Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 17 March 2014
Pamela Smith Pleads Guilty to Woodstock Inn EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Pamela Smith, 57, of Barnard, pleaded guilty on March 12, 2014, in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions III released Smith on conditions pending sentencing, which has been set for July 8 in Brattleboro.
On February 18, 2014, the United States Attorney filed a one-count information charging Smith with wire fraud. According to the information, between approximately 2007 and early 2013, Smith was employed by the Shire Riverview Motel in Woodstock, Vermont. Smith worked part-time as a clerk and also performed bookkeeping services for the inn. Beginning no later than 2009 and continuing until early 2013, Smith embezzled approximately $200,000 from Shire Riverview. She did this by writing unauthorized checks to herself from the inn's checking account, then depositing the checks into her personal bank account; by stealing cash payments made by motel guests; and by using Shire Riverview funds to pay her personal expenses, including credit card, gasoline, fuel oil and telephone and Internet service bills. According to the information, Smith used about $40,000 in stolen funds to pay for improvements to a house in Barnard.
As part of her plea, Smith agreed to forfeit to the United States about $40,000 in improvements to the Barnard house, and to pay a forfeiture money judgment in the full amount of the loss.
Smith faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Woodstock Police Department and the Federal Bureau of Investigation.
Smith is represented by George Ostler. The prosecutor is Assistant U.S. Attorney Gregory Waples.Non-Indian Man from Chama Pleads Guilty to Assaulting Jicarilla Apache WomanRead the Press Release
ALBUQUERQUE – Alberto Acevedo, Jr., 60, an attorney in San Antonio, Texas, pleaded guilty this morning to a bribery charge in the U.S. District Court for the Western District of Texas, announced Steven C. Yarbrough, Acting U.S. Attorney for the District of New Mexico, and Aaron C. Rouse, Acting Special Agent in Charge of the FBI’s San Antonio Division.
Acevedo entered his guilty plea to a felony information charging him with bribery involving a program receiving federal funds pursuant to a plea agreement. The information charges that between March 2013 and Dec. 2013, Acevedo corruptly influenced a state court judge by giving him things of value. During that period, the state court judge was agent of the State of Texas and Bexar County, Texas, government entities that received federal assistance in 2013. The state court judge referred to in the information resigned from the bench on Feb. 14, 2014.
In announcing Acevedo’s guilty plea, Acting U.S. Attorney Steven C. Yarbrough said, “Fair and impartial judgment by those entrusted to carry out the laws is the bedrock of our legal system. We cannot and will not allow the public’s faith in our legal system to be shaken by judicial corruption.”
“Corruption in the courtroom erodes public confidence in the fair prosecution and resolution of cases and threatens to undermine our judicial system,” said Acting Special Agent in Charge Aaron C. Rouse of the FBI. “The FBI is committed to aggressively investigating and prosecuting those who are motivated by greed and who try to advance their personal agendas through bribery.”
In his plea agreement, Acevedo admitted giving gifts, payments and other things of value totaling more than $6,655 to the state court judge in exchange for favorable judicial rulings that benefitted him and his clients. Acevedo’s bribes to the state court judge included cash, car repairs, arranging the sale of a vehicle belonging to the state court judge, and registering a vehicle purchased by the state court judge. According to the plea agreement, the state court judge provided the favorable judicial rulings requested by Acevedo, including lenient sentences and less restrictive conditions of release for Acevedo’s clients.
At sentencing, Acevedo faces a maximum ten-year prison sentence and a $250,000 fine. Acevedo was released on bond pending his sentencing hearing, which has yet to be scheduled.Acting U.S. Attorney Steven C. Yarbrough praised the investigative work of the San Antonio Division of the FBI, which he noted is ongoing.
The prosecution of this case is being handled by Assistant U.S. Attorneys Mark A. Saltman and Brock E. Taylor of the U.S. Attorney’s Office for the District of New Mexico.- Acevedo Information
New York Man Sentenced to More Than 3 Years for Failing to Register as a Sex OffenderRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jose L.
Velazquez, 34, of Falconer, New York, was sentenced in United States District Court by Judge
D. Brock Hornby to 37 months in prison, followed by 10 years of supervised release for failing
to register as a sex offender. On September 23, 2014, he pled to the charge.According to court documents, on January 16, 2009, Velazquez was convicted in Maine
state court of 2 counts of gross sexual assault and one count of furnishing liquor to a minor. He
was sentenced to 8 years of imprisonment with all but 3 years suspended, followed by 4 years of
probation, and he was informed that he would have to register as a sex offender for life.
On March 1, 2011, Velazquez was released on probation and reminded of his obligation
to register as a sex offender, which he did. On September 19, 2011, Velazquez gave written
notice that he was changing his address to Biddeford, Maine and then stopped registering in
Maine.In fashioning his sentence, Judge Hornby observed that Velazquez was a high risk
individual who had blatantly failed to register as he was required, and that the sentence was
necessary to promote respect for the law.
The case was investigated by the United States Marshals Service.Nevada Man Sentenced for Assaulting Fort Hall Correction Center OfficerRead the Press Release
POCATELLO – Clayton Amos Lossing, 54, of McDermitt, Nevada, was sentenced today in United States District Court to 34 months in prison followed by three years of supervised release for assault on a federal officer, U.S. Attorney Wendy J. Olson announced. Lossing appeared before U.S. District Judge Brian Ted Stewart of the District of Utah. He was indicted by a federal grand jury in Pocatello on July 23, 2013, and pleaded guilty on November 19, 2013.
According to the plea agreement, on May 5, 2013, Lossing was arrested for intoxication by Fort Hall Police and transported to the Fort Hall Correction Center. During the booking process, Lossing kneed an officer in the groin, causing the officer significant pain requiring medical attention.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Murder for Hire Plot Against Judge Lands Septuagenarian A 20-Year SentenceRead the Press Release
DALLAS, Texas - Phillip Monroe Ballard, 72, of Fort Worth, has been ordered to federal prison for 20 years following his conviction in the attempted murder for hire of a federal judge in Texas, announced United States Attorney Kenneth Magidson of the Southern District of Texas. Ballard was convicted by a federal jury Dec. 11, 2013, after approximately two days of trial and less than an hour of deliberation.
U.S. District Judge Donald E. Walter from the Western District of Louisiana presided over the trial and sentencing today. At the hearing, additional evidence was presented including evidence that Ballard was originally indicted on tax charges and was known to use aliases in order to perpetrate his fraudulent tax schemes. Judge Walter ordered Ballard to serve a total of 240 months in federal prison to be immediately followed by three years of supervised release.
According to evidence presented at trial, from on or about Sept. 9, 2012 and continuing through Sep. 27, 2012, Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas. The jury heard from four government witnesses, one of whom was an informant who testified he had developed a friendship with Ballard as they both were in custody on unrelated criminal matters. He stated that Ballard had asked him if he would help him arrange the shooting death of the judge, who was presiding over his federal tax case. They eventually negotiated a price of $100,000.
The informant reported the incident to authorities and the plot was foiled before any harm came to the judge.
Ballard’s defense claimed he never had any actual intent to kill the judge. The jury disagreed and convicted him as charged.
Ballard will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel from the Southern District of Texas are prosecuting the case.
Modesto Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
FRESNO, Calif. — Alberto Morales, 31, of Modesto, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years in prison for possessing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, on February 1, 2013, Morales possessed between 300 and 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Morales was charged with possessing child pornography by way of an indictment dated February 14, 2013, and pleaded guilty to this charge on January 6, 2014. In light of a prior conviction, Morales faced a minimum statutory period of confinement of 10 years.
“Today’s prison sentence is a reminder of the serious crime that is committed when the images of innocent children are illegally traded in cyberspace,” said Mike Prado, resident agent in charge of HSI Fresno. “Targeting these predators is a top priority for HSI. We will work tirelessly to end this type of despicable child exploitation.”
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.
Mexican National Sentenced to 57 Months for Meth TraffickingRead the Press Release
POCATELLO – Humberto Ontiveros-Dias, 32, a Mexican national formerly living in Rexburg, Idaho, was sentenced today in United States District Court to 57 months in prison for distribution of methamphetamine and cocaine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Brian Ted Stewart, from the District of Utah, also ordered Ontiveros-Dias to serve four years of supervised release following his prison term, and to forfeit all property used to commit the crime and proceeds derived from the crime. He pleaded guilty to the charge on October 16, 2013.
According to the plea agreement, on March 2, 2012, Ontiveros-Dias agreed to sell an individual working as an undercover police officer an ounce of methamphetamine. The same day, Ontiveros-Dias met the undercover officer at a commercial parking lot in Rexburg. The meeting was monitored by law enforcement. During the meeting, Ontiveros-Dias sold the undercover officer two baggies of methamphetamine for $1,400. On March 9, 2012, Ontiveros-Dias agreed to sell the undercover officer an ounce of methamphetamine and an ounce of cocaine at the same parking lot in Rexburg, and was again monitored by law enforcement. During the meeting, Ontiveros-Dias sold the undercover officer approximately one ounce of methamphetamine for $1,300 and one ounce of cocaine for $1,100.
The case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Idaho State Police.
Manhattan U.S. Attorney Files Civil Rights Lawsuit Against Major Real Estate Developers and Architects to Remedy Pattern and Practice of Inaccessible Design and Construction of New York City Apartment BuildingsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a federal civil rights lawsuit in Manhattan federal court alleging that RELATED COMPANIES, INC. (“RELATED”), a major real estate developer based in New York City, has engaged in a pattern and practice of developing rental apartment buildings that are inaccessible to persons with disabilities. The suit alleges that RELATED, along with its affiliates TRIBECA GREEN LLC and BPC GREEN LLC, and two architecture firms, ROBERT A. M. STERN ARCHITECTS, LLP, (the “STERN FIRM”) and ISMAEL LEVYA ARCHITECTS, P.C. (the “LEVYA FIRM”), designed and constructed One Carnegie Hill and Tribeca Green, two rental complexes in Manhattan with more than 750 units in total, in violation of the design and construction provisions of the federal Fair Housing Act. These provisions of the Fair Housing Act have been in effect since March 1991. The suit further alleges that the inaccessible conditions at One Carnegie Hill and Tribeca Green demonstrate a pattern and practice of discriminatory conduct by RELATED, which may result in inaccessible conditions at RELATED’s numerous other rental properties in New York City and elsewhere, and that, unless RELATED’s discriminatory practices are enjoined, the inaccessible conditions at One Carnegie Hill and Tribeca Green will likely be repeated in current projects, including the Hudson Yards luxury rental complex development.
Manhattan U.S. Attorney Preet Bharara said: “We will not allow developers and architects who deprive people with disabilities of accessible housing to evade the consequences of their failure to comply with clear, long-standing federal civil rights laws. When developers demonstrate an unwillingness to design and construct accessible housing in accordance with federal law, this Office will not hesitate to use its enforcement tools to compel the developers to make both their preexisting and future constructions accessible.”
