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2 May 2014
Former Liberty Man Indicted for $6.2 Million Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Liberty, Mo., man has been indicted by a federal grand jury for a $6.2 million series of investment fraud schemes.
Henry Thomas Hammond, 57, of Ponte Vedra Beach, Fla., formerly of Liberty, was charged in a 12-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 30, 2014. The indictment was unsealed and made public today upon Hammond’s arrest and initial court appearance in Florida.
Hammond owned, operated or was involved in several businesses, including Longhorn Construction, Inc.; Longhorn Properties, LLC; Longhorn Development Group, Inc.; Longhorn Construction, North American Investment Group, Inc., and others.
The federal indictment alleges that between July 16, 2008, and Nov. 24, 2010, Hammond engaged in several schemes to defraud individuals and entities by soliciting investments to support a Ponzi scheme. Hammond allegedly promised investors an exorbitant rate of return on their investments, when in fact he used those investments for his own personal expenses or to pay other investors as part of the Ponzi scheme. Hammond allegedly deposited investors’ funds into his personal bank account to make vacation home payments for a residence at Table Rock Lake, for example, and for elaborate hunting excursions.
Blackberry Development Scheme
Among the fraud schemes cited in the indictment, one example involves the Blackberry commercial development in Liberty, which Hammond never completed.
On Oct. 16, 2007, Patriots Bank approved a loan to Duffey Land Development, LLC, for construction financing for two commercial retail/office buildings in the Blackberry development. Duffey contracted with Longhorn Construction to build two buildings, with Hammond as the general contractor. Hammond was responsible for paying the sub-contractors for work performed. Hammond submitted invoices received from the sub-contractors to Duffey. Duffey submitted a draw request to Patriots Bank. The funds were disbursed from the bank to Duffey, then from Duffey to Hammond. It was Hammond’s responsibility to pay the sub-contractors.
The indictment alleges that Hammond received approximately $1,203,331 from January 2008 through December 2008, but that he fraudulently used funds for personal expenses, such as a trip to Las Vegas, hunting, a lake house, and money to his wife. During this year, Hammond spent approximately $48,314 for hunting expenses. Hammond sent approximately $45,500 to Hogan Land Title to purchase a large lake home. A total of $298,814 was diverted for personal use from the construction draw process instead of paying subcontractors.
In October 2009, International Finance and Trust (IFT) entered into a contract with Hammond involving investing $3 million to purchase land for development of the Blackberry project. Another investor provided $1 million for a 25 percent ownership stake in Blackberry. After receiving $2 million in funding, the indictment says, Hammond transferred it to an account held in the United Arab Emirates to be utilized in an overseas investment platform. Investors were not told the funds were being utilized for the investment platform. Hammond allegedly received approximately $499,950 from IFT’s investment and deposited the funds into one of his companies’ bank accounts.
Wire Fraud Scheme
During a 27- month period from Aug. 26, 2008, to Nov. 22, 2010, Hammond allegedly used his various wire fraud schemes to pay for his personal expenses, including: (a) $1,303,632 in personal withdrawals made by Hammond; (b) $961,707 for Hammond’s lake house, valued at $2.25 million; (c) $777,742 for purported business expenses for Hammond’s companies; (d) $442,962 for Hammond entertainment/retail; (e) $325,696 for Hammond hunting excursions/taxidermy; and
(f) $279,628 for personal vehicle purchases.Bankruptcy Fraud
According to the indictment, Hammond filed a Chapter 13 Bankruptcy on May 17, 2012, to stop foreclosure on his Liberty residence. In his bankruptcy filings, Hammond failed to disclose personal guarantees provided to several investors. Hammond was dismissed from the Chapter 13 Bankruptcy on Sept. 17, 2012, because he failed to make payments as agreed to in his bankruptcy plan. The bankruptcy case was closed on March 13, 2013.
False Seal Scheme
In connection with his scheme to defraud, Hammond fraudulently used the Department of Justice emblem and “U.S. Department of Justice, Office of Legislative Affairs” letterhead on a Sept. 30, 2009, letter. The fraudulent letter was purportedly written on behalf of the U.S. Assistant Attorney General to U.S. Senator Lindsey Graham. Hammond used the letter with the letterhead and seal to divert attention from his involvement in investment fraud and to convince investors or other unindicted conspirators to turn over controls of some investments.
The federal indictment charges Hammond with two counts of bank fraud, four counts of wire fraud, one count of bankruptcy fraud, four counts of money laundering and one count of using the seal of the Department of Justice on a fraudulent letter.
The indictment also contains a forfeiture allegation, which would require Hammond to forfeit to the government any property obtained as a result of the alleged violations, including $6,250,289.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.Former Head of Timeshare Resale Scam Earns 8 Year Federal Prison SentenceRead the Press Release
Follow @SDILNewsJose Manuel Goyos, Jr., 27, of Jupiter, Florida, was sentenced today to 96 months in federal prison for his role in a fraudulent telemarketing scheme that stole $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Goyos pled guilty on December 30, 2013, to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. He has been in federal custody since his arrest in early September of last year and will begin serving his sentence immediately.
Goyos was the registered agent and co-owner of C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners, falsely representing or implying that the company had found someone who wanted to buy the person’s timeshare. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. Once the victims had paid the advance fee, however (usually by giving the telemarketer their credit card information), the fraudulent company simply pocketed the money. There were no interested buyers, the closings did not occur, and the timeshares were not resold.
United States Attorney Wigginton summarized the scam: “To discourage and defeat subsequent chargeback attempts, PTS sent victims written contracts to sign and return – contracts that made no mention of the promised sale and obligated the company merely to provide marketing and advertising services. Because the original sales calls were not recorded, PTS could later claim that marketing and advertising was all that had ever been promised, and that any contrary impression the victim may have formed – for instance, that there was a concrete offer for the customer’s unit or some genuine interest by a qualified buyer – was simply a misunderstanding. In fact, all of this was simply an act of thievery. I urge all consumers to follow this tried and true advice: if you get a call from someone you do not know and trust, promising something that sounds too good to be true, it is a scam. Hang up. Then, please report the call to the proper authorities.”
Victims who called PTS to check on the status of their transactions were directed to customer service representatives, managed by Goyos, whose goal was to perpetuate the fraud by delaying and discouraging chargebacks and complaints. To accomplish that goal, representatives would lie to victims, assuring them that despite some phony, unexpected delay, their timeshare unit was still going to be sold. Repeat callers were given a series of bogus excuses, none of which had any basis in fact. By instilling a false sense of hope, PTS aimed to delay the chargeback process beyond the time that most credit card issuers allow for disputes.
In pronouncing the sentence, the Honorable David R. Herndon, Chief Judge of the United States District Court for the Southern District of Illinois, called timeshare resale fraud – an industry that recruits recovering drug addicts to steal from the financially vulnerable – “the most despicable scam in the world.” Judge Herndon also observed that Goyos was a bright young man who, had he not committed the crime, “probably would have had his picture on the cover of a business journal.” “Instead,” he remarked, “his picture’s being taken with numbers under his chin.”
As part of his sentence, Goyos was ordered to pay a $1,000 fine. Due to the large number of victims and the lack of records showing which customers received refunds, restitution in the case was waived. When his prison sentence has been served, Goyos will spend three years on supervised release, during which time he will be prohibited from engaging in any employment that involves securities investment or otherwise places him in a fiduciary role. He will also not be allowed to do any telemarketing work without the express consent of the United States Probation Office.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant United States Attorney Nathan D. Stump.
Former CEO of Paramount Management Charged in Manhattan Federal Court with FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ALEX V. EKDESHMAN, 41, of Holmdel, New Jersey, was arrested this morning on commodities fraud, wire fraud, and mail fraud charges. EKDESHMAN is expected to be presented today in Manhattan federal court before United States Magistrate Judge Michael H. Dolinger.
