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Friday 21 March 2014
Lisbon Man Sentenced to Nine Years in Prison for Possesing Firearms Stolen in Burglary SpreeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD McALLISTER, 43, of Lisbon, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by five years of supervised release for stealing and possessing numerous firearms.
According to court documents and statements made in court, in November 2010, McALLISTER and Mark Missino possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 2010, McALLISTER had been convicted of multiple felony offenses in several states, including burglary, robbery, breaking and entering, and making terroristic threats with intent to terrorize another. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
McALLISTER and Missino have been detained since November 18, 2010, when they were arrested in Massachusetts. On June 6, 2013, McALLISTER pleaded guilty to one count of possession of firearms by a previously convicted felon. Missino, 46, of Waterford, pleaded guilty to the same charge on January 30, 2014, and awaits sentencing.
McALLISTER and Missino also pleaded guilty in state court to several charges related to the series of residential burglaries.
Judge Underhill ordered McALLISTER’s 108-month federal sentence to run concurrently with his state sentence. McALLISTER is scheduled to be sentenced in state court on April 2, at which time he is expected to receive a sentence of 25 years, execution suspended after 16 years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Jonathan S. Freimann.
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[email protected]Lester Sentenced to PrisonRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, KEITH EDWARD LESTER, 44, of Sidney, was ordered to serve a term of 30 months in prison followed by 3 years supervised by U.S. District Judge Susan Watters. The sentence is a result of Lester's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Joe Thaggard stated in early 2013, member of the Montana Division of Criminal Investigation (MDCI), the Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking ring operating in Sidney, Montana. The investigation disclosed that the Defendant and his son, Kyle Lester, were associated with the drug trafficking ring and were distributing methamphetamine in and around Sidney;
In June 2012, members of the MDCI and the Sidney Police Department interviewed the Defendant. The Defendant stated that, in July 2012, Kyle Lester met Robert Armstrong. The Defendant stated that Robert Armstrong began to provide methamphetamine to Kyle Armstrong shortly thereafter. The Defendant further stated that, in approximately September 2012, he met Armstrong.
The Defendant stated that, after meeting Armstrong, he then began to receive methamphetamine from Armstrong. The Defendant stated that he, in turn, distributed that methamphetamine in and around Sidney.
In July 2013, members of the MDCI and the Sidney Police Department interviewed Kyle Lester. He confirmed that Robert Armstrong was an associate who provided methamphetamine to him. Kyle Lester stated that he provided some of that methamphetamine to the Defendant for redistribution.
Lead Defendants Sentenced in Drug Conspiracy and Money Laundering CaseRead the Press Release
United States Attorney James L. Santelle announced today that the lead defendants in an eighteen (18) defendant indictment who were charged with various drug-trafficking and money laundering offenses have been sentenced to lengthy prison sentences by the Honorable Rudolph T. Randa.
The recently sentenced defendants are identified as Lamond a/k/a “Lamont” Clayton (age: 50) of Milwaukee who was sentenced to 91 months in prison and Chara Hortman-Brown (age: 37) of Milwaukee who was sentenced to 168 months in prison. Both Clayton and Horton-Brown pled guilty to drug and money laundering conspiracies.
This prosecution involved a second generation of the Edwards family, a north-side family run drug organization, with several of the same defendants and offspring of others, involved in the most recent criminal activity. This family based organization distributed multi-kilograms of cocaine and heroin, in Milwaukee, and elsewhere from January 2010 to December 2012. In addition, Clayton, Hortman-Brown, and others, in part, through structured deposits to financial institutions, laundered the illegal cash proceeds.
Law enforcement officers from the Wisconsin Department of Justice - Division of Criminal Investigation, Drug Enforcement Administration, Internal Revenue Service, Milwaukee High Intensity Drug Trafficking Area, United States Marshals Service, and the City of Milwaukee Police Department participated in this investigation. This case is being prosecuted by Assistant United States Attorney Gail J. Hoffman.
Lake County Man Indicted in Eight Armed Robberies of Retail Stores Across Lake and Northern Cook CountiesRead the Press Release
CHICAGO — A Lake County man is now facing federal charges for allegedly committing eight armed robberies, which netted more than $1,700, over 10 days last August of retail stores across Lake County and northern Cook County. In one of the robberies, shots were fired from the getaway car, but no one was injured. The defendant, LEROY REGAN, initially faced state charges filed in Lake County following his arrest last summer, but he was indicted on federal charges this week after the case was adopted from the state under the umbrella of Project Safe Neighborhoods. A second defendant, JEFFREY VALENTINE, was charged with committing the last of the eight robberies with Regan.
Regan, also known as “Outlaw,” 38, of Grayslake, was charged with eight counts of robbery and eight counts of brandishing or discharging a firearm in a 16-count indictment that was returned by a federal grand jury on Tuesday. Regan, who is federal custody without bond, pleaded not guilty on Wednesday before U.S. District Judge Matthew Kennelly, who set trial for Oct. 20. If convicted of a single gun count, Regan faces a maximum of life imprisonment.
Valentine, aka “Goldie,” 31, of Chicago, who is currently in state custody, was charged with one count of robbery. He is scheduled to be arraigned on April 3 in U.S. District Court.
“I am pleased with the cooperative teamwork of state and federal investigators and prosecutors that resulted in this federal indictment. We are all working toward the same goal of justice and will continue to coordinate so that, in appropriate cases, a state investigation may turn into a federal prosecution,” said Lake County State’s Attorney Mike Nerheim.
According to court records, in each of the robberies, the suspect entered the store wearing a hooded sweatshirt with the hood pulled up over his head and brandishing a handgun. After taking money from the cash register, the robber fled the store.
The indictment alleges that Regan committed the following robberies in August 2013:
- Aug. 5 ― Dollar General store, 1917 Martin Luther King Jr. Dr., North Chicago;
- Aug. 6 ― Family Dollar store, 1701 Martin Luther King Jr. Dr., North Chicago, approximately $131 stolen;
- Aug. 8 ― Citgo gas station, 2135 Green Bay Rd., Waukegan, approximately $300;
- Aug. 8 ― Taco Bell restaurant, 3200 North Lewis Ave., Waukegan, approximately $180. Two customers were shot at from a fleeing vehicle as they attempted to get the license plate of the auto;
- Aug. 11 ― 7-11 store, 37763 North Green bay Rd., Beach Park, approximately $422;
- Aug. 12 ― Thornton’s gas station, 55 Skokie Valley Rd., Highland Park, approximately $145;
- Aug. 14 ― Family Dollar store, 1106 Washington St., Waukegan, approximately $398; and
- Aug. 15 ― 7-11 store, 500 Skokie Blvd., Wilmette, approximately $160 and six to eight cartons of cigarettes. Valentine was charged with this robbery alone.
Regan was arrested in Waukegan on Aug. 17, 2013, following an intensive investigation by the Waukegan and Wilmette police departments. The Highland Park Police Department and the Lake County Sheriff’s Department also assisted in the investigation, which was joined by the Bureau of Alcohol, Tobacco, Firearms and Explosives, leading to the federal charges.
Each count of robbery carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years (10 years on the charge of discharging a firearm) in prison and a maximum of life on any one count, and conviction on one or more subsequent gun counts carries a mandatory minimum of 25 years consecutive to any other sentence imposed. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is being represented by Assistant U.S. Attorney Joseph Thompson.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Jury Finds Former Texas Man Conspired to Distribute CocaineRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury found Dominique Jackson guilty of one count of conspiracy to distribute five kilograms or more of cocaine, United States Attorney David J. Hickton announced today.
Dominique Jackson, 26, formerly of Denton, Texas, was tried before Senior United States District Judge Donetta W. Ambrose in Pittsburgh.
According to Assistant United States Attorney Amy L. Johnston, who prosecuted the case, the evidence presented at trial established that from in and around July 2010, and continuing thereafter to on or about Oct. 7, 2010, Jackson conspired with others to possess with intent to distribute and distribution of five kilograms or more of cocaine.
Judge Ambrose scheduled sentencing for July 14, 2014, at 10:00 AM. The law provides for a total sentence of not less than 10 years in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation, the Pennsylvania Office of Attorney General, the Allegheny County Sheriff's Office, the McKeesport Police Department, the Clairton Police Department, the Allegheny County Housing Authority Police Department, the Pennsylvania State Police, the Allegheny County Police Department, and the Munhall Police Department conducted the investigation that led to the prosecution of Dominique Jackson.
Japanese Citizen Pleads Guilty to International Bank Fraud ConspiracyRead the Press Release
OAKLAND – Yasuhiro Watanabe pleaded guilty in federal court in Oakland today to conspiracy to commit bank fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Watanabe admitted that, between 2009 and early September 2013, he engaged in a scheme to defraud Compass Bank and Bank of America. The scheme involved multiple participants, and victimized bank branches in the Northern District of California, Nevada, and Arizona, among other places. According to the plea agreement, approximately once a month, Watanabe recruited individuals in Japan to travel with him to the United States for the purpose of opening bank accounts at Compass Bank and Bank of America. Once the accounts were opened, Watanabe funded the accounts by causing a $1,000 - $2,000 wire transfer to be made, from bank accounts in Japan, to the newly-opened accounts held in the names of Watanabe’s coconspirators. For their role in the scheme, Watanabe typically paid his coconspirators’ travel costs, and a fee of approximately $1,000. Watanabe directed his coconspirators to obtain debit cards for the accounts and give them to Watanabe. He then used the cards in Japan to purchase goods valued in amounts in excess of the funds on deposit. Watanabe then will sell those goods for cash. Watanabe’s fraud scheme caused combined losses to Compass Bank and Bank of America of over $550,000.
Watanabe, 39, of Japan, was initially charged by complaint on Oct. 25, 2013. On Feb. 11, 2014, he was charged by Information with one count of conspiracy to commit bank fraud in violation of 18 United States Code, Section 1349. Under the plea agreement, Watanabe pleaded guilty to that sole count.
Watanabe has been in federal custody since his arrest at Seattle – Tacoma International Airport on Oct. 27, 2013.