According to the allegations contained in the Complaint and public information:
RELATED is one of the largest developers of rental housing in New York City. In addition to One Carnegie Hill and Tribeca Green, RELATED has developed numerous other high-profile rental complexes in New York City, including MiMA, 1 MiMA Tower, The Caledonia, and The Tate. Since 2010, Related also has been a co-developer for the Hudson Yards complex in Manhattan, which is expected to include a mixed rental-condominium tower at 15 Hudson Yards.
RELATED has engaged in a pattern and practice of developing its rental properties without regard to their accessibility to people with disabilities. For example, at One Carnegie Hill, which is located on Manhattan’s Upper East Side, RELATED designed and constructed a 475-unit rental complex with scores of inaccessible conditions, which include steps and excessively high thresholds that interfere with accessible routes in the common areas and within individual units; kitchens that lack sufficient width for maneuvering by people in wheelchairs; electrical outlets and mailboxes that are not fully usable by people in wheelchairs; and bathrooms that lack sufficient clear floor space for people in wheelchairs to maneuver. One Carnegie Hill was completed in 2006, 15 years after the accessible design and construction requirements in the Fair Housing Act came into effect.
Similarly, RELATED caused scores of inaccessible conditions at Tribeca Green, a 278-unit rental complex that RELATED designed and constructed in lower Manhattan. Those conditions include excessively high thresholds that interfere with accessible routes in the common areas and within individual units; bathroom fixtures that prevent installation of grab bars; doorways in the common areas that lack sufficient clearance; kitchens that lack sufficient width for maneuvering by people in wheelchairs; trash rooms that lack accessible hardware; electrical outlets and mailboxes that are not fully usable by people in wheelchairs; and bathrooms that lack sufficient clear floor space for people in wheelchairs to maneuver. Tribeca Green was completed in 2005, 14 years after the accessible design and construction requirements in the Fair Housing Act came into effect.
To ensure that RELATED’s current and future residential housing developments are accessible to people with disabilities and to redress its history of non-compliance with the Fair Housing Act, the United States seeks a court order enjoining RELATED from designing and constructing multi-family housing, such as 15 Hudson Yards, without the accessibility features required by federal law and requiring RELATED to retrofit the inaccessible conditions at all the rental properties it has developed to make them accessible. The United States also seeks damages for persons harmed by RELATED’s unlawful practices, and a civil penalty to vindicate the public interest.
In addition, the United States asserts claims against the STERN and LEVYA FIRMS based on their inaccessible designs for One Carnegie Hill and Tribeca Green, respectively. Specifically, the United States seeks to enjoin these architectural firms from designing multi-family housing without the accessibility features required by federal law, as well as damages for persons harmed by their inaccessible designs and civil penalties.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Carina H. Schoenberger, and Emily E. Daughtry are in charge of the case.
U.S. v. Related Companies, Inc. Complaint
Man Who Viewed Child Pornography in Fresno Library Pleads Guilty to Receipt of Child PornographyRead the Press Release
FRESNO, Calif. —Victor Duane Smith, 59, of Fresno, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2013, law enforcement began tracking an individual who was using the Fresno County Public Library’s public wireless system to view child pornography through a file-sharing program. Investigators were able to match the computer Smith was using to the computer that had used the library’s system and watched him in the library while he used the program. Smith later confessed to the offense.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Central California Internet Crimes Against Children Task Force, and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Smith is in currently in custody and is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Smith faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the "resources" tab for information about Internet safety education.
Man Who Threatened Synagogue in Fargo Pleads Guilty and Sentenced on Civil Rights ChargeRead the Press Release
FARGO - Dominique Jason Flanigan pleaded guilty on March 17, 2014 to threatening a synagogue in Fargo in 2011, North Dakota U.S. Attorney Timothy Q. Purdon and Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels announced.
U.S. District Judge Ralph R. Erickson sentenced Flanigan to one year in prison to be followed by one year of supervised release. Flanigan was also ordered to pay a $25 special assessment to the Crime Victims’ Fund.
According to documents filed with the court, on January 4, 2011, Flanigan, also known as Kadafi Al Sadar, called Temple Beth El and left a voice mail message threatening the employees of the synagogue. He was indicted under seal by a grand jury on December 12, 2012, for interfering with a federally protected activity. The indictment charged that Flanigan’s threat intimidated and interfered with Temple Beth El employees because of their religion.
“Religious freedom is a basic civil right, and we are committed to protecting the freedom of all who worship and work at religious institutions,” said Ms. Samuels. “Those who threaten that freedom will be held accountable for their actions.”
“The North Dakota United States Attorney’s Office and the Department of Justice are committed to protecting the civil rights of all North Dakotans,” said Mr. Purdon. “We take civil right violations, such as those present in this case, very seriously and work hard to see that justice is done.”
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Lawyer Admits to Stealing Client FundsRead the Press Release
PHILADELPHIA - Gomer Thomas Williams, 54, of Philadelphia, PA, pleaded guilty today to one count of wire fraud in connection with a scheme to defraud clients of the legal firm where he worked. Williams was an attorney and associate with the Philadelphia law firm, Spector Gadon & Rosen (“Spector”). Between 2007 and 2012, Williams defrauded four of his trust and estate clients of approximately $503,361 by diverting funds from his clients’ accounts to his personal accounts, and by overbilling his clients for legal work that was not performed.
U.S. District Court Judge Legrome Davis scheduled a sentencing hearing for June 23, 2014. Williams faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a $100 special assessment, a possible fine, and up to three years of supervised release.
For the trusts, Williams was the trustee, and, for the estates, Williams was the administrator and/or executor. Williams exercised complete control over the victim-clients’ funds, including controlling their checking accounts. Williams abused his fiduciary position in transferring funds from their accounts to pay his own personal expenses, including his mortgage.
The case was investigated by the FBI and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Interlachen Man Pleads Guilty in Federal Court to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Franklin Stuart King (39, Interlachen) has pleaded guilty in United States District Court, in Jacksonville, to receiving child pornography over the Internet. King faces a mandatory minimum penalty of not less than 5 years, up to 20 years in federal prison and a potential life term of supervision. King has been in custody since his arrest on October 10, 2013. A sentencing date has not yet been set.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in Jacksonville, began an investigation to identify area individuals who had access to and/or were trading images and videos depicting child pornography over the Internet. The investigation revealed that a host computer using a particular Internet Protocol (IP) address in the Jacksonville area was hosting images of child pornography, while using a particular file sharing program. The agent made a successful connection to the host computer at this IP address and successfully downloaded several image files directly from the host computer that depicted child pornography. Further investigation revealed that the IP address resolved to a particular residence located in Interlachen, where King resided. HSI agents and other officers subsequently executed a search warrant at King’s residence and seized, among other things, King’s computer and other items of electronic media.
King was at the residence during the execution of the search warrant and told agents that he viewed images of underage kids on his computer, that while using a particular file sharing program, he would do random searches on the computer, and that he had seen images of nude minor children while on the computer. King also told agents that he used certain specific search terms to find these images and videos and stated, “there is like a small spark somewhere in [his] head that likes to see [child pornography].” King said that he had been viewing child pornography for two or three years.
A subsequent analysis of King=s computer media revealed that it contained a total of 808 images depicting child pornography.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jacksonville Sheriff’s Office, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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."
Idaho Falls Man Sentenced for Interstate Transportation of Property Taken by FraudRead the Press Release
Defendant Ordered to Pay Over $2 Million in Restitution to Victims of Fraud
POCATELLO – Gene Edward Hinsley, 64, of Idaho Falls, Idaho, was sentenced today to five years of probation for interstate transportation of property taken by fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Hinsley to serve six months of home detention and pay $2,012,539.55 in restitution to victims of the fraud.
On October 8, 2013, Hinsley was convicted by a federal jury in Pocatello on count eight of the indictment that charged him with interstate transportation of property taken by fraud. The jury was unable to reach a unanimous verdict on the remaining seven counts, including charges of wire fraud and mail fraud. Prior to sentencing, the defendant and the government entered into a post-trial agreement in which the government agreed to dismiss the remaining counts and the court could consider “relevant conduct” in determining Hinsley’s sentence.
During the six-day trial, the jury heard evidence that between 2004 and 2008, Hinsley, who was the sole owner and operator of Galaxy Coin LLC, a business located in Idaho Falls, schemed to defraud investors by obtaining money in connection with what he represented as securities issued in the form of investment contracts for speculating in the silver market. According to the evidence, Hinsley transmitted account statements and letters regarding the status of investments, by wire and the U.S. Postal Service. Hinsley did not register the securities he was selling and he was not a registered securities broker-dealer.
The government presented evidence that in 2004, Hinsley began offering an investment program that used his expertise to buy and sell silver and would generate a return on investment by selling the silver for more than the purchase price. The parties’ agreement provided that the investor would earn a profit by investing money with Hinsley, and that the investor was not expected to expend any effort to obtain the return other than providing the investment funds. According to the evidence, Hinsley misrepresented to investors that their investment was low-risk, risk free, or moderately risky; that the investors’ only risk was that they might end up with the silver; and that the investors could withdraw all or part of their invested funds upon notice. The jury heard evidence that Hinsley did not return the money when requested by investors to do so.
The government presented evidence that Hinsley’s investment scheme was structured to pay investors 80% of profits and Hinsley 20%. As Hinsley gained investors and conducted more transactions, he eventually switched to a fixed rate of return of 13% every two months, or 78% annually. Hinsley initially paid investors the returns he promised and, based on the reliability of generous investment returns and bi-monthly, e-mailed account statements, misled investors into believing he was investing prudently and obtaining consistent monthly returns. Because of these misrepresentations, investors did not attempt to remove their investment and generated a positive image to attract new investors.
The jury also heard evidence that in April 2008, Hinsley notified investors that he was unable to purchase silver due to its declining price and no one would sell to him; that he was reducing the return to 2% per month, or 24% annually; and that he would not return their investments until October 2008. In September 2008, Hinsley told investors that he would continue to pay the 2% monthly return, but would postpone payouts of the principal for an additional six months. Because Hinsley failed to maintain accurate business records, the government estimated that he issued investment contracts to over 100 investors of over $4 million, with a net loss of between $1.5 million and $2 million.
The case was investigated by the Federal Bureau of Investigation.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
# #Houston Woman Sent to Prison for Scheme to Cash Deceased Woman’s Benefit ChecksRead the Press Release
HOUSTON – Doris Hayes, 37, of Houston, has been ordered to prison for using her brother’s Social Security number to open a bank account to cash a deceased woman’s benefit checks, announced United States Attorney Kenneth Magidson. Hayes pleaded guilty to two counts of making false statements involving a Social Security number on Wednesday, Nov. 13, 2013.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hayes a sentence of 33 months in federal prison to be followed by a three-year-term of supervised release. She was further ordered to pay restitution in the amount of $177,694. Hayes, currently serving time in state prison for forgery and possession of a controlled substance, requested her federal and state sentences to run concurrently. Judge Hittner denied that request.