U.S. Attorney Preet Bharara said: “As alleged, Alex Ekdeshman took over a million dollars from more than a hundred investors under false pretenses, using money meant for foreign exchange transactions for other purposes, including to buy personal items and pay family members. When an investment manager lies about what he’s doing with your money, that is not just dishonest, it is a federal crime.”
Assistant Director in Charge George Venizelos said: "While risk is inherent in the investment world, that risk should not include reliance on a greedy investment professional who takes his client's money through misrepresentations, putting his own financial interests above those he promised to serve. As alleged, Ekdeshman broke the law when he traded on his client's trust and lied to investors for personal gain. The FBI is committed to protecting innocent investors and maintaining the integrity of the American financial markets."
According to the three-count Complaint unsealed in Manhattan federal court:
From at least in or about May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.58 million from approximately 115 investors.
Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management.
EKDESHMAN is charged with one count of commodities fraud, one count of wire fraud, and one count of mail fraud. The commodities fraud count carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The wire and mail fraud counts each carry a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. He added that the investigation is continuing.
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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica A. Masella and Benjamin Naftalis are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
Florida Man Involved in $80 Million Drug Theft from Eli Lilly Warehouse in Enfield Pleads GuiltyRead the Press Release
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The United States Attorney for the District of Connecticut today announced that AMAURY VILLA, 39, a citizen of Cuba last residing in Miami, Florida, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to federal conspiracy and theft charges stemming from his participation in the March 2010 theft of approximately $80 million in pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Connecticut.
According to court documents and statements made in court, between January and March 2010, AMAURY VILLA, his brother Amed Villa and others conspired to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. In early 2010, AMAURY VILLA and others traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. In the evening of March 13, 2010, a tractor trailer was driven to the parking lot of the Eli Lilly warehouse facility. Later that evening, AMAURY VILLA and Amed Villa checked for security in the front area, climbed onto the roof, used tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Thereafter, AMAURY VILLA and his co-conspirators loaded approximately 49 pallets of pharmaceuticals into the tractor trailer, which they had backed up to the loading dock of the warehouse. The tractor trailer then traveled to Florida.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $80 million.
AMAURY VILLA, who has been in federal custody since May 2012, pleaded guilty to one count of conspiracy, which carries a maximum term of imprisonment of five years, four counts of theft from an interstate shipment, each of which carries a maximum term of imprisonment of 10 years, and one count of interstate transportation of stolen property, which carries a maximum term of imprisonment of 10 years.
Judge Arterton scheduled sentencing for July 24, 2014.
On October 14, 2011, a search of a storage facility in Florida recovered pharmaceuticals that had been stolen from the Enfield warehouse. AMAURY VILLA subsequently pleaded guilty in the Southern District of Florida to conspiracy and possession of stolen goods charges and, on November 26, 2012, he was sentenced to 140 months of imprisonment.
Amed Villa has pleaded guilty in the District of Connecticut to conspiracy and theft charges related to the Enfield theft and multimillion dollar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
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(203) 821-3722 [email protected]Florence Couple Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM -- A federal grand jury this week indicted a Florence couple on multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 107-count indictment filed in U.S. District Court charges PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, in connection with 53 pornographic images of the child produced between the summer of 2010 and January 2013. The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
"I am committed to protecting children from exploitation and sexual abuse, and in no case more so than cases like this, where children are hurt by those closest to them," Vance said.
"This case emphasizes the need for anyone with information about the potential sexual exploitation of children to report it immediately," Schwein said. "The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information call the tip line at 1-800-THE-LOST."
The indictment charges 106 counts of producing child pornography and one count of possessing child pornography. For each photograph involving sexual exploitation of the child, the defendant involved faces two charges: • enticing or coercing a minor to engage in sexually explicit conduct for the purpose of creating an image of the conduct, and
• as the parent, legal guardian or person having control of a minor, permitting that child to engage in sexually explicit conduct for the purpose of producing an image of it.Patricia Ayers faces all 106 production counts and one count of possession of child pornography. Matthew Ayers faces 50 counts of producing child pornography and one count of possessing child pornography.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt.
Florence Couple Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM -- A federal grand jury this week indicted a Florence couple on multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 107-count indictment filed in U.S. District Court charges PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, in connection with 53 pornographic images of the child produced between the summer of 2010 and January 2013. The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
"I am committed to protecting children from exploitation and sexual abuse, and in no case more so than cases like this, where children are hurt by those closest to them," Vance said.
"This case emphasizes the need for anyone with information about the potential sexual exploitation of children to report it immediately," Schwein said. "The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information call the tip line at 1-800-THE-LOST."
The indictment charges 106 counts of producing child pornography and one count of possessing child pornography. For each photograph involving sexual exploitation of the child, the defendant involved faces two charges: • enticing or coercing a minor to engage in sexually explicit conduct for the purpose of creating an image of the conduct, and
• as the parent, legal guardian or person having control of a minor, permitting that child to engage in sexually explicit conduct for the purpose of producing an image of it.Patricia Ayers faces all 106 production counts and one count of possession of child pornography. Matthew Ayers faces 50 counts of producing child pornography and one count of possessing child pornography.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt.
Federal Jury Finds Pharmacy Owner and Manager Guilty of Conspiracy to Distribute Controlled SubstancesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Jeffrey R. Green (50, Cape Coral), the owner of Gulf Coast Medical Pharmacy, and Karen S. Hebble (44, Cape Coral), the manager of this pharmacy, guilty of conspiracy to possess with intent to distribute and distribution of Oxycodone and Alprazolam, and conspiracy to commit money laundering. In addition, Green was convicted of six counts of money laundering. The jury found Hebble guilty of two counts of money laundering. Each faces a maximum penalty of 20 years in federal prison for conspiracy to possess with intent to distribute and distribution of the controlled substances. Both face a maximum penalty of 10 years’ imprisonment for conspiracy to commit money laundering and each count of money laundering. The sentencing hearing is scheduled for July 28, 2014.
A federal grand jury returned a superseding indictment against Green and Hebble on July 24, 2013.
According to testimony and evidence presented at trial, from 2009 through October 6, 2011, Green and Hebble conspired with each other, and with others, to possess with intent to distribute and to distribute Oxycodone and Alprazolam. Green and Hebble filled prescriptions that were not issued for legitimate medical purposes and distributed controlled substances without the supervision and control of a licensed pharmacist at Gulf Coast Medical Pharmacy, which Green owned.
This case was investigated by the Drug Enforcement Administration Task Force, which includes the Naples Police Department, Charlotte County Sheriff’s Office, and other local law enforcement agencies. It is being prosecuted by Assistant United States Attorneys Yolande G. Viacava and Robert P. Barclift.
Federal Criminal Complaint Charges North Smithfield Resident with Allegedly Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Derek Felicio, 41, of North Smithfield, R.I., was ordered detained in federal custody on Thursday pending a detention hearing later today on charges of allegedly possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) in New England.
Felicio was arrested on Thursday following an investigation by HSI agents into Felicio’s alleged possession and distribution of child pornography.
According to information presented to the court, in March 2013, Felicio allegedly contacted an undercover HSI agent in Salt Lake City, UT, on a website which is purported to contain and share images of child pornography. During an exchange of emails, Felicio allegedly sent HSI agents 9 photographs depicting the lascivious display of prepubescent girls. Further investigation by HSI agents revealed that the images were allegedly sent from an IP address in North Smithfield, R.I.
In October 2013, Felicio provided oral and written consent to HSI agents in Rhode Island for the seizure and search of two computers at Felicio’s residence. A forensic examination of the computers conducted by the Rhode Island State Police Internet Crimes Against Children task force resulted in the identification of approximately 90,000 images and 555 videos depicting child pornography.
