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Monday 24 March 2014
Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Denver Spotted Horse, age 30, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of at least 5 years of supervised release, with a violation of a condition of release possibly resulting in 2 years of additional incarceration on any such revocation, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2013, and March 11, 2014, Spotted Horse, who had a prior sexual assault conviction in Minnesota, knowingly failed to register and update his registration while he was living on the Cheyenne River Sioux Indian Reservation.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lester Delbert Clown, age 30, was indicted on March 11, 2014, and he appeared before U.S. Magistrate Judge Mark A. Moreno on March 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Clown is alleged to have assaulted an adult male with a knife in December 2013 in Dupree, giving the victim three different stab wounds. The charges are merely an accusation and Clown is presumed innocent until and unless proven guilty.
Crips Gang Member Sentenced to 168 Months in PrisonRead the Press Release
Earlier today, at the United States Courthouse in Brooklyn, New York, Thomas Harris, a member of the Crips gang, was sentenced to 168 months in prison. On January 5, 2013, Harris pled guilty to charges of robbery conspiracy and brandishing of a firearm.1
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Thomas J. Cannon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office.
“Harris and his fellow gang member, Wendell Jenkins, terrorized the communities of Brooklyn and Queens by committing a spree of carjackings,” stated U.S. Attorney Lynch. “His senseless acts of violence have now earned him a home in a federal prison for the next 14 years.”
As part of his plea agreement, Harris admitted that he participated in six carjackings or attempted carjackings and two home invasion robberies between April 10, 2010 and February 28, 2011. According to the government’s sentencing memorandum, during one attempted carjacking in Jamaica, Queens, Harris and Jenkins forced a woman to give them her ATM cards and ATM PINs, and then forced the victim into the trunk of her car as they drove to nearby ATMs, where they stole $2,000 from her bank accounts. They then left her abandoned on the side of the road.
In another instance, the defendants attempted to carjack a mother and her young child in the drive-through of a McDonald’s restaurant in East Flatbush, Brooklyn. The defendants fled only after the woman panicked, took her foot off the car brake, and hit another car. Undeterred, the team then committed an armed carjacking of an elderly man a few blocks away.
After the arrest of his co-defendant Jenkins, Harris fled to Oakland, California, where he was arrested by Deputy U.S. Marshals. Harris possessed two kilograms of marijuana, 2.9 grams of methamphetamine and three firearms, including an assault-style rifle, at the time of his arrest.
The sentencing proceeding was held before the Honorable Frederic Block, United States District Judge for the Eastern District of New York.
The government’s case was prosecuted by Assistant United States Attorney Matthew Amatruda.
The Defendant:
THOMAS HARRIS
Age: 31
___________________________________________________________________________
1 On October 5, 2013, co-defendant Wendell Jenkins was sentenced to 154 months in prison following his guilty plea to charges of robbery conspiracy and possession of a firearm.
Corrupt U.S. Customs and Border Protection Officer Sentenced to 7.5 YearsRead the Press Release
Veteran U.S. Customs and Border Protection Officer Lorne “Hammer” Jones was sentenced today by U.S. District Judge Marilyn Huff to 7½ years in custody for his role in a decade-long crime spree in which he sold his badge to alien-smuggling groups and ultimately to marijuana transportation cells working for Mexican drug cartels. In court, the defendant acknowledged he has waived his right to appeal.
At today’s sentencing and during the December 2013 trial, federal prosecutors Andrew Schopler and W. Mark Conover described the scheme Jones employed to allow over 30,000 kilograms of drug cartel marijuana and multiple illegal aliens into the United States. Jones’ corruption began by first waving cars and vanloads of aliens and drugs through his lane at the San Ysidro port of entry, and later escalated to smuggling tractor-trailers jammed with marijuana through the commercial port at Otay Mesa.
Jones, an inspector since 1994, worked at both the San Ysidro and Otay Mesa border crossings and had been a canine officer since the 1990s. He was indicted by a federal grand jury and arrested at work in 2010, charged with conspiracy to commit bribery and to smuggle drugs and aliens.
A dozen witnesses testified that Jones was on the take, including Michael Taylor, a former colleague and friend who was also being paid by smugglers to corruptly allow contraband into the United States; Jones’ ex-wife, who recruited him to be a smuggler; a friend and financial adviser who testified that the two had discussed ways to hide ill-gotten gains, and who had personally used Jones to smuggle his girlfriend across the border twice; and several of Jones’ co-conspirators.
Prosecutors also presented evidence from a database that tracks information about people crossing the border – such as license plate numbers, names of those who were inspected and when, and by whom. During trial, prosecutors said the data proved that Jones allowed known load vehicles and drivers for drug trafficking organizations to pass though his lanes for years, without being inspected.
According to testimony, Jones volunteered to work overtime shifts as a primary inspector so he could wave through vans jammed with aliens and drugs, and trucks full of marijuana. Jones also employed a beeper code system to notify smugglers which one of the 24 inspection lanes he was working when their loads approached the border crossing. But the system failed in 2002 when Jones was randomly and unexpectedly reassigned to another position, and a load driver was forced to abandon his van full of drugs in the inspection line. In a second failure months later, a van stuffed with four nearly three tons of marijuana was intercepted in the lane assigned to Jones just a few just car lengths away from him. While Jones’ furiously tried to “waved on” the cars in front of the load vehicle, the driver and passenger of the load vehicle jumped out of the van and attempted to escape from several inspectors who hurried over to apprehend them. Notably, Jones did not try to apprehend the smugglers; rather, as federal prosecutor W. Mark Conover said during closing argument, Jones was frozen “[s]itting in his booth, paralyzed with fear. His load was caught.” This marijuana seizure remains the largest ever at the San Ysidro Port of Entry.
“Lorne Jones allowed greed to destroy everything his badge represents,” said U.S. Attorney Laura Duffy. “We hope this outcome serves as a reminder that we will not allow rogue officers to compromise national security and the public trust.”
Pete Flores, CBP Director of Field Operations in San Diego, said: “The actions that Lorne Jones has been convicted of tarnish the badge he wore, and I’m appreciative of the work done to bring him to justice. My CBP officers are hard-working professionals who are vigilant in their protection of the U.S. border and service of the traveling public. CBP does not tolerate corruption within our workforce and we will seek out and work to prosecute to the fullest extent of the law any employees who commit unethical or unlawful acts that tarnish our badge.”
FBI Special Agent in Charge (SAC) Daphne Hearn commented, “When a law enforcement officer violates his oath to protect and serve the citizens of this nation, it undermines the public's trust. When that happens, the FBI and our law enforcement partners at the Border Corruption Task Force are determined to restore the public's confidence and trust by rooting out corruption at all levels of government.” The public can report alleged instances of corruption by calling the FBI hotline at 1-877-NO-BRIBE.
“I am pleased by today's sentence,” said Dennis M. McGunagle, Special Agent in Charge of Department of Homeland Security, Office of Inspector General. “The DHS OIG is committed to working with our law enforcement partners to identify and aggressively investigate allegations of corruption to protect our borders and the integrity of DHS personnel, programs, and operations.”
DEFENDANT Case No. 10cr4141-H Lorne Leslie Jones, aka “Hammer” Age: 50 Chula Vista, CA CHARGESConspiracy to Commit Offenses Against the United States, in violation of
Attempted Importation of Marijuana, in violation of 21 U.S.C. § 841 INVESTIGATING AGENCY
18 U.S.C. § 371Federal Bureau of Investigation, Border Corruption Task Force
Department of Homeland Security, Office of Inspector General
Customs and Border Protection, Office of Field Operations*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.
Con Man Convicted of Wire Fraud Using Fake $20,000,000 Trust AccountRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that last Friday, JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to wire fraud in connection with a multiyear fraud scheme. WILLIAMS faces up to twenty (20) years in prison, three (3) years of supervised release following imprisonment, a fine of up to $250,000, and forfeiture of the proceeds of the fraud.
At Friday’s hearing, WILLIAMS admitted that from 2008 through 2011, he defrauded numerous victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, WILLIAMS would solicit and obtain money from victims by falsely representing that he had a substantial trust fund, containing millions of dollars, to which he would gain full control upon reaching a certain age. WILLIAMS would also falsely represent that he worked for a flooring company and that he needed money on a short-term basis in order to place orders for supplies. One of the victims was a man named J.O., in Florida, who began sending money to WILLIAMS and one of his associates in February of 2009. In June of 2009, in response to the victim’s concerns about repayment, WILLIAMS knowingly faxed the victim a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund containing “in excess of $20 million.” The letter induced the victim to continue sending money to accounts that WILLIAMS, ultimately losing approximately $300,000 in the scheme. In total, as he admitted today in Court, WILLIAMS defrauded his victims out of more than $500,000.
U.S. Attorney Green stated: “This office, together with the FBI and our other federal, state, and local partners, will continue to aggressively pursue those who engage in significant and sophisticated fraud schemes by preying on the good will of others. In addition to the direct impact on its victims, such frauds dissuade some who might otherwise lend a helping hand to someone truly deserving.”
The ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Child Exploitation Cases: Clovis Teacher Pleads Guilty to Producing Child Pornography, Madera and Modesto Men Sentenced to Long Prison Terms, Bakersfield Man Sentenced for Probation ViolationRead the Press Release
FRESNO, Calif. — A teacher from Clovis pleaded guilty today to producing child pornography, a Madera man was sentenced to 25 years in prison, a Modesto man was sentenced to 17 years in prison, and a Bakersfield man was returned to prison for violating the terms of his post-prison supervision, United States Attorney Benjamin B. Wagner announced.
“This office has established a national reputation for its prosecution of child predators and others who exploit children,” said U.S. Attorney Wagner. “One of the U.S. Department of Justice’s strategic priorities is protecting the most vulnerable members of society; cases like these make clear why we take this mission so seriously.”
“As these cases make abundantly clear, local and federal law enforcement are allied in the effort to protect children and combat the proliferation of child pornography,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) Fresno. “The urgency of our mission cannot be understated, particularly in the cases highlighted today that involved local victims whose innocence was stolen by the defendants.”“The Federal Bureau of Investigation and our law enforcement partners are committed to identifying and investigating all individuals who possess and trade images that depict the victimization of young children,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Repeat offenders such as Reddell and Bowersox are of particular concern as the continued, despicable behavior, despite a prior conviction, demonstrates the threat posed to our innocent children.”