Hayes admitted she opened bank accounts at International Bank of Commerce and University Federal Credit Union using false Social Security numbers, including that of her brother, in order to facilitate a check cashing scheme.
A previous related indictment charged Sandra Carrier, 58, of Houston, with taking part in the scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts Hayes had opened with false Social Security numbers. Carrier and Hayes continued to negotiate the checks up to eight years after Carrier’s mother’s death.
The United States suffered $177,642 in damages as a result of the scheme.
Carrier pleaded guilty to related charges and received a sentence of 12 months and one day in prison.
Hayes will remain in custody pending transfer to a U.S. Bureau of Prisons facility upon completion of her state sentence.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.
Hobbs Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Clinton Skippings, 57, of Hobbs, N.M., pleaded guilty today in Las Cruces federal court to a methamphetamine trafficking charge. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Commander Mike Wilson of the Lea County Drug Task Force (LCDTF).
Skippings was arrested on Dec. 18, 2013, after he was transferred from state custody to federal custody to face charges on a federal criminal complaint alleging methamphetamine trafficking charges. According to the criminal complaint, officers of the LCDTF arrested Skippings in Hobbs, N.M., on state charges on Oct. 10, 2013, after seizing approximately 119 grams of methamphetamine, 42.6 grams of cocaine and 10 grams of cocaine base when they executed search warrants on Skippings, his residence and his vehicle. The officers also seized a firearm and more than $5800 in cash.
During today’s proceedings, Skippings entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Skippings admitted that he was in possession of methamphetamine and cocaine base that he intended to distribute when he was stopped by officers on Oct. 10, 2013. He also admitted that he intended to distribute the methamphetamine, cocaine and cocaine base seized when the officers executed a search at his residence.
Skippings is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Skippings will be sentenced to ten years in federal prison. According to the plea agreement, the parties will recommend that the ten year prison sentence run concurrently with the sentence imposed on Skippings in the state case captioned State of New Mexico v. Clinton Skippings, D-506-CR-2013-00074 (5th Judicial District).
This federal case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office. Assistant District Attorney Erik Scramlin of the 5th Judicial District Attorney’s Office prosecuted the aforementioned state case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Galena Woman Pleads Guilty to Embezzling $300,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Galena, Mo., woman pleaded guilty in federal court today to embezzling more than $300,000 from her employer.
Sarah N. Underwood,35, of Galena, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to wire fraud, money laundering and failure to file a tax return.
According to today’s plea agreement, Underwood worked as the community manager for Fall Creek Condominium in Branson, Mo., from Jan. 15, 2007, until she was fired on Sept. 7, 2012, when her theft was discovered. Fall Creek and its owners association has 639 condominiums owned by individuals and under its association. Among other duties, Underwood was responsible for the book-keeping and financial affairs of Fall Creek, and was an authorized signatory on the checking accounts.
By pleading guilty today, Underwood admitted that she conducted numerous unauthorized electronic bank transfers and wrote $311,280 in unauthorized checks from the bank accounts of the Fall Creek Condominium Owner’s Association. Underwood deposited these checks into her bank accounts and spent the money on personal expenses and purchases.
For example, Underwood admitted that she spent $76,287 to purchase a Shelby Mustang, used $25,505 to purchase a condominium at Fall Creek and received two paychecks every two weeks from Fall Creek.
Underwood used a cashier’s check written on her employer’s bank account to purchase a 2012 Ford F350 Super Duty 4X4 Crew Cab Truck for $56,169. The truck was registered to Mstrmind Enterprises, a company owned by her and her boyfriend, which performed construction and rehabilitation work at Fall Creek. Underwood was responsible for running the business affairs of Mstrmind, while her boyfriend, who was also employed by Fall Creek, was the project manager and responsible for the actual construction or rehabilitation project. The embezzlement scheme included an $80,000 check written to Mstrmind that was purportedly payment for work performed, but Underwood could not justify the payment.
Underwood also admitted that she failed to file federal tax returns for 2010, 2011 and 2012.
Under federal statutes, Underwood is subject to a sentence of up to 31 years in federal prison without parole, plus a fine up to $525,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.Former San Antonio Police Officer Sentenced to Federal PrisonRead the Press Release
This afternoon, 37-year-old former San Antonio Police Officer Curtis W. Lundy was sentenced to 18 months in federal prison followed by two years of supervised release for theft of honest services by wire fraud announced United States Attorney Robert Pitman, Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse and San Antonio Police Chief William McManus.
According to court records, on December 15, 2012, then Officer Lundy responded to a call concerning an assault in progress at a Northside apartment complex. At the scene, Lundy detained an individual in connection with the assault after that individual admitted to Lundy that he was in possession of a user amount of marijuana. While the subject was detained, Lundy indicated that he would hold off on filing the possession of marijuana charge in exchange for a $400 payment. During subsequent phone conversations, Lundy raised the payment to $500.
The subject subsequently contacted the FBI and at the agency’s direction, the subject was able to make multiple audio recordings of cellular telephone conversations with Lundy. During one of those conversations, Lundy instructed the subject to meet in order to collect the $500. Surveillance observed Lundy, the sole occupant, arrive in a marked SAPD patrol vehicle and collect an envelope from the subject which contained $500.
Lundy pleaded guilty to the charge on October 10, 2013.
This case was investigated by agents with the Federal Bureau of Investigation together with San Antonio Police Department Internal Affairs. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
Former Portland and Bend Area Attorney Sentenced to 63 Months for Embezzling more than $1.1 Million of Client fundsRead the Press Release
EUGENE, Ore. – Today, U.S. District Judge Michael McShane sentenced Bryan Gruetter, 55, of Portland, Oregon, to 63 months in prison and ordered him to pay $1,144,487.97 in restitution. According to court documents, Gruetter, a former personal injury lawyer, embezzled more than $1.1 million from his clients between 2008 and 2012.
Gruetter, an attorney licensed to practice law in Oregon, had offices in Portland and Bend, Oregon, and primarily worked personal injury and wrongful death cases. In 2012, law enforcement began investigating Gruetter’s use of his clients’ money and determined that between January 2008 and January 2012 he had illegally diverted more than $1.1 million of his clients’ money to pay for personal and business expenses rather than to pay the clients or to pay the clients’ legal, medical, insurance, or other associated costs. When interviewed, Gruetter admitted that he was “robbing Peter to pay Paul” because his law firm’s monthly income was insufficient to cover the monthly overhead, which included personal family payments and expenses. On March 9, 2012, defendant resigned his law license, deciding not to challenge the allegations.
Currently, the Oregon State Bar through the Client Security Fund has paid more than $900,000 to some of his clients in an attempt to mitigate some of the damage Gruetter caused. In fact, the Gruetter claims exhausted the Client Security Fund reserves, requiring an increase in bar members’ annual assessments from $15 to $45 until the reserve is fully funded.
U. S. Attorney S. Amanda Marshall commented, “As a lawyer, this defendant had a solemn duty to help his clients seek justice. Instead, he betrayed their trust and victimized vulnerable individuals by lying to them and stealing their money. His conduct tarnishes a profession full of hard-working, ethical attorneys who work hard every day helping people solve complex problems. My office will not tolerate this type of behavior from professionals who violate the public's trust in this manner.”
This case was investigated by the FBI, the IRS, the Deschutes County District Attorney’s Office, and the Bend Police Department and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Former Eagle Resident Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
Man was Fugitive for Ten Years
BOISE — Gerald Lee Farrell, Jr., 46, formerly of Eagle, Idaho, pleaded guilty today in United States District Court to one count of interstate travel with a minor with the intent to engage in criminal sexual activity and one count of possessing sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Farrell entered his plea in front of visiting Ninth Circuit Court of Appeals Judge A. Wallace Tashima, who was hearing the case by designation.
Farrell was indicted by a federal grand jury in Boise in September 2004. A superseding indictment was returned in October 2004. Farrell had been a fugitive since January of 2004. He was arrested in Spain in July 2013 and extradited to the United States in December 2013.
According to the plea agreement, Farrell and his wife became a host family for a 16-year-old German female exchange student in August 2003. The plea agreement further states that throughout the fall of 2003, the defendant sought various opportunities to observe the girl nude or partially nude and that he engaged her in conversations of a sexual nature. In December 2003, Farrell took the girl to Nevada. One night, she woke up to find the defendant lying across her stomach and trying to remove her panties. The girl was able to push the defendant away. According to the plea agreement, the girl told others about Farrell’s conduct when they returned to Idaho. Ada County Sheriff’s Office deputies executed a search warrant at Farrell’s Eagle home on January 4, 2004, and seized his computer and other items. Farrell and his wife fled Idaho for Switzerland approximately a week later. According to the plea agreement, a forensic examiner found video files of children under 18 engaging in sexually explicit conduct on Farrell’s seized computer hard drive. These images were of minors other than the foreign exchange student.
“This case shows that law enforcement at all levels is committed to aggressively pursuing those who would sexually exploit children,” said Olson. “Perpetrators of these crimes against our children cannot run and cannot hide. We will be patient, and we will find you. I commend the persistence of FBI Special Agent Mary Martin and the now-retired Ada County Sheriff’s Office detectives who worked long hours over many years to bring Mr. Farrell to justice. I also commend the many civilian witnesses, including those with the foreign exchange student program and the victim in this case, for their cooperation and readiness to testify so long after the crimes were committed.”
The charge of interstate travel with a minor with the intent to engage in criminal sexual activity is punished by a minimum of five years and a maximum of thirty years in prison, a maximum fine of $250,000, and up to lifetime supervised release. The charge of possession of sexually explicit images of minors is punishable by up to ten years in prison, a maximum fine of $250,000, and up to lifetime supervised release.
Sentencing is set for May 27, 2014, before the Hon. Dee V. Benson, U.S. District Judge for the District of Utah, at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Ada County Sheriff’s Office.
Former CME Clerk Convicted of Commodities Fraud for Manipulating Trades to Profit More Than $200,000Read the Press Release
CHICAGO — A former clerk for a lean hogs futures trader was convicted of commodities fraud for manipulating trades to profit more than $200,000 for herself to the detriment of public customers, federal law enforcement officials announced today.
The defendant, NICOLE M. GRAZIANO, 33, of Addison and formerly of Roselle, was found guilty of four counts of commodities fraud on Friday following a four-day bench trial before U.S. District Judge James Zagel in Federal Court.
Graziano’s scheme resulted in an “almost unbelievable success rate” of 90 to 100 percent of winning trades for her own account, which would have been impossible in an ordinary market setting, Judge Zagel said in delivering his verdict. Graziano faces a maximum penalty of 10 years in prison and a $1 million fine on each count. Judge Zagel set sentencing on June 25.