A criminal complaint is merely an allegation 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.
Distribution of child pornography is punishable by a statutory penalty of a minimum of 5 years and up to 20 years imprisonment and a fine of up to $250,000. Possession of child pornography is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Contact: 401-709-5357
[email protected]Facebook Predator Faces Child Pornography ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Melvin Barber Bridgers, III (34, Tarpon Springs) has been charged in a criminal complaint with production, receipt, distribution, and possession of child pornography. If convicted, he faces a mandatory minimum sentence of 15 years, up to 30 years’ imprisonment on the production charge and a mandatory minimum sentence of 5 years, up to 20 years in prison on each of the receipt and distribution charges. For the possession of child pornography charge, he faces up to 10 years in federal prison.
Bridgers was arrested on May 1, 2014, and made his initial appearance before U.S. Magistrate Judge Elizabeth A. Jenkins, in Tampa. He was detained pending further proceedings.
According to the criminal complaint, between about November 30, 2013, and May 1, 2014, Bridgers used multiple Facebook accounts to pose as a teenage female and befriend other minor females between the ages of 11 and 16. After befriending the minor females, Bridgers would coerce them into sending sexually graphic photographs to him on Facebook. Bridgers would then threaten the minor females with exposing the sexually graphic photos to their parents or to other Internet users, to extort the minor females into sending him additional sexually graphic photographs and videos. He would also instruct the minor females on how to pose sexually in the photographs. Bridgers, who moved to Tarpon Springs from North Carolina in the fall of 2013, came to the attention of law enforcement when a 12-year-old victim in the Houston, Texas area reported the Facebook activity to her mother, who then contacted the authorities.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
According to investigators, a "disturbing trend" is emerging in which child predators are increasingly using the Internet and social media sites such as Facebook to entice children to produce and share sexually explicit material online. During recent operations, HSI and ICAC investigators encountered various child predators chatting online with minors about sexual topics, sending them obscene images, encouraging them to produce nude or sexual photos and videos, and attempting to meet them in person to engage in sexual activity. In some cases, child predators are also sexually extorting, or "sextorting," the minors into producing additional and increasingly graphic images and videos. HSI is asking that anyone with additional information about potential victims this case come forward by contacting ICE-HSI tip line at 1-866-347-2423.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
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Detroit Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Detroit tax preparer pleaded guilty to willfully making false claims to the United States government by preparing false income tax returns, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Carolyn Weber, Internal Revenue Service Criminal Investigation.Gerald Leslie Hawk, Jr., 29, entered the guilty plea before U.S. District Court Judge Nancy Edmunds.
According to court records, during 2009, Hawk prepared false income tax returns claiming the 2008 First Time Homebuyer Credit (FTHBC). The FTHBC was a credit for individuals who purchased a home during 2008 to receive up to $8,000 upon filing their income tax returns. Hawk solicited clients by promising that he could acquire a tax refund of $8,000 to purchase a home by receiving the FTHBC. Hawk knew the individuals did not purchase a home and had no intention of later purchasing a home after the credit was received. Hawk prepared or assisted in the preparation of approximately 21 false FTHBC tax returns claiming over $147,000 in refunds.
A sentencing hearing was set by Judge Edmunds for Thursday, Aug. 7. at 2 p.m. The maximum penalty for willfully making false claims to the United States government is imprisonment of not more than five years and a $250,000 fine per each count.The investigation of this case was conducted by the Special Agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Coopersville Businessman Convicted of Defrauding Victims of More Than One Million DollarsRead the Press Release
Roger Andrews Created Fake and Forged Documents and Promised Victims He Would Use Their Money for an Investment in Indiana; Instead, He Gambled It Away in the Stock Market
GRAND RAPIDS, MICHIGAN – Roger Lee Andrews, 54, of Coopersville, was convicted by a jury yesterday of wire fraud in connection with a bogus land deal in Indiana. Between 2006 and 2008, Andrews, who owned R. Andrews Pallet Company in Marne, Michigan, solicited more than one million dollars from long-time friends, business acquaintances, and a bank for use in connection with an investment property in Indiana. He told some of the victims that he already owned the property and needed additional capital to fund improvements to the property so he could sell it at a profit. Andrews told others he needed funds to purchase the property. To further his scheme to defraud, Andrews create fake documents with forged signatures to make it appear as though he owned the property and had a contract to sell the property to the State of Indiana for more than $900,000.
In truth, Andrews never owned any property in Indiana, was never even involved in any deals in Indiana, and later admitted forging the documents. Instead of using his victims’ money as promised, Andrews wired almost all of the funds to his stock trading account, where he lost it by engaging in risky margin trading.
“The truly sad part of this case is that Andrews preyed on long-time friends and business acquaintances. He used those relationships and his victims’ misplaced trust as a means to commit his scheme, and they have suffered tremendously as a result. Unfortunately, this type of fraud is all too common in our district, and we remain committed to prosecuting those who engage in it,” said U.S. Attorney Patrick Miles, Jr.
The Honorable Robert J. Jonker, U.S. District Judge, presided over the trial. After the jury returned its verdict, the Court immediately revoked Andrews’ bond and ordered him to remain in the custody of the U.S. Marshal’s Office pending his sentencing.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Christopher O’Connor and Clay Stiffler.
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Construction Firms to Pay to Settle Alleged False Claims in Connection with Colleton County Road ProjectRead the Press Release
Contact Person: James Leventis (803) 929-3000
Columbia, South Carolina ----- The Lane Construction Corporation and McAfee Design and Distributing Co., Inc. have agreed to pay the United States a total of $400,000 to resolve allegations that these companies submitted false claims under the Department of Transportation’s Disadvantaged Business Enterprise (DBE) program, the United States Attorney Bill Nettles announced today.
Lane Construction is the successor in interest to Rea Contracting LLC, a former Charlotte-based civil construction contractor, and is a national civil construction contractor that, amongst other things, contracts with federal and state governments to construct and improve highways in the eastern and southern United States. McAfee Design is a Georgia-based highway heavy contracting company that is qualified as a DBE subcontractor.
The settlement resolves allegations that Rea Contracting falsely claimed that McAfee Design, a certified DBE, had performed demolition and concrete work that was to be performed by a DBE when it knew or should have known that McAfee Design actually subcontracted the work to non-DBE contractors. These allegations involved a federally-funded highway construction project in Colleton County, South Carolina. All qualifying bids were required to designate a percentage of work that would be performed by a DBE. The Disadvantaged Business Enterprise program was designed to provide women and minority contractors, who have faced historical barriers to entry in the construction industry, with fair opportunities to compete for federally-funded work.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act, and this settlement is yet another in a long string of successes,” said U.S. Attorney for the District of South Carolina William Nettles.
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The relator’s share in this case is $80,000. The qui tam lawsuit was filed in the District of South Carolina and is captioned United States ex rel. Michael S. Johnson and Greg Smith v. Rea Contracting LLC a/k/a Lane Carolinas Corporation, McAfee Design and Distributing Co., Inc., et al., Case Number 3:12-cv-3651. The claims resolved by this settlement are allegations only and there has been no determination of liability.
The settlement with Lane Construction and McAfee Design was the result of a coordinated effort among the United States Attorney’s Office for the District of South Carolina, the U.S. Department of Transportation Office of Inspector General, and the South Carolina Department of Transportation.Chicago Man Sentenced to More Than 15 Years in Federal Prison for 20 Armed Robberies of Stores in Chicago and Suburbs in 2010Read the Press Release
CHICAGO ― A Chicago man who committed 20 armed robberies of stores and businesses during a five-month period in 2010, was sentenced today to more than 15 years in federal prison. The defendant, CARLOS OCHOA, had admitted committing 15 robberies in Chicago, three in Berwyn, and one each in Aurora and Indian Head Park, sometimes for as little as $25, between July and November 2010.