Former Clovis Teacher Pleads Guilty to Producing Child Pornography
Former Clovis Unified School District teacher Neng Yang, 46, of Clovis, pleaded guilty today to two counts of sexual exploitation of a minor. According to the plea agreement, Yang admitted to using a computer device and electronic storage media to record and store videos depicting the sexual abuse of a minor under 12 years old on multiple occasions in January 2012. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.Yang is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on June 2, 2014. The plea agreement contemplates a sentence of 38 years. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Clovis Police Department and the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos is prosecuting the case. Docket #: 1:12-cr-037 AWI
Madera Parolee Sentenced to 25 Years in Prison for Receipt of Child Pornography
Frank Charles Reddell, 39, of Madera, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 25 years in prison for receiving child pornography. According to court documents, on December 26, 2012, Reddell was arrested by a California State Parole agent who observed Reddell sitting in his car in a parking lot viewing images of child pornography. At the time of his arrest, Reddell was on parole. When agents searched the Reddell’s computer and a computer thumb drive identified as belonging to him, they found many files containing child pornography. Reddell also had a 2004 conviction in the Tuolumne County Superior Court for lewd and lascivious conduct with a minor. Reddell pleaded guilty to receipt of child pornography on December 2, 2013.This case was the product of an investigation by the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, the Madera Police Department, and the California Department of Corrections & Rehabilitation. Assistant United States Attorney Brian W. Enos prosecuting the case. Docket # 1:13-cr-090 LJO
Modesto Man Sentenced 17 Years in Prison for Receipt and Distribution of Child Pornography
Ted Lee Duran, 49, of Modesto, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve 17 years in prison and a lifetime term of supervised release for receipt and distribution of child pornography. According to court documents, a relative of Duran went to the Modesto Police Department and reported finding child pornography on a phone that Duran had borrowed. Additional investigation revealed that Duran had received or distributed more than 600 images of minors being sexually abused, some of which depicted violence or were of sadistic conduct.This case was the product of an investigation by the FBI’s Modesto office in collaboration with the Ceres and Modesto Police Departments. It was prosecuted by Assistant U.S. Attorney David Gappa. Docket # 1:12-cr-384 AWI
Bakersfield Man Returns to Prison after Serving a Four-Year Sentence
Christopher Kent Bowersox, 41, of Bakersfield, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve three months in custody as a result of two violations of his supervised release conditions. Bowersox, a former Bakersfield Police detective, began serving a 120-month term of supervised release after he completed a four-year prison term, imposed after his conviction for possession of child pornography, on August 7, 2013. Terms of supervision included restrictions on accessing the Internet and pornography. Bowersox admitted that on December 11, 2013, he used a computer to access pornography on the Internet. Judge Ishii today re-imposed a term of supervision for 117 months during which Bowersox will be required to register as a sex offender, and his access to minors, computers, and the Internet will continue to be restricted.The case was originally investigated by the Federal Bureau of Investigation and the Bakersfield Police Department with assistance from the Kern County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney David Gappa. (1:10-cr-082 AWI).
Charleston Attorney Sentenced for Tax EvasionRead the Press Release
Lawyer swindled more than $1 Million dollars from clients and investors
Charleston, W.Va. – Lawyer Harold “Hal” Albertson, 65, was sentenced today in Charleston, West Virginia, by United States District Court Judge Thomas E. Johnston to two years in federal prison and ordered to pay more than a million dollars in restitution to former clients, investors, and the Internal Revenue Service. Albertson previously pleaded guilty to evading over $100,000 in federal taxes. As part of his plea agreement, Albertson also admitted that he lured clients into investing money with him by promising a high rate of return. Albertson never paid the clients the high rate of return. Instead of investing their money, he used it to pay his own debts. Albertson admitted he cashed clients’ checks and used the proceeds to repay someone else.
This case was investigated by the West Virginia State Police and the Internal Revenue Service.
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land. According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. Agents found Garcia at the grow site. Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County. Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house. In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.Aguilar and Garcia are scheduled for sentencing on June 16, 2014. Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million. Garcia faces a maximum prison term of twenty years and a fine of $1 million. Both are also subject to deportation to Mexico, upon completion of any prison term imposed. Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. The Environmental Protection Agency (EPA) also assisted in the investigation.
Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law. Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million. His actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. He is scheduled for sentencing on June 2, 2014.The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)
Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas. The State of Nevada does not recognize the medical use of marijuana.
The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the above cases.
Caldwell Man Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
BOISE – Anthony Michael Payment, 21, of Caldwell, Idaho, pleaded guilty today in United States District Court in Boise to unlawfully possessing a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, Payment possessed a Bay State, 20 gauge sawed-off shotgun on August 19, 2013. Probation officers and officers with the Nampa Police Department responded to a residence after learning that Payment possessed a firearm. Officers found the sawed-off shotgun and Payment was arrested a short time later. The barrel of the shotgun measured less than twelve inches in length. The National Firearms Act requires such a shotgun to be registered if the barrel is less than eighteen inches in length.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release. The government is also seeking forfeiture of the sawed-off shotgun. Sentencing is set for June 3, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Idaho Department of Probation and Parole, the Nampa Police Department, the Treasure Valley Metro Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bakersfield Loan Officer Sentenced in Crisp & Cole Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Jayson Peter Costa, 41, of Bakersfield, to 78 months imprisonment today for his role in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Costa was ordered to self-surrender by May 5, 2014.
According to court documents, David Marshall Crisp and Carlyle (“Carl”) Lee Cole owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally-insured financial institutions. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.
According to his plea agreement, Costa worked as a loan officer at Tower Lending but was not properly licensed and therefore could not legally process any of the loan applications as he did. Co-defendants Crisp and Cole, and others at CCRE and Tower Lending, knew that Costa was not properly licensed but nonetheless allowed Costa to continue acting as a loan officer. Costa admitted that while at Tower Lending he submitted numerous false and fraudulent loan applications to lenders for co-conspirators and other straw buyers, and also purchased properties as a straw buyer, all in furtherance of the conspiracy. When the California Department of Real Estate investigated CCRE and Tower Lending during the period of the conspiracy, Costa, co-defendants Crisp and Cole, and others concealed that Costa was working as an unlicensed loan officer for Tower Lending. The defendants falsified the loan paperwork on loans prepared and handled by Costa to make it appear that co-defendant Cole had been the loan officer on those loans. Costa admitted in his plea agreement that he caused lenders losses of at least $7,580,019 due to his role in the conspiracy.
On February 24, 2014, Carl Cole was sentenced to 17 years and seven months in prison. Caleb Lee Cole was sentenced to five months in prison. Sentencing dates for the remaining defendants are as follows: David Marshall Crisp and Jennifer Anne Crisp on March 31, 2014; Michael Angelo Munoz on April 7, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014. Robinson Nguyen has completed his 27-month sentence. A trial for another co-defendant is set for April 8, 2014 and the charges are only allegations as to that defendant; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In 2009 and 2010, five separate cases were brought against five defendants who pleaded guilty to charges relating to this scheme. Scheduled to be sentenced on May 27, 2104 are: Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer) Scheduled to be sentenced on June 2, 2014 are: Jerald Allen Teixeira (1:09-cr-375 – one count of wire fraud for making false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents).
The maximum statutory penalty for mail fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
This case was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Friday 21 March 2014
Wolf Point Man Sentenced to 10.5 Years for Molesting and Photographing ChildRead the Press Release
The United States Attorney's Office announced today after molesting and taking sexually explicit pictures of a child for two years, WAYLON NOVELLE BLOUNT, 36, of Wolf Point, was sentenced in federal court on March 18, 2014, to ten and a half years in prison and fifteen years supervised release by U.S. District Court Judge Brian M. Morris.
Blount pleaded guilty to abusive sexual contact and possession of child pornography, after it was discovered he had molested a child and forced her to wear women's panty hose over the course of ages 10 to 12-year-old. After forcing her to put on pantyhose, he would direct her to pose in sexual positions as he took photographs. Judge Morris addressed the defendant at sentencing, describing Blount's actions as "morally reprehensible."
In 2012, when the victim was 12-years-old, Blount was trying to molest her when she fled and called 911 as she hid behind a house in Wolf Point, Montana. Police found her crying and shaking. She was interviewed and identified Blount as the person who has assaulted her and gave graphic details of times and places in which she had been molested. as well as molestation the night before she fled and called 911.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Blount will likely serve all of the time imposed by the court. In the federal system, Blount does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a joint effort by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Windermere CEO Pleads Guilty to Twenty-One Counts of Wire Fraud, Money Laundering and Aggravated Identity TheftRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Michael Rivers (56, Windermere) yesterday pleaded guilty to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering, eight counts of money laundering, and three counts of aggravated identity theft. Additionally, Kim Rivers (46, Windermere) pleaded guilty to three counts of aggravated identity theft. Michael Rivers faces a maximum penalty of 20 years in federal prison on each count of wire fraud, 10 years’ imprisonment on each count of money laundering, and a mandatory minimum of 2 years in prison on each aggravated identity count. Kim Rivers faces a mandatory minimum penalty of 2 years, up to 6 years in federal prison.
According to court documents, Michael and Kim Rivers created an alleged international bank software company named Global Business Genesis, LLC, (“GBG”) that was headquartered in Orlando, Florida. Michael Rivers was the Chief Executive Officer and Kim Rivers was the Executive Assistant of that company. GBG allegedly provided wireless bank software to major banks in developing countries. This software would enable customers to transfer money between international accounts, as well as issue prepaid currency and prepaid credit cards overseas.
During the course of the charged conspiracy and fraudulent scheme, Michael and Kim Rivers litigated multiple civil state cases in the Ninth Judicial Circuit of Florida, a bankruptcy proceeding in the U.S. Bankruptcy Court for the Middle District of Florida, and a civil action brought by the Securities and Exchange Commission (SEC) in the U.S. District Court for the Middle District of Florida. Judgments were entered against Michael and Kim Rivers and the entities they controlled, in state and federal court. During the course of the charged conspiracy, the couple used investor funds to support their lifestyle, including obtaining a $114,000 exotic sports car, private schooling in excess of $230,000 for their children, and living in a home with a delinquent mortgage well over $2 million, all while delaying payments and putting off their creditors.
Throughout, Michael and Kim Rivers told state and federal courts, the government, creditors, and opposing litigants, that Michael Rivers had debilitating cancer and was receiving treatment in Argentina. The couple often claimed that Michael Rivers was medically incapacitated in Argentina and that, for that reason, they were unable to appear in court proceedings and at meetings in the United States. Those false representations were made via letters, e-mails, court filings and proceedings, as well as by representatives for the couple. During the execution of search warrants, law enforcement found items, including correspondence, templates, letterhead, altered documents, and computer files and images of signatures and seals that the defendants used to create and discuss the creation of the forged documents, which they used during the course of the fraud. Elements used to create forged documents such as attorney letters, doctors’ letters concerning cancer treatment, insurance, and documents from financial institutions and government entities were also recovered during the search.
On December 11, 2012, Michael Rivers sent an e-mail to Kim Rivers, instructing her and another co-conspirator in a ruse on how to portray themselves as employees of a law firm (“Fried Frank Law Firm”). In January 2013, Michael Rivers was in London, England, trying to solicit investors. After receiving some resistance from investors, he suggested they call “Fried Frank Law Firm” to speak with an attorney who could vouch for the authenticity of GBG and its license agreements. Michael Rivers called Kim Rivers who pretended to work at the law firm. Afterwards, another co-conspirator pretended to be a law associate at Fried Frank Law Firm and stated that due diligence had been conducted.