According to the evidence, Graziano, who was a clerk for a member broker at the Chicago Mercantile Exchange, now CME Group, secretly inserted order tickets for her own personal orders into the decks of tickets submitted by public customers. She provided the tickets and trade cards to brokers to execute during the closing bracket of trading in lean hogs futures contracts. Using her position as a clerk, Graziano fraudulently allocated favorable prices to her own trades (giving herself low prices for buy orders and high prices for sell orders), and reaped profits to the detriment of public customers. Between September 2009 and August 2010, Graziano submitted at least 89 fraudulent trade cards to the appropriate clearing firms, resulting in $213,680 in illegal profits to her during the closing bracket.
Judge Zagel said that the scheme damaged “the legitimacy of the exchange itself” and hurt customers because she took away benefits that could have gone to them for her own advantage.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The CME Group assisted in the investigation.
The government is being represented by Assistant U.S. Attorneys Christopher R. McFadden and Tiffany McCormick.
Former Bank Officer Sentenced for Embezzling from Elderly Customers' AccountsRead the Press Release
TULSA, Okla. — A former bank Savings Officer at Osage Federal Bank, now known as American Heritage Bank, was sentenced today to one (1) year and one (1) day in federal prison for stealing $147,466.30 from elderly customers’ bank accounts, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Patricia L. Swearingin, 67, of Bartlesville, embezzled bank funds from 23 elderly customers’ accounts through the use of her position as a bank officer from November 2007 to November 2010. Swearingin pleaded guilty on December 10, 2013, to misapplying funds.
Swearingin would withdraw funds from dormant bank accounts that held certificate of deposit interest income owned and held by elderly customers. The average age of the customer was 86 years old. She would forge a customer’s name on a check and present the check to the bank’s drive-through teller, falsely stating that the account customer was waiting in her office for the cash. Swearingin would either deposit the stolen funds into her personal bank account or spend the cash for personal expenses. Most of the stolen funds were used for casino gambling.
In addition to the prison sentence, U.S. District Court Judge James H. Payne ordered Swearingin to pay restitution to American Heritage Bank in the amount of $159,022.45, which includes the $147,466.30, plus the bank costs of investigating the embezzlement, and forfeited $45,137.02 from her retirement account at American Heritage Bank.
The case was a joint investigation by the Federal Bureau of Investigation, Bartlesville Police Department, the Washington County District Attorney’s Office, and the U.S. Attorney’s Office. Assistant United States Attorneys Charles L. McLoughlin and Catherine Depew prosecuted the case on behalf of the United States.
Former Bank Employee and Ex-Boyfriend Guilty in Bank Robbery That Yielded over $500,000 with Staged Kidnapping and Fake BombRead the Press Release
LOS ANGELES – The former assistant manager of a Bank of America branch in East Los Angeles and her onetime boyfriend were convicted today of plotting a heist in which the woman wore a fake bomb to simulate a kidnapping to steal approximately $565,000 from the bank.
Following a one-week trial in United States District Court, the couple was found guilty today of conspiracy to commit bank robbery and bank robbery in the September 5, 2012 heist.
Reyes “Ray” Vega, 34, of Bell, and Aurora Barrera, 33, who now resides in Downey, each face up to 30 years in federal prison when they are sentenced on May 19 by United States District Judge Manuel Real.
During the robbery, Barrera walked into the bank with what appeared to be an explosive device taped to her body, convinced a co-worker that she had been kidnapped that morning by two black men, told the co-worker that they had to open the vault and place money outside the bank or else the kidnappers would harm them.
Barrera and her co-worker placed $565,500 of the bank’s money into bags and then threw the bags out the bank’s side door. One of Vega’s longtime friends, Richard Menchaca, picked up the money and drove it away from the bank. Menchaca met up with another accomplice, Bryan Perez, and they moved the money to a safe location. The device attached to Barrera’s body turned out to be a hoax when the Los Angeles Sheriff’s Department Bomb Squad arrived and disabled it using a robot.
Menchaca and Perez were also charged in this case, but they pleaded guilty and testified at the trial of Vega and Barrera.
According to testimony, Vega and Barrera were dating at the time of the robbery. Barrera testified at trial that she planned to marry Vega and move to Dubai, where Vega claimed to have employment opportunities. However, Barrera said she ended the relationship after learning that Vega was dating several other women at the time and that he had been charged with orchestrating the robbery. Several of Vega’s former friends also testified at trial about how he asked for help in planning the robbery and how he bragged about it afterwards.
Although a small portion of the money has been recovered, the majority remains outstanding. The FBI, which led the investigation, continues to pursue leads to recover the remainder of the stolen money.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Huntington Park Police Department.
Release No. 14-032
Fargo Man Sentenced in Methamphetamine Conspiracy and for Attempted Escape from CustodyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 17, 2014, Earl Russell St. Claire Jr., 24, Fargo, N.D., was sentenced by U.S. District Judge Ralph R. Erickson to serve 25 years in prison for conspiring to possess with the intent to distribute and distribution of a controlled substance and also for attempting to escape from custody on June 15. 2013.
The conspiracy involved the transportation or distribution in excess of 500 g of methamphetamine. St. Claire, Jr. was viewed by the conspiracy as their leader or supervisor and would look to him for guidance in their distribution of the methamphetamine. Judge Erickson also ordered St. Claire, Jr. to serve five years of supervised release and to pay a $200 special assessment to the Crime Victims Fund.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, Fargo and Moorhead Police Departments, and Cass County Drug Task Force.
First Assistant U.S. Attorney Chris Myers prosecuted the case.
Eastern North Carolina Methamphetamine Distribution Organization Dismantled “Operation Speed Bump”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced the recent sentencing of a group of targets in an Organized Crime Drug Enforcement Task Force (OCDETF) prosecution focusing on methamphetamine production in Johnston, Sampson and Wayne Counties in the Eastern District of North Carolina. The results of this indictment in the larger investigation, code named Operation SPEED BUMP, was a total of 16 convictions and the sentencing of those defendants. This drug trafficking organization operated in Johnston, Sampson and Wayne Counties since at least 2008 and was responsible for manufacturing large amounts of domestically produced methamphetamine.
Mr. Walker statedThese defendants created havoc on the law-abiding residents in the area by their distribution of large amounts of methamphetamine. My office stands ready to prosecute organizations like this to the full extent of the law.”
“Meth brings violence and addiction to our communities, and North Carolina law enforcement at all levels is committed to rooting out the criminals who make and deal this dangerous drug. We’re making a dent in North Carolina’s meth problem through cases like this one,” Attorney General Roy Cooper stated.
To date, 78 methamphetamine cooks and significant precursor purchasers have been prosecuted by the U.S. Attorney’s Office as part of Operation SPEED BUMP. In October of 2012, a grand jury in this District returned a twenty-four count indictment against sixteen individuals involved in this methamphetamine production ring. All sixteen of those individuals have been sentenced. Six of these individuals were from Johnston County, six were from Sampson County and four were from Wayne County. They traveled throughout the District to buy pseudoephedrine, steal anhydrous ammonia, and cook methamphetamine. This group is responsible for purchasing over five (5) kilograms of pseudoephedrine for the purpose of manufacturing methamphetamine and the ultimate production of almost five (5) kilos of methamphetamine. This group possessed multiple firearms during the course of this conspiracy.
Sentences in these cases range from 81 months to 360 months imprisonment. See the attached list of individual defendants and their sentences. Operation SPEED BUMP is an on-going investigation into domestic methamphetamine production that has been ongoing since 2008 and has spanned at least 15 counties in the Eastern District of North Carolina to date.
The North Carolina State Bureau of Investigation Special Services Unit leads a multi-agency, collaborative effort to target methamphetamine production in the Eastern District of North Carolina. Other agencies involved in this portion of the investigation included the Johnston County Sheriff’s Office, the Sampson County Sheriff’s Office and the Wayne County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells prosecuted the cases for the government.
Dearborn Resident Charged WithAttempting to Support A Foreign Terrorist OrganizationRead the Press Release
A 22-year old Dearborn, Michigan resident was charged today in a criminal complaint with attempting to provide material support to a foreign terrorist organization, specifically Hizballah, announced United States Attorney Barbara L. McQuade.
Joining in the announcement was Paul Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Mohammad Hassan Hamdan appeared in federal court in Detroit this afternoon before United States Magistrate Judge R. Steven Whalen where he was temporarily detained pending a detention hearing which will take place on Monday, March 24 at 1pm.
The complaint alleges that on March 16, 2014, Hamdan attempted to fly to Lebanon and onto Syria to fight on behalf of Hizballah in the Syrian civil war. Hizballah is a designated terrorist organization under U.S. law, which makes it illegal to provide money, goods or services to a terrorist organization. Hamdan is a Lawful Permanent Resident of the U.S. who immigrated in 2007.
If convicted, Hamdan faces up to 15 years in prison and a $250,000 fine.
A criminal complaint contains merely accusations, and the defendant is presumed innocent unless and until proven guilty.Dallas Man Sentenced to 10 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS — Angel Medina, Jr., aka “June Bug,” of Dallas, was sentenced this morning by U.S. District Judge David C. Godbey to 120 months in federal prison following his guilty plea in October 2013 to one count of possession of methamphetamine with intent to distribute. Medina, 27, has been in custody since his arrest in May 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On May 7, 2013, a federal grand jury sitting in the Northern District of Texas returned a five-count indictment against Medina, Jr., alleging that he sold methamphetamine and cocaine base (crack cocaine) on multiple occasions. According to documents filed in the case and evidence presented in court, Medina sold narcotics to an undercover officer with the Dallas Police Department. In October 2013, Medina pleaded guilty to Count Five of that indictment, admitting that he knowingly sold an ounce of methamphetamine on June 24, 2012, to what turned out to be an undercover officer.
The case was investigated by the Dallas Police Department; it was prosecuted by Assistant U.S. Attorney Jason D. Schall.
Dallas County Man Sentenced to 70 Months in Federal Prison in Investor Fraud CaseRead the Press Release
Defendant Sold “Salad Bowl” Franchises in California and Texas
DALLAS — A Irving, Texas, man who pleaded guilty in April 2013 to one count of wire fraud stemming from his role as registered agent, director and incorporator of The Salad Bowl Franchise Corporation, was sentenced this morning by U.S. District Judge David C. Godbey.
Michael David Carroll, 38, was sentenced to 70 months in federal prison and ordered to pay $1,437,040 in restitution. Judge Godbey ordered that Carroll surrender to the Bureau of Prisons by May 16, 2014. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
According to documents filed in the case, as well as testimony at today’s sentencing hearing, from November 2008 through September 2010, Carroll ran a scheme to defraud potential investors, and to obtain money and property under false and fraudulent pretenses, by fraudulently inducing investors to purchase a “Salad Bowl” franchise from him.