Ochoa, 50, pleaded guilty last September to three counts of interstate robbery and one count of using a firearm during a violent crime. In pleading guilty, he admitted committing 17 additional armed robberies. U.S. District Judge Charles Norgle sentenced Ochoa to 130 months in prison for the robberies, consecutive to 60 months for using a gun, for a total of 190 months in prison. Ochoa was also ordered to pay restitution totaling $21,847 representing the net proceeds from all 20 robberies.
Three victims of Ochoa’s robberies testified about the lasting impact of the trauma they experienced before Judge Norgle imposed the sentence.
“For five months, [Ochoa] and his co-defendant went on a crime spree terrorizing individuals at their places of employment by pointing a gun, racking the slide of the gun, and making it clear to the victims that they would shoot them if they did not comply with their demands,” Assistant United States Attorneys Maribel Fernandez-Harvath, argued at sentencing.
Ochoa’s co-defendant, Juan Sanchez, who briefly escaped from state custody in late 2011, died of natural causes in January 2012 after he was indicted in the case.
Ochoa admitted that he and Sanchez conspired to rob various retail stores and businesses in Chicago and its suburbs. They identified stores to rob with a firearm, wore sunglasses and hats, and conducted surveillance inside the stores and businesses before the robberies.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago, Aurora, Berwyn, and Indian Head Park police departments, as well as the Cook County State’s Attorney’s Office, also participated in the investigation.
Business Owners Sentenced to Prison for Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Jorge Montemayor and Leticia Reyna have been ordered to prison for their convictions of failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson. Montemayor and Reyna pleaded guilty Jan. 24, 2014, and Nov. 18, 2013, respectively.
Today, U.S. District Judge Andrew Hanen handed Montemayor a sentence of 30 months in federal prison, while Reyna will serve a 15-month term. Montemayor was ordered to pay restitution in the amount of $368,025.84 while Reyna was ordered to pay $48,562.44. Both must serve a period of supervised release following their release from prison and must perform community service.
Montemayor was the chief financial officer (CFO) of GDM Home Health Inc. and Reyna was the president of Professional Skilled Services Inc., both home health care business that provided basic skilled care in Laredo. In their roles, both had authority to conduct financial transactions and exercised signatory authority on the company's bank accounts.
As part of the plea, Montemayor admitted he knowingly and willfully failed to pay approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable employee wages from the year 2008 while Reyna admitted she failed to pay over to the IRS approximately $48,562.44 for the fourth quarter of 2008.
Both admitted that had different business expenses and personal choices been made, funds would have been available to pay these taxes. In his plea agreement, Montemayor admitted that corporate funds were used for lavish trips to Europe and Las Vegas, sporting events, restaurants, jewelry and real estate. Specifically, Montemayor agreed that between August and November 2008, GDM Home Health spent $46,548.75 on basketball tickets for the San Antonio Spurs and purchased season tickets for the Laredo Bucks hockey team. He also stated he provided local politicians and doctors tickets to attend these professional sporting events. In her agreement, Reyna admitted that corporate funds were used for shopping, restaurants and private school expenses.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.
Burke Co. Man Sentenced to More Than Seven Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – A Burke County man was sentenced on Thursday, April 24, 2014, to serve 90 months in a federal prison for possession, receipt, and distribution of child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered the defendant to register as a sex offender and serve the rest of his life under court supervision after he is released from prison.
Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI) and Sheriff Steve E. Whisenant of the Burke County Sheriff’s Office join U.S. Attorney Tompkins in making today’s announcement.
In November 2012, a federal criminal indictment charged Eddie Wayne Lane, Jr, 27, of Connelly Springs, N.C. with one count of possession of visual depictions of minors engaging in sexually explicit conduct, one count of receiving such images, and one count of distributing them. Lane pleaded guilty to the charges in April 2013. According to court filings and proceedings, during the investigation, detectives discovered an extensive collection of child pornography including a computer hard drive and multiple email accounts. Lane’s investigation led to the prosecution of Michael John Jones who was sentenced to 25 years in prison for producing child pornography. The U.S. Attorney’s Office for the Northern District of West Virginia handled Jones’ prosecution. For information on that case is available at: http://www.justice.gov/usao/wvn/news/2012/august/jones.html and http://www.justice.gov/usao/wvn/news/2012/august/jones.html.
Lane is in local federal custody and will be transferred into custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation into Lane was handled by the SBI and the Burke County Sheriff’s Office. Both agencies are members of the North Carolina Internet Crimes Against Children Task Force (ICAC). Assistant U.S. Attorneys David A. Thorneloe and Cortney S. Randall of the U.S. Attorney’s Office for the Western District of North Carolina prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Atlantic Beach Resident Pleads Guilty to Making False Distress Calls to the U.S. Coast GuardRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, HOMER LEWIS BLACKBURN , 27, of Atlantic Beach, North Carolina, entered a guilty plea to making false distress calls to the United States Coast Guard.
According to information in the public record, on October 8, 2013, Coast Guard Sector North Carolina received a “MayDay” call in which the caller claimed he was sinking and abandoning his boat in the vicinity of Cape Lookout and Shackleford Banks, North Carolina. Upon receipt of the distress call, the U.S. Coast Guard, assisted by the U.S. Marine Corps, the National Park Service and a local salvage company commenced search and rescue operations using helicopters and boats to search the area. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $288,390.80 worth of resources were expended.
Shortly thereafter, Coast Guard Investigative Service (“CGIS”) began an investigation and received information from a witness who identified the caller as HOMER LEWIS BLACKBURN and confirmed it was a hoax. The witness stated that BLACKBURN used a CB radio he mounted to the balcony of his apartment in Atlantic Beach, North Carolina to make the call. She heard him saying,“Mayday, Mayday” and that he was sinking in the vicinity of Cape Lookout, NC. She then told officers that BLACKBURN went out to the balcony to watch the helicopters search Cape Lookout. When the press reported that the call was a hoax, BLACKBURN sent the witness a text message on her phone asking her not to tell anyone about the call.
During the investigation, another witness came forward and claimed that BLACKBURN bragged about making the hoax calls, BLACKBURN admitted he reported that he was sinking off Cape Lookout, and that he, BLACKBURN, thought the calls were funny.
BLACKBURN subsequently confessed to making the hoax calls.
"False distress calls limit the Coast Guard's ability to respond to actual emergencies," said Captain Sean Murtagh, commander of Sector North Carolina. "Ultimately, they penalize the local communities and mariners the Coast Guard is charged to protect by unnecessarily endangering the lives of responders and wasting hundreds of thousands of tax payer dollars. Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
The maximum penalty that BLACKBURN faces at sentencing is six years imprisonment, a $250,000.00 fine and restitution of all costs incurred by the Coast Guard.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty this week to racketeering charges related to their membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Kelley Ray Elley, of Seguin, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.
According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Aryan Brotherhood Members Plead Guilty <br /> to Federal Racketeering ChargesRead the Press Release
Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty this week to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Kelley Ray Elley, of Austin, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.
According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force (OCDETF) case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Armed Bank Robber Pleads Guilty to October 2013 Robbery in DundalkRead the Press Release
Used Inside Information Provided By His Accomplice
Baltimore, Maryland –Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, pleaded guilty today to an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to Washington=s plea agreement, on October 1, 2013, Washington and an accomplice parked his car in a parking lot near the M&T Bank in Dundalk. Washington’s accomplice had previously been a teller-trainee at the bank and was familiar with the bank layout, bank procedures and the tellers who worked at the bank. Shortly before 7:30 a.m. Washington and his accomplice approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and his accomplice entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by his accomplice, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while his accomplice emptied the cash from the teller drawers. Washington and his accomplice then left the bank, carrying a canvas bag filled with $133,600, stolen from the bank, got into their car and attempted to flee. They were arrested a short time later and officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and blue latex gloves worn by Washington and his accomplice during the robbery.