Watanabe’s sentencing hearing is scheduled for Friday, July 11, 2014, at 9:30 a.m. before the Honorable Jon S. Tigar, United States District Court Judge, in Oakland. The maximum statutory penalty for each count, in violation of 18 United States Code, Section 1349, conspiracy to commit bank fraud, is 30 years’ imprisonment, and a fine of $1,000,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas E. Stevens is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Watanabe information )
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on March 18, 2014 and entering pleas of Not Guilty were:
- DEBRA McKINNEY, a 47-year-old resident of Corvallis, appeared on charges of wire fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, McKINNEY faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-11
- JAMES LESLIE VAUGHN, a 48-year-old resident of Charlo appeared on Clean Water Act violations and obstruction of justice. If convicted of the most serious charges contained in the indictment, VAUGHN faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Environmental Protection Agency and Montana Department of Environmental Quality. PACER Case Reference: 14-09
Appearing before U.S. Magistrate Judge Strong in Great Falls on March 18, 2014 and entering pleas of Not Guilty were:
- CHARLES W. PREE, a 48-year-old resident of Browning, appeared on charges of wire fraud, theft of government property and false statements. If convicted of the most serious charges contained in the indictment, PREE faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference: 14-08
- JOANNE STILL SMOKING, a 21-year-old resident of Browning, appeared on charges of wire fraud, theft of government property and false statements. If convicted of the most serious charges contained in the indictment, STILL SMOKING faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference: 14-08
Appearing before U.S. Magistrate Judge Ostby in Billings on March 20, 2014 and entering pleas of Not Guilty were:
- JAMES EDWARD DEMPSTER, a 33-year-old resident of Big Timber, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DEMPSTER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The investigation was a cooperative effort of the Drug Enforcement Administration, Montana Division of Criminal Investigations, Sweet Grass County Sheriff's Office, Montana Highway Patrol, Sidney Police Department and Richland County Sheriff's Office. PACER Case Reference: 14-26
- BRIAN KETIH SALMON, a 44-year-old resident of Williston, ND, appeared on charges of possession with intent to distribute methamphetamine and conspiracy to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SALMON, faces 40 years imprisonment, $5,000,000 in fines and 5 years supervised release. The investigation was a cooperative effort of Montana Division of Criminal Investigations, the Drug Enforcement Administration and the Federal Bureau of Investigation. PACER Case Reference: 14-23
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 20, 2014 and entering pleas of Not Guilty were:
- PAUL WENCEWICZ, a 47-year-old resident of Polson, appeared on charges of conspiracy to advertise child pornography. If convicted of the charge contained in the indictment, WENCEWICZ faces 30 years imprisonment, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort of the Federal Bureau of Investigation, Homeland Security Investigations, Montana Division of Criminal Investigations, and Montana Internet Crimes Against Children Task Force. PACER Case Reference: 14-14
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana Man Pleads Guilty to Unlawfully Possessing Firearm in Wabash CountyRead the Press Release
Follow @SDILNewsLevi M. Glick, 28, of Princeton, Indiana, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4, 2013, alleged that Glick possessed a .357 caliber revolver in Wabash County on July 8th. Prior to that date, Glick had been convicted of a felony offense, making it illegal under federal law for him to possess firearms or ammunition.
Sentencing was set for June 19, 2014, at 10:30 a.m. at the United States District Courthouse in Benton. At that time, Glick faces up to 10 years in federal prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Mt. Carmel, Illinois, Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Illegal Immigrant Sentenced to 92 Months in Prison for Distributing Drugs in Scott County, MississippiRead the Press Release
Jackson, Miss - Ana Laure Topete Ramirez, 33, an illegal immigrant living in Los Angeles, California, was sentenced by U.S. District Judge Henry T. Wingate to a term of 92 months in federal prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Gregory K. Davis. Ramirez previously pled guilty to distributing methamphetamine into the Brusha Community of Scott County, Mississippi.
Ramirez was charged following an extensive investigation by state and federal authorities into the trafficking of drugs into Scott County by a large scale methamphetamine ring operating out of California, Texas and elsewhere. The investigation was conducted by the Bureau of Immigration and Customs Enforcement, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Mississippi Bureau of Narcotics. Seventeen individuals were convicted and over five kilograms of methamphetamine was seized along with multiple firearms. The case was prosecuted by Assistant U.S. Attorney Erin Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Grand Island Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced today that James B. Haugh, 57, of Grand Island, Nebraska, was sentenced on March 21, in Lincoln, Nebraska, to seven and a half years in prison by United States District Judge John M. Gerrard, for receipt and distribution of child pornography. After his release from prison, Haugh will be required to serve a 5 year term of supervised release and be registered as a sex offender. Haugh was found guilty by a jury in December of last year following a 3 day jury. In addition, United States District Court Judge John M. Gerrard ordered that the property used to commit the crime be forfeited to the United States.
Haugh came to the attention of investigators of the Nebraska Attorney General’s Office through a proactive investigation conducted by the Nebraska Attorney General into the receipt and distribution of child pornography through file sharing software. Investigators used automated software to determine that a computer utilizing a specific IP address was sharing child pornography through the Internet.
The investigation led to the execution of a search warrant on December 28, 2012, at Haugh’s residence in Grand Island, Nebraska. A forensic examination of a computer and other storage media seized at the residence revealed numerous videos child pornography that had been received and distributed between January 3, 2009 and December 28, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Nebraska Attorney General’s Office.
Garland, Texas, Man Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Christian James Gieseke, 39, was sentenced yesterday, by U.S. District Judge Jane J. Boyle, to 20 years in federal prison to be followed by a 10-year term of supervised release. Less than a week prior to the start of his trial last summer, Gieseke pleaded guilty to one count of receipt of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to the factual resume filed in the case, Gieseke admitted that on a date, sometime between September 1, 2010, and June 7, 2012, while at his Garland, Texas, residence, used a camera to produce images of Jane Doe 3 and/or Jane Doe 4 engaging in sexually explicit conduct while one or both was naked in the shower. He further admitted that he knew they were minors. He further admitted that he downloaded the images and viewed them on his laptop computer.
Gieseke also admitted that he produced, or attempted to produce, images and/or video of two other minor girls.
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.”
The Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorneys Lisa J. Miller and Leigha Simonton prosecuted.
Four Mexican Nationals Indicted for Fake Documents ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Mexican nationals have been indicted for their roles in a conspiracy to produce and distribute counterfeit identification documents to illegal aliens.
Eriberto Moises Medina-Aranda, 39, of Rayville, Mo., his half-brother, Cesar Mujica-Aranda, 24, of Liberty, Mo., and Bernardino Bautista-Hernandez, 31, of Kansas City, Mo., and Ulises Montiel-Lazcano, 34, of Merriam, Kan., all of whom are citizens of Mexico, were charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, March 21, 2014. The indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Medina-Aranda, Mujica-Aranda, Bautista-Hernandez and Montiel-Lazcano participated in a conspiracy to produce false government identification documents between Sept. 1, 2013, and Feb. 21, 2014. They are also charged together in one count of aiding and abetting each other to produce counterfeit alien registration receipt cards (also known as lawful permanent resident cards) and other documents that are used as evidence of authorized stay or employment in the United States (including Social Security cards).
In addition to the conspiracy, Medina-Aranda and Mujica-Aranda are charged together in one count of possessing implements to create identification documents with the intent to produce false identification documents.
Medina-Aranda is also charged with one count of being an illegal alien in possession of firearms and ammunition and one count of being a felon in possession of firearms and ammunition. Medina-Aranda, who has a prior felony conviction and is illegally in the United States, allegedly possessed a Smith & Wesson semi-automatic rifle, a Marlin Firearms rifle and ammunition in February 2014. He is also charged with one count of illegally reentering the United States after having been deported and after having been convicted of a felony.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government the illicit proceeds derived from the alleged conspiracy as well as items that were seized by law enforcement officers, including $8,156 seized from Montiel-Lazcano at the time of his arrest, $1,840 seized from Mujica-Aranda’s residence, five computer towers, printers, four cameras, cell phones, digital media storage devices, and the rifles and ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); the Social Security Administration, Office of Inspector General; the Kansas Department of Revenue, Office of Special Investigations; the Missouri Department of Revenue, Compliance & Investigations Bureau; the Missouri State Highway Patrol and the Clay County, Mo., Prosecuting Attorney.
Former President of Russian Steel Producer’s U.S. Subsidiary Indicted for Hiding Assets in Secret Swiss Bank AccountsRead the Press Release
Victor Lipukhin, formerly a resident of St. Charles, Ill., was indicted yesterday by a federal grand jury in Kansas City, Mo., for attempting to interfere with the administration of the internal revenue laws and filing false tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. The charges relate to Lipukhin hiding millions of dollars in several Swiss bank accounts held at UBS AG.
According to the indictment, Lipukhin formerly served as president of Severstal Inc. (USA), a subsidiary of AO Severstal, the largest steel producer in Russia. He lived in St. Charles from at least 2001 through mid-2007.
Lipukhin, a Russian citizen and former lawful permanent U.S. resident, kept between approximately $4,000,000 and $7,500,000 in assets in two bank accounts with UBS in Switzerland from at least 2002 through 2007. In 2002, he and another individual opened a UBS bank account in the name of Old Orchard, a sham Bahamian entity. The account was initially funded with over $47,000,000 transferred into the account from a previously maintained UBS account in the Bahamas. In 2003, the other individual left the account, leaving Lipukhin as the sole owner and signatory. Lipukhin also maintained another account at UBS in Switzerland in the name of Lone Star, another sham Bahamian entity. He directed virtually all transactions in the accounts, typically through a Bahamian national who served as the nominee director of the Old Orchard and Lone Star entities to help conceal Lipukhin’s ownership and control. However, he failed to report his ownership of these accounts and failed to report any income earned in these accounts on his tax returns.
According to the indictment, in order to further conceal his ownership of the undisclosed UBS accounts, Lipukhin utilized fictitious mortgages through an entity called Dapaul Management, controlled by a Canadian attorney, to conceal his purchase of real estate in the United States with funds from the UBS accounts. This includes his purchase of a historic building at 18 N. Fourth St, in St. Charles, Ill., for $900,000 in the name of Charlestal LLC, a domestic entity controlled by Lipukhin. He also transferred funds from his UBS accounts to the Canadian attorney for ultimate transfer to a domestic Charlestal bank account in order to conceal the source of the funds, then used the funds in the Charlestal account to pay for various personal expenses and to withdraw cash for personal use. Finally, Lipukhin impeded the administration of Internal Revenue laws by attempting to prevent an automobile dealer from filing a Form 8300 – which is required for certain cash transactions over $10,000 – with the IRS in order to report Lipukhin’s cash payment to purchase an automobile.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Lipukhin faces a potential maximum sentence of three years imprisonment on each count.
U.S. citizens and permanent residents are required to report income from any source on their tax returns, regardless of whether the source of the income is inside or outside the United States. Further, U.S. taxpayers who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are also required to disclose the existence of the account on Schedule B, Part III of an individual income tax return. They must also disclose the existence of the account by filing a Report of Foreign Bank and Financial Accounts with the U.S. Treasury.