As part of the scheme to defraud, Carroll obtained funds from several investors by selling “Salad Bowl” franchises to investors in California and Texas. He provided false financial data to investors including inflated daily and monthly sales figures at some franchise locations. He also falsely represented to some investors that investment funds would be used only to fund franchise construction expenses and to purchase franchise restaurant equipment related to that investor. Carroll, however, admitted that he co-mingled investor funds into his operating account and then used investor funds for his own personal use.
Carroll falsely represented to some investors that some franchise equipment at particular franchise store locations would be fully owned by the investor as part of a “turnkey operation,” when in fact, Carroll had only leased some of the franchise equipment. He also fraudulently altered financial statements to represent falsely inflated sales to deceive potential investors about income generated by retail sales at franchise store locations.
Carroll admitted that he forged his business partner’s signature on a $23,000 loan secured by account receivables on a “Salad Bowl” restaurant. He also admitted concealing his bankruptcy filings from several potential investors in order to deceive them about his true financial condition and history.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis prosecuted.
Colorado Man Pleads Guilty to Bank Robbery in LawrenceRead the Press Release
TOPEKA, KAN. – A Colorado man pleaded guilty today to a bank robbery in Lawrence, U.S. Attorney Barry Grissom said.
Matthew W. Headley, 37, Canon City, Colo., pleaded guilty to a Sept. 5, 2013, robbery at the US Bank, 1807 W. 23rd Street in Lawrence. In his plea he admitted he was wearing a golf hat and pajama pants when entered the bank and handed a teller a note saying, “100s and 50s now.” Officers of the Lawrence Police Department arrested him soon after that at a convenience store not far from the bank.
Sentencing is set for June 9. Both sides have agreed to recommend a sentence of 24 months in federal prison. Grissom commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Mike Warner for their work on the case.Bridgeport Woman Sentenced to Prison for Embezzling from Shelton Travel AgencyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTINA TARTAGLIO, 34, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment, followed by three years of supervised release, for embezzling from her employer. TARTAGLIO also must spend the first six months of her supervised release in home confinement under electronic monitoring.
According to court documents and statements made in court, between 2008 and 2011, TARTAGLIO was employed as a corporate travel consultant, office manager, and accounting assistant for a travel agency located in Shelton. During that time TARTAGLIO embezzled from the travel agency by drafting refund checks from the agency to clients who were not due any refunds, forged the clients’ signatures, endorsed the checks, and then deposited them into her personal bank account. Also, where a commission was due to the travel agency, TARTAGLIO entered all or part of the commission as a credit payable to a random client or a fictitious name and then wrote a check for the credit amount to that name. She then endorsed each check and deposited it into her bank account. She also created checks payable to vendors or suppliers for operating expenses, changed the payee on a check to a fictitious name created by her, endorsed and then deposited the checks in her account.
Through this scheme, TARTAGLIO embezzled $94,237.05. She was ordered to pay full restitution.
On June 10, 2013, TARTAGLIO pleaded guilty to one count of wire fraud.
This matter was investigated by the U.S. Secret Service, the Shelton Police Department and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bourbonnais Tax Preparer Charged with Filing False Income Tax Returns and with Aiding in the Preparation of False Income Tax Returns for OthersRead the Press Release
Urbana, Ill. – A Bourbonnais tax preparer, Robert J. DeAngelo, 62, of St. Pauls Drive, is scheduled to make his initial court appearance on Apr. 2, 2014, before U.S. Magistrate Judge David G. Bernthal in Urbana. A grand jury indicted DeAngelo last week on three counts of filing a false income tax return and 14 counts of aiding and assisting in the preparation of false income tax returns.
According to the indictment, DeAngelo operated a home office that provided tax services, including preparing and filing federal income tax returns for its clients. The indictment alleges that DeAngelo prepared and filed tax returns as a sole proprietorship, on behalf of himself and his wife, which understated gross receipts and overstated expenses for 2008, 2009, and 2010. DeAngelo allegedly claimed an adjusted gross income of $3,647 in 2008, when, in fact, his actual adjusted gross income was approximately $44,244. For 2009, DeAngelo allegedly understated his gross receipts by approximately $40,690, and claimed an adjusted gross income of $486.00. In 2010, DeAngelo allegedly falsely claimed an adjusted gross income of $346.00. As a result, for each return, DeAngelo qualified and claimed the earned income credit.
The indictment further alleges that for 2007 through 2010 tax years, DeAngelo created false employee business expense deductions for his tax return clients, without their knowledge. As a result, these tax returns provided larger refunds for DeAngelo’s clients, and resulted in an overall tax loss of approximately $50,193 to the United States.
The charges are the result of an investigation by Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, for each count of filing a false income tax return and for aiding and assisting in the preparation of false income tax returns, the statutory penalty is up to three years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Baggage Handlers at San Diego International Airport Charged with Smuggling Drugs via AircraftRead the Press Release
SAN DIEGO – Four baggage handlers at San Diego International Airport were indicted by a federal grand jury Friday on charges that they conspired to smuggle cocaine and methamphetamine onto aircraft by exploiting their ability to pass unchecked through security screening areas.
It’s believed to be the first federal drug prosecution of airport employees at San Diego’s largest airport.
The indictment alleges that Felix Samuel Garcia, Paulo Mendez Perez and Saul Bojorquez, all current or former employees of Delta Global Services, which provides ground services for several airlines, flashed badges numerous times and walked through checkpoints with drugs in their backpacks. Brian Alberto Gonzalez, also a DGS employee, allegedly worked as a courier.
According to the indictment, the drug-toting baggage handlers connected with drug couriers during clandestine meetings in airport restrooms in the secured area of Terminal 2, where they would wait for adjoining stalls to become available and once inside, would hand off the cocaine and methamphetamine under the stalls’ divider.
Also charged were seven alleged couriers, drug suppliers and middlemen. After the bathroom rendezvous, the couriers would board flights and proceed to destinations like New York City, Nashville, Detroit, Baltimore and Hawaii, where they were met by other members of the drug trafficking organization. While the street price of methamphetamine in San Diego is about $5,000 a pound, the value skyrockets to $25,000 a pound in Hawaii.
The alleged traffickers charged in the indictment include Sergio Mejia-Gamboa, Angel Ortega, David Camacho, Jesus Morales, Candelario Perez, Israel Acosta and Henry Garcia-Arambula. All were arrested last week during sweeps by federal agents. All defendants are in custody but Ortega.
The following defendants are scheduled to be arraigned tomorrow before U.S. Magistrate Judge Ruben B. Brooks: Garcia; Mejia-Gambo; Camacho; Morales; Acosta and Gonzalez.
According to a complaint, agents seized 8 kilograms (17 pounds) of cocaine with an estimated street value of $144,000; 18 pounds of methamphetamine with an estimated street value of $90,000 in San Diego and up to $450,000 in Hawaii; and $103,846 in cash during the yearlong investigation.
“This was a brazen scheme to smuggle drugs right under the noses of airport security officials,” said U.S. Attorney Laura Duffy. “We aren’t going to let dangerous drugs fly in unchecked bags in the overhead bins of commercial aircraft.”
“Throughout this investigation, DEA San Diego’s Narcotic Task Force worked closely with law enforcement counterparts nationwide, including airport authorities, to ensure the successful apprehension and dismantlement of this drug trafficking organization,” said DEA San Diego Assistant Special Agent in Charge Gary Hill. “All agencies involved understand how important the security protocols of our airports are, and will continue to work together to formulate plans to thwart other criminal elements from exploiting and circumventing airport security in the future.”
DEFENDANT Case Number 14cr0657 Felix Samuel Garcia Age: 29 Imperial Beach, CA Paulo Mendez Perez Age: 36 Chula Vista, CA Sergio Mejia-Gambo Age: 22 San Bernadino, CA Angel Ortega Age: 26 San Bernadino, CA David Camacho Age: 27 San Bernadino, CA Jesus Morales Age: 21 San Bernadino, CA Candelario Perez Age: 24 Fresno, CA Israel Acosta Age: 48 San Bernadino, CA Brian Alberto Gonzalez Age: 30 San Diego, CA Saul Bojorquez Aviles Age: 26 Chula Vista, CA Henry Garcia-Arambula Age: 22 San Berndino, CA CHARGESConspiracy to Possess Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 846 and 841 (a) (1); Maximum Penalties: 20 years in prison
Possession of Cocaine and Methamphetamine with Intent to Distribute – Title 21, U.S.C., Section 841 (a) (1); Maximum Penalties: 10 years to life in prison
INVESTIGATING AGENCYNarcotic Task Force
Drug Enforcement Administration*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.
Saturday 15 March 2014
Former CEO of Long Island’s Synergy Brands, Inc. Convicted of One Billion Dollar Check Kiting SchemeRead the Press Release
Mair Faibish, the former Chief Executive Officer of Synergy Brands, Inc., was convicted today by a federal jury in Brooklyn on all three counts of the indictment for defrauding Signature Bank out of $26 million through a massive check kiting scheme, for making false statements to the United States Securities and Exchange Commission (“SEC”) and for defrauding investors by overstating the value of the company. The jury’s verdict followed a three-week trial in United States District Court held before the Hon. Eric N. Vitaliano.
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James T. Hayes, Jr., Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (“HSI”), New York Field Office; and Acting Nassau County Police Commissioner Thomas Krumpter.
“Through lies and deceit, the defendant and his co-conspirators took advantage of banks, auditors and unsuspecting investors and stole millions of dollars. Their representations and assurances were not worth the paper the checks were written on. We will vigorously pursue and bring to justice those who would defraud FDIC insured banks and the investing public,” stated United States Attorney Lynch. Ms. Lynch thanked HSI and the Nassau County Police Department for their hard work and dedication through the course of the investigation and prosecution.
The evidence at trial established that Faibish was the former CEO of Synergy Brands, Inc. (“Synergy”), a publicly held food products company that traded on the NASDAQ and Over-the-Counter (“OTC”) exchanges and manufactured and distributed various food products. Together with his co-conspirators, Faibish executed a check-kiting scheme on behalf of Synergy to funnel approximately $ 1.3 billion worth of checks that were not backed by sufficient funds through Signature Bank, Capital One Bank and various Canadian banks. Faibish caused those checks to be deposited into bank accounts of associated food manufacturers and distributors in Canada. The Canadian companies then sent checks in corresponding amounts, which were also not backed by sufficient funds, back to Faibish-controlled third party companies. Because the banks made deposited funds immediately available for withdrawal, the scheme artificially inflated the companies’ account balances while the scheme was ongoing. The defendant and his co-conspirators used Synergy’s fraudulently inflated bank account balances to book millions of dollars in fictitious accounts receivable and revenue.
As a result of this fraud, FDIC insured Signature Bank lost approximately $26 million that the defendant and his co-conspirators had withdrawn before the bank uncovered the scheme. Following the scheme’s collapse, Synergy was taken into bankruptcy and its publicly traded stock became essentially worthless, causing hundreds of thousands of dollars in investor losses.