Washington faces a maximum penalty of 25 years in prison for armed bank robbery. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 1, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who are prosecuting the case.
Andover Man Sentenced to 6 Years for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jason
Littlehale, 42, of Andover, Maine, was sentenced yesterday in U.S. District Court by Judge
Nancy Torresen to 6 years in prison, to be followed by 10 years of supervised release, for possession of child pornography. Littlehale pled guilty on September 30, 2013.According to court documents and records, in March of 2012, law enforcement obtained information that Littlehale was sharing images of child pornography over the internet from his workplace in Mexico, Maine. Agents met with Littlehale at his home in Andover. A forensic examination of his computers and computer equipment revealed thousands of child pornography images and videos.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Maine State Police Computer Crimes Unit.Alleged Serial Bank Robber Arrested After Morning Robbery of Colonia, N.J., BankRead the Press Release
NEWARK, N.J. - A man allegedly responsible for a three-county New Jersey bank robbery spree faces a federal charge today following his arrest yesterday, May 1, 2014, after the rush hour robbery of a Rahway Savings Institute in Colonia, U.S. Attorney Paul J. Fishman announced.
May 1, 2014
Jason Novello, 35, of Elizabeth, N.J., is charged by complaint with one count of bank robbery in connection with the Colonia theft. He made his initial appearance today before U.S. Judge James B. Clark, III in Newark federal court and was detained.
According to the complaint filed today and statements made in court: At approximately 9:05 a.m. on May 1, 2014, Novello entered the Rahway Savings Institute in Colonia, approached a bank teller and held up a note claiming he had a gun and demanding money. The teller gave the cash to Novello, including two “bait bills” from which the serial numbers had been pre-recorded by the bank.
A bank employee followed Novello out of the bank and noted the license plate of the blue Hyundai Elantra in which Novello fled. Law enforcement officers were able to track the car’s registration to an address where they waited for Novello. FBI agents arrested him when he showed up in the Hyundai.
Including the latest Colonia robbery with which he is charged, the complaint alleges Novello committed nine robberies in the nine months from August 2013 to May 2014, hitting two of the banks – in Colonia and Elizabeth – twice each:Rahway Savings Institute, Colonia
PNC Bank, Scotch Plains
March 22, 2014
Rahway Savings Institute, Colonia
March 8, 2014
Capital One Bank, Iselin
March 1, 2014
PNC Bank, Edison
Jan. 25, 2014
Capital One Bank, North Plainfield
Dec. 7, 2013
PNC Bank, Fanwood
Oct. 30, 2013
Investors Savings Bank, Elizabeth
Aug. 30, 2013
Investors Savings Bank, Elizabeth
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and thanked the Middlesex and Somerset County Prosecutors’ Offices, as well as the Woodbridge, Edison, North Plainfield, Fanwood, Scotch Plains and Elizabeth police departments for their work.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.14-151
Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark
Novello, Jason Complaint
Alien Smuggler Sentenced to 15 Years for Bringing in Illegal Aliens Resulting in Two DeathsRead the Press Release
TUCSON, Ariz. – On April 28, 2014, Marcos Soto-Mendoza, 43, of Tonalisco, Nayarit, Mexico, was sentenced to 15 years in federal prison followed by three years of supervised release. The sentence was imposed by District Court Judge Cindy K. Jorgenson. On April 12, 2013, Soto-Mendoza was found guilty by a jury of five counts of bringing in an illegal alien for profit.
On June 29, 2011, Border Patrol agents responded to a citizen’s call in regard to a distressed suspected illegal alien in the Village of Pisinemo, on the Tohono O’odham Nation. Border Patrol agents made contact with Abad Uriostegui-Uriostegui who stated that he had illegally entered the United States with a group of five other individuals who were in distress out in the desert. Agents proceeded to the location in the desert where Uriostegui-Uriostegui had last seen his companions and located five additional individuals. Three living persons, the defendant Marcos Soto-Mendoza, Juan Garcia-Delgado, and Marcos Mojica-Lagunas, were found in a highly distressed and dehydrated state. Two other members of the group already had died from exposure to the extreme summer conditions.
Soto-Mendoza, Garcia-Delgado, and Mojica-Lagunas were all determined to be citizens of Mexico who had illegally entered the United States. Upon questioning, Soto-Mendoza was identified as their guide, to whom they agreed to pay between $2,200 and $2,500 per person.
On several occasions after illegally entering the United States, Soto-Mendoza informed the group that they would be resupplied with water at a ranch. However, he never led them to a water source and had them continue to walk through the desert. One of the deceased asked Soto-Mendoza to use his cell phone to call for help as the group had little to no water and were suffering from dehydration, but he told her no. At the direction of Soto-Mendoza, the group continued to walk until either (1) they no longer could or (2) they broke off on their own to look for water and/or help.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Sells, U.S. Border Patrol, and the Tohono O'odham Police Department. The prosecution was handled by David Savel and Arturo Aguilar, District of Arizona, Tucson.CASE NUMBER: CR-11-2628
RELEASE NUMBER: 2014-026_Soto-MendozaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
510-Count Second Superseding Indictment in Illegal Concealed Carry Weapons Permits CaseRead the Press Release
SAN JUAN, PR – Yesterday, May 1st, a Federal grand jury returned a 510-count second superseding indictment against attorney and notary public Antonio Peluzzo-Perotin, María Del Carmen Rivera-Negrón, Julio Colón-Santiago, the Lawman Gun Shop, José M. Prado-Colón and Julio C. Medina-Mojica for conspiracy to commit several offenses against the United States, unlawful production of documents, forgery of signatures and seals, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
Prado-Colón, an auxiliary Police of Puerto Rico officer, auxiliary national guardsmen, and firearms instructor, and Medina-Mojica, owner of a shooting range in Humacao, PR, are facing twenty counts of unlawful production of documents or authentication features and aggravated identity theft. In coordination with defendants Julio Colón-Santiago and Carmen Rivera-Negron they falsified safety course certificates required under Puerto Rico law for concealed carry weapons permits. This was in turn used to illegally obtain concealed carry weapons permits.
According to the accusation, from in or about the year 2010, continuing through December 2013, Rivera Pagàn & Asociados Inc. doing business as Lawman Gun Shop, conspired to commit offenses against the United States, that is: the forgery of the signature of a judge and counterfeit of the seal of the Superior Court of Puerto Rico and using these forgeries for the purpose of authenticating a document before the Puerto Rico Police Department (PRPD) in an official proceeding to obtain a fraudulent Concealed Carry Weapons Permit. The defendants charged clients and collected money for services and fees that were not rendered. Defendants’ scheme knowingly caused the transfer, possession, and use without lawful authority, a means of identification of another person which contained the name and signature of the PRPD Superintendent and the name of permit cardholders.
The purpose and object of the conspiracy for the defendants was to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits be falsely issued for pecuniary gain. It was part of the manner and means of the conspiracy for defendants to charge between $1,000- $1,150 for an application. Defendant Julio Colón-Santiago, aka “Junior” or María del Carmen Rivera-Negrón, aka “Maricarmen,” as owners of the gun shop, would give approximately $480 of the fees to defendant Peluzzo-Perotín, and the remaining amounts would be kept as proceeds of The Lawman Gun Shop.
Customers of the gun shop would be provided and invoice detailing services such as: photocopies, affidavits, stamps, Puerto Rico Department of Treasury filing fees, broker services, and a medical certificate, most of which were never rendered. By perpetrating this scheme the defendants entirely bypassed the judicial process, which had been legislatively established to properly adjudicate these Concealed Weapons permit applications.