Victims confirmed that due to the ruse perpetrated by Michael and Kim Rivers, where they portrayed themselves as a reputable law firm vouching for the solvency of GBG, the victim and other investors’ fears were allayed and they subsequently wired nearly $1 million dollars during that portion of the scheme.
Michael and Kim Rivers also defrauded local investors in the Orlando area. From that scheme, they used money to obtain luxury automobiles, including a Fisker Karma and a Jaguar XK-R, Cirque Du Soleil tickets, and other lifestyle items.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia and Daniel C. Irick.
Williamson County Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn March 20, 2014, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, Ill., pled guilty to a one-count indictment charging Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, on July 29, 2013, agents executed a search warrant at a Marion residence where Allen had been residing. Agents located a Lorcin .25 caliber pistol, which Allen admitted was his. Because Allen had previously been convicted of a felony, he is prohibited from possessing firearms.
The firearm offense carries a penalty of up to 10 years in federal prison, to be followed by 3 years of supervised release, and a fine of $250,000. Allen is currently being held without bond pending a June 18, 2014, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
West Palm Beach Resident Charged in Identity Theft Scheme Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Kawana Brown, 36, of West Palm Beach, pled guilty for her participation in a wide-ranging identity theft scheme.
Specifically, Brown pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349 (Count 1), three counts of wire fraud, in violation of 18 U.S.C. ' 1343 (Counts 2, 8, and 13), and two counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A (Counts 25 and 38).
Sentencing is scheduled for May 30, 2014 at 3:00 p.m. before U.S. District Judge Kenneth Marra. At sentencing, the defendant faces a maximum of twenty years in prison for each count of conspiracy to commit wire fraud, and wire fraud, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein:)
Brian Baker, 23, of South Bend, Indiana, Indiana pled guilty to the felony offenses of possessing heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 6/26/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Robert D. Carrico, 29, of South Bend, Indiana, Indiana pled guilty to the felony offenses of possession of controlled substances with intent to distribute and possession of firearms in furtherance of federal drug trafficking crimes. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 6/25/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
DISPOSITION( before District Judge Robert L. Miller, Jr.)
Abraham DeLuna-Esparza, 39, of South Bend, Indiana was sentenced to 78 months imprisonment to be served concurrently with 3 years supervised release after pleading guilty to the felony offenses of illegally re-entering the United States after being deported subsequent to a conviction for an aggravated felony andto possessing cocaine/marijuana with intent to distribute.According to documents filed in this case, DeLuna was arrested in March 2010 for the possession of approximately 15 pounds of marijuana.He was convicted sentenced to 3 months incarceration.DeLuna was then turned over to the Department of Homeland Security for removal from the United States because he was a citizen of Mexico.DeLuna was formally removed to Mexico in June 2010 through Laredo, Texas.At no time thereafter was Deluna given any permission to lawfully re-enter the United States.In December 2013, Deluna was found at his residence in South Bend, Indiana.Agents and police searched the home and recovered a loaded Ruger 9 mm handgun, 47 pounds marijuana, and 493.3 grams of cocaine (powder).This case was the result of an investigation by Homeland Security Investigations and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Linda Rosenberg, 59, pled guilty before to the felony offenses of conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other service providers, dispensing a controlled substance outside of the scope of professional practice and misbranding.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Kenneth Robinson, 36, of Illinois, was sentenced by Chief Judge Philip Simon tomonths imprisonment and years of supervised release after pleading guilty to the felony offense of health care fraud by submitting false claims to Indiana Medicaid for Medicaid recipients’ physician office visits in July 2011.According to documents filed in this case, Robinson caused over $5,000 in medical claims to be submitted to not only Indiana Medicaid but also to other medical insurance providers including the Medicare program. This case was a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, the US Department of Health and Human Services and the Department of Labor.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
PLEAS (before District Judge Roger B. Cosbey:)
Bryant Davis, 39, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been scheduled.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Matthew Vanschoick, 27, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of bank robbery. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Brandon Betz, 33, of Bluffton, Indiana was sentenced to 46 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of retaliating against a witness, victim, or an informant.According to documents filed in this case, Betz along with several others assaulted a fellow inmate in Wells County jail.The motive for the attack was retaliation against an inmate who was perceived as a “snitch” and a cooperator with law enforcement. Betz, along with several others, threatened the assaulted inmate with further attacks should that perceived cooperation continue.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Utah Construction Company to Pay Government to Settle Alleged False Claims in Connection with Program for Small and Disadvantaged BusinessesRead the Press Release
Okland Construction Co. Inc. has agreed to pay the government $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration’s (SBA) Section 8(a) Program for Small and Disadvantaged Businesses, the Justice Department announced today.
“The purpose of the 8(a) Program is to assist small and disadvantaged businesses to compete in the American economy,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department is committed to making sure that those who participate in 8(a) contracts do so honestly and fairly.”
Okland Construction, a large construction company, entered into a mentor-protégé agreement with Saiz Construction Co., a participant in the 8(a) Program. The mentor-protégé program allows a large business mentor to form an SBA-approved joint venture with a small business protégé to jointly bid on and perform 8(a) contracts, which are contracts awarded by federal agencies that are set aside solely for small businesses. Without a qualifying joint venture, the mentor and protégé cannot jointly bid on 8(a) contracts, and the mentor cannot perform the primary functions of the contract.
The government alleged that Okland Construction did not form a qualifying joint venture with Saiz Construction and thus was not eligible to jointly bid on or perform the primary functions of eight 8(a) contracts with Saiz Construction. Nevertheless, Okland Construction allegedly prepared the bids for the 8(a) contracts and its employees served as project managers, submitted invoices and performed payroll and other accounting functions. Furthermore, Okland Construction allegedly concealed its extensive involvement in performing the 8(a) contracts by misrepresenting to the government that its employees were employees of Saiz Construction.
The government also alleged that Okland Construction’s relationship with Saiz Construction violated the terms of an SBA set-aside contract awarded to Saiz Construction that required Saiz Construction to perform at least 15 percent of the labor on the contract minus the cost of materials.
“Large businesses must not be allowed to fraudulently obtain access to contracts set aside for small businesses,” said SBA Inspector General Peggy E. Gustafson. “The SBA mentor-protégé program enhances the capability of 8(a) participants to compete more successfully for federal contracts through a relationship with another successful business; however, this program must not be used as a vehicle to improperly benefit large, non-disadvantaged companies.”
“SBA’s contracting programs, including the 8(a) Business Development Program, provide small businesses with the opportunity to grow and create jobs,” said SBA General Counsel Sara D. Lipscomb. “But SBA has no tolerance for waste, fraud or abuse in any government contracting program and is committed to working with our federal partners to ensure the benefits of these programs flow to the intended recipients.”
The civil settlement resolves a lawsuit filed by Saiz Construction and its owner Abel Saiz under the whistleblower provision of the False Claims Act, which permits private parties, known as relators, to file suit on behalf of the government for false claims and to share in any recovery. The relators filed the lawsuit after Saiz Construction terminated its mentor-protégé agreement with Okland Construction. Saiz Construction and Saiz will receive a total of $148,480.
This settlement with Okland Construction was the result of a coordinated effort among the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Utah, the SBA Office of Inspector General, the SBA Office of General Counsel, the Department of the Air Force and the Army Corps of Engineers.
The civil lawsuit was filed in the District of Utah and is captioned United States ex rel. Saiz Construction Co. Inc. and Abel Saiz v. Okland Construction Co. Inc., No. 2:11-cv-00362 (D. Utah). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney ChargesRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that it filed an
Information on February 13, 2014:
Scott Robb, 44, of West Chester, Ohio, is charged in a two count Information with theft of property of the Veterans Administration Medical Center on or about August 19, 2010, and introduction into interstate commerce of stolen medical devices that were misbranded from between on or about August 19, 2010, and November 22, 2011. These charges were filed as a result of an investigation by the Office of Inspector General of the Veterans Administration and the Office of Criminal Investigation U.S. Food and Drug Administration. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.U.S. Settles Civil Lawsuit Against Valley Heart Consultants/DoctorsRead the Press Release
McALLEN, Texas - Valley Heart Consultants Dr. Carlos Mego and Dr. Subbarao Yarra have settled a suit brought by the United States in McAllen alleging violations of the Federal False Claims Act, announced United States Attorney Kenneth Magidson.
“Today’s settlement once again demonstrates our commitment to uncover fraud and abuse that threatens the financial health of our federal healthcare programs,” said Magidson.
The suit alleged that from Jan. 1, 2004, through September 2010, Mego and Yarra violated the False Claims Act by billing Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The United States also alleged that the nuclear medicine used in the tests was injected by personnel who lacked the requisite license. Many of the nuclear stress tests were allegedly unnecessary, as well as many of the coronary angiographies, echocardiograms and carotid doppler studies which the defendants billed to Medicare, according to the allegations.
Valley Heart, Mego and Yarra have denied liability and this settlement is not an admission of guilt on their part. Pursuant to the terms of the settlement, Valley Heart Consultants, Mego and Yarra have agreed to pay $3.9 million to the United States and will enter into a three-year integrity agreement with the U.S. Department of Health and Human Services.
The investigation leading to the settlement began in 2007 after two former employees of Valley Heart Consultants filed a lawsuit under seal under the qui tam provisions of the Federal False Claims Act. The False Claims Act empowers private citizens with knowledge of fraud against the United States to present those allegations to the government by bringing a lawsuit on behalf of the United States under seal. If the investigation substantiates those allegations, the private citizen is entitled to share in any recovery.
The investigation was conducted by Department of Health and Human Services - Office of Inspector General with the assistance of the FBI. Assistant United States Attorneys Michelle Zingaro and Daniel David Hu handled the case and conducted the settlement negotiations.
Two Men Found Guilty of First-Degree Murder While Armed in 2008 Slaying of Government WitnessDefendants Also Found Guilty of Criminal Street Gang ChargesRead the Press Release
WASHINGTON – Willie Walker, Jr., 23, and Ricky Donaldson, 22, both of Washington, D.C., were found guilty by a jury today of first-degree premeditated murder while armed with aggravating circumstances for the September 2008 slaying of a woman who was a government witness, announced U.S. Attorney Ronald C. Machen Jr.
The verdict followed a trial in the Superior Court of the District of Columbia. In addition to the first-degree murder charge, the jury found the defendants guilty of conspiracy to commit first-degree murder while armed, obstructing justice, several firearms offenses, and related criminal street gang charges. The jury also found Walker guilty of charges of aggravated assault and assault with intent to kill for two related shootings in February and March of 2008.
The defendants are to be sentenced May 30, 2014 by Honorable John Ramsey Johnson.
According to the government’s evidence, Walker and Donaldson were members of a criminal street gang that operated in the area of the LeDroit Park neighborhood in Northwest Washington. The gang, known as “LDP,” or “Westside,” sold crack cocaine, among other illicit activities, in the Kelly Miller housing development in LeDroit Park.