The trial evidence further established that Faibish falsely inflated the values of Synergy’s sales, cost of goods sold and pre-paid expenses in filings with the SEC for the quarter ending June 30, 2008. These material misrepresentations were breaches of the defendant’s fiduciary duties to investors.
When sentenced by Judge Vitaliano, Faibish faces a sentence of up to 30 years’ imprisonment for bank fraud and securities fraud conspiracy as a result of the check kiting scheme.
The government’s case is being prosecuted by Assistant United States Attorneys Sylvia S. Shweder and Jack Dennehy.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
MAIR FAIBISH
Age: 54
Residence: Huntington Station, New York
E.D.N.Y. Docket No. 12-CR-265
Friday 14 March 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS (before District Judge Robert L. Miller, Jr.):
Lawrence Tinsman, 67, of Plymouth, Indiana was sentenced to 84 months imprisonment with 5 years of supervised release and to pay $500 in restitution after pleading guilty to the felony offense of distribution of material involving a minor engaged in sexually explicit conduct.According to documents filed in this case, in April 2013, Tinsman possessed a computer onto which he had downloaded, using a peer-to-peer file sharing program, numerous images and videos that depicted minors engaged in sexually explicit conduct. Using this same file sharing system, Tinsman made the files available to be downloaded by other individuals seeking child pornography. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Nora Guardiola, 36, of Sheldon, Illinois was sentenced to 18 months imprisonment with 3 years of supervised release after pleading guilty to the felony offense of knowingly and intentionally distributing cocaine.According to documents filed in this case, Guardiola was involved in delivering seven ounces of cocaine to the Kentland, Indiana area. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
William Speybroeck, 35, of South Bend, Indiana was sentenced to 33 months imprisonment, 2 years of supervised release, a $3,000 fine and to pay $9,250 in restitution after pleading guilty to the felony offense of knowingly possessing and/or disposing of stolen merchandise across state lines.According to documents filed in this case, in April 2013, Speybroeck shipped a piece of drilling equipment from South Bend, Indiana to Nebraska.Speybroek was aware the equipment was stolen.He was paid $9000 via wire transfer. This case was the result of an investigation by the Indiana State Police.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Gary Franklin, 50, of Elkhart, Indiana was sentenced to 96 months imprisonment, 3 years of supervised release and to pay $42,500 in restitution after pleading guilty to the felony offense of knowingly and intentionally receiving, possessing, concealing, selling, or disposing of stolen vehicles that had crossed state lines after being stolen.According to documents filed in this case, in September 2012, law enforcement discovered an excavator on property Franklin was renting in Niles, Michigan. The excavator had been stolen from an Indiana job site and moved across state lines. Franklin was in possession of the stolen excavator and had reason to believe the excavator had crossed state lines after being stolen. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Ronald Holmes, 47, of Griffith, Indiana, was sentenced by Chief Judge Philip Simon to 4 years of probation, a $30,000 fine and 100 hours of community service after pleading guilty to a felony Information charging him with causing the discharge of pollutants into the Hammond Sanitary District’s publicly owned treatment works when he had not been issued a permit by the Hammond Sanitary District to do so.In a separate Information, NH Environmental pleaded guilty to negligently violating a national pretreatment standard under the Clean Water Act, in that the company negligently discharged, trucked or hauled pollutants, including industrial, sanitary, and food industry-related wastes, into a publicly owned treatment works at a location that had not been designated, approved, or otherwise permitted. NH Environmental was sentenced to 4 years of probation, a $75,000 in restitution to the City of Hammond, $25,000 in restitution to the Hammond Sanitary District and a $70,000 fine.According to documents filed in this case, Holmes and East Chicago based NH Environmental Group, Inc. (“Tierra”), a company owned by Holmes, both pleaded guilty to Clean Water Act violations. Holmes told Tierra managers to direct the company’s drivers to dispose of liquid wastes by regularly discharging tanker truckloads down a drain inside a building that was owned and/or controlled by Holmes and located in Hammond, Indiana. This case was a result of an investigation by the U.S. Environmental Protection Agency.This case was prosecuted by Assistant United States Attorney Toi Houston, Department of Justice Environmental Crimes Section Senior Counsel James A. Morgulec and Special Assistant United States Attorney David Mucha.
Washington Man Sentenced to 60 Months for Bank Fraud Conspiracy and Obstruction of JusticeRead the Press Release
ALEXANDRIA, Va. – Samuel Goines, 61, of Washington, D.C., was sentenced today to 60 months in prison, followed by 3 years of supervised release, for conspiracy to commit bank fraud and obstruction of justice. Goines also was ordered to pay restitution and forfeiture in the amount of $539,187.36.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office;Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Goines pleaded guilty on Dec. 13, 2013. According to court documents, Goines and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and funded them through stolen and counterfeit checks and unauthorized wire transfers. The conspirators then withdrew money from these fraudulent accounts. On a single day in 2013, Goines went to eight SunTrust bank branches in northern Virginia and cashed eight checks issued to other people by presenting eight different fake IDs.
Goines continued to participate in the conspiracy even after he was put on electronic monitoring due to a probation violation in an unrelated case. In addition, after Goines was arrested, he called a co-conspirator from jail to warn him about the investigation and advise him of steps to take to avoid detection.
This case was investigated by the FBI’s Washington Field Office, the U.S. Secret Service, and the Alexandria Police Department. Assistant U.S. Attorney Kosta S. Stojilkovic prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on PACER and on the website of the U.S. District Court for the Eastern District of Virginia.Vian Man Pleads Guilty to Maintaining Drug Involved Premises for Manufacture, Distribution and Use of MethamphetamineRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CLIFFORD PERKINS JR., age 43, of Vian, Oklahoma, pled guilty to Maintaining Drug Involved Premises, in violation of Title 21, United States Code, Section 856.
The charge arose from an investigation by the Sallisaw Police Department, District 27 District Attorney’s Drug Task Force, Bureau of Indian Affairs and the Drug Enforcement Administration. The defendant was indicted in August, 2013.
The Indictment alleged that during the period of on or about August 1, 2012 to on or about present date, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally maintain a place at 307 Dennis St., Vian, Oklahoma, for the purpose of distributing, manufacturing and using methamphetamine, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment and/or up to a $500,000.00 fine.
Assistant United States Attorney Kyle Waters represented the United States.
Ukrainian Businessman Arrested in Austria on <br /> U.S. International Corruption Conspiracy ChargesRead the Press Release
Dmitry Firtash, 48, a Ukrainian businessman, was arrested Wednesday by Austrian authorities in Vienna on a provisional arrest request based on charges filed in the Northern District of Illinois, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
The charges result from an investigation, which the FBI has conducted for several years, of an alleged international corruption conspiracy. Firtash’s arrest is not related to recent events in Ukraine.
Firtash, who controls Group DF, an international conglomerate of companies, remains in Austrian custody unless he meets the bail condition of posting a €125 million bond, which was set today in a Vienna court. The U.S. government will seek his extradition.
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs. The Chicago Office of the FBI conducted the investigation.Two Miami-Dade County Men Convicted of Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Dan Alexander, Chief, Boca Raton Police Department, Vince Demasi, Chief, West Palm Beach Police Department, Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce today that following a two week trial in West Palm Beach, a jury convicted Osvaldo Domingo Ceballo, 44, of Hialeah, and Yumar Oliva, 43, of Miami, of conspiracy to possess with intent to distribute more than five kilograms of cocaine hydrochloride and possession with intent to distribute more than five kilograms of cocaine hydrochloride.
Sentencing is scheduled for May 21, 2014, before U.S. District Judge Daniel T.K. Hurley. At sentencing, the defendants face a mandatory minimum sentence of ten years in prison up to a maximum of life in prison, a mandatory minimum period of supervised release of five years up to life, a maximum $4 million fine, and a $100 special assessment as to both the conspiracy to possess with intent to distribute charge and the possession with intent to distribute charge.
According to the evidence presented at trial, Taverne Pierre Louis operated a large scale drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of cocaine from Haiti and the Bahamas to Miami-Dade, Broward and Palm Beach Counties. Osvaldo Domingo Ceballo and Yumar Oliva facilitated Taverne Pierre Louis’ drug distribution organization by transporting the cocaine. During the course of this investigation, 27 kilograms of cocaine and over 100 grams of cocaine base, commonly referred to as “crack” cocaine, were seized.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, CBP, Boca Raton Police Department, West Palm Beach Police Department, BSO and the Palm Beach County State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Two Men Charged with Illegally Manufacturing and Transporting FirearmsRead the Press Release
Navy official allegedly set up $1.6 million contract for silencers from unlicensed company
ALEXANDRIA, Va. – A federal grand jury returned a superseding indictment charging Lee Hall, 52, of northern Virginia, and Mark Landersman, 53, of California with conspiracy to illegally manufacture firearms, transport unregistered firearms in interstate commerce and commit mail fraud. Lee Hall also is charged with theft of government money.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Rocco Pierri, Special Agent in Charge of the Naval Criminal Investigative Service’s (NCIS) Washington Field Office; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement.
Hallfaces a maximum penalty of 15 years in prison if convicted of both charges. Landersman faces a maximum penalty of five years if convicted.
According to the indictment, as Intelligence Director of the Office of Plans, Policy, Oversight and Integration for the Deputy Undersecretary of the Navy, Lee Hall initiated a sole source contract between a Navy prime contractor and Mark Landersman’s company, Advanced Machining and Engineering (AME), for the manufacture of 349 silencers at a cost of approximately $1.6 million.
According to court records, neither Landersman nor AME was licensed to manufacture or sell firearms or silencers. Moreover, although AME was to receive about $1.6 million for the silencers, Landersman subcontracted the actual production of the silencers for a cost of approximately $10,000. Landersman had the silencers manufactured without serial numbers and shipped them to Maryland in February 2013.
The sole source contract called for Landersman to receive a deposit of approximately $800,000 before starting production, with the balance to be paid shortly after the silencers were shipped from California to Maryland. In April 2013, Landersman received the remaining balance of approximately $800,000 under the subcontract. An inspection report submitted before payment of the remaining balance stated that the silencers had been inspected and that they conformed to the contract. No inspection of the silencers, however, was actually done prior to paying the $800,000 balance.
This investigation is being conducted jointly by NCIS and ATF. Assistant U.S. Attorneys Morris Parker, Patricia Haynes and Karen Taylor are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on PACER and on the website of the U.S. District Court for the Eastern District of Virginia.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Travis Patrick Zabroski Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 6, 2014, before U.S. District Judge Susan P. Watters, TRAVIS PATRICK ZABROSKI, a 31 year-old resident of Billings, Montana, was sentenced to a term of:
Prison: 85 months
Special Assessment: $ 200
Restitution: N/A
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
On January 15, 2013, officers with the Billings Police Department were investigating a robbery that occurred at 2150 Grand Avenue in Billings. After investigating the robbery, an officer went to the Holiday Station located at King Avenue and S. 20th Street W. to conduct a business check. Inside the store, the officer observed a white male, later identified as Travis Patrick Zabroski, who matched the description of the robbery suspect. The officer asked the defendant questions, and, at one point, the defendant told the officer that he was on probation for armed robbery.