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass. If convicted, the defendants could face up to 15 years in prison for unlawful production of identity documents, up to five years for falsifying court documents, up to five years for conspiracy and two additional years for each aggravated identity theft count.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
11th Annual Project Sentry Logo Contest WinnersRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Winning Students from Cordova, Conway, Orangeburg, and Summerville
Columbia, South Carolina ----- United States Attorney Bill Nettles announced the winners today of the United States Attorney=s Office 11th Annual Project Sentry Logo Contest. Today, a representative from the United States Attorney=s Office surprised the division winners and overall winner with a visit to their respective schools. U.S. Attorney Bill Nettles presented the award at Kingston Elementary School in Conway, S.C. The winners are:- Grade 1-2 winner: Wesley Hallman; Edisto Primary School, Cordova, S.C.
- Grade 3-5 winner: Kylie Johnson; Kingston Elementary School, Conway, S.C.
- Grade 6-8 winner: Vibriyogn Epuri; William J. Clark Middle School, Orangeburg, S.C.
- Grade 9-12 and OVERALL WINNER: Marcus Epps; Cane Bay High School, Summerville, S.C.
The winners were chosen from 210 entries from 29 schools across South Carolina. Each division winner received a $50.00 award, with the overall winner receiving an additional $50.00 award. Six other students from across the state also received Honorable Mention ribbons.
The statewide contest gives South Carolina students an opportunity to tell the entire state how they prevent gun violence in their school. The theme of the contest was APreventing Gun Violence in Your School.@ The contest was open to students in all South Carolina schools.
The winning entries were selected by AThe Insiders,@ a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The U.S. Attorney's Office coordinated with the South Carolina Law Enforcement Officers= Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district=s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and for pictures of past winning logos, visit http://www.justice.gov/usao/sc/programs/logowinners.html.
1 May 2014
Woman Sentenced for Illegally Exporting Electronics Components Used in Military Radar, Electronic Warfare and Missile Systems to ChinaRead the Press Release
BOSTON – The former manager of a Massachusetts electronics company was re-sentenced yesterday for illegally exporting electronics components to China.
Yufeng Wei, a Chinese national residing in Belmont, Mass., was sentenced to 23 months in prison for conspiring, over a 10 year period, to illegally export military and sophisticated electronics used in military phased array radar, electronic warfare, and missile systems to the People’s Republic of China (PRC) and illegally exporting sensitive electronic components to the PRC in violation of the Export Administration Regulations. Several Chinese military entities were among those to whom the defendant and her co-conspirators exported the equipment.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wei’s conviction on export violations charges, for which a jury convicted her in May 2010. The First Circuit vacated two counts of the conviction that charged Weiand her now ex-husband, Zhen Zhou Wu, with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that, from 1996 until 2008, Wu and Wei, shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China, with little regard for whether the parts that they sold were export-controlled. Further, the First Circuit determined that Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so. Because two counts of conviction were vacated, the case was remanded for a re-sentencing hearing. Wu was sentenced to 84 months in prison at his re-sentencing hearing held on Sept. 9, 2013.Wei50, was also sentenced to two years of supervised release. After serving her sentence Wei, who has been residing in the United States as a Lawful Permanent Resident, will be subject to deportation.
On May 17, 2010, WeiWu and Chitron Electronics, Inc. (Chitron-US), were convicted of conspiring from 1997 to 2007 to unlawfully export to the PRC military electronics and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron-US, a company Wu established in Waltham, Mass., as a front company for its parent company, Chitron Electronics Company Limited, based in Shenzhen, PRC. Wei was a “hands-on” manager at Chitron-US who oversaw the procurement of export restricted equipment from U.S. suppliers and shipment of those goods from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy, and Air Force.
The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the Court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items ... that the People’s Liberation Army actively seeks to acquire.”
U.S. Attorney Carmen M. Ortiz; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; John J. McKenna, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office; Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office; and Leigh-Alistair Barzey, Resident Agent in Charge of Defense Criminal Investigative Service in Boston made the announcement today. The case was prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.Woman Guilty of Obstructing Investigation of $1.8 Million Fraud Against Failed La Jolla BankRead the Press Release
United States Attorney Laura E. Duffy announced today that former San Diego resident Laura Ortuondo pleaded guilty before Magistrate Judge William V. Gallo to one count of making false statements to federal agents concerning her role in a nearly five-year cover-up of a scheme to defraud La Jolla Bank in connection with a $1.8 million Small Business Administration (“SBA”) loan that her former boss sought from the bank.
According to court records, in 2008, Ortuondo worked for a local small business owner named Annand Sliuman (who previously pleaded guilty in a separate case). In her role as Sliuman’s assistant, Ortuondo, among other things, helped Sliuman manage loans and loan applications with La Jolla Bank. In May 2008, Ortuondo assisted Sliuman in fraudulently obtaining a $1.8 million loan from La Jolla Bank by knowingly submitting two fraudulent tax forms to the bank on Sliuman’s behalf, which falsely stated that Sliuman had satisfied certain tax liabilities. Sliuman and Ortuondo submitted the fraudulent records to the bank in order to make it appear that he was eligible for the SBA loan from the bank. La Jolla Bank was a San Diego County-based bank and a member of the Federal Home Loan Bank of San Francisco (“FHLB”). La Jolla Bank failed in 2010 and was taken over by the Federal Deposit Insurance Corporation (“FDIC”) after the bank ran up a debt of approximately $1 billion, including approximately $700 million in outstanding advances from the FHLB.
According to court records, after assisting Sliuman in defrauding La Jolla Bank, Ortuondo then undertook a nearly five-year long effort to thwart federal agents’ investigation of the fraud. The cover-up began in October 2008, when Ortuondo lied to investigators and claimed that she was unaware that she had submitted false documents to the bank. Then, shortly after lying about her knowledge of the fraud, Ortuondo assisted Sliuman in destroying Ortuondo’s personal laptop, knowing that it contained incriminating evidence of their fraud against the bank. To make matters worse, Ortuondo also convinced her husband at the time to lie to federal agents and a federal grand jury on her behalf, claiming – falsely – that he had destroyed her laptop.
In November 2011, federal agents interviewed Ortuondo again regarding her role in the fraudulent procurement of Sliuman’s loan from La Jolla Bank. Again, Ortuondo lied about her role in the fraud and the cover-up, falsely denying that she knowingly submitted fraudulent tax forms to the bank and falsely claiming that her ex-husband destroyed her laptop. In today’s guilty plea, Ortuondo admitted to making these false statements to federal agents with the intent to obstruct the federal investigation of the La Jolla Bank fraud.
“My office will not tolerate lies and deceit intended to obstruct our system of justice,” said U.S. Attorney Laura Duffy. “As this case illustrates, no matter how long it takes, we will not rest until the truth sees the light of day. I want to thank our agency partners for their dogged commitment to seeing this investigation through.”
“Lies and deceit will not earn you entry into SBA’s small business lending program,” said SBA Inspector General Peggy E. Gustafson. “Together with our law enforcement partners, the OIG will continue to ensure those who commit fraud are brought to justice. We would like to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism throughout this investigation.”
Treasury Inspector General for Tax Administration Special Agent in Charge Rod Ammari stated, “Individuals that use fraudulently created IRS documents to further their schemes and then actively obstruct the Government’s investigation will be investigated to the fullest extent. This investigation is a great example of collaboration by all agencies involved to hold the perpetrators of this scheme responsible for their actions.”
Daphne Hearn, FBI Special Agent in Charge, San Diego Field Office, commented, “Fraudulent schemes like this undermine our country's economy and ultimately leave American taxpayers on the hook. The FBI will continue to work with our law enforcement partners to protect our precious tax dollars from waste, fraud and abuse.”