Assistant Attorney General Kathleen Keneally of the Tax Division commended the agents from IRS –Criminal Investigation who investigated the case and Trial Attorney Timothy J. Stockwell of the Tax Division, who is prosecuting the case.
Former Lake Orion Resident Sentenced for Tax OffenseRead the Press Release
A former resident of Lake Orion was sentenced to a year in prison yesterday for income tax evasion, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
U.S. District Judge Denise Page Hood imposed sentence on Brett Loren Kelly, 53, who now lives in Bradenton, Florida.
The case arose from Kelly’s failure to report approximately $1.8 million in income for the 2009 tax year. He earned the funds by performing financial consulting, and deposited the funds into a corporate account called Fidelity Capital Group, LLC. While earning these funds, Kelly lived an affluent lifestyle, but did not file tax returns and paid no taxes.
The court also ordered Kelly to pay restitution to the IRS for tax liabilities in the amount of $181,212 for the years of 2007 through 2009, which he paid before sentence was imposed. His term of imprisonment will be followed by two years of supervised release.
“Kelly thought he had successfully disguised his income by diverting it into an undisclosed account," said Carolyn Weber, Acting Special Agent in Charge of IRS Criminal Investigation. "He should never have underestimated the IRS Criminal Investigators who were able to follow the money and bring him to justice."
U.S. Attorney Barbara McQuade stated that, “With tax season upon us, this case demonstrates that individuals who fail to file tax returns and pay their taxes like the rest of us will face criminal charges.”
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.Former Georgia Department of Revenue Employees Indicted for Accepting BribesRead the Press Release
ATLANTA - Brenda Joyce Davidson, Gwendolyn Lockett, Sheryl Monique Taylor, and Keresa Foster, have been arraigned on indictments returned by a federal grand jury on March 12, 2014, charging them with accepting cash bribes in exchange for issuing Georgia car titles.
“These defendants are charged with taking official actions that were motivated by their personal financial gain instead of their duty to serve the citizens of this state with integrity,” said United States Attorney Sally Quillian Yates. “Thanks to the collaborative efforts of federal and state law enforcement agencies, the defendants are no longer in a position to subvert Georgia’s car titling system for their personal gain.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption at all levels erodes the public’s trust placed in not only those individuals but also the organization they represent. The FBI will continue to provide significant investigative resources toward public corruption related matters, noting that it is one of the FBI’s top criminal investigative priorities.”
Staci Guest, Director of the Office of Special Investigations, stated: “The suspect’s indictments show how serious the State of Georgia is at finding individuals who erode public trust and confidence. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat individuals who commit fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: Davidson, Lockett, Taylor, and Foster were all customer service representatives at the Georgia Department of Revenue’s Motor Vehicle Division, responsible for processing and issuing car titles and registration documents. In 2012 and 2013, each of the defendants accepted bribes from individuals they believed to be customers in need of car titles. The individuals were actually FBI agents posing as customers or other individuals working under the direction of the FBI. Soon after accepting the bribes, each defendant accessed Georgia’s official car titling databases to process, print, and provide the fraudulent car titles. The defendants would meet with the purported customers outside of normal business hours and at various locations throughout the metropolitan Atlanta area. During those meetings, the defendants would accept cash bribes, obtain titling paperwork, and provide the fraudulent titles.
At the time the defendants provided the car titles, they knew or suspected that the titling paperwork was incomplete or fraudulent. On one occasion, a defendant accepted a cash bribe in exchange for processing and printing a car title. The defendant soon discovered that she could not print the car title because the Department of Revenue changed its title printing policy for individual car owners. Later, in order to circumvent the Department of Revenue’s title printing restrictions, the defendant accessed Georgia’s car titling database to obtain the name of a defunct car dealer, provided that dealer’s name to the purported customer, and processed fraudulent paperwork containing the dealer’s name despite knowing that the dealer was not involved in the unlawful transaction.
Brenda Joyce Davidson, 55, Gwendolyn Lockett, 49, Sheryl Monique Taylor, 31, and Keresa Foster, 44, all of the Atlanta, Ga. area, were arraigned before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Revenue.
Assistant United States Attorney Nekia S. Hackworth is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Fresno Pastor Arraigned on Fraud IndictmentRead the Press Release
FRESNO, Calif. — Alvin Dickson, 52, of Oakland, was arraigned in Fresno today on a federal indictment charging him with social security fraud and theft of government property, United States Attorney Benjamin B. Wagner announced. Dickson was arrested at his home on March 5, 2014. He made his first court appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland.
According to the indictment returned by the grand jury on January 30, 2014, between July 2005 and April 2013, Dickson received Social Security Disability Insurance Benefits totaling approximately $113,000. At the same time he was receiving the benefits, and unknown to the Social Security Administration, he was working as the Pastor of Mt. Pleasant Missionary Baptist Church in Fresno.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
The next court appearance for Dickson is a status conference before Magistrate judge Sheila K Oberto on May 19, 2014 at 1:00 p.m.
If convicted, Dickson faces a maximum statutory penalty of 10 years in prison for theft of government property, five years in prison for Social Security fraud, and a $250,000 fine for each charge. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Dell Employee Pleads Guilty to Fraud SchemeRead the Press Release
Marci 21, 2014Herbie Morrow, 39, of Richmond Heights, Missouri, formerly of Nashville, pleaded guilty today to federal fraud and conspiracy charges, announced David Rivera, United States Attorney for the Middle District of Tennessee. Morrow was charged on March 7, 2014, with two counts of accessing a protected computer in furtherance of fraud and one count of conspiring to access a protected computer in furtherance of fraud.
At the plea hearing, Morrow, a former employee of Dell, admitted to conspiring with another former Dell employee to defraud Dell by using corporate computers to create fraudulent discounts. Morrow also acknowledged conspiring to access Dell account websites in order to use the fraudulent discounts to purchase more than $293,000 worth of Dell merchandise, including laptop computers and computer accessories, at substantially reduced prices or for free. Morrow admitted that a co-conspirator sold the fraudulently obtained merchandise via a company known as Tech Geek Sales, and split the resulting profits with Morrow.
U.S. District Court Chief Judge William J. Haynes, Jr. scheduled the sentencing hearing for June 9, 2014. Morrow faces a maximum sentence of 5 years in prison and a maximum fine of up to $250,000 on each count. In addition, Morrow will forfeit the proceeds of the fraud and pay restitution to Dell.
Marcus Culver, 31, of Nashville, also a former Dell employee, was also charged in this case and is currently awaiting trial. The information charging Culver is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.This case was investigated by the United States Secret Service and is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Cook County Official Sentenced to 51 Months in Prison for Steering Contracts in Return for Nearly $35,000 in KickbacksRead the Press Release
CHICAGO ― A Cook County official was sentenced today to 51 months in federal prison for steering four county contracts, each just under $25,000, to four acquaintances and then taking a portion of the contract payments as kickbacks from each of them, totaling $34,700. The defendant, EUGENE MULLINS, who was director of the Cook County Department of Public Affairs and Communications between March 2008 and November 2010, was sentenced after being convicted of three counts of wire fraud and four counts of bribery at trial last September in U.S. District Court.
Mullins, 50, of Chicago, a former Chicago police officer, was also ordered to pay restitution and forfeiture, both in the amount of $34,700. He was ordered to begin serving his sentence on June 19 by U.S. District Judge Amy J. St. Eve.
“Public corruption does not pay and has significant consequences,” Judge St. Eve said in imposing the sentence after finding that Mullins obstructed justice by committing perjury in his testimony at trial.
The four individuals who received county contracts and returned a portion of the payments to Mullins were each charged with misprision of a felony for concealing Mullins’ fraud and kickback scheme. Each of them entered into pretrial diversion agreements and were placed on probation, were ordered to pay full restitution to the county, and testified as government witnesses at Mullins’ trial. They are: Gary Render, Michael L. Peery, and Clifford Borner, all of Chicago, and Kenneth Gregory Demos, of Oak Park.
Evidence at Mullins’ trial showed that between January 2010 and January 2011, he used his county position to submit and cause others to submit false documents to the county to assist the four vendors in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the proceeds for his own benefit.
Cook County contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
During 2010, Mullins schemed to fraudulently steer the following contracts: a $24,980 disaster grant contract to Render, who paid Mullins $9,000; a $24,985 energy grant contract to Peery, who paid Mullins $12,000; a $24,995 census contract to Borner, who paid Mullins $5,000; and a $24,997 census contract to Demos, who paid Mullins $8,700.
Evidence also showed that Mullins told the individuals who received the contracts that he could arrange for a subcontractor to perform some of the work in exchange for a portion of the county payments they received. In fact, the money that Mullins received from the individuals was not used for any subcontracts. Instead, Mullins used it for his own benefit, while Render, Peery, Borner, and Demos performed little or no work for the county.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Anita Alvarez, Cook County State’s Attorney; and Patrick Blanchard, Cook County Inspector General.
The government was represented by Assistant U.S. Attorneys Lindsay Jenkins and Sarah E. Streicker.
Florissant Woman Sentenced on Tax and Fraud ChargesRead the Press Release
St. Louis, MO - EVELYN SILAS, Florissant, MO, was sentenced to 15 months in prison on 13 counts of tax and fraud charges today by United States District Judge Catherine Perry.
According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC). Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers. In all, Silas caused more than $90,000 in tax loss. Silas kept a large percentage of the refunds generated by the fraudulent returns for herself
The case was investigated by IRS-Criminal Investigation with assistance from the EEOC-Office of the Inspector General. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Florida Resident Sentenced in Connection with Fraudulent International Lottery SchemeRead the Press Release
Angela Althea Peart was sentenced in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. Peart was sentenced by U.S. District Court Judge K. Michael Moore for the Southern District of Florida in Miami to serve 33 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014.
Peart’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. So long as criminals continue to line their pockets with the money of our nation’s seniors, we will be there to prosecute them and bring them to justice.”
“International lottery fraud aimed at stealing from elderly victims cannot, and will not, be tolerated by the Department of Justice,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will seek to hold accountable those who participate in illegal lottery schemes, including those in the U.S. who facilitate schemes directed from abroad.”
A federal grand jury in Miami returned an indictment against Peart and co-conspirator Charmaine Anne King on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014. Co-defendant King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud and two counts of wire fraud. King’s sentencing is scheduled for April 17, 2014.
As part of her guilty plea, Peart admitted that beginning in or around March 2012 and continuing through, in or around November 2013, she was a member of a conspiracy to fraudulently enrich herself by keeping victims’ money for her own benefit without paying any lottery winnings. Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
Peart also admitted that as part of the conspiracy, victims were told that they must make a payment of several thousand dollars in order to collect their purported lottery winnings. The victims were told to send their payments to Peart and others. Peart acknowledged that she received victims’ funds, kept 10 percent of the money received from victims and then sent the rest to another member of the conspiracy. Victims never received any lottery winnings.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
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.