Additional officers arrived at the scene. The officers contacted the defendant's probation officer and was given consent to search the defendant's vehicle.
During the search, an officer located a book safe underneath the driver's seat. Inside the book safe, the officer recovered various items including a baggie with a white crystalline substance and a loaded .357 Ruger pistol with the serial number filed off. The white crystalline substance was tested at the scene with a methamphetamine kit and the result was positive. The methamphetamine was then sent to the DEA lab for analysis, and the results indicated that the actual amount of methamphetamine was 41.8 grams.
Agents also obtained information from other sources that the defendant had possessed methamphetamine with the intent to distribute it in the Billings area from October 1st of 2012 through January 15th of 2013.
The .357 Ruger pistol was examined by an ATF Special Agent, and it was determined that the firearm was not manufactured in the State of Montana. Therefore, it traveled in and affected interstate commerce.
In 2000, Zabroski was convicted of Armed Robbery in New Mexico, which is a felony crime punishable by a term of imprisonment exceeding one year.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Billings Police Department.
Three Sentenced for Armed Bank RobberyRead the Press Release
CHARLOTTE, N.C. – On Thursday, March 13, 2014, U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing of Kenneth Lamont Moore, Jr., 22, of Laurinburg, N.C., Antonio DeMarcus Clendening, 31, and Kamara Shanta McBrayer, 27, both of Charlotte, on armed bank robbery charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Clendening was sentenced to serve 272 months in prison, Moore was sentenced to 121 months in prison, and McBrayer was sentenced to 42 months in prison. All three defendants were also ordered to serve three years of supervised release following their prison terms.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) are joining U.S. Attorney Tompkins in making today’s announcement.
According to court documents and yesterday’s sentencing hearings, on May 20, 2013, the three defendants robbed a Bank of America branch located on Albermarle Road in Charlotte. Court records indicate that Moore and Clendening entered the bank soon after it opened at 9:00 a.m., wearing gloves, women’s wigs and bandanas over their faces. The two men were also armed with handguns. According so court records, upon entering the bank, the defendants pointed their guns at the bank tellers and ordered them to put the money in a pillow case provided by Clendening. The robbers fled the bank with approximately $7,760 in cash and got into a vehicle driven by McBrayer. Court records show that CMPD officers responding to an emergency call attempted to stop the getaway vehicle, but McBrayer did not stop and a high speed chase ensued through a residential neighborhood. Law enforcement apprehended the three bank robbers after McBrayer crashed the vehicle she was driving.
The three defendants pleaded guilty in July 2013. Clendening and Moore each pleaded guilty to conspiracy to commit armed bank robbery, armed bank robbery and use of a firearm in furtherance of a crime of violence. McBrayer pleaded guilty to conspiracy to commit armed bank robbery and armed bank robbery.
All defendants have been in federal custody in the Western District of North Carolina since they were arrested in May 2013. Upon designation of a federal facility they will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI’s Safe Streets Task Force and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office in Charlotte.
Three People Admit Roles in Extensive Tax Refund Check ScamRead the Press Release
NEWARK, N.J. — A Bronx, N.Y., man today admitted his role in conspiring to steal government funds through his involvement in an extensive scheme to fraudulently obtain income tax refund checks issued by the United States, U.S. Attorney Paul J. Fishman announced.
Luis Pena, 31, was the third member of the conspiracy to plead guilty this week; Gloria Rivera, 43, of Bronx, also pleaded guilty today and Lourdes Ortiz, 41, of Bronx, pleaded guilty March 10, 2014. Each defendant pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to separate informations charging them with conspiracy to commit theft of government property.
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- Participants complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information, falsifying wages earned, taxes withheld and other data and always ensuring the fraudulent form generates a tax refund check from the U.S. Treasury.
- They direct the U.S. Treasury Department to mail the fraudulently obtained checks to locations the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the checks from their mail routes.
- With the checks in hand, they generate cash proceeds by depositing the Fraudulent Treasury Checks into bank accounts that they control.
According to documents filed in these cases and statements made in court:
Pena, Rivera, and Ortiz, each admitted that they knew that the U.S. Treasury checks involved in the conspiracy had been generated by conspirators filing false and fraudulent income tax returns with the IRS in order to obtain refunds to which they were not entitled. All three stated that they knew that the tax refund scheme was intended to, and did, defraud the IRS and the U.S. Treasury. At the time of the conspiracy, Rivera and Ortiz were employed as mail carriers by the U.S. Postal Service.
In 2011, Pena approached Rivera and arranged to direct fraudulent tax refund checks to Rivera’s mail route and have those checks intercepted and retrieved by Rivera in exchange for a cash payment to Rivera of at least $400 per check. After directing the checks to Rivera’s mail route, Pena provided Rivera with identifying information for the fraudulent treasury tax refund checks that he directed to her mail route.
Rivera, however, became unable to work due to illness in September 2011 and was replaced by mail carrier Ortiz on the Flushing, Queens, N.Y., mail route. Rivera approached Ortiz and asked Ortiz to intercept the fraudulent checks in exchange for approximately $200 per fraudulent check. Ortiz agreed.
Using the information provided by Pena, from September 2011 through May 2012, Rivera – or Ortiz on Rivera’s behalf – intercepted from the Flushing mail route the fraudulent checks that corresponded to the information given to Rivera by Pena. In exchange for the intercepted checks, Pena gave Rivera cash payments, which Rivera passed along – in part – to Ortiz.
The fraudulently obtained tax refund checks stolen by Pena, Ortiz, and Rivera totaled $336,647.
Once the stolen checks were returned to Pena, he passed the checks on to other conspirators, many of whom were in Newark, N.J. They cashed the checks, primarily by using bank accounts controlled by conspirators.
The charge to which the defendants pleaded guilty carries a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross amount of any pecuniary gain or loss. Sentencing for Ortiz is scheduled for July 7, 2014; for Rivera, July 8, 2014, and for Pena, July 9, 2014
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; special agents of the U.S. Postal Inspection Services, under the direction of Inspector in Charge Maria Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service - Office of the Inspector General, under the direction of Special Agent in Charge Rafael Medina.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-089
Defense counsel:
Ortiz: Olubukola Adetula Esq., Irvington, N.J.
Rivera: Elizabeth Smith, Esq., Mendham, N.J.
Pena: Patrick Brackley Esq., New YorkPena Information
Ortiz Information
Rivera Information- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Three New Haven Men Plead Guilty to Crack Cocaine Distribution OffensesRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three New Haven men involved in a crack cocaine distribution ring have pleaded guilty in Bridgeport federal court. DONALD OGMAN, also known as “Main” and “Mainy-O,” 32, KENNETH STURDIVANT, also known as “Slay,” 28, and ROMELL BROWN, 35, each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”). OGMAN pleaded guilty today, and STURDIVANT and BROWN pleaded guilty on March 10 and March 11, respectively.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
When they are sentenced, OGMAN, STURDIVANT and BROWN face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. They been detained since they were arrested in March 2012.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals with narcotics distribution offenses stemming from this investigation. Two more individuals were later charged in the case with the same offense. To date, 16 of the defendants have pleaded guilty. Four defendants are awaiting trial, which is currently scheduled to begin on March 24 before Senior U.S. District Judge Warren W. Eginton in Bridgeport.
With respect to the defendants awaiting trial, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Local Residents Sentenced for Food Stamp FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatthree men have been sentenced today by United States District Judge Mark Walker for conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP) - - also known as the food stamp program - - and on other charges.
Rodrigue Bissainthe, 26, pled guilty to conspiracy and two mail fraud charges on November 27, 2013. He received a sentence of three years of supervised release, with one year to be served in home confinement. He must pay $300 in special monetary assessments (SMAs) and $3,572.85 in restitution. His convictions were based upon allowing fraudulently obtained SNAP debit cards to be mailed to his residence and using one of the SNAP cards.
Darius Jemmott, 22, was convicted of conspiracy, three charges of fraud involving interstate wire communications, and aggravated identity theft. He received a sentence of two years in prison, to be followed by a three-year term of supervised release. He must pay $500 in SMAs and $500.10 in restitution. He provided a second address to which fraudulently obtained SNAP debit cards were mailed and used one of the SNAP cards.
Dwayne Phanor, 24, pled guilty to conspiracy, mail fraud, wire fraud, and seven aggravated identity theft charges on December 4, 2013. He received a sentence of 54 months in prison, to be followed by twelve months of supervised release. He must pay $1,000 in SMAs and restitution of $7,905.21.
According to court records, Phanor filed approximately 72 fraudulent SNAP applications, seeking total benefits of approximately $102,000. Some applications were unsuccessful, because those people named in the applications were already properly receiving SNAP benefits. Phanor then made about twenty-five change of address requests, to have those legitimate SNAP benefits diverted to locations he controlled. In those calls, Phanor sometimes pretended to be elderly or female, based upon the circumstances of the genuine beneficiary. When Phanor received SNAP cards, he sold them at discounted prices to his acquaintances.
SNAP provides economic assistance to qualified low-income people, to help them obtain adequate food. The United States Department of Agriculture funds the SNAP program, and in Florida, SNAP is administered by the Department of Children and Family Services (DCF). The Department of Financial Services investigates public assistance fraud arising from DCF programs.
U.S. Attorney Marsh praised the Department of Children and Family Services, the Department of Financial Services, the Tallahassee Police Department, the United States Postal Inspectors, and the United States Secret Service for their hard work, dedication, and expertise in the investigation that led to the successful prosecution of this case.
The case was prosecuted by Assistant United States Attorney Michael T. Simpson.Three Defendants Sentenced in Manhattan Federal Court for Roles in Immigration Asylum Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SONG LUO, ZEYUAN WANG, and YONG ZHANG were sentenced in Manhattan federal court in connection with their roles in a scheme to commit immigration fraud by creating and submitting applications for political asylum on behalf of Chinese nationals that contained false stories of persecution purportedly suffered by these applicants. LUO, WANG, and ZHANG were each sentenced to three months in prison. The defendants each previously pled guilty to one count of conspiring to commit immigration fraud, and were sentenced today by U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “As part of the immigration fraud scheme, Song Luo, Zeyuan Wang, and Yong Zhang aided others in exploiting this country’s asylum laws by coaching and assisting them to lie on their applications. The sentences imposed on the defendants today ensure that they will be punished for their crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
LUO, WANG, and ZHANG worked as paralegals at a law firm located at 305 Broadway, New York, New York, and also did work for other law firms. As part of the scheme, LUO and ZHANG coached applicants on how best to portray their false persecution stories to asylum officers interviewing each applicant for political asylum. WANG assisted in the creation and submission of applications containing the false persecution stories.