Michael P. Stephens, Acting Inspector General of the Federal Housing Finance Agency, said: “All individuals who engage in fraudulent behavior, whether they are the ring leader or an assistant, will be held accountable for their actions. We are proud to have worked with our law enforcement partners on this case and are again pleased to see justice served.”
Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, stated, “The FDIC Office of Inspector General is pleased to have joined the Department of Justice and our law enforcement colleagues in conducting this investigation. We are firmly committed to joint efforts such as this one in the interest of ensuring integrity in the banking system and helping to prevent losses to the Deposit Insurance Fund.”
Ortuondo is scheduled to be sentenced by Judge Anthony J. Battaglia on July 25, 2014 at 9 a.m. Her guilty plea is pending final acceptance by Judge Battaglia. Sliuman previously pleaded guilty in a separate case to bribing an officer of La Jolla Bank in exchange for the officer approving loans on his behalf, and admitted his role in the fraud and obstruction of justice conspiracy with Ortuondo. Sliuman is scheduled to be sentenced by Judge Battaglia in his case on September 26, 2014.
DEFENDANT Case Number: 13CR3879-AJB Laura Ortuondo Age: 33 Cupertino, CA CHARGESFalse Statement to a Federal Agent, in violation of Title 18, United States Code, Section 1001
Maximum penalties: 5 years’ imprisonment, $250,000 fine.
DEFENDANT Case Number: 13CR3879-AJB Annand Sliuman Age: 33 Spring Valley, CA CHARGESBank bribery, in violation of Title 18, United States Code, Section 215(a)(1)
INVESTIGATING AGENCY
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineSmall Business Administration – Office of the Inspector General
Department of Treasury – Inspector General for Tax Administration
Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Federal Deposit Insurance Corporation – Office of Inspector General*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.
Winner Woman Charged with Distribution of A Controlled Substance and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winner, South Dakota, woman has been indicted by a federal grand jury for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Alice Blacksmith, age 49, was indicted on April 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in February and March of 2014, Blacksmith possessed and knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, on the Rosebud Sioux Reservation in South Dakota.
The charges are merely an accusation and Blacksmith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blacksmith was released on bond pending trial. A trial date has not been set.
Windham Man Pleads Guilty to Passing $18,000 Worth of Counterfeit Traveler’s ChecksRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Keith
A. Coleman, 48, of Windham, Maine, pled guilty today in U.S. District Court to passing $18,000 worth of counterfeit $100 American Express traveler’s checks.According to court records, between December 17, 2013 and January 10, 2014, the defendant passed 180 counterfeit $100 American Express traveler’s checks at Applebee’s, Best
Buy, CVS Caremark, Denny’s, TGI Fridays, Longhorn Steakhouse, Olive Garden, Radio Shack, Rite Aid, Ruby Tuesday, Staples, Target and Toys ‘R Us in Maine and elsewhere.Coleman faces up to 10 years in prison, a $250,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the United States Secret Service and the Auburn, Augusta, Biddeford, South Portland and Topsham, Maine and the Everett, Massachusetts Police
Departments.Wanblee Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on April 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shy Bettelyoun, age 30, was sentenced to 30 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bettelyoun was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 20, 2013. She pled guilty on November 8, 2013.
The charge relates to Bettelyoun and others, including Angel Provincial, Robert Provincial, Clinton Provincial, Shawna Provincial, and Diana Bald Eagle, conspiring to distribute methamphetamine in the District of South Dakota between the timeframe of August 2009 and February 2013.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Bettelyoun was immediately turned over to the custody of the U.S. Marshals Service.
Violent Felon Sentenced to over 22 Years in PrisonRead the Press Release
BATON ROUGE, LA –U.S. Attorney Walt Green announced that U.S. District Judge Shelly D. Dick sentenced CHRIS E. WILLIAMS, age 28, of Baton Rouge, Louisiana, yesterday to 270 months imprisonment and 5 years of supervised release following imprisonment for his role in a home invasion conspiracy aimed at stealing 12 kilograms of cocaine and killing anyone that stood in the way.
The defendant’s sentence arises from his guilty pleas in January 2014 for conspiring to possess with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846; possessing firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
Under the federal sentencing guidelines, the defendant’s sentence was enhanced based on his status as a career offender. The defendant was afforded that status based on having 3 prior felony adult convictions for crimes of violence, along with 8 other convictions.
U.S. Attorney Green praised the hard work of the Bureau of Alcohol, Tobacco and Firearms (ATF) and the East Baton Rouge Violent Crimes Unit. He also stated: “The U.S. Attorney’s Office and our federal, state, and local partners will continue to devote whatever resources are necessary to aggressively identify, investigate, and prosecute those violent career offenders who plague our streets, threaten our families, and destroy our neighborhoods.”
This investigation was conducted by the ATF and the East Baton Rouge Violent Crimes Unit which includes the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Office, and Louisiana State Police. The matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter who also serves as a Deputy Chief in the Criminal Division.
Two Business Owners Indicted in Alleged Wire Fraud Conspiracy to Fraudulently Obtain More Than $1.8 Million in Government Contracts Under the SBA’s 8(A) ProgramRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Yogesh K. Patel, age 47, of Gaithersburg, Maryland, and Wesley Burnett, age 54, of Hermosa Beach, California, for conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain more than $1.8 million in federal government contracts through the use of the Small Business Administration’s 8(a) program, designed to assist disadvantaged businesses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations; and Mary L. Kendall, Deputy Inspector General, Department of the Interior.
Yogesh K. Patel was the owner of United Native Technologies, Inc. (“UNTI”), which, according to its articles of incorporation, was formed to “perform information technology services to federal, state and local government, as well as commercial.” In 2005, Patel applied for and was granted certification as a minority or socially disadvantaged owned business under the SBA’s 8(a) program. In addition to a broad scope of assistance from SBA, participants in the 8(a) program can receive sole source government contracts that are reserved for minority or socially disadvantaged owned companies.Wesley Burnett owned Total Barrier Works (TBW), a professional services company specializing in the maintenance and installation of anti-terrorist systems and vehicle control equipment such as security barriers, bollards, gates, uninterrupted power systems (UPS) and all other perimeter security anti-terrorist equipment.
The indictment alleges that Patel and Burnett agreed to use UNTI to bid on 8(a) set aside contracts at federal government installations, including military bases and federal buildings, with Burnett, TBW and individuals at Burnett’s direction actually performing the work necessary to fulfill these contracts. Burnett also agreed to pay Patel approximately 4.5% of the total value of any contract awarded to UNTI. As a result, the indictment alleges that between January 2010 and November 2013, UNTI was fraudulently awarded more than $1.8 million in 8(a) set-aside U.S. Government contracts, while the work on the contracts was actually performed by Burnett’s company and employees.
Patel and Burnett each face a maximum sentence of 30 years in prison and a $250,000 fine for conspiracy to commit wire fraud. No court appearance has been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General, U.S. Air Force Office of Special Investigations and the Department of the Interior, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Two Beckley Area Men Sentenced for Forging Prescriptions to Obtain OxycodoneRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
BECKLEY, W.Va. – U.S. Attorney Booth Goodwin announced today that Raymond Duncan, age 31, of Bud, West Virginia, and Jeremy Blankenship, age 38, of Crab Orchard, West Virginia, were sentenced today in federal court in Beckley, West Virginia. In January of 2014, Duncan plead guilty to obtaining oxycodone by fraud, and Blankenship plead guilty to attempting to obtain oxycodone by fraud. Both men forged prescriptions for oxycodone on stolen prescription pads and presented them to Beckley area pharmacies to be filled. Duncan was successful in illegally obtaining oxycodone, but Blankenship was arrested during his attempt to get the forged prescription filled. In today’s court hearing, United States District Judge Irene C. Berger sentenced Duncan to ten months’ imprisonment and Blankenship to three years of probation.