On Feb. 4, 2008, after an argument, Walker shot a 55-year-old woman multiple times in the legs. The victim immediately identified Walker as her assailant to law enforcement. A warrant was issued for Walker’s arrest, but he was not immediately apprehended. On March 31, 2008, Walker argued with Delois “Peaches” Persha, 44. Ms. Persha referenced the earlier shooting that Walker had committed, telling him that she would not be treated the same way. In response, Walker shot Ms. Persha multiple times in the torso, and then, as she lay on the ground, multiple times in the face. Ms. Persha survived the attack, and immediately identified Walker as her assailant to law enforcement. For her protection, Ms. Persha, who had grown up in LeDroit Park, was relocated out of the area.
After Walker was arrested and detained in July 2008, he and Donaldson, along with the aid of other LDP gang members, began communicating about hunting down and killing the witnesses against Walker. On Sept. 13, 2008, Donaldson located Ms. Persha, who had returned to the area of LeDroit Park, and fatally shot her multiple times in the back and head. Ms. Persha died from her injuries on Sept. 18, 2008.
The jury found Walker guilty of crimes for his role in the February and March 2008 shootings, as well as the murder of Ms. Persha. Donaldson was found guilty in the murder.
“There is nothing we take more seriously than prosecuting those who would dare to use violence against a witness for simply being willing to tell the truth,” said U.S. Attorney Machen. “In gunning down a witness, these gang members destroyed their own futures. Their heinous actions will put them where they belong – behind bars for decades.”
In announcing the verdicts, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the work of the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sharece Muschette, Gary Nails, and Rommell Pachoca; Lead Paralegal Specialist Philip Aronson; Supervisory Paralegal Specialist Sharon Newman; Victim/Witness Advocates Jennifer Clark and Yvonne Bryant; Victim/Witness Security Specialists Michael Hailey, Deborah Cannon, M. Laverne Forrest, Katina Adams-Washington, and David Foster; Intelligence Specialist Zachary McMenamin; former Intelligence Specialist Larry Grasso; Criminal Investigators John Marsh and Durand Odom; and Litigation Technology Specialist Leif Hickling.
Finally, U.S. Attorney Machen recognized the work of Assistant U.S. Attorneys Chrisellen Kolb, Elizabeth Danello, David Goodhand, and Suzanne Curt, who provided legal assistance, Assistant U.S. Attorneys Alessio Evangelista and Michael Brittin, who investigated the case, and Assistant U.S. Attorney Kimberley Nielsen and Jeffrey Pearlman, who prosecuted the case at trial.
14-069Two Men Charged with Assault of Postal WorkerRead the Press Release
BOSTON – Two men were charged yesterday in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier.
Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, both of Dorchester were indicted with conspiracy, assault, robbery, attempted kidnapping, and kidnapping of a federal employee, as well as the use of a firearm in connection with these crimes. In January 2014, both men were arrested and held on federal criminal complaints.
In December 2013, Miner-Gittens and Taylor allegedly jumped into a postal truck in Dorchester and put a pistol to the letter carrier’s head. When the letter carrier attempted to move the gun away, he was shot in the wrist and was subsequently beaten with the pistol and kicked, told to take off his postal uniform and lie face down.
It is alleged that Taylor took the letter carrier’s keys and started to drive the postal truck away. According to the affidavit filed with the previous complaint, the letter carrier, who was bleeding extensively and who feared for his life, escaped by jumping out of the back door of the truck and running away. Taylor allegedly drove the truck a short distance before abandoning it and fleeing on foot, leaving a trail of boot prints in the snow and his blood on a chain link fence from a wound on his hand. The trail of boot prints led through several back yards to a trash or recycling bin, which also had his blood on the handle. The letter carrier's uniform, cell phone and personal keys were found in the bin.
Miner-Gittens allegedly rented and drove a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.
If convicted, Miner- Gittens and Taylor each face a statutory maximum sentence of life in prison on the charge of kidnapping; five years in prison on the charges of conspiracy; 20 years in prison on the charge of assault; 25 years in prison on the charge of robbery of federal property, and 10 years in prison on and after the other sentences for the use of a firearm in furtherance of the crimes of violence. In addition, Gittens and Taylor face a maximum of five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Grey Hills, N.M., Man Sentenced to More Than Fifteen Years in Federal Prison for Child Sex Assault ConvictionRead the Press Release
ALBUQUERQUE – Willis Yazzie, 34, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., was sentenced today to 188 months in federal prison followed by eight years of supervised release for his aggravated sexual assault conviction. Yazzie will be required to register as a sex offender when he completes his prison sentence.
Yazzie’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Yazzie was arrested by the FBI on May 11, 2010, based on a criminal complaint alleging that he had sexually abused two children, then ages 13 and 10. Yazzie has been in federal custody since that time. According to court filings, the abuse allegations against Yazzie came to light on May 3, 2010, when the Navajo Nation Division of Social Services contacted the Navajo Nation Division of Public Safety to report the abuse. According to the complaint, Yazzie abused the older child beginning in 2008 and continuing until April 2010, and allegedly abused the younger child beginning in April 2010.
In June 2010, Yazzie was indicted and charged with aggravated sexual abuse of a child under the age of 16, and aggravated sexual abuse of a child under the age of 12. On Feb. 9, 2011, Yazzie pleaded guilty to a felony information charging him with aggravated sexual abuse, and admitted abusing a 13-year-old child by inappropriately touching the victim’s genitals. He also admitted that the sexual assault occurred in Two Grey Hills, which is located in the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, with assistance from the Navajo Nation Division of Social Services. It was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Jennifer M. Rozzoni as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Toledo Woman Charged with Filing False ReportRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a criminal information was filed against Rene Opre, age 55, of Toledo, Ohio.
The charges relate to filing a false report on behalf of Workers United SEIU, Local Union 323 with the U.S. Department of Labor.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Labor-Management Standards, U.S. Department of Labor, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three York Men Indicted for the Armed Distribution of Crack Cocaine, Cocaine and HeroinRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment by a federal grand jury in Harrisburg and arrests of three men for distributing crack cocaine, heroin and cocaine in York, Pennsylvania over a seven month period in 2013 and 2014.
According to United States Attorney Peter Smith, the indictment charges a highly organized and violent drug trafficking scheme centered in York County. Those indicted are: Marc Hernandez, age 28; Douglas Kelly, age 35; and Roscoe Villega, age 39, all of York, Pennsylvania.
The indictment alleges that the defendants used firearms in their drug trafficking activities and distributed them to co-conspirators.
All three men have been arrested and appeared today before Chief Magistrate Judge Martin C. Carlson in Harrisburg. Kelly and Villega were detained pending trial. Hernandez was temporarily detained pending a detention hearing scheduled for March 27, 2014.
The case is part of a continuing joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department, with the assistance of the York County Drug Task Force. It is assigned to Assistant United States Attorney Michael A. Consiglio for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Time Convicted Felon Sentenced on Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jewell Wiggins, 46, of Rochester, N.Y., who was convicted of possession of cocaine with intent to distribute and possessing a firearm while being a convicted felon, was sentenced to 188 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant was arrested after members of the Rochester Police Department, while conducting a routine traffic stop of his car, found the defendant in possession of a loaded .45 caliber Colt Combat Commander semiautomatic handgun. During the investigation, Wiggins made several admissions to possessing the firearm.
Once under arrest for possessing the firearm, the defendant was transported to the Rochester Police Department Public Safety Building. During this transport, the Rochester Police Department officer observed Wiggins moving around in the backseat of the police vehicle. As this was happening, the defendant stated, “I just want you to know, I’m only moving around back here because I have a bad leg, not because I’m doing anything funny.” The officer searched the rear of his patrol vehicle after he had turned the defendant over the Monroe County Jail and found that the defendant had discarded thirty small bags of cocaine and five small bags of marijuana. Officers also found that the defendant possessed over $300.00 in United States currency.
The sentence is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Rochester Police Department, under the direction Chief Michael Ciminelli.Three Defendants Involved in Robbery of Postal Carrier Plead Guilty to Theft of Special Mail KeyRead the Press Release
DENVER –Cheston Jermone Foster (aka Rome or Romeo), age 30, of Denver, Colorado, pled guilty yesterday before Senior U.S. District Court Judge John L. Kane to postal robbery and violation of his supervised release from an earlier criminal matter, U.S. Attorney John Walsh and Denver U.S. Postal Inspector in Charge Adam P. Behnen announced. In addition to Foster’s guilty plea, two co-conspirators, Terrance Hurt, age 34, of Denver, and Zachary Langel, age 35, of Denver, previously pled guilty to similar charges. The three defendants were involved in the December 17, 2013 robbery of a postal collections driver in north Denver.
The lead defendant, Foster, was indicted by a federal grand jury on June 4, 2013. On October 23, 2013, Foster, along with Hurt and Langel were charged in a superseding indictment. On March 11, 2014, Hurt and Langel entered guilty pleas. Foster pled guilty on March 20, 2014. Foster is scheduled to be sentenced on June 17, 2014. Hurt and Langel are scheduled to be sentenced on June 13, 2014. All three defendants are being held in federal custody without the possibility of bond, pending a resolution of this case.
On December 15, 2012, Foster, drove co-defendants Hurt and Langel around in his GMC Yukon to the area of 23rd and Oneida in north Denver, to determine if the U.S. Postal Service collected mail from the blue collection box placed in that area for the public to use. The defendant saw that there was a specific time for collection of that box on weekdays. Foster then communicated with his co-conspirators by text and phone to arrange to meet on December 17, 2012, to rob the postal clerk and take his “Arrow Key”, a master key issued by the U.S. Postal Service to access the collection boxes in a particular geographic region.
On December 17, 2012, Foster picked up Hurt and Langel. That afternoon, the three co-conspirators drove around in the defendant’s Yukon to familiarize themselves with the area around the blue collection box at 23rd and Oneida. After doing so, they went to a residence approximately four blocks away. Foster went inside the residence and retrieved a large kitchen knife. The three coconspirators returned to the area of 23rd and Oneida to await the postal carrier’s arrival. The three followed their plan, robbed the postal carrier, and took his “arrow key.” One of the co-conspirators got into the mail truck vehicle after it had stopped. The other two acted as lookouts. The coconspirator inside the truck brandished a kitchen knife and ordered the postal carrier to turn over his Arrow key. After robbing the postal carrier of the Arrow key, the three coconspirators returned to the defendant’s Yukon and drove away from the area.“Thanks to excellent investigative work, those responsible for this violent crime have been held accountable for their criminal conduct,” said U.S. Attorney John Walsh. “Protecting Postal employees who patrol our streets daily is important, as the hard work on this case demonstrates.”
“These convictions are a result of determination and good old-fashioned police work exhibited by our Denver Postal Inspectors,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties. These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”
Each defendant faces not more than 25 years in federal prison, and up to a $250,000 fine.
This case was investigated by the U.S. Postal Inspection Service and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Rick Hosley and Special Assistant U.S. Attorney Beth Gibson.