In addition to the prison terms, LUO, 35, of Ridgewood, New York, WANG, 33, of Brooklyn, New York, and ZHANG, 50, of Flushing, New York, were also each ordered to pay $1,000 fines.
LUO, WANG, and ZHANG were charged as part of a large investigation led by the United States Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation (“FBI”), and the United States Citizenship and Immigration Services (“USCIS”). To date, 30 defendants have been charged with participating in nine separate but overlapping immigration fraud schemes in New York City, including eight lawyers. Twenty-five of these defendants have been convicted for their roles in these schemes.
Mr. Bharara praised the investigative work of the FBI and USCIS.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Robert Boone are in charge of the prosecution.
Tax Return Preparer Arrested for Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Edward J. Rorie, 50, of Philadelphia, PA, with 25 counts of preparing and filing false tax returns, announced United States Attorney Zane David Memeger. Rorie was arrested this morning. According to the indictment, for tax years 2009 through 2011, Edward J. Rorie prepared at least 25 tax returns which were materially false. In preparing the fraudulent returns, the indictment alleges that Edward J. Rorie variously claimed expense deductions and tax credits to which the filers not entitled to receive. The tax credits included the First Time Home Buyer Tax Credit, The Hope Tax Credit, The Earned Income Tax Credit, Education Credits, The Child Care Tax Credits and The Recovery Act’s Additional Child care Credit. The indictment alleges a loss to the Internal Revenue Service of at least $100,000.
If convicted, Rorie faces a maximum possible sentence of 75 years of imprisonment, a fine of $6.25 million, a special assessment of $2,500 and 1 year of supervised release.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tampa Woman Sentenced to 5 Years in Prison for Her Role in Large-Scale Credit Card Fraud RingRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. yesterday sentenced Norma Cabezas-Hernandez to 5 years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. As part of her sentence, she was also ordered to forfeit her share of the traceable proceeds of the offense, which total more than $655,000. Cabezas-Hernandez pleaded guilty on December 6, 2013.
According to court documents, from at least 2011 through February 2013, Cabezas-Hernandez engaged in a conspiracy to commit access device fraud by using counterfeit credit cards and re-encoded gift cards to make purchases of consumer goods throughout the Middle District of Florida. Her brother and co-conspirator, Michel Lermos-Hernandez, installed and directed others to install key loggers and other skimming devices on credit card readers and point-of-sale terminals in the Tampa area, including locations at the International Mall. Lermos-Hernandez then removed or directed others to remove the devices, from which he downloaded the stolen credit and debit card account numbers and account information. The conspirators obtained the stolen credit and debit account numbers and re-encoded them onto reloadable gift cards to create counterfeit credit cards.
Lermos-Hernandez and others, including Cabezas-Hernandez, used the counterfeit credit cards to purchase retail items such as electronics and store gift cards, which they sold to another co-conspirator for cash.
On February 7, 2013, a search warrant was executed at the residence of Cabezas-Hernandez and her brother, Lermos-Hernandez. Inside, agents recovered $14,515 in cash, a laptop computer, a credit card embosser, a mag stripe reader/encoder, a key logger, and multiple counterfeit credit cards and re-encoded gift cards. Agents also seized a 2005 black Ford Mustang and 2012 Black Nissan sedan, both registered to Cabezas-Hernandez. Counterfeit gift cards were also found inside the Mustang.
The total actual loss identified to date is approximately $655,568.61, including more than 14 federally-insured financial institutions and over 1,000 individuals, whose account information was compromised.
Currently, Lermos-Hernandez is a fugitive. Co-conspirator Viviana Reyes was convicted at trial and is scheduled to be sentenced on May 14, 2014. Danay Crespo-Rodriguez pleaded guilty and is scheduled to be sentenced on June 25, 2014. Lazaro Rodriguez was sentenced on January 22, 2014, to 37 months’ imprisonment. Abel Osoria-Cuok, who was only involved in the conspiracy for approximately three weeks, was sentenced to a term of five years’ probation on February 21, 2014.This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement and the United States Secret Service (USSS), all of whom are members of the USSS’s Credit Card Fraud and Identity Theft Task Force. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Sureño Street Gang Members Federally Indicted for Racketeering and MurderRead the Press Release
SAN FRANCISCO – Yesterday, a federal grand jury in San Francisco indicted 14 members of the 19th Street Sureños gang and the associated 16th Street Sureños gang with a variety of charges, including racketeering and murder, announced United States Attorney Melinda and Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Thirteen of the defendants were arrested on March 12, 2014, in a joint law enforcement operation that took place in San Francisco and Daly City, Calif. Agents and investigators from HSI and San Francisco Police Department, with assistance from U.S. Secret Service and Daly City Police Department, arrested all of the named defendants but Alberto Torres, who is expected to be taken into custody shortly.
The 14 defendants are charged in a 16-count indictment issued by the grand jury on March 6, 2014, and unsealed earlier yesterday. The 13 defendants in federal custody made their initial appearances yesterday before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
Named in the indictment are:
- Eduardo Alvarez, a/k/a “Clumsy,” 25, of San Francisco;
- Elias Chavez, a/k/a “Kiko,” 26, of San Francisco;
- Luis Cid-Salinas, a/k/a “Lonely,” 29, of San Francisco;
- Ignacio Cruz, a/k/a “Nacho,” 24, of San Francisco;
- Juan Carlos Garcia-Gomez, a/k/a “Lil Ghost,” 27, of San Francisco;
- Jairo Hernandez, a/k/a “Joker,” 33, of San Francisco;
- Orlando Carlos Hernandez, a/k/a “Chisto,” 31, of Oakland;
- Jusef Nathan, a/k/a “Boo,” 35, of San Francisco;
- Rogelio Real, a/k/a “Payaso,” 29, of San Francisco;
- Mario Serrano, a/k/a “Caballo,” 31, of San Francisco;
- Alberto Torres, a/k/a “Taz,” 32, of San Francisco;
- Carlos Vasquez, a/k/a “Malo,” 26, of San Francisco;
- Weston Venegas, a/k/a “Cartoon,” 24, of Daly City; and
- Michael Viera, a/k/a “Lil Rocks” or “Rocks,” 24, of San Francisco.
All 14 defendants are charged with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, and conspiracy to commit assault with a dangerous weapon in aid of racketeering, arising from the defendants’ participation as members and associates in the racketeering enterprise alleged as the 19th Street Sureños. They are also charged with using firearms in furtherance of crimes of violence. According to the indictment, the 19th Street Sureños gang constitutes a racketeering enterprise and its members and associates agreed to conduct the affairs of the enterprise through, among other crimes, murder, robbery, narcotics trafficking, obstruction of justice, and tampering with witnesses.
Two of the 14 racketeering defendants – Jairo Hernandez and Carlos Vasquez – are also charged with one count of murder in aid of racketeering committed on August 30, 2011. Two other defendants – Ignacio Cruz and Elias Chavez – are charged with four counts of attempted murder on January 4, 2014. Defendants Albert Torres and Michael Viera are charged with two counts each of assault with a dangerous weapon in aid of racketeering on May 31, 2013. Defendant Eduardo Alvarez is charged with two counts of assault with a dangerous weapon in aid of racketeering, in connection with an incident on September 1, 2013, and an incident on September 8, 2013.
All 14 defendants face up to life in prison, while Jairo Hernandez and Carlos Vasquez are subject to the death penalty.
Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, in accordance with 18 U.S.C. § 3553(a). In addition, although Jairo Hernandez and Carlos Vasquez are eligible for the death penalty for their participation in the August 30, 2011, murder, the decision whether to seek the death penalty against either of them is pending.
Andrew M. Scoble is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Christine Tian and Ponly Tu. This prosecution is the result of an investigation initiated by HSI and the San Francisco Police Department in 2010. U.S. Attorney Melinda Haag and HSI Special Agent in Charge Settles would also like to thank the U.S. Marshals Service for its assistance.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(Sureños indictment )
Sheffield Lake Man Charged with Conspiracy to Commit Mail FraudRead the Press Release
A Sheffield Lake man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of more than $150,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Randy Breininger, 43, was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. Richard Zukowski owned and operated an independent recruiting firm called the David Anthony Group, Inc. or DAG. The company maintained a contract with the Cleveland Clinic from 2008 through January 2013 to help locate and recruit certified registered nurse anesthetists to work within the Clinic’s Anesthesiology Institute, according to the criminal information.
The Cleveland Clinic paid DAG commissions, equal to a percentage of the first year annual salary, for each successful certified registered nurse anesthetist recruited by DAG, according to the information.
Breininger submitted invoices related to the commissions for people purportedly recruited by DAG. An individual identified as J.T. was the Institute Finance Director for the Anesthesiology Institute at the Cleveland Clinic. J.T. approved invoices related to commissions for individuals purportedly recruited by DAG, according to the information.
Breininger and Zukowski conspired from about June 15, 2010 through around January 2013, according to the information.
Breininger provided names, dates of invoice and DAG commission figures to Zukowski for 10 individuals. Breininger instructed Zukowski to submit a recruiting invoice through DAG for each individual whose name Breininger provided. At no point did Zukowski or DAG recruit the 10 individuals for employment at the Cleveland Clinic, according to the information.
Breininger requested J.T. authorize the 10 invoices submitted by Zukowski. J.T. authorized the payments and routed the approved invoices for payment at the Cleveland Clinic. The Cleveland Clinic mailed Zukowski eight checks which totaled more than $150,00, according to the information.
Breininger then asked Zukowski to return half the money Zukowski received as payment for the invoices. In order to fulfill his tax obligations for the eight checks, Zukowski transferred only about one-third of the proceeds to Breininger. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to Breininger in envelopes, according to the information.
Zukowski pleaded guilty last year to one count of conspiracy to commit mail fraud and is scheduled to be sentenced in May.
This case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shalimar Man Sentenced to 30 Years in Federal Prison for Child Exploitation ChargesRead the Press Release
PENSACOLA, FLORIDA, – United States Attorney Pamela C. Marsh announced that Joshua Douglas Taylor, 24, of Shalimar, Florida, was sentenced yesterday afternoon by Chief U.S. District Judge Casey Rodgers to 360 months in prison for receipt and transportation of child pornography.
Taylor’s sentence was the result of conduct that occurred between October 28, 2011, and February 16, 2012. During that time, Taylor knowingly and intentionally received and transported images and videos of child pornography.
In addition to the term of imprisonment, Taylor was also sentenced to a life term of supervised release.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents from the Federal Bureau of Investigations, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, the Okaloosa County Sheriff’s Office, and the Walton County Sheriff’s Office.The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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 .