The case was investigated by the U.S. Fish and Wildlife Service and Idaho Fish and Game.
Named Defendant in Dorsey V. United States arrested and Charged with New Federal OffensesRead the Press Release
Springfield, Ill. B Today, a federal grand jury returned an indictment charging Edward Dorsey Sr., 42, of St. Anne, Illinois, with three counts of distributing cocaine base (“crack”) in violation of federal law. Additionally, the United States Probation Office for the Central District of Illinois previously filed a petition to revoke Dorsey’s federal supervised release (similar to parole) based on his recent drug trafficking activities, as well as based on allegations of Aggravated Unlawful Restraint and Battery involving a firearm in violation of state law.
According to today’s indictment, Dorsey allegedly distributed more than 28 grams (approximately one ounce) of crack cocaine in Kankakee County, in the Central District of Illinois, on both November 21 and December 18 of 2013. The indictment also alleges that Dorsey distributed crack cocaine on December 10, 2013, in Kankakee County, Illinois.
If convicted of the new drug trafficking charges, Dorsey faces a mandatory minimum sentence of 10 years of imprisonment up to life imprisonment under the revised penalties contained in the Fair Sentencing Act.
Dorsey was on supervised release from a prior conviction for a federal crack cocaine trafficking offense. Dorsey appealed his sentence to the United States Supreme Court, which concluded that Dorsey should have been sentenced under the Fair Sentencing Act. This served to reduce Dorsey’s sentence and the sentence of others who were sentenced for similar crimes after the effective date of the Act, August 3, 2010.
Dorsey faces additional penalties because he was still serving his term of supervised release when he is alleged to have committed the crimes in the indictment. According to a petition to revoke his supervised release, Dorsey also allegedly kidnapped and battered a man at a Citgo Gas Station in Pembroke, Illinois, on January 9, 2014. The petition further alleges that Dorsey grabbed the man by the shirt, forced him into a car, pointed a gun at the man, and punched and choked him. The petition alleges that Dorsey drove around with the man until Dorsey found a stolen television, at which point, he let the man go.
If Dorsey’s supervised release is revoked, he could be sentenced to up to three years of imprisonment in addition to any sentence for the drug trafficking charges.
Dorsey will appear before United States Magistrate Judge David G. Bernthal in Urbana at a future date to be arraigned on the drug trafficking charges and to address the petition to revoke his supervised release.
Members of the public are reminded that both an indictment and petition to revoke supervised release are merely accusations; the defendant is presumed innocent unless proven guilty.
The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.