Three Camden, N.J., Residents Charged in Conspiracy to Steal Checks from Mail and Defraud Banks in New Jersey, Pennsylvania and DelawareRead the Press Release
CAMDEN, N.J. – A woman and two men from Camden were charged today for their alleged participation in a scheme in which they stole business checks from the U.S. Mail in New Jersey, Pennsylvania and Delaware, altered them, and cashed them using a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Ivory Vernon, 29, was arrested today by Camden County Sheriff’s officers on unrelated charges. She is being charged federally in a 10-count indictment that was unsealed today with bank fraud and conspiracy to commit bank fraud.
The indictment also charges Joseph Reevey, 38, with bank fraud and conspiracy to commit bank fraud; and Ibn Muhammad, 35, with bank fraud, conspiracy to commit bank fraud, and illegal possession of a firearm. Vernon, Reevey, who is in Pennsylvania state custody, and Muhammad, who is in federal custody, are all scheduled to appear before U.S. District Judge Jerome B. Simandle in Camden federal court on April 9, 2014.
According to indictment unsealed today:
From Aug. 6, 2012, through Aug. 1, 2013, Muhammad, Reevey, Vernon and others stole checks from curbside U.S. mailboxes in business industrial parks in New Jersey, Pennsylvania, and Delaware. Reevey and his conspirators would then recruit others to cash the stolen checks. Muhammad and other conspirators would alter the stolen checks so that the name of the “payee” would match the name of the recruited check casher. Reevey, Vernon, Warner and others would travel with the recruited check cashers to a bank, often in rented cars.
Muhammad, Reevey, Vernon and their conspirators cashed or attempted to cash more than 45 stolen and altered business checks worth more than $200,000. The scheme resulted in a total loss of more than $100,000 to the victim banks.Muhammad’s illegal gun possession charge stems from the discovery of a Smith & Wesson revolver and a Browning pistol at his Camden residence when law enforcement authorities executed a search warrant in May of 2013.
On the counts of bank fraud and conspiracy to commit bank fraud, Muhammad, Reevey, and Vernon each face a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss resulting from the offense. On the count of illegal possession of a gun, Muhammad faces a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge David Bosch; troopers from the N.J. State Police, under the direction of Col. Rick Fuentes; special agents from the Bureau of Alcohol Tobacco, Firearms, and Explosives under the leadership of Acting Special Agent in Charge George Belsky, and officers from the Gloucester Township and Pennsauken Township police departments for the investigation leading to today's arrest.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Muhammad: Lisa Lewis Esq., Camden, N.J.
Reevey: Edward Crisonino Esq., Westmont, N.J.
Vernon: Brian O’Malley Esq., Haddon Heights, N.J.Muhammad, et al., Indictment
Suspended Physician Pleads Guilty to Federal Drug Charge; Admits Exchanging Thousands of Prescription Doses for SexRead the Press Release
CHICAGO ― A suspended physician formerly affiliated with three Chicago hospitals pleaded guilty today to a federal charge of illegally distributing a prescription drug in exchange for sex in 2009. The defendant, JOSHUA D. BARON, a pediatric neurologist, also admitted that he provided approximately 149 prescriptions for controlled substance medications, totaling thousands of doses, to 16 individuals in exchange for sex between 2006 and 2011. These individuals were never patients of Baron, they never visited his office as a patient, and he never asked them about medical issues, took their medical history, conducted an examination, or attempted to diagnose them.
Baron, 40, of Forest Park and formerly of Oak Park, remains free on his own recognizance pending sentencing on June 30 by U.S. District Judge Rebecca Pallmeyer. He faces a maximum sentence of 20 years in prison and a $1 million fine, and his plea agreement provides for an advisory sentencing guidelines range of 108 to 135 months in prison, according to the government’s calculation.
Baron was initially charged by the state in January 2011 after an undercover investigation by the Wilmette Police Department. He was charged federally in October 2011 following a broader investigation by the U.S. Drug Enforcement Administration and the Chicago Police Department.
Baron was licensed in Illinois in May 2006 and, until January 2011, treated patients at Rush University Medical Center, John H. Stroger, Jr., Hospital of Cook County, and St. Anthony=s Hospital, all in Chicago. He voluntarily surrendered his medical license and his DEA registration in 2011.
According to his written plea agreement, between 2006 and 2011, Baron dispensed prescriptions for controlled substances outside the usual course of professional practice and without a legitimate medical purpose in exchange for sex and/or money. He admitted posting at least 78 advertisements offering to trade various prescription drugs on the website Craigslist.com, and all of the ads were placed under the sections, “Men Who Would Pay” and “Casual Encounters.”
Through these prescriptions, Baron dispensed to the 16 individuals the following controlled substances and amounts: 1,680 pills Adderall, 1,830 pills of Norco, 180 pills of Percocet, 1,710 pills of Xanax, 270 pills of Vicodin, 180 pills of Demerol, 90 pills of Dilaudid, 120 pills of Focalin, 150 pills of Phentermine, 30 pills of Klonopin, and 15 pills of morphine sulfate.
In January, the Wilmette police conducted an undercover sting that led to Baron=s arrest when he arrived at a specified location, allegedly expecting to trade a prescription for Adderall with a fictitious woman in exchange for sex.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Jack Riley, Special Agent-in-Charge of the DEA=s Chicago Field Division. The Wilmette Police Department, the Chicago Police Department Organized Crime Division=s narcotics and gang section, and the Illinois Department of Financial and Professional Regulation assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Carol Bell.
Plea Agreement
Social Security Fraud Scheme Leads to Federal Conviction and Almost $42,000 in RestitutionRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, FLORENCE IRENE JARA, 52, of Billings, was ordered to serve a term of five years of probation, pay $41,984.60 in restitution to the Social Security Administration, and perform 275 hours of community service, by U.S. District Judge Susan Watters.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Chad C. Spraker told the Court that Patricia Lennon was the beneficiary of Title II Social Security Administration (SSA) benefits, also known as the Old Age, Survivors and Disability Insurance (OASDI) program. Under the OASDI program, Patricia Lennon's son was also entitled to OASDI benefits. Lennon was appointed by SSA to be her son's representative payee, a position created by SSA when a beneficiary is unable to handle his or her own affairs due to age or disability. Patricia Lennon's son was entitled to benefits until he was eighteen, but as a minor, his benefits generally had to be paid through a representative payee accountable to SSA's rules. Prior to her death on May 19, 2010, Lennon added Jara as a joint account holder on a Valley Federal Credit Union account into which SSA was depositing the OASDI benefits. SSA, unaware of Patricia Lennon's death, continued making monthly deposits of approximately $1100 for Patricia Lennon and $1000 to Patricia Lennon as her son's representative payee.
In or about September 2011, SSA sent a representative payee accounting form to Lennon. Receiving no response, SSA suspended the $1000 monthly payment for Patricia Lennon's son. On March 2, 2012, a Valley Federal Credit Union employee called SSA to inquire about the benefits being deposited into the account. After discovering that Patricia Lennon had died, SSA requested a return of the OASDI benefits deposited into the account. Valley Federal Credit Union froze the account and called Jara concerning SSA's request to reclaim the benefits. Jara falsely claimed that she had already notified SSA of Patricia Lennon's death. On July 19, 2012, Jara was interviewed by federal investigators at her home in Billings. Jara stated that she knew Patricia Lennon was receiving SSA benefits and for her son when Jara was added to the VFCU account. After September 2010 Jara began spending the SSA money for her own personal needs. According to the Presentence Report, Jara later admitted that over the course of 18 months, she personally spent $18,000 in SSA funds.
In her interview with law enforcement agents, Jara further stated that she knew it was wrong to take the SSA benefits after Patricia Lennon's death, and she should have gone to SSA. Nevertheless, she also claimed that a probate attorney told her not to tell SSA about Patricia Lennon's death until after Jara obtained guardianship of Patricia Lennon's son. On August 21, 2013, a federal agent interviewed the attorney who advised that he had attempted to carry out Patricia Lennon's instruction to establish Jara as the guardian of Patricia Lennon's son, but the guardianship was never implemented. The attorney advised the agent that he never spoke with Jara, but if he had, he would have never instructed her not to report Patricia Lennon's death to SSA, as that is generally one of the first things he advised his clients to do.
The investigation was conducted by the Social Security Administration, Office of Inspector General.
Slaton, Texas, Man Admits Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Dale Wray Fulford, 77, of Slaton, Texas, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to an indictment charging one count of production of child pornography. He faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and up to a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Fulford, who is in custody, admitted that between February 2013 and early February 2014, he used, persuaded, induced and enticed a female minor, under age 18, to engage in sexually explicit conduct that he recorded on a digital camera.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Salway Sentenced for Killing Man with Her VehicleRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian M. Morris, BRANDY LEE SALWAY, 23, of Browning, was sentenced to a term of 36 months imprisonment, three years supervised release, and a special assessment of $100.
Salway was sentenced because she killed a man, after she ran him over with her vehicle. In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government would have proven that Salway was traveling over 55 miles per hour in a neighborhood with a 15 mile-per-hour zone. She had a BAC of .193, and there was THC and methamphetamine detected in her blood. The victim was pronounced dead at the scene of the crash.
Salway pleaded guilty to Involuntary Manslaughter. In a sentencing memorandum, Weldon told the Court, "Drunk driving in Montana and other states has garnered considerable attention. The highways and neighborhood roadways are shared by families, children, and pedestrians alike. Every time a drunk driver sits behind the wheel, tragedy looms. It, however, is a guarantee when a drunk, drugged, and angry driver travels over 55 miles per hour in a 15 mile-per-hour speed zone."
The Court sentenced Salway to 36 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Salway will likely serve all of the time imposed by the court. In the federal system, Salway does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation.
Rochester Man Sentenced for Performing Phantom Testing on Military Radios and SonobuoysRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Steve Wysocki, 50, of Newark, N.Y., who was convicted of filing false statements with the United States Government, was sentenced to 24 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $299,000 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Wysocki was Testing Manager for Flightline Systems, a Victor based defense contractor working on United States Army and Navy projects. The defendant oversaw product testing for the KG-40 military radio system as well as the SH-60 Sonobuoy system.
The KG-40 is a tactical radio encryption system used by the US Army and Navy and sold for export to foreign countries. It consists of several components including the radio, a remote, and a tray. The SH-60 Sonobuoy system is an Anti-Submarine Warfare (ASW) device. The system includes a small sonar unit which is released from both fixed and rotor wing ASW aircraft as well as various other components including external preamps.
Both the KG-40 and Sonobuoy programs have contractual manufacturing and testing requirements imposed by the United States Department of Defense. Among these protocols is something know as vibration testing. This process subjects the various items to prolonged vibration exposure using a vibration table equipped with pressure plates. The items are placed on the vibration table during the manufacturing process for a pre-set period of time to ensure that they will survive real world conditions on ships and aircraft.
The components are hooked up to a computer during testing which monitors their performance and then produces a unique graph upon successful completion. Due to many individual testing variables, no two items will produce the exact same testing graph. The graphs are unique to each item, and are stamped with the time and date of the test as well as the serial number of the item tested. The graphs are signed by the table operator and are then made part of the items “traveler file” which accompanies each item throughout the assembly and testing process. Each item tested must have a copy of a passing vibration table graph in the file in order to be released to the military. The vibration tests were run at Flightline’s Victor facility.