Felon in Possession of Firearm Sentenced to 47 Months ImprisonmentRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Salomon Mejia Preciado, age 31, was sentenced to 47months imprisonment for being a felon in possession of a firearm. He was sentenced to a consecutive sentence of 9 months imprisonment for violating a condition of supervised release.
According to information disclosed during the court proceedings, in 2005, Preciado was sentenced to ten years imprisonment for conspiracy to distribute a controlled substance and distribution of a controlled substance. He was subsequently released from prison and was required to serve a five year term of court supervision. Thereafter, on April 29, 2013, a Yakima police officer conducted a traffic stop of a vehicle Preciado was driving. The officer observed items in the vehicle which appeared to have been stolen. The officer obtained a search warrant for the vehicle. During the execution of the search warrant, the officer recovered several stolen items including a stolen Glock handgun. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives worked with the Yakima Police Department and determined that Preciado was prohibited from possessing firearms. An indictment was subsequently issued which charged him with being a previously convicted felon in possession of a firearm.
Senior United States District Judge Wm. Fremming Nielsen sentenced Preciado to 47 months imprisonment to be followed by three years of court supervision following his release from Federal prison. Due to the possession of the firearm, the Defendant was also found to be in violation of supervised release and sentenced to a consecutive term of 9 months of imprisonment.
Michael C. Ormsby said, "Convicted felons who possess firearms present a significant danger to the public. Local and Federal law enforcement officers in the Eastern District of Washington are dedicated to work together to protect our communities from such offenders. This case is just one example of the cooperative and successful efforts by Federal law enforcement officers and the Yakima Police Department."
This investigation was conducted by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-2072-WFN
03-CR-2129-WFNFederal Court Shuts Down Florida Tax Return PreparerRead the Press Release
A federal court in Fort Lauderdale, Fla., permanently barred Keisha Stewart, a tax preparer in Plantation, Fla., from preparing federal tax returns for others, the Justice Department announced today. Stewart agreed to the civil injunction order, and a stipulated final judgment of permanent injunction was entered against her by the court on March 20, 2014.
The complaint alleged that Stewart prepared federal income tax returns for customers that inflated income or included fictitious income to qualify her customers to receive or to maximize the earned income tax credit; claimed false tax credits that are refundable or decrease the amount of tax on her customers' returns, including phony education credits (American Opportunity Credit) and residential energy credits; falsely claimed head of household status on behalf of customers who did not qualify in order to improperly decrease their reported tax liabilities; and claimed false dependents on behalf of customers and also claimed the child and additional child tax credits on their behalf.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Keisha Stewart, et al.
Stipulated Final Judgment of Permanent Injunction
Elkville Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn March 21, 2014, Charles L. Scott, a/k/a “Boomer, 43, of Elkville, 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.
Scott, who had previously pled guilty to the methamphetamine offense, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between March 2012 and March 2013 in Jackson and Perry Counties. Evidence at the plea and sentencing hearings established that Scott was involved with others in the manufacture of methamphetamine. On March 13, 2013, Scott received severe burns while manufacturing methamphetamine inside an Elkville residence. Scott’s sentence was enhanced based on the substantial risk of harm created by his criminal conduct. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Murphysboro Police Department, Pinckneyville Police Department, DuQuoin Police Department, and Illinois State Police Methamphetamine Response Team.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Eight Arrested This Week in Long-Term Investigation into Drug and Gun TraffickingRead the Press Release
SACRAMENTO, Calif. — Eight defendants were arrested this week in a wide-ranging drug and gun trafficking investigation, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the indictments on March 13, 2014, charging the defendants with various drug and gun trafficking offenses. The indictments were unsealed following the arrests of each defendant.
These cases are the product of a long-term investigation by the FBI Safe Streets Task Force and ATF, along with officers from the Sacramento Police Department; California Highway Patrol; and California Department of Corrections and Rehabilitation, Department of Parole and Special Service Unit; and the California Gang Intelligence Initiative.
“We are thankful for continued, active collaboration with our state and local law enforcement task force partners who share our commitment dismantling criminal networks that pose a serious threat to the communities we serve,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Disruption of illegal drug and weapons trafficking is essential to ensure the safety and vitality of our neighborhoods.”
Andre Nicholas Amaya, 33, of Sacramento, was charged with three counts of distribution of methamphetamine in Sacramento County. He was arraigned on March 20, 2014, the same day as his arrest. His next court date is set for April 17, 2014.
(docket # 2:14-cr-72 MCE)Joseph Darosa, 21, of Elk Grove, is charged with five counts of distribution of methamphetamine in Sacramento County. He was arraigned after his arrest today. His next court date is May 6, 2014.
(docket # 2:14-cr-71 JAM)Ruben Luis Vega, 27, of North Highlands, is charged with two counts of distributing methamphetamine in Sacramento County. He was arrested on March 19, 2014, and arraigned the next day. His next court date is April 16, 2014.
(docket # 2:14-cr-68 KJM)Antonio Reyna, 33, of Sacramento is charged with being a felon in possession of a Ruger .223-caliber rifle. Reyna was arrested on March 19, 2014 and arraigned the next day. His next court date is April 15, 2014.
(docket # 2:14-cr-0LKK)John Greer, 31, of Carmichael, and Julius White, 32, of Sacramento, are charged with unlawfully transferring a Winchester sawed-off shotgun. They were arraigned and their next court date is April 18, 2014.
(docket # 2:14-cr-073 GEB)Donald Brown, 23, of Sacramento, is charged with two counts of being a felon in possession of a firearm: .22-caliber semi-automatic pistol and a Norinco rifle.
(docket # 2:14-cr-074 MCE)Benjamin Martinez, 30, of Sacramento, was arrested today on a criminal complaint, charging him with distribution of methamphetamine. He made an initial appearance before Magistrate Judge Dale A. Drozd. His next court date is April 3, 2014.
(docket # 2:14-mj-063 DAD)Five of the indictments were part of an Organized Crime Drug Enforcement Task Force. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
All defendants are in custody. At arraignment, the defendants entered pleas of not guilty. If convicted, the defendants face sentences from five years to life in prison. Any sentence, however, would 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. When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed there is no early release on parole in the federal system.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Duke University Health System, Inc. Agrees to Pay $1 Million for Alleged False Claims Submitted to Federal Health Care ProgramsRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina Thomas G. Walker and North Carolina Attorney General Roy Cooper announced jointly that Duke University Health System, Inc. (Duke University Health System) has agreed to pay $1 million to resolve allegations under the U.S. and North Carolina False Claims Acts that it made false claims in conjunction with certain services provided to beneficiaries of Federal health care programs (Medicare, Medicaid, and TRICARE).
Duke University Health System is a non-profit corporation that operates three hospitals: (1) Duke University Hospital, (2) Duke Regional Hospital (formerly known as Durham Regional Hospital), and (3) Duke Raleigh Hospital (formerly known as Duke Health Raleigh Hospital). Duke University Health System allegedly made false claims to Medicare, Medicaid, and TRICARE by (1) billing the government for services provided by physician assistants (PA’s) during coronary artery bypass surgeries when the PA’s were acting as surgical assistants (along with graduate medical trainees), which is not allowed under government regulations and (2) increasing billing by unbundling claims when the unbundling was not appropriate, specifically in connection with cardiac and anesthesia services.
“Allegations of health care fraud will be zealously pursued in North Carolina,” said U.S. Attorney Thomas G. Walker. “We encourage our citizens to report potential health care fraud to the appropriate authorities. Duke Univesity Health System was forthcoming with information, and was cooperative in the investigation and resolution.”
“Health care fraud like this wastes tax dollars, harms patients who need care, and drives up medical costs for all of us,” said North Carolina Attorney General Roy Cooper. “We’re working closely with federal officials to root out this kind of fraud in North Carolina and make wrongdoers pay.”
"Hospitals that try to make profit by misrepresenting to Medicare and Medicaid about the services they provide will instead pay large settlements to the government for their misdeeds," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. "If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]."
“The DCIS, in concert with our law enforcement partners, places a high priority on pursuing allegations of fraud involving the Defense Department’s health care system, to ensure that America’s Warfighters receive top quality health care, while preserving precious taxpayer dollars,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Leslie Johnson, a former employee of Duke PRMO, LLC d/b/a Patient Revenue Management Organization. Duke PRMO is controlled by Duke University Hospital System, and provides billing, collection, and administrative services to Duke University Health System.
This case was handled by the United States Attorney’s Office for the Eastern District of North Carolina, the North Carolina Attorney General’s Office, Medicaid Investigations Division, the Department of Health and Human Services’ Office of Inspector General, and the Department of Defense Criminal Investigative Service. The government’s investigation was led by Assistant U.S. Attorney Joshua B. Royster and North Carolina Assistant Attorney General Stacy M. Race.
The lawsuit is captioned United States of America and State of North Carolina ex rel. Leslie Johnson v. Duke University Health System, Inc, et al., 5:12-CV-822-BO. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Drug Trafficker Pleads Guilty to Murdering Two Men over Stolen ProfitsRead the Press Release
SAN DIEGO – Roberto Ochoa of Tijuana pleaded guilty in federal court today, admitting that he slashed the throats of two fellow drug traffickers whom he believed had stolen methamphetamine and cocaine proceeds from their organization.
Ochoa entered a guilty plea to two counts of an Intentional Killing during the course of a Drug Trafficking Conspiracy before U.S. District Judge Dana M. Sabraw.
Ochoa was indicted in November 2011 along with a dozen others who were accused of drug trafficking and money laundering offenses. To date, eight have pleaded guilty, including Ochoa. Seven have been sentenced. Two are fugitives; the other cases are pending.
According to court records, in December 2011, Drug Enforcement Administration (DEA) agents initiated an investigation into a San Diego-based narcotics distribution cell. During the course of the investigation, agents identified a number of people that worked for this cell, including the defendant Roberto Ochoa.
On October 19, 2012, the defendant and others interrogated Hector Gonzalez and Rodolfo Robles at a home located on Multnomah Ct., in San Jacinto, California, about the theft of narcotics proceeds.
At this time, the defendant and another individual used knives to cut the throats of Gonzalez and Robles. Gonzalez and Robles died as a result of their wounds. On November 9, 2012, Riverside County Sheriff’s Officers responded to this address in order to conduct a welfare check and discovered the two bodies.
Sentencing was set for June 6, 2014, at 9 a.m. before Judge Sabraw.