The case was investigated by the United States Drug Enforcement Administration.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
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(203) 821-3722 [email protected]Three Fort Thompson Brothers Charged with Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that three Fort Thompson, South Dakota, men have been charged by Information with three counts of Possession of a Controlled Substance.
Lucas Middletent, age 27; Victor Middletent, age 30; and Thomas Middletent, age 32, were charged by Information on April 21, 2014. Lucas and Thomas Middletent appeared before U.S. Magistrate Judge Mark A. Moreno on April 23, 2014, and pled not guilty to the Information. Victor Middletent appeared before Judge Moreno on April 30, 2014, and pled not guilty to the Information.
The maximum penalty upon conviction is 1 year of imprisonment, and/or a mandatory $1,000 fine up to a $100,000 fine, 1 year of supervised release, an additional 1 year of supervised release upon revocation, and a mandatory $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that at various times between July 2013 and November 2013, in Fort Thompson, Lucas, Victor, and Thomas Middletent intentionally and knowingly possessed methamphetamine, a Schedule II controlled substance.
The charges are merely accusations, and all three men are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the cases.
All three men were released on bond pending trial. A trial date has not been set.
Supai Man Sentenced to 96 Months in Prison for Aggravated Sexual AbuseRead the Press Release
PHOENIX – On April 28, 2014, David Wayne Old Mouse, 24, of Supai, Ariz., of the Havasupai Indian Reservation, was sentenced by U.S. District Judge G. Murray Snow to 96 months in prison followed by five months of supervised release. Old Mouse previously pleaded guilty to one count of aggravated sexual abuse.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-08227-PCT-DGC-1
RELEASE NUMBER: 2014-025_Old_MouseFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Stella Man Pleads Guilty to Transporting a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stella, Mo., man pleaded guilty in federal court today to transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Jan. 21, 2014, federal indictment.
By pleading guilty today, Yang admitted that he traveled to Minnesota on Dec. 7, 2013, to pick up a 15-year-old girl and bring her back to Missouri with the intent to engage in illicit sexual activity.
Yang had contacted the minor victim a couple of weeks earlier by sending her a friend request on Facebook. Yang talked to her about coming to live with him in Missouri and told her he owned his own business. The minor victim went to her mother’s house to retrieve some clothing on Dec. 6, 2013, and while there, she asked Yang to come get her. She snuck out and met with Yang in front of her mother’s house the next day, and they drove to a hotel in Neosho, Mo., where they engaged in unprotected sex.
Under federal statutes, Yang is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $1 million. 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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Staples Convicted of Production of Child PornograpyRead the Press Release
Local Karate Instructor Admits to Producing Child Pornography
PLATTSBURGH, NEW YORK – Ryan Staples, 37, of Chateaguay, pled guilty to three counts of production of child pornography today in United States District Court in Albany, New York, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent in Charge James Spero.
United States Attorney Richard S. Hartunian stated: “We will continue to aggressively pursue anyone and everyone who seeks to traumatize and sexually exploit our children. I commend the Department of Homeland Security and their investigators who worked so hard to bring this defendant to justice.”
“Child pornography creates a permanent record of a child’s sexual exploitation and each time it’s shared online, that child is victimized again," said Spero. "Traumatizing children for sexual purposes is one of the most despicable crimes HSI investigates. HSI will continue to relentlessly pursue child predators to rescue innocent victims and bring their abusers to justice.”
STAPLES faces a statutory mandatory minimum sentence of imprisonment for fifteen years on each count and a maximum sentence of imprisonment for thirty years on each count, a lifetime term of supervised release, a maximum fine of $250,000 on each count, and mandatory registration as a sex offender. STAPLES, who was remanded, will be sentenced in Albany on September 11, 2014 by United States District Judge Thomas J. McAvoy.
Staples pled guilty to three counts of production of child pornography involving three different victims. Staples admitted that he videotaped and took photographs of himself engaged in sexually explicit conduct with the three minor victims.
This prosecution resulted from an investigation conducted by the Department of Homeland Security, Homeland Security Investigations, Rouses Point. The case was prosecuted by Assistant United States Attorney Katherine Kopita.
St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Kahn, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Kahn, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Kahn and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Kahn and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Kahn and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Kahn allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.St. Joseph Man, Two California Men Indicted for Synthetic Marijuana ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man is among three defendants indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic cannabinoid products, also known as K2.
Shakeel Khan, 36, of St. Joseph, Mohammed Saleem, 40, of Diamond Back, Calif., and Asif Saddiq, 56, of Fullerton, Calif., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 30, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Khan, Saleem and Saddiq participated in a conspiracy to distribute synthetic cannabinoid products, a controlled substance analogue, from March 1, 2011, to April 30, 2014.
Khan and Saleem are also charged together in one count of aiding and abetting each other to distribute synthetic marijuana labeled as “7H,” “777” and “Mr. Nice Guy.”
Khan and Saleem are also charged together in a money-laundering conspiracy in February 2014. The indictment alleges that Khan and Saleem conducted financial transactions that involved the proceeds of the alleged drug-trafficking conspiracy. Khan allegedly directed a confidential source to send him the $8,750 payment for 3,500 units of synthetic cannabinoids to the bank account of business listed as a wholesale clothing company with a mailing address in California. This address has been identified as the mailing address for Saleem’s secretary/manager. Khan is not a signer on the account. A withdrawal of $7,500 in cash was made at a bank branch in California on the same day.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration.St. Francis Man Sentenced for Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Attempt to Obtain Controlled Substance by Fraud was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Titus Iron Shield, age 48, was sentenced to 3 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Shield was indicted for Attempt to Obtain Controlled Substance by Fraud by a federal grand jury on January 15, 2014. He pled guilty on February 3, 2014.
On approximately April 30, 2013, Iron Shield fraudulently presented an altered prescription in an attempt to receive 30 Hydrocodone pills from the Rosebud Indian Health Service Pharmacy. A pharmacist examined the prescription, recognized it could be an invalid and fraudulent prescription, and the matter was reported to law enforcement authorities.
This case was investigated by Office of Inspector General – Department of Health and Human Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Iron Shield was immediately turned over to the custody of the U.S. Marshals Service.
St. Croix Man Arrested for Carrying A Loaded Firearm on an AircraftRead the Press Release
St. Thomas, USVI – Jahmal A. Rivera, 28, of St. Croix was arrested on Tuesday and charged in United States District Court with having a loaded firearm on an aircraft announced United States Attorney Ronald W. Sharpe. Rivera appeared yesterday in District Court before U.S. Magistrate Judge Ruth Miller and was ordered held without bail pending trial.
According to the criminal complaint filed in District Court, Rivera was arrested after arriving at the Cyril E. King Airport in St. Thomas on a Seaborne Airlines plane from St. Croix, and a loaded Glock, .45 caliber firearm was found in his carry-on baggage. The firearm was discovered by Virgin Islands Port Authority (VIPA) and United States Customs and Border Protection (CPB) who were conducting screening of all passengers arriving in St. Thomas from St. Croix. Under federal law, it is illegal to carry a loaded firearm on an aircraft either on your person or in luggage unless properly declared.
If convicted of this offense, Rivera faces up to 20 years in prison, a fine of up to $250,000, or both. However, a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
United States Attorney Sharpe praised the work of the VIPA and CPB in stepping up their inspections of flights between St. Thomas and St. Croix. This case is being investigated by the Bureau of Alcohol Tabaco Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Nelson Jones.
Social Security Claims Representative Sentenced to Twelve Months and One Day for Extortion and BriberyRead the Press Release
Memphis, TN – United States Attorney Edward L. Stanton III announced today that Montrell Levelle Arnold, age