During the investigation, Special Agents from the FBI and Army Criminal Investigation Division learned that Wysocki was both personally falsifying vibration graphs as well as directing other subordinates to do so. Wysocki would then print the false graph, or direct others to do so, and include this false document in the items history, thus proving that it was successfully tested, even though as he knew, the item was not properly tested. He referred to this process as “phantom vibe testing.”
As a result of the defendant’s conduct, individual components had to be re-tested costing the Department of Defense $299,094.00
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU), under the direction of Special Agent in Charge, L. Scott Moreland; Naval Criminal Investigative Service (NCIS), Northeast Field Office under the direction of Special Agent in Charge, Jeremy Gauthier; and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), under the direction of Special Agent in Charge, Craig Rupert.Retired Boston Police Officer Arrested; Indicted in Investment Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Daniel Rice, 50, a retired Boston, MA, police officer, with wire fraud and conspiracy to commit wire fraud. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that Rice is charged with causing a broker from Montana to wire $250,000 in March 2009 to Carnic Services LLC, one of the “New Frontier” companies controlled by Michael Wilson, formerly of Hamburg, N.Y. According to the indictment, by March 2009, Rice the defendant knew that Michael Wilson’s companies failed to pay out on deals promising large returns in short periods of time. Wilson is currently under indictment for deals entered into by his companies in 2008 through 2010.
The indictment against Rice also charges that, in two deals brokered in January and July of 2010, the defendant intentionally failed to tell the same Montana broker that the company offering the investment program, “Zodiak Capital,” was another of Wilson’s companies. As a result, in January 2010, the Montana broker wired $100,000 to Rice, who kept $40,000 before passing the remaining $60,000 on to a Wilson account at HSBC Bank in Buffalo. In July 2010, Rice was involved in a second deal with Zodiak, and again failed to tell the Montana broker about Zodiak’s connection to Wilson’s companies. As a result, on July 15 and 19, 2010, a total of $71,875.00 of a different investor’s money was wired to accounts in the Buffalo area controlled by Zodiak. None of these deals paid out. The only money ever recovered was the $71,875 wired to Zodiak in July 2010, which was recovered because the government quickly applied to have the receiving bank accounts frozen. The funds eventually were returned to the investor, who lives in Utah.
Rice was arrested today in Stoughton, Massachusetts and made an appearance in U.S. District Court in Boston, after which he was released. The defendant will be arraigned in Buffalo before U.S. Magistrate Judge Jeremiah J. McCarthy on March 28, 2014 at 2:30 p.m.
The indictment is the result of an investigation by the Federal Bureau of Investigation, with assistance from the Boston Police Department Anti-Corruption Division.
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.Panama Man Sentenced for Child Pornography/Immigration OffensesRead the Press Release
Follow @SDILNewsA resident of Panama, who was living illegally in the United States, in Glen Carbon, Illinois, was sentenced on March 21, 2014, on a three-count Indictment, charging him with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 1), Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of a Counterfeit Alien Registration Card, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jean Paul Jimenez-Kuchler, 30, Panama City, Panama, was sentenced to a concurrent terms of 84 months in federal prison on each count, concurrent terms of supervised release of five years on Counts 1 and 2 and three years on Count 3, fined $300, and ordered to pay a $300 special assessment. In addition, upon his release from prison, Jimenez-Kuchler will be deported to Panama.
The investigation began on June 6, 2013, when a federal search warrant was executed at Jimenez-Kuchler’s residence in Glen Carbon, after local agents with the Department of Homeland Security (DHS), were informed that an IP address registered to Jimenez-Kuchler’s address was captured while trying to access an online bulletin board that had, as its primary purpose, the sexual exploitation of minors, primarily prepubescent minors.
Agents seized two hard drives from Jimenez-Kuchler’s bedroom. Jimenez-Kuchler admitted that the hard drives belonged to him. One of the hard drives contained at least five video files, four of which exceeded five minutes in length, of prepubescent minors engaged in sexually explicit behavior. The other hard drive contained approximately 4,349 image and/or video files of minors engaged in sexually explicit behavior, many of which depicted prepubescent minors or minors who had not attained 12 years of age (Count 2). The analysis also revealed that two of the videos depicting images of minors engaged in sexually explicit conduct were downloaded and received by Jimenez-Kuchler on or about June 5, 2013 (Count 1).
Jimenez-Kuchler admitted that he was a citizen of Panama City, Panama, who was present in the United States illegally. He also admitted accessing the child pornography bulletin board that had, as its primary purpose, the sexual exploitation of minors, which was the basis of the federal search warrant.
An alien registration receipt card was also recovered from Jimenez-Kuchler. During his interview, Jimenez-Kuchler admitted that the alien registration card was counterfeit, stating that he obtained it approximately five years prior so that he would be eligible for employment in the United States. Jimenez also admitted being in the United States illegally since after 2001 when his “visitor for pleasure” card expired, and that he knew that the alien registration card found in his possession was fake (Count 3).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott.
Murphysboro Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn March 21, 2014, Donald E. Gregory, 47, of Murphysboro, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Gregory, who had previously pled guilty to the methamphetamine offense, was sentenced to 130 months in prison, to be followed by 4 years supervised release, and fined $300. The offense occurred between March 2011 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Gregory was involved with others in the manufacture of methamphetamine. At sentencing, the district court found that Gregory was responsible for the manufacture of 660 grams of methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Mortgage Company Owner Convicted of Bank Fraud ConspiracyRead the Press Release
Albert Greer, Sr. of Shelby Township was found guilty on March 20, 2014 of Conspiracy to Commit Bank Fraud, and of Aiding and Abetting Bank Fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
They jury deliberated for 3 hours before returning the guilty verdicts, concluding a trial that began on March 11, 2014 before United States District Judge Stephen J. Murphy III.
Evidence introduced during the trial established that from 2004 through 2007, Greer devised and executed a scheme to commit bank fraud by locating residential properties in the Detroit metropolitan area, then recruiting and paying “straw buyers” to sign for mortgage loans they never intended to repay on homes they never intended to live in. Greer often made the mortgage payments on the loans for several months so the lenders would not immediately realize that the loans had been obtained by fraud, but then the loans went into default and the properties went into foreclosure.
Co-defendant and co-conspirator Carlton Davis (who pleaded guilty in 2013 to conspiring with Greer) would submit fraudulent loan applications to various financial institutions on behalf of the straw buyers. The applications were filled with material false representations which were supported by phony documents Greer created, including W-2s, earnings statements, verifications of deposit, verifications of employment, and so on. Greer attempted to insulate himself from criminal liability by acting through the straw buyers and through shell companies -- including Detroit National Mortgage Associates --he established in the names of his family members. Greer also had his family members open bank accounts in their names, which he used to launder the proceeds of his crimes.
Greer not only scammed banks out of several million dollars, he also stole the sellers' proceeds on occasion by submitting invoices for "consulting fees" owed to Detroit National Mortgage Associates; if the seller did not realize those fees were included on the HUD-1s, proceeds checks would be issued to the shell company at closing, and Greer would cash the checks. In this way, Greer stole $167,844.31 from the homeowner who sold 18630 Fairway in Detroit in 2005, and $21,948.92 from the homeowner who sold 16872 Huntington in Detroit in 2006.
Each count of conviction, Conspiracy to Commit Bank Fraud and Aiding and Abetting Bank Fraud, carries a maximum prison term of 30 years, a $1,000,000 fine, and 5 years of supervised release following the period of incarceration. No sentencing date has been set at this time.
“Some people rob banks with guns and masks,” McQuade said. “This defendant robbed banks with lies and false documents. White collar criminals deserve to be seen as the robbers that they are.”
The investigation of this case was conducted by special agents of the FBI and prosecuted by Assistant U.S. Attorney Cynthia Oberg.
Mobile Man Sentenced to Thirty Six Months Imprisonment for Being A Felon in Possession of A FirearmRead the Press Release
MOBILE, AL - The United States Attorney, Kenyen R. Brown, announces that Anthony Wesley Cade was sentenced to thirty six months imprisonment today by United States District Court Judge Kristi DuBose, after pleading guilty to being a felon in possession of a firearm in violation of Title 18 USC '922(g)(1). Cade was previously convicted of the felony offense of Possession of Marijuana 1st Degree in the Circuit Court of Mobile County in October 2009. The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff's Office, Narcotics Division.
Mobile Man Sentenced to Forty One Months Imprisonment for Possession of Pseudoephedrine with the Intent to Manufacture MethamphetamineRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Tony Lee Collier was sentenced to forty one months imprisonment yesterday by United States District Court Judge William H. Steele, after pleading guilty to possession of pseudoephedrine with the intent to manufacture methamphetamine in violation of Title 21 USC '841(c)(1). The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff's Office, Narcotics Division.
Missouri Residents Charged with Bank RobberyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 21, 2014, Darren E. Everett, 43, and Mackenzie A. Leonard, 28, residents of Chesterfield, Missouri, who were dating at the time of the commission of the alleged offense, were arraigned on an Indictment charging them with Bank Robbery. Both defendants were ordered detained, that is, held without bond, pending trial, which is scheduled for May 5, 2014, in Federal Court in East St. Louis, Illinois.
The indictment charges that, on February 4, 2013, both defendants robbed Commerce Bank in Monroe County of approximately $1,782. If convicted, both defendants face a term of imprisonment of not more than 20 years, a fine up to $250,000, or both, a term of supervised release of not more than three years, and a $100 special assessment.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Columbia, Illinois, Police Department, the Illinois State Police and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Missouri Man Charged with Trying to Shutdown Phila.GovRead the Press Release
PHILADELPHIA - Michael Crockett, 29, of Kansas City, Missouri, was charged today by Information with attempting to intentionally damage a computer, announced United States Attorney Zane David Memeger.
The Information alleges that between September 24 and 26, 2012, Crocket knowingly caused the transmission of codes and commands to a computer hosting the City of Philadelphia’s website, www.phila.gov, in an attempt to shut down that website. This type of attack is known as and described as a distributed denial of service attack (DDOS). Crockett’s actions caused a loss to the city of more than $5,000.
If convicted the defendant faces a maximum possible sentence of 10 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Middle School Teacher Sentenced for Sexually Assaulting StudentRead the Press Release
The United States Attorney's Office announced that TYRELL LEE BALIBARDIN, 22, of Browning, Montana, was sentenced to a term of 30 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian M. Morris.
BALIBARDIN was sentenced in connection with his December 17, 2013, guilty plea to sexual abuse of a minor. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that BALIBARDIN was a substitute teacher for the Technology Class at Browning Middle School. BALIBARDIN began a sexual relationship with his student that included vaginal and oral sex.
At sentencing, the government stated, "Teachers exist to nurture and help their students to explore the world. No part of that job description includes having sexual intercourse. Mr. Balibardin violated that rule, breaching the trust of the school, parents, and the community."
The District Court sentenced BALIBARDIN to 30 months of imprisonment, with five years of supervised release to follow. BALIBARDIN will also be required to register as a sexual offender.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that BALIBARDIN will likely serve all of the time imposed by the court. In the federal system, BALIBARDIN does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
U.S. Attorney Mike Cotter said the sentence, which was within the federal advisory sentencing guideline range, reflected the seriousness of the crime and the need to protect children from those who abuse and take advantage of a position of trust. "Children are the most treasured, yet most vulnerable, members of the tribal community. They are made even more vulnerable when they are told to trust, respect, and obey those in positions of authority, like teachers. The sexual abuse of children is most destructive when committed by people entrusted with their care."
This case was investigated by the Federal Bureau of Investigation.
Meth Manufacturer Sentenced to Lengthy Federal Prison TermRead the Press Release
Follow @SDILNewsOn March 20, 2014, Eric L. Kellems, 43, of Madison, Ill., was sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Kellems, who had previously pled guilty to the methamphetamine offense, was sentenced to 192 months in federal prison, to be followed by 6 years on supervised release, and fined $200. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Kellems was involved with others in the manufacture of methamphetamine. During the conspiracy, Kellems obtained over 70 grams of pseudoephedrine for use in the manufacture of methamphetamine. Kellems received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Member of Massive Counterfeit Goods Conspiracy Sentenced to 38 Months in PrisonRead the Press Release
NEWARK, N.J. – A member of a massive, international counterfeit goods conspiracy was sentenced today to 38 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Ning Guo, 40, of the People’s Republic of China, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to traffic in counterfeit goods and one count of money laundering conspiracy. Judge Salas imposed the sentence today in Newark federal court.
Two other conspirators have already been sentenced, and two await sentencing. Yi Jian Chen, 53, and Hui Huang, 33, both of Brooklyn, each previously pleaded guilty to one count of conspiracy to traffic in counterfeit goods and await sentencing. Jian Zhi Mo, 45, of Flushing, N.Y. and Yuan Feng Lai, 28, of New York City, each previously pleaded guilty to one count of conspiracy to traffic in counterfeit goods and were each sentenced to 14 months of home confinement.
According to documents filed in this case and statements made in Court:
From August 2008 through February 2012, the defendants ran an international counterfeit goods smuggling and distribution conspiracy. The defendants and others imported more than 35 containers of counterfeit goods – primarily cigarettes, handbags, and sneakers – into the United States from China. These goods, if legitimate, would have had a retail value of more than $300 million.
The conspirators sought help in importing counterfeit goods into the United States and used a corporation to import the goods through Port Newark-Elizabeth Marine Terminal in Elizabeth, N.J. This corporation was actually a front company set up by law enforcement to act as an importer. The conspirators imported the counterfeit goods using fraudulent customs paperwork, which, among other things, falsely declared the goods within the containers.
Certain conspirators controlled the importation of the counterfeit goods into the United States. Some conspirators managed the distribution of counterfeit goods once they arrived in the United States. Others paid individuals they believed controlled an importation company with connections at the port. In fact, these individuals were undercover law enforcement agents.
Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. A number of conspirators, including Guo, also engaged in a money laundering conspiracy to disguise and conceal the source of what they believed to be the profits of certain unlawful activity, moving this money through banks in the United States, China, and elsewhere, to disguise the sources of the funds.
Law enforcement introduced several undercover special agents to the conspirators. These undercover agents purported to have connections at the port, which allowed them to obtain containers that were on hold, get them released and pass them through to the conspirators. The conspirators paid the undercover agents more than $900,000 for these “services.”Undercover agents recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Guo’s primary role was to transport and store imported counterfeit merchandise for the conspirators after it arrived at the port. He was also involved in the actual importation of the goods from China. Guo communicated with the undercover agents in numerous recorded calls and meetings about importing counterfeit goods from China and clearing the goods through customs. Guo was also involved in an international money laundering scheme through which he and others laundered the proceeds of the counterfeit goods smuggling scheme.
In addition to the prison term, Guo is subject to deportation.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Richard Willstater Esq., White Plains, N.Y.Member of Bakken Drug Ring Sent to Federal PrisonRead the Press Release
The United States Attorney's Office announced that SEAN MICHAEL VAIRA, 30, of Billings, was sentenced to 37 months in prison followed by 3 years supervised release by U.S. District Judge Susan Watters on March 13, 2014. The defendant previously pled guilty to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Joe Thaggard told the Court in an Offer of Proof that in early 2013, the Montana Division of Criminal Investigation (MDCI), the Drug Enforcement Administration (DEA) and Sidney, Montana Police Department began to investigate a drug trafficking network operating in Sidney and Fairview, Montana. That investigation revealed that Sean Vaira was involved in the drug trafficking network.
On August 7, 2013, the Vaira was interviewed by MDCI Agents and told agents that in approximately December of 2012, he met a methamphetamine dealer based in Sidney. Vaira admitted that between late December 2012 or early January 2013, and mid-March of 2013, he drove that drug dealer to meetings in Butte and Missoula at which the drug dealer obtained a total of approximately one and one-half pounds of methamphetamine and which the drug dealer then distributed in Big Timber and Sidney.
The Defendant stated that, in approximately mid-April 2013, he obtained approximately seven grams of methamphetamine from a drug dealer in Fairview which he in turn distributed to others. Vaira said that several days later, at the behest of that drug dealer, he drove to Butte and obtained one-half pound of methamphetamine which he then drove to Sidney and distributed some of the drugs to the Fairview-based drug dealer and some of the drugs to others he knew in the Sidney area.
Several days later, Vaira made another drug run to Butte and obtained another half-pound of methamphetamine which he brought back to the Fairview-based drug dealer and other drug dealers in the Sidney area.
March Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 41 indictments charging 45 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jorge Almazan-Garcia, age 44, of Gibbon, Nebraska, is charged with illegal reentry into the United States on or about January 30, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Richard D. Avila, Jr., age 50, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about May 1, 2013 and continuing to on or about November 21, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jose Avila-Ortiz, age 26, of Omaha, is charged with illegal reentry into the United States on or about March 10, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, a 1 year of supervised release, and a $100 special assessment.
* Keith D. Baker, age 40, of Omaha, is charged with being a felon in possession of a firearm on or about February 10, 2014. The maximum possible penalty is imprisonment of up to life, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Diana Castillo-Toscano, age 28, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about August 13, 2012. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about August 13, 2012, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Rosa Cervantes-Santiago, age 42, of Omaha, is charged with misuse of a Social Security Number on or before September 17, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Tyler L. Coddington, age 20, of Omaha, is charged with failure to register as a Sex Offender in the State of Nebraska on or about January 21, 2014. The maximum possible penalty for this count includes imprisonment of 10 years, a fine of $250,000, a term of supervised release for life, and a special assessment of $100.
* Jonathan Contreras, age 19, is charged with conspiring with others to distribute and possess with intent to distribute a mixture or substance containing methamphetamine on or about February 20, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey L. Eckert, age 54, of Pilger, Nebraska, was charged with fraudulently making a material false oath and account in his Chapter 7 bankruptcy case, on or about March 23, 2009. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julio Enriquez-Salinas, age 30, is charged in a four-count indictment. Count I charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about January 30, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about February 3, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about February 6, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with possession with intent to distribute a mixture or substance containing a detectable amount of methamphetamine on or about February 12, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Blanca Estela Factor-Villanueva, using the name L.P., age 38, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about January 7, 2013. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised, and a special assessment of $100. Count II of the Indictment charges on or about January 7, 2013, the defendant made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about January 7, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Santiel Flores-Trejo, age 24, of Omaha is charged with illegal reentry into the United States on or about February 14, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alfonso Lopez Garcia, also known as Alfonso L. Garcia and also known as Alfonso Garcia, age 55, of Modesto, California, and Fredy Salvador Alcaraz Mendoza, also known as Fredy Mendiolaza-Untiveros, age 41, of Shawnee, Kansas, were charged with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about March 2, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Conrado Gastelo-Sanchez, age 45, of Omaha, is charged with illegal reentry into the United States on or about August 12, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Darwin Alexi Gonzalez-Rodriguez, age 34, of Jacksonville, Texas, is charged with illegal reentry into the United States on or about March 11, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Kurt Hansen, age 34, of Lincoln, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about February 19, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* William Hurst, age 30, is charged in a two-count Indictment. Count I alleges that beginning on or about September 1, 2013, and continuing to on or about January 16, 2014, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about January 16, 2014, the defendant possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to the United States currency seized from the defendant on January 16, 2014, should be forfeited to the United States.
* Francisco Lara-Beltran, age 40, is charged with illegal reentry into the United States on or about February 17, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Roxana Maritza Lopez-Ramon, age 24, of Omaha, is charged with misuse of a Social Security Number on or before February 27, 2012. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Ruben Machuca-Delgado, age 44, of Omaha, is charged with illegal reentry into the United States on or about March 5, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Pascual Mancinas, age 29, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine beginning on or about May 1, 2012, and continuing to on or about May 30, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $195,905.00 in United States currency seized from the defendant on May 2, 2013, should be forfeited to the United States.
* Susan Marr, age 38, of Walthill, Nebraska, is charged in a three-count Indictment. Count I alleges that from on or about July 30, 2007, and continuing to on or about October 19, 2012, the defendant stole and converted to her own use $38,171.00 in Social Security Supplemental Security Income payments made on behalf of her son, knowing her son was not entitled to those payments. The maximum possible penalty if convicted includes imprisonment of 10 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment. Count II alleges that on or about October 19, 2012, the defendant made a false statement and representation of a material fact for use in determining rights to Social Security Supplemental Security Income. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment. Count III alleges that beginning on or about July 2, 2009, and continuing without interruption until on or about October 19, 2012, the defendant concealed and failed to disclose to the Social Security Administration material facts knowing the facts would affect her son’s eligibility to continue to receive Social Security Supplemental Security Income. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment.
* William Giovanni Sandoval Martinez, using the name S.O.M., age 35, of Schuyler, is charged in a three-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about June 3, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* McDonald, Aaron, age 28, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about January 27, 2014, and continuing to on or about March 6, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment.
* Trevor P. McLaurine, age 24, of Elkhorn, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges McLaurine with receipt of child pornography from on or about February 1, 2012, to on or about August 28, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. McLaurine is charged in Count II with possession and distribution of child pornography on or about August 28, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any and all property used or intended to be used in any manner or part to commit and to promote the commission of the violation should be forfeited to the United States.
* Luis Mellan-Rivera, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 27, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Martha Molina, age 44, and Osman Meza-Romero, age 24, both of Omaha, are charged with conspiring together and with others to distribute and possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine beginning on or about November 1, 2013, and continuing to on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to: United States currency seized on January 17, 2014, from 311 William Street, Omaha, Nebraska, should be forfeited to the United States.* Ricardo Muro and Juan Aguilar-Arredondo are charged with conspiring together and with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about January 1, 2014, and continuing to on or about March 10, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to: $28,000.00 in United States currency seized from Juan Aguilar-Arrendondo on March 10, 2014, and $5,200.00 in United States currency seized from the residence of Ricardo Muro on March 10, 2014, should be forfeited to the United States.
* Adam Mwanza, age 42, of Omaha, is charged in a 15-count indictment. Counts I through XV allege that for calendar years 2007 and 2008, the defendant aided, assisted, advised, and prepared individual income tax returns for taxpayers knowing the income tax returns were false and the taxpayers were not entitled to claim the various deductions, credits, and refunds the defendant claimed on their tax returns. The maximum possible penalty for each count includes imprisonment of 3 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Juana Bautista Palma Nunez, using the name A.L.P., age 31, of Schuyler, is charged in a three-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about June 3, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Dannes Aracely Padilla-Villatoro, age 29, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about December 21, 2012. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III alleges that on or about December 21, 2012, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Olga Padilla-Villatoro, using the names O.P.M. and P.M., age 31, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III alleges that on or about during and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Guillermo Pena-Perez, age 46, of Fremont, Nebraska, is charged with illegal reentry into the United States on or about February 24, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Everardo Perez-Gutierrez, age 28, of Omaha, is charged with illegal reentry into the United States on or about June 23, 2013, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Diana Rincon-Martinez, age 27, of Omaha, Nebraska, is charged with illegal reentry into the United States on or about March 12, 2014. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jesus Romero-Cante, age 28, is charged in a two-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about March 3, 2010. The maximum possible penalty includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges that on or about March 3, 2010, the defendant misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Matthew Sears, age 26, of Gretna, Nebraska, is charged in a two-count Indictment. Count I alleges that beginning on or about December 1, 2013, and continuing to on or about January 10, 2014, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about January 10, 2014, the defendant possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Enrique Simeon-Franco, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 27, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Brian Spotts, age 46, of North Platte, Nebraska, is charged with conspiring with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine beginning on or about February, 2013, and continuing to on or about February 12, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to the United States currency seized from the defendant on February 12, 2014, should be forfeited to the United States.
* Jose Joel Vargas-Castro, age 32, of Omaha, is charged with illegal reentry into the United States on or about March 4, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Louis A. Venditte, age 66, Ruby A. Venditte, age 65, and John W. Wagstaffe, age 64, all of Omaha, are charged in a four-count Indictment. Count I alleges that the defendants conspired together and with others to transport an individual in interstate commerce with the intent to promote prostitution from at least 2003 through on or about October, 2013. The maximum possible penalty for this count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a special assessment of $100. Count II alleges that on or between January, 2013, and August, 2013, the defendants transported an individual in interstate commerce with the intent to promote prostitution. The maximum possible penalty for this count includes imprisonment of 10 years, a fine of $250,000, a 1 year term of supervised release, and a special assessment of $100. Count III alleges that on or between January, 2013, and August, 2013, the defendants persuaded and attempted to persuade, induce, entice and coerce an individual to travel in interstate commerce to engage in prostitution. The maximum possible penalty for this count includes imprisonment of 20 years, a fine of $250,000, a 3 year term of supervised release, and a special assessment of $100. Count IV alleges that on or about March 20, 2012, Louis A. Venditte used a facility in interstate commerce with the intent to promote, manage, establish, carry on and facilitate the promotion of prostitution. Ruby A. Venditte and John W. Wagstaffe were members of the conspiracy at the time Count IV occurred. The maximum possible penalty for this count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.Louisiana Man Sentenced to Prison for Threatening Witness in Federal TrialRead the Press Release
Anthony Williams, of Baton Rouge, La., was sentenced to serve 24 months in prison followed by two years of supervised release, the Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced today. Williams previously pleaded guilty to threatening to retaliate against a witness by causing bodily injury.
According to court documents, Williams is the son of Angela Myers, who was tried in federal court in Baton Rouge in March 2013 for filing fraudulent tax returns with stolen identities. One of the witnesses at Myers’ trial was an individual who testified on March 6, 2013, and the next day Williams used Instagram, a popular social media platform, to make a threat against this witness. Williams described the witness as a “rat” and threatened bodily injury against him in retaliation for his testimony. As explained in court documents and court proceedings, federal law enforcement took steps to ensure the safety of the witness and to prevent the threat from being carried out. On March 7, 2013, a jury found Myers guilty on 21 felony counts and she was later sentenced to serve 11 years in prison . Williams was indicted in July 2013 and pleaded guilty to making the threat in October 2013.
“Our legal system depends on witnesses testifying without the fear of retribution,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “This prosecution shows that the Justice Department will take action when someone threatens a witness.”
“Threatening or intimidating a witness in a federal criminal matter is a quick way to find yourself in federal prison,” said U.S. Attorney J. Walter Green for the Middle District of Louisiana. “Our office will continue to have zero tolerance for such conduct and will continue to devote the necessary resources to aggressively pursue those who engage in such conduct. No one should fear speaking the truth about possible federal criminal activity.”
“It is extremely important for witnesses who provide testimony in criminal matters to know that our justice system protects them from retaliation,” said Special Agent in Charge of IRS-Criminal Investigation Gabriel L. Grehan. “It is also appropriate for Anthony Williams to suffer the consequences of his actions to threaten a witness in a criminal proceeding. IRS-CI would like to thank the Department of Justice and our federal law enforcement partners for pursuing this case to its foreseeable end.”
Assistant Attorney General Keneally and U.S. Attorney Green commended the efforts of special agents of IRS - Criminal Investigation and TIGTA, who investigated the case, and of Tax Division Trial Attorney Jason Poole and Assistant U.S. Attorney Alan Stevens, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Local Mortgage Broker/Loan Officer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ROBERT POYNTER was indicted for his alleged scheme to assist buyers in obtaining mortgages based on false information.
According to the indictment, Poynter owned and operated branch offices of First Continental Mortgage, America One Finance, LLC and A-1 Closing Services, all located in St. Charles, MO. The indictment alleges that Poynter caused to be funded a mortgage loan in excess of $100,000 from Crescent Mortgage for the sale of a residence on Michigan Avenue in St. Louis by falsifying HUD-1 settlement documents and diverted the proceeds from the sale of the property back to the buyer. Poynter then used these funds to finance the borrower’s down payment for the same transaction. Poynter benefited from the transaction through invoices and brokers fees paid by the closing title company. Additionally, the indictment states that he also caused to be funded a mortgage loan in excess of $249,000 for the sale of a property on Midland Boulevard, St. Louis, by falsifying the employment information of the buyer.
Poynter, Saint Peters, MO, was indicted by a federal grand jury late Wednesday on one felony count of wire fraud and one felony count of making a false statement.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. The false statement charge carries a maximum of 2 years in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency-Office of Inspector General and the Department of Housing and Urban Development. Assistant United States Attorney Dianna Collins 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. Every defendant is presumed to be innocent unless and until proven guilty.
Livingston Man Sentenced to Prison for Possession of MethamphetamineRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, GRADEN ROY NORLIN, 59, of Livingston, was ordered to serve a term of 57 months in prison followed by 3 years supervised by U.S. District Judge Sam Haddon. The sentence is a result of Norlin's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Paulette Stewart stated that beginning in approximately November of 2011, law enforcement began to gather information which indicated that Norlin was dealing methamphetamine in Billings and Livingston, Montana. The investigation uncovered that Norlin(s source of supply was located in Billings, Montana. Norlin traveled from Livingston to Billings to obtain methamphetamine for distribution. During one such trip on January 31, 2012, law enforcement stopped Norlin on his way back to Livingston from Billings and searched his truck. In Norlin(s truck law enforcement found 31.8 grams of suspected methamphetamine. The suspected methamphetamine was sent to the DEA Laboratory. The lab results confirmed that the substance found in Norlin's truck was 26.4 grams of actual (pure) methamphetamine. The confiscated methamphetamine was intended to be distributed to Norlin's customers.
Littleton Man Found Guilty of Implementing Mortgage Fraud SchemeRead the Press Release
DENVER – Peter V. Capra, age 56, of Littleton, Colorado, was found guilty by a jury today of wire fraud, mail fraud and money laundering, federal law enforcement authorities announced. The guilty verdict was the result of a 8 day trial before U.S. District Court Judge R. Brooke Jackson. The jury deliberated for nearly two days before reaching their verdicts. At the conclusion of the trial Capra was taken into custody pending a bond hearing, scheduled for April 2, 2014 at 1:00 p.m.
Capra was indicted by a federal grand jury in Denver on April 15, 2012, followed by a superseding indictment on May 23, 2012. As part of the mortgage fraud scheme, Demetrious G. Gianopoulos, and Brian Waring were charged in two separate indictments and Justin Knight was charged by an information. Gianopoulos pled guilty to one count of money laundering and was sentenced to five years’ probation. Knight pled guilty to destruction of records in a federal investigation and was sentenced to 12 months of home confinement. Waring pled guilty to conspiracy to commit mail fraud, wire fraud, and money laundering and is scheduled to be sentenced on May 30, 2014.
According to the indictment, superseding indictment and evidence presented at trial, Capra was the President of Golden Design Group, Inc. (GDG), a company which built and sold houses in the Denver metropolitan area. Capra was also the registered agent for Distinctive Mortgages, LLC, which used space within GDG’s office building and provided mortgages to some of the customers buying houses from GDG.
From January 2005 through July 2008, Capra, along with others, executed a scheme to defraud several mortgage lenders. The scheme was executed in connection with applications for residential mortgage loans and related documents associated with real estate purchases including but not limited to 33 properties in Parker, Colorado. Capra structured transactions involving GDG homes to allow buyers to receive substantial amounts of the lenders’ money at the time of closing without the knowledge of the lenders. He also sold a large volume of homes to otherwise unwilling or unqualified buyers. The evidence at trial showed that Capra netted over $11,000,000 as a result of his scheme.
Loan applications for the buyers were submitted through several different mortgage brokers that assisted with providing, or at least failing to question the accuracy of, false information submitted in connection with the applications, including materially false and fraudulent representations about the buyers’ income, liabilities, source of down payment, and intent to occupy the properties as their primary residences. At closing, funds ranging from $85,000 to over $200,000 were distributed to the buyers in ways that prevented the lenders from discovering that these funds were actually going to the buyers; these funds were not disclosed in the HUD-1 closing statements or were disguised in those statements.
Capra was charged with and found guilty of fourteen counts of wire fraud, two counts of mail fraud, and ten counts of money laundering. He was found not guilty of one count of obstruction of justice. Each count of wire and mail fraud carries a penalty of not more than 20 years in federal prison, and a fine of the greater of up to $250,000 or twice the gain or loss from the offense. Each count of money laundering carries a penalty of not more than 10 years in federal prison, and a fine of the greater of up to $250,000 or the value of the property involved in the transaction. At sentencing, the Judge will also consider entering an order of asset forfeiture, including all property constituting or derived from proceeds traceable to the commission of the offense, or a money judgment equal to the total proceeds taken.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case was prosecuted by First Assistant U.S. Attorney Robert Troyer and Assistant U.S. Attorney Mathew Kirsch.