DEFENDANT Case No. 12CR4711-DMS Roberto Ochoa Age: 35 Tijuana, Mexico CHARGESCount 1:
Title 21, United States Code, , Section 848(e)(1)(A) Intentional Killing during the course of a Drug Trafficking Conspiracy, in violation of Title 21, United States Code.
Maximum penalties include: Life imprisonment or death and a mandatory minimum
20- year sentence; maximum $2 million fine; mandatory special assessment of $100 per count and a term of supervised release of at least 5 years and up to life.Count 2:
INVESTIGATING AGENCY
Title 21, United States Code, , Section 848(e)(1)(A) Intentional Killing during the course of a Drug Trafficking Conspiracy, in violation of Title 21, United States Code.
Maximum penalties include: Life imprisonment or death and a mandatory minimum
20- year sentence; maximum $2 million fine; mandatory special assessment of $100 per count and a term of supervised release of at least 5 years and up to life.Riverside County Sheriff’s Office
Drug Enforcement Administration
Federal Bureau of Investigation
Homeland Security Investigations*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.
Drug Dealer Sentenced to over 10 Years in Prison for Distributing Heroin and OxycodoneRead the Press Release
Also Sentenced to 10 Years in Prison for Making and Illegally Possessing an Explosive Device
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced John Frank Jenkins, age 30, of College Park, Maryland, today to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to Jenkins’ plea agreement, from at least January 2011 through December 2012, Jenkins and his co-conspirators distributed oxycodone. From the spring of 2011 through the summer of 2012, Jenkins and others forged prescriptions for oxycodone, which they then presented to different pharmacies, obtaining 180 oxycodone pills approximately twice a week. Jenkins and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Jenkins began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. After making repeated calls to the customer and being unsuccessful in collecting the debt, in December 2012, Jenkins and a co-conspirator carried one of the pipe bombs to the home of the customer who owed Jenkins money, placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Drexel Man Charged in Identity Theft RingRead the Press Release
Benjamin Easley, 36, of Drexel Hill, Pennsylvania was charged yesterday by Indictment with three counts of bank fraud and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Easley oversaw three separate bank fraud schemes in which he recruited people to pose as true account holders to access their accounts, drove them around to the banks, and gave them false identity documents to use to access the accounts. The indictment alleges that Easley and his co-schemers made off with approximately $232,570 from the banks in question.
Easley faces a maximum sentence of 96 years’ imprisonment, including a two year mandatory term of imprisonment, a five year period of supervised release, a $3,750,000 fine, and a $600 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Found Guilty of First-Degree Felony Murder in 2011 Shooting in Northeast Washington-Shooting Followed Carjacking and Robbery-Read the Press Release
WASHINGTON -David E. Warren, 27, of Washington, D.C., has been found guilty by a jury of first-degree felony murder while armed and other charges for the 2011 killing of a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The verdicts, which were returned March 19, 2014, followed a three-week trial in the Superior Court of the District of Columbia. The jury convicted Warren of two counts of first-degree murder while armed during the commission of two separate felonies, second-degree murder while armed, kidnapping while armed, armed carjacking, armed robbery, and related weapons offenses. The Honorable Rhonda Reid Winston scheduled sentencing for June 6, 2014.
According to the government’s evidence, shortly before 11 p.m. on May 13, 2011, the victim, Ervin L. Griffin, 32, pulled his SUV into the 1200 block of 18th Street NE, shortly after meeting several young women at a nearby bus stop. While Mr. Griffin was sitting in his SUV, which was parked in the middle of the street, Warren approached and told Mr. Griffin to leave.
Eventually, Mr. Griffin pulled into an alley off of the 1200 block of 18th Street NE, where Warren entered the passenger side of Mr. Griffin’s SUV and took his keys. Warren, armed with a semi-automatic firearm, then went to the driver’s side of the SUV, pulled Mr. Griffin out, and demanded money. Warren, along with others, then walked Mr. Griffin up an alley and into a yard behind 1218 18th Place NE, where Mr. Griffin was shot and killed.
Surveillance video from the Metropolitan Police Department’s closed circuit television cameras showed the events leading up to Mr. Griffin’s murder, and showed Warren and others exiting the alley where the murder took place within a minute after the murder.
A co-defendant, Montez Warren, 32, the brother of David Warren, was acquitted by the jury of all charges. The final verdicts in his case were returned on March 20, 2014.
In announcing the conviction of David Warren, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Thomas Royal, William Henderson, and Paul Howell; Victim/Witness Advocate Marcia Rinker; and Paralegal Specialists Kelly Blakeney and Mia Beamon. Finally, he thanked former Assistant U.S. Attorney B. Michael Ortwein, who investigated and indicted the case, and Assistant U.S. Attorneys Michelle D. Jackson and Holly R. Shick, who prosecuted the case.
14-068Defendant Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Eddy Marin, 52, of Davie, was sentenced today in West Palm Beach by U.S. District Judge Kenneth A. Marra to ten months in prison, followed by one year of supervised release. Issues regarding the forfeiture of certain funds obtained by the defendant through his criminal activity was continued to a later date. Marin pled guilty on October 18, 2013 to conspiracy to obstruct justice, in violation of Title 18, United States Code, Section 1512(k).
According to the factual statement admitted by the defendant in connection with his guilty plea, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of IRS-CI went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. In fact, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and others knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including the defendant Eddy Marin.
The factual statement further alleges that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendant took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent their availability for use in those proceedings. Marin further admitted that he committed perjury during a deposition in connection with those proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan, and Evelyn B. Sheehan.
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.
Clearfield County Man Sentenced for Violating Federal Firearms LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Irvona, Pa., has been sentenced in federal court to five years probation, the first 18 months of which must be served by conditions of home confinement, and 250 hours of community service on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Justin D. McElheny, 36.
According to information presented to the court, from Dec. 2007 to Oct. 15, 2011, McElheny stole 72 firearms, including revolvers, pistols and rifles of various calibers, from East Coast Gun Sales. In addition, during the same time McElheny was in possession of the stolen firearms, he was an unlawful user of Percocet, Oxycontin, Roxicet and Vicodin.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department for the investigation leading to the successful prosecution of McElheny.
According to Mr. Hickton, McElheny was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
California National Guardsmen Sentenced to Prison for Stolen Machine GunsRead the Press Release
SACRAMENTO, Calif. — Stephen Gooden, 40, of Stockton, was sentenced on Thursday by United States District Judge Morrison C. England Jr. to one year in prison and a $1,000 fine for possessing a machine gun, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gooden and Luis Castro, 28, of Sacramento, were members of the California National Guard and stole two M-4 machine guns from the National Guard’s armory in Lodi. Gooden then sold the machine guns to non-authorized persons in Stockton. ATF agents recovered the machine guns in an undercover operation.
“Today's sentencing reflects the true partnership among federal law enforcement agencies,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “No criminal stands a chance against our MPFU agents working shoulder to shoulder with the ATF and other agencies. We hope that the sentence imposed today will deter others from engaging in similar illegal activity.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Army Criminal Investigation Command. Assistant United States Attorneys Paul Hemesath and Heiko Coppola prosecuted the case.
On August 22, 2013, Castro was sentenced for his involvement in the theft and sale of the machine guns to 20 months in prison.
Billings Man Draws Prison Sentence for Methamphetamine PossessionRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, KURT LEE WHITLING, 52, of Billings, was ordered to serve a term of 60 months in prison followed by 4 years supervised by U.S. District Judge Susan Watters. The sentence is a result of Whitling's October 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Joe Thaggard states Tomas Alvarado and Eliseo Lopez Martinez were two drug dealers involved in the distribution of methamphetamine. In October 2012, they began to distribute methamphetamine in Billings, Montana.
Alvarado and Martinez acted as wholesale distributors through a series of subordinate drug dealers. Those lower-level dealers included Walter White and the Defendant.
Alvarado estimates he provided to the Defendant for distribution two to three pounds of a substance containing a detectable amount of methamphetamine. White has informed the authorities that he also provided more than 50 grams of a substance containing a detectable amount of methamphetamine to the Defendant for distribution.
An associate of White, Alvarado, and the Defendant has informed the authorities that the Defendant distributed methamphetamine for White to people in Billings and the surrounding areas.
John Doe (an unindicted coconspirator) has informed the authorities the Defendant distributed methamphetamine to users in the Billings area.
Bedford County Man Stole 31 Firearms, Transported Them to MarylandRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., pleaded guilty in federal court to charges of theft of firearms and interstate transportation of stolen firearms, United States Attorney David J. Hickton announced today.
Garrett G. Sherlock, 26, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 28, 2013, Sherlock stole 31 firearms from Saxton Outdoor Supply, Inc., which is a business licensed to deal in firearms. On the same day he transported the stolen firearms from Pennsylvania to Maryland.
Judge Gibson scheduled sentencing for August 5, 2014, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks conducted the investigation that led to the prosecution of Sherlock.
According to Mr. Hickton, Sherlock is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Bank Director Charged with Embezzling $336K in Bank FundsRead the Press Release
PITTSBURGH - A former bank director has been indicted by a federal grand jury in Pittsburgh on a charge of theft, embezzlement and misappropriation by a bank officer or employee, United States Attorney David J. Hickton announced today.
The nine-count indictment, returned on March 19, named Michael P. Bernick, 50, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, Bernick, a Director of Metropolitan Savings Bank, the deposits of which were insured by the FDIC, from April 19, 2005 through March 27, 2006, embezzled and misapplied bank monies and funds on nine occasions, totaling approximately $336,000. The indictment alleges that the monetary disbursements were made in the form of checks and wire transfers.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Deposit Insurance Corporation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baldwin Man Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsA Baldwin, Illinois, man was sentenced in federal district court 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), Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 3), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Michael A. Nieweglowski, Jr., a/k/a “Tony,” 45, was sentenced to a term of 180 months in federal prison on all counts, to run concurrently, to be followed by a lifetime term of supervised release on all counts, again to run concurrently, ordered to pay $632.71 in restitution, fined $500, and ordered to pay a $300 special assessment. In addition, upon his release from prison, Nieweglowski must register as a sex offender as a condition of supervised release. Nieweglowski has been detained by the United States Marshals Service since his arraignment on May 1, 2013.
“Predators, like this person, must face long sentences if we are to protect our children from them. If anyone doubts that these individuals are a danger, that person should look at this case. My office will continue to seek appropriate sentences for those who would prey on the most vulnerable in our communities.” said United States Attorney Wigginton.
The investigation began on January 14, 2011, when Nieweglowski, who had been on mandatory supervised release since at least September 10, 2010, for a Predatory Criminal Sexual Assault conviction which was the result of Nieweglowski molesting a five (5) year old relative, was turned over to his parole officer after suspected child pornography was found on a printer in Nieweglowski’s parents’ home on December 30, 2011. On January 15, 2011, a Special Federal Officer with the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force seized numerous media devices from Nieweglowski’s camper trailer which was parked next to his parents’ home, as well as the laptop computer that Nieweglowski could access in his parents’ home. Among the items seized from the defendant’s camper trailer was a PNY thumb drive.
A forensic review of the seized laptop home revealed approximately 79 visual depictions of minors engaged in sexually explicit conduct that had been downloaded via the internet. The PNY thumb drive was found to contain approximately 80 visual depictions of minors engaged in sexually explicit conduct that had been transferred to the thumb drive from the laptop computer. Several of the visual depictions possessed by Nieweglowski contained images of prepubescent minors engaged in sexually explicit conduct as well as images of minors that depicted sadistic behavior.
Evidence introduced at the Nieweglowski’s sentencing showed that another relative came forward after Nieweglowski was charged with the molestation of the first relative, and reported that Nieweglowski began molesting him/her since he/she was five years old and that it lasted for years. He/she did not, however, want to discuss it with the police, thus no formal charges were filed against Nieweglowski for this alleged molestation. In addition, while being transported back to an Illinois prison after violating the terms of his mandatory supervised release by viewing and downloading child pornography, Nieweglowski told his parole officer that he began looking at pornography because he was lonely, and that he was “doing some of the same things he did before he was charged the first time,” with the molestation of his five year old niece.
Furthermore, during an interview by a FBI Special Federal Officer, Nieweglowski admitted that, once he found child pornography on the internet, he could not stop himself from searching for and viewing child pornography. He said that he bought a thumb drive to use to save the images of child pornography because he was not always able to find it on the internet. He would then take the images to his camper where he was able to view them through his television. Nieweglowski stated that he had an interest in pedophilia and incest.
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 Illinois Department of Corrections and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Aurora Man Indicted for Sending Three Threatening Letters Containing White PowderRead the Press Release
DENVER –Tim Schwartz, of Aurora, Colorado, appeared before a U.S. Magistrate Judge this afternoon and was advised that on March 11, 2014, a federal grand jury in Denver, returned a one count indictment, charging him with mailing threatening communications, the United States Attorney’s Office, the U.S. Postal Inspector’s Office, the Federal Bureau of Investigation, the Aurora Police Department and the Denver Police Department announced. Schwartz was originally charged by Criminal Complaint on March 5, 2014 with sending threatening letters containing white powder to three separate addresses using the U.S. Mails. Schwartz will next appear in court on March 26th for arraignment.
According to court documents, including the affidavit in support of the criminal complaint, and the indictment, Schwartz was in a romantic relationship with an Aurora woman that ended disagreeably. He had recently spent 60 days in the Adams County Jail for domestic violence related charges involving the Aurora woman. The woman was living with her children in Schwartz’s home. When he got out of jail he learned that she had sold a fair number of his tools, which allegedly angered him.
On March 2, 2014, Schwartz brought an unopened letter into the lobby of the Denver Police Department’s headquarters building. He told the officer he was fearful of what might be in the envelope, and asked the officer to open it. The officer refused, so Schwartz opened it in the officer’s presence. Inside the envelope was a threatening letter and a light powder substance. The Denver Police Department immediately called a Hazardous Materials Unit to handle the letter and powder, which was ultimately collected, bagged and held. The letter was address to Schwartz, and had a return address of the ex-girlfriend.
On March 3, 2014, authorities learned that a second envelope containing a threatening letter and light colored powder was found at the ex-girlfriend’s address. That letter was addressed to the Adams County Detention Facility, with her return address. Writing on the envelope “return to sender – addressee no longer at this address.” This letter had similar characteristics to the letter opened at the Denver Police Department. Aurora Fire Department’s Hazardous Materials Unit and the FBI responded, screened and secured the envelope and its contents.
On March 4, 2014, a third letter was discovered at the Aurora Police Department. The third letter had similar characteristics to the other two. This letter was addressed to the Aurora Police Department with the ex-girlfriend’s return address. A hazardous materials unit responded to handle the letter and powder. All three letters had been sent via U.S. Mail.
The night of March 3, 2014, agents and officers talked with Schwartz at the Denver Police Department. During the course of the investigation, and as confirmed during the conversation, it was determined that Schwartz assembled the letters in an attempt to get back at his ex-girlfriend. Also, his handwriting matched the three letters. Schwartz was ultimately arrested by the Aurora Police Department on a violation of an order of protection.
“When someone threatens others using white powder in mailed envelopes, they will be prosecuted, as law enforcement and public safety officials have to respond as if the contents are harmful,” said U.S. Attorney John Walsh. “In this case, the defendant was trying to use threatening letters to get his ex-girlfriend in trouble. Clearly that tactic has backfired.”
“Securing the nation’s mail system and ensuring public trust in the mail is a priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “We take threats and hoaxes via the U.S. Mail seriously and will continue to work diligently to hold those responsible accountable for their actions.”
“The FBI and our law enforcement partners treat all threats seriously, even false threats, because they terrorize the victims and divert first responder resources from other public safety needs,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle. “The FBI's determination to pursue justice and our dedication to work in full cooperation with local, state, and federal partners are reflected in this investigation.”
If convicted, the defendant faces not more than 10 years in federal prison, and a fine of up to $250,000.
This case was investigated by the U.S. Postal Inspection Service, the FBI, the Aurora Police Department and the Denver Police Department. Hazardous Material Units from the Aurora and Denver Fire Departments assisted authorities as well.
This case is being prosecuted by Assistant U.S. Attorney Greg Holloway.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Art Exhibit Helps Sexual Assault Victims with Healing ProcessRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistOutgoing SAHC Director announces “Art Heals” in Centre Market
WHEELING, WEST VIRGINIA – A unique art exhibit designed to help victims of sexual assault will be on display in Wheeling’s Centre Market for the rest of month.
United States Attorney William J. Ihlenfeld, II, was joined today by officials from the Upper Ohio Valley Sexual Assault Help Center (SAHC) to announce “Art Heals”, an exhibit that is made up of art work from current and former clients of the SAHC. Much of the display was created by victims of sexual assault ranging in age from 3 to 15 years who are also part of a SAHC support group. Adult survivors of sexual assault also submitted art work, and were given the opportunity to discuss their efforts in a counseling session as part of the healing process. “Art Heals” will be available for the public to view at no cost at Artworks Around Town inside the Upper Market House in Centre Market until March 31.
“The intent of the exhibit is to give our clients another means of expressing their feelings related to their abuse history and healing journey,” said Linda Reeves, outgoing director of the Sexual Assault Help Center. “Many times trauma survivors either don’t have words or can’t put into words what they are feeling or experiencing and using the arts is a wonderful medium to express these often hidden and sometimes overwhelming emotions.”
According to Reeves, clients of the SAHC are encouraged to submit their creative pieces
in the form of drawings, paintings, photos, sketches, and writings. Past displays have included a quilt made by teen survivors of sexual violence and a quilt made by a women’s survivors group. This year the exhibit includes glass etchings from an adult survivor.Ihlenfeld and Reeves were accompanied by Helen Wilhelm, President of the SAHC’s Board of Directors, as well as Board member William “Bud” Dalrymple, in making the announcement.
“The art that has been submitted by survivors of sexual assault of all ages makes for a very powerful display,” said Ihlenfeld. “The exhibit portrays the struggles and challenges as well as the healing and growth of survivors of sexual violence. The process of creating the art provides an avenue for victims to express feelings and emotions that often are difficult to put into words.”
Reeves also took the opportunity to announce her departure from the SAHC and her new position at the Child Care Resource Center (CCRC). Reeves will serve as the early childhood specialist at the CCRC and be responsible for providing training and technical assistance to child care providers throughout the Northern Panhandle of West Virginia as well as North Central West Virginia. Lori Kinney, Director of the CCRC, was also on hand for today’s announcement.
Wilhelm is sad to see Reeves leave after two decades of service to the SAHC.
“Thanks to the efforts of Linda Reeves the response to sexual assault in the Ohio Valley has improved tremendously,” said Wilhelm. “She has shown great passion for helping victims to begin the road to recovery. Her departure is a big loss for our agency but I’m glad that she will continue to serve our community.”
“No one has been as dedicated as Linda Reeves in helping survivors of sexual assault to heal, and to begin to move on from the trauma that they’ve suffered,” said Dalrymple, who will serve as the Acting Director of the SAHC until a permanent director is named.
The Upper Ohio Valley Sexual Assault Help Center is a non-profit organization dedicated to providing assistance to the community in dealing with the crime of sexual assault. Services include crisis intervention, advocacy, support services, individual and group counseling, and community education. The SAHC primarily serves Wetzel, Brooke, Marshall, Ohio and Hancock counties in West Virginia. In Ohio, Jefferson and Belmont counties are served. The SAHC does not refuse services to anyone regardless of where they reside. All victim services are provided free of charge. Anyone who needs the services of the Center may call 1-800-884-7242. Phones are answered 24 hours a day, seven days a week.
Amherst Man Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Marc Walker, 53, of Amherst, N.Y., who was convicted of filing a false claim against the United States, was sentenced to two years probation by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution to the Internal Revenue Service in the amount of $23,694.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that the defendant, who is employed by American Airlines, filed federal tax returns for the tax years 2007 through 2011, in which he fraudulently overstated the amount of tax payments withheld from his wages. As a result, Walker claimed that he was entitled to tax refunds totaling $46,278 for those years, $23,694 of which was received by the defendant.
Walker’s criminal conduct was uncovered during the course of a civil audit of a business venture the defendant operated which was unrelated to his employment with American Airlines. The auditor observed that Walker’s tax returns claimed American Airlines had withheld several thousand dollars each year for federal taxes while IRS records showed only minimal amounts of withhold because Walker had claimed 99 exemptions on his W-4 form. When the auditor asked the defendant to verify the withholding amounts, Walker submitted fake W-2 statements to the civil auditor that claimed that American Airlines had withheld a significant portion of his earnings. Once the civil auditor reviewed the true W-2 forms submitted by American Airlines, which stated that only minimal amounts had been withheld from Walker’s pay for taxes, the case was referred to the IRS criminal division.
The sentencing is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Alaska Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kenai, Alaska, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on March 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Falk was immediately turned over to the custody of the U.S. Marshals Service.
Scott Falk, age 29, was sentenced to 7 years of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Falk will be required to register as a sex offender.
On August 5, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Falk was arrested for attempting to obtain sex with a 13-year old girl. Falk responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Falk then met with an undercover agent posing as someone who could provide a young girl and was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Thursday 20 March 2014
Woman Sentenced to 42 Months for Fraudulent Tax SchemeRead the Press Release
RICHMOND, Va. –Virginia Parks-Bert, 41, of Parkville, Md., was sentenced today to 42 months in prison, followed by 3 years of supervised release, and required to pay $135,835.09 in restitution to the Internal Revenue Service, for participating in a scheme to defraud the United States by filing fraudulent tax returns.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service, Criminal Investigation; and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division, made the announcement after sentencing by United States District Judge John A. Gibney.
Parks-Bert pled guilty on October 23, 2013, to conspiracy to defraud the government with respect to claims and aggravated identity theft. According to court documents, from February 2010 to May 2011, Parks-Bert conspired to obtain false tax return refunds by submitting false claims for herself and other to the IRS. Parks-Bert included false W-2 employer, wages, and tax withholding amount information on these returns. She and her co-conspirators then directed the false refunds to be deposited into bank accounts that they controlled. Generally, Parks-Bert purposefully kept the falsely claimed refund amounts below a certain threshold to avoid detection by the IRS. In total, Parks-Bert filed at least 57 false federal tax returns claiming $260,270 in refunds that the named taxpayers were not entitled to claim. Moreover, on March 31, 2010, Parks-Bert filed a tax return using the name and Social Security number of an individual whom she knew was deceased. She directed that the falsely claimed refund of $5,404 be deposited into a bank account that she controlled.
This case was investigated by the Internal Revenue Service and Chesterfield County Police Department. Assistant United States Attorney Erik S. Siebert and Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney Rebecca Perlmutter prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Western Slope Man Pleads Guilty to Defrauding the IRS and for Possession of A FireamRead the Press Release
DENVER –Michael L. Roy, age 50, of Clifton, Colorado, pled guilty before U.S. District Court Judge Raymond P. Moore on March 17, 2014, to conspiracy to defraud the United States and being a felon in possession of a firearm, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Roy, who is free on a bond, is scheduled to be sentenced by Judge Moore on June 16, 2014. Roy waived his right to be indicted by a federal grand jury and was charged by an Information on January 28, 2014. On September 19, 2013, Special Agents with IRS Criminal Investigation executed a search warrant on Roy’s home in Clifton, Colorado.
According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, in July 2013, the United States Postal Service intercepted eleven envelopes containing U.S. Treasury checks (IRS refund checks) and addressed to the home address of Michael and Kandiann Roy in Clifton, CO. Each of the envelopes were addressed to a different individual, and each check had a processing date of July 2013. Postal employees had also noticed Roy received letters from individuals within the Arizona State prison system. The mail carrier found a typed list with eleven names taped inside Roy’s mail box. The list appeared to serve as notification that the owner of the box would be receiving mail for these individuals.
IRS records showed that the list included eleven names for individuals who purported to file IRS Forms 1040EZ , U.S. Individual Income Tax Return, using Roy’s address. A total of 30 IRS Form 1040EZ returns, submitted for the 2012 tax year, were filed using either Roy’s current or former home address. All of the returns requested tax refunds. Twenty-six of the returns each list an identical income of $37,429, withholdings of $12,976 and refund amounts of $9,260 and were filed by mail; the refunds of eight of those returns were deposited into Roy’s bank account. The loss to the government to date is calculated at $65,263.
Twenty of the returns filed using one of the Roy's addresses purported to be from taxpayers who are incarcerated prisoners. Eighteen of these prisoners are incarcerated in the Arizona State prison, located in Eyman, Arizona. Roy, previously known as Michael Demes, was convicted in Arizona of the felonies of robbery and aggravated assault and incarcerated under that name in the Arizona prison system beginning in 1999. He was sentenced to a seven-year prison term.
During the search warrant, IRS Special Agents found documentary evidence that Roy had filed the bogus tax returns. They also found Moneygram receipts and letters to and from an inmate in the Arizona State prison, which included details of the conspiracy to file false income tax returns using the identity of other inmates. In addition, agents found a firearm, a Hi-Point .380 caliber handgun.
Conspiracy to defraud the United States and felon in possession of a firearm, both carry a penalty of not more than 10 years in federal prison, and a fine of up to $250,000, per count.
This case was investigated by IRS-Criminal Investigation, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.Two Men Sentenced for $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were sentenced in federal court today for their roles in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 40, of Nevada, Mo., and Ronald Bunn,45, of Deerfield, Mo., were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Each of the three defendants will be held jointly and severally liable for the restitution payments.
Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud.
Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.Two Indicted in 20,000-Victim Credit Card FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 23-count indictment today against Mihran Melkonyan, 33, of Sacramento, and Androuslan Akhmerov, 39, of Los Angeles, for wire fraud and mail fraud in a scheme to defraud American Express account holders, United States Attorney Benjamin B. Wagner announced.
According to court documents, Melkonyan and Akhmerov were involved in a scheme to defraud more than 20,000 credit card holders by making false charges on their accounts. To do this, Melkonyan and Akhmerov created fictitious businesses with legitimate sounding names and then charged the victims’ accounts small amounts in the range of $15-30. By using many small charges the defendants made it less likely that the credit card holders or the credit card companies would discover the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Michael D. Anderson is prosecuting the case.
Akhmerov was arrested on March 5, 2014, and is currently released on bail. Melkonyan remains at large.
If convicted, Melkonyan and Akhmerov face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Associates of La Cosa Nostra Convicted on All Counts by Jury in the July 2010 Robbery and Murder of A Brooklyn BusinessmanRead the Press Release
BROOKLYN, N.Y. —U.S. Attorney Loretta E. Lynch announced today that following a two-week trial, a federal jury convicted Richard Riccardi, 41, of Manalapan, N.J., and Louis Grasso, 46, of Staten Island, N.Y., of the robbery and murder of James Donovan on July 2, 2010. The defendants face a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of over $250,000 when they are sentenced in August.
“The defendants plotted this brazen robbery and took the life of James Donovan because of their unrelenting greed. After lying in wait for Donovan, the defendants coldly robbed him, shot him, and left him to die in the street. The jury saw through their attempts to shift responsibility for their actions and held them accountable for Mr. Donovan’s senseless death,” said U.S. Attorney Lynch.
According to the Government’s trial evidence, the defendants plotted to rob Donovan, who operated a check cashing business in Brooklyn, believing he would be carrying large amounts of cash. The defendants, together with several of their associates, followed Donovan in the weeks leading up to the robbery to learn his daily routines. Riccardi agreed to supply the guns that everyone in robbery team planned to carry for the robbery.
On July 2, 2010, the robbery team, armed with revolvers and semi-automatic firearms, headed to a shop in Gravesend, Brooklyn, where they expected Donovan. At approximately 2:15 p.m., James Donovan arrived at the shop, and the robbery team sprang into action. During the course of the robbery, one of the defendants’ coconspirators shot him. Donovan, who was hit in the leg, shortly thereafter collapsed in the street, where he lay slowly bleeding to death. Grasso stole a bag of cash from Donovan’s car, and the team fled. Donovan, whose femoral artery was severed by the bullet, died as a result of his wound.
The robbery team divided up the approximately $200,000 in cash they had stolen from Donovan. Grasso took the guns used in the robbery and said he was going to have them melted down at a friend’s auto body shop. On November 3, 2011, law enforcement searched Riccardi’s car and New Jersey residence, and recovered a .38 caliber revolver and a 9 millimeter pistol.
Ms. Lynch thanked the Drug Enforcement Administration, the New York City Police Department, the Business Integrity Commission and the Kings County District Attorney’s Office for their outstanding investigative efforts. The government’s case is being prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Darren LaVerne.
The Defendants:
RICHARD RICCARDI
Age: 41
LOUIS GRASSO
Age: 46
Town Hall Meeting in Troy on Protecting Seniors from FraudRead the Press Release
The United States Attorney’s Office and the Oakland County Prosecutor’s Office, along with Friends of Troy Seniors, AARP and the Troy Police Department will come together to increase public awareness about crimes targeting seniors in our community and to offer advice on how seniors can protect themselves from financial loss.
Financial exploitation against seniors, also known as Elder Fraud, is a crime which targets older adults in an attempt to deceive them with promises of goods, services or financial benefits that don’t exist. To bring attention to these crimes, a town hall meeting has been planned for Friday, April 11, 2014 from 9:00 am until noon at the Troy Community Center. Highlighted speakers will include U.S. Attorney Barbara L. McQuade, and Oakland County Prosecutor Jessica Cooper.
“We want to empower our seniors to recognize identity fraud and investor fraud,” United States Attorney Barbara L. McQuade said. “We hope that this town hall will arm our seniors with the information they need to protect themselves.”
Oakland County Prosecutor Jessica R. Cooper stated, "Identity theft is a multi-billion dollar crime that impacts all of us. Annually more money is stolen at the point of a pen or the click of a computer key than any other type of crime. We hope that this town hall meeting will help our citizens to learn how to protect themselves against identity theft and other types of fraud."
Chief Gary G. Mayer, Troy Police Department stated, “It is important to the Troy Police Department to make our senior citizens aware of the latest scams so they can protect themselves. We consistently see thieves on-line, on the phone or at the front door attempting to defraud our seniors and we are concerned. This town hall will help to equip the seniors and their families by becoming aware of these thieves.”
Diane Alati, Board Secretary for Friends of Troy Seniors stated, “Troy area residents have been targets of identity theft in recent weeks so it is vitally important that we get the word out on how seniors can protect themselves. If you are a senior, you should attend this town hall meeting to become an informed senior about identity theft and other types of crime that target seniors.”
While many different financial fraud schemes are perpetrated against seniors, the town hall meeting will focus on the most common – investor fraud and identity theft.Making investments, whether in stocks, real estate, commodities or mutual funds, can be financially rewarding, but some investment opportunities are a scam, and can have a devastating effect on personal savings. Examples of fraudulent investment schemes that will be discussed include advance fee schemes, affinity fraud, Ponzi and pyramid schemes and Internet fraud.
- Advance Fee Schemes are schemes designed to obtain money in advance for services the promoter has no intention of providing.
- Affinity Fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The promoters of this type of fraud frequently are - or pretend to be - members of the group.
- Ponzi or Pyramid Schemes are schemes where new investor money is used to make payments to earlier investors to give the illusion that the investment is successful.
- Internet Fraud involves use of tools such as a website, online messages or a social media site to reach a mass audience without spending a lot of time or money. Online messaging is an easy way for promoters to make their messages look real and credible, and it is sometimes difficult for investors to tell the difference between fact and fiction.
Identity theft is the unauthorized use of someone’s personal identifying and financial information for the purpose of stealing money and good credit. Identity theft has become one of the most costly crimes in the United States. Each year thousands of people lose millions of dollars to identity theft. Seniors are often vulnerable targets for identity thieves because many live alone and apart from family members and friends, have equity interests in their homes, receive Social Security checks and have excellent credit. With so many sources of personal information available, it is nearly impossible to completely prevent the theft of one’s identity, however steps can be taken to minimize the risk.
Being a victim of a financial fraud can have serious and long-term consequences, not only financially but emotionally as well. Individuals who experience financial crimes report feeling isolated, hopeless, and betrayed. Some feel embarrassed or blame themselves for what happened. Oftentimes the person committing the fraud has some type of relationship with the victim, making it less likely the victim will report the crime to law enforcement. The town hall will provide the opportunity to hear from victims of financial fraud and learn the steps they took to cope with and adjust to their situations. In addition, law enforcement and community members will be on hand to provide tips on how to protect yourself from becoming the victim of a financial fraud.
The town hall is open to the public and media as well. Registration for this event is required. Please contact Friends of Troy Seniors at (248) 526-2608 by Wednesday, April 9. Space is limited so please register early to secure your spot at this very important event.Todd County, Kentucky Man Charged with Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man was charged in a three count indictment this week, with persuading, inducing and coercing two minor females to engage in sexually explicit conduct and with receiving child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jesse Sanford Williams, age 34, was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. According to an Affidavit attached to a criminal complaint, Williams allegedly blackmailed, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. The alleged activities took place between June 2011 and March 2013. Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-2 lived in Todd County, and was approximately the same age. At all times, Williams concealed his age and identity from the victims. A subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. Logan Aluminum officials assisted federal agents in identifying Williams, an employee, as the email account holder, through a comparison of computer login times to company work schedules and attendance records, and by reviewing footage from a video camera located inside the plant and near the computer that Williams used. Williams also faces one count of knowingly receiving child pornography between June 2011 and March 2013.
If convicted at trial, Williams faces no more than a combined 60 year term in prison, a fine of $750,000 and a term of supervised release including up to life.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Texas Chemical Plant Agrees to Cut Harmful Air Pollution in Overburdened CommunityRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Flint Hills Resources of Port Arthur has agreed to implement innovative technologies to control harmful air pollution from industrial flares and leaking equipment at the company’s chemical plant in Port Arthur, Texas. This settlement is part of EPA’s national effort to advance environmental justice by protecting communities such as Port Arthur that have been disproportionately impacted by pollution. The company is also required to pay a $350,000 penalty for Clean Air Act violations.
Once fully implemented, EPA estimates that the settlement will reduce emissions of volatile organic compounds (VOCs), including benzene and other hazardous air pollutants (HAPs), by an estimated 1,880 tons per year, and will reduce emissions of greenhouse gases by approximately 69,000 tons per year.
“This agreement reflects the Justice Department’s and the EPA’s commitment to alleviate the environmental and human health challenges faced by vulnerable communities,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This settlement will mean cleaner, healthier air for residents of the Port Arthur area who continue to bear a disproportionate burden from the impacts of industrial pollution.”
“Communities like Port Arthur are a focus of our enforcement efforts as they have been hit hard by air pollution,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “ By working with EPA, Flint Hills has advanced new air pollution controls that will help EPA bring similar air quality improvements to other American communities. EPA will continue to focus on tough pollution controls and cutting edge technologies in order to reduce the burden of air pollution on Americans who need it most.”
The settlement requires Flint Hills to operate state‑of‑the‑art equipment to recover and recycle waste gases and to ensure that gases sent to flares are burned with 98 percent efficiency. The company has spent approximately $16 million to implement these required controls on industrial flares.
When the agreement is fully implemented, the company estimates it will spend $28 million to reduce “fugitive” pollutant emissions that may leak from valves, pumps, and other equipment. The company must monitor leaks more frequently, implement more aggressive repair practices, adopt innovative new practices designed to prevent leaks and replace valves with new “low emissions” valves or use packing material to reduce leaks.
To further mitigate pollution impacting the community, the company will spend $2 million on a diesel retrofit or replacement project that is estimated to reduce nitrogen oxides and particulate matter by a combined 85 tons, in addition to 39 tons of carbon monoxide, over the next 15 years. The company will also spend $350,000 to purchase and install technologies to reduce energy demand in low income homes.
For the past several years, Flint Hills has operated a system to monitor the ambient levels of the hazardous air pollutants benzene and 1,3-butadiene at the boundaries of the facility, also known as the “fence line.” The company has used the information collected to identify and reduce potential pollutant sources for communities living near the facility. In this settlement, Flint Hills has agreed to make its fence line monitoring data available online to the public.
The complaint, filed by DOJ on behalf of EPA at the same time as the settlement, alleges that the company improperly operated its steam-assisted flaring devices in a way that emitted excess amounts of VOCs, including benzene and other hazardous air pollutants. It also alleges violations of EPA regulations designed to limit emissions from leaking equipment.
The measures required by the settlement will cut emissions of pollutants that can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Today’s settlement is part of EPA’s national effort to reduce emissions of toxic air pollutants, with a particular focus on industrial flares and leaks from equipment. Improper operation of an industrial flare can emit hundreds of tons of hazardous pollutants into the air. EPA encourages companies to flare less, and when they do flare, to fully burn the harmful chemicals found in the waste gas.
Flint Hills’ plant in Port Arthur manufactures chemicals that are used in a variety of products, including medical devices, automotive parts and appliance components. The Port Arthur facility has the capacity to produce nearly 1.4 billion pounds of ethylene and 700 million pounds of propylene annually.
The consent decree, lodged in U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html .
More information about the settlement: www2.epa.gov/enforcement/flint-hills-resources-port-arthur-clean-air-act-settlement
For more on recent settlements related to flaring: http://www2.epa.gov/enforcement/national-enforcement-initiatives
###Texas Chemical Plant Agrees to Cut Harmful Air Pollution in Overburdened CommunityRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON - The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Flint Hills Resources of Port Arthur has agreed to implement innovative technologies to control harmful air pollution from industrial flares and leaking equipment at the company’s chemical plant in Port Arthur, Texas. This settlement is part of EPA’s national effort to advance environmental justice by protecting communities such as Port Arthur that have been disproportionately impacted by pollution. The company is also required to pay a $350,000 penalty for Clean Air Act violations.
Once fully implemented, EPA estimates that the settlement will reduce emissions of volatile organic compounds (VOCs), including benzene and other hazardous air pollutants (HAPs), by an estimated 1,880 tons per year, and will reduce emissions of greenhouse gases by approximately 69,000 tons per year.
“This agreement reflects the Justice Department’s and the EPA’s commitment to alleviate the environmental and human health challenges faced by vulnerable communities,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This settlement will mean cleaner, healthier air for residents of the Port Arthur area who continue to bear a disproportionate burden from the impacts of industrial pollution.”“Communities like Port Arthur are a focus of our enforcement efforts as they have been hit hard by air pollution,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By working with EPA, Flint Hills has advanced new air pollution controls that will help EPA bring similar air quality improvements to other American communities. EPA will continue to focus on tough pollution controls and cutting edge technologies in order to reduce the burden of air pollution on Americans who need it most.”
The settlement requires Flint Hills to operate state‑of‑the‑art equipment to recover and recycle waste gases and to ensure that gases sent to flares are burned with 98 percent efficiency. The company has spent approximately $16 million to implement these required controls on industrial flares.
When the agreement is fully implemented, the company estimates it will spend $28 million to reduce “fugitive” pollutant emissions that may leak from valves, pumps, and other equipment. The company must monitor leaks more frequently, implement more aggressive repair practices, adopt innovative new practices designed to prevent leaks and replace valves with new “low emissions” valves or use packing material to reduce leaks.
To further mitigate pollution impacting the community, the company will spend $2 million on a diesel retrofit or replacement project that is estimated to reduce nitrogen oxides and particulate matter by a combined 85 tons, in addition to 39 tons of carbon monoxide, over the next 15 years. The company will also spend $350,000 to purchase and install technologies to reduce energy demand in low income homes.
For the past several years, Flint Hills has operated a system to monitor the ambient levels of the hazardous air pollutants benzene and 1,3-butadiene at the boundaries of the facility, also known as the “fence line.” The company has used the information collected to identify and reduce potential pollutant sources for communities living near the facility. In this settlement, Flint Hills has agreed to make its fence line monitoring data available online to the public.
The complaint, filed by DOJ on behalf of EPA at the same time as the settlement, alleges that the company improperly operated its steam-assisted flaring devices in a way that emitted excess amounts of VOCs, including benzene and other hazardous air pollutants. It also alleges violations of EPA regulations designed to limit emissions from leaking equipment.
The measures required by the settlement will cut emissions of pollutants that can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Today’s settlement is part of EPA’s national effort to reduce emissions of toxic air pollutants, with a particular focus on industrial flares and leaks from equipment. Improper operation of an industrial flare can emit hundreds of tons of hazardous pollutants into the air. EPA encourages companies to flare less, and when they do flare, to fully burn the harmful chemicals found in the waste gas.
Flint Hills’ plant in Port Arthur manufactures chemicals that are used in a variety of products, including medical devices, automotive parts and appliance components. The Port Arthur facility has the capacity to produce nearly 1.4 billion pounds of ethylene and 700 million pounds of propylene annually.
The consent decree, lodged in U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.More information about the settlement: www2.epa.gov/enforcement/flint-hills-resources-port-arthur-clean-air-act-settlement
For more on recent settlements related to flaring: www2.epa.gov/enforcement/national-enforcement-initiatives
####St. Thomas Man Sentenced to 5 Months for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez today sentenced Melroy Burgan, 25, to five months in prison for possession with intent to distribute marijuana, to be followed by three years of supervised release, announced United States Attorney Ronald W. Sharpe and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Angel M. Melendez.
On November 5, 2013, Burgan pleaded guilty to possession with intent to distribute marijuana. According to the plea documents filed in court, on August 17, 2013, Burgan traveled from the Ft. Lauderdale- Hollywood International Airport to the Cyril E. King Airport in St. Thomas with three kilograms of marijuana in his suitcase. After Customs and Border Protection (CBP) detected the marijuana in Burgan’s suitcase, they allowed the suitcase to continue through the normal luggage procedures. Burgan, who lives on St. Thomas, was arrested after he retrieved the suitcase from the luggage carousel. During questioning, Burgan admitted ownership of the suitcase and all of its contents.
The case was investigated by CBP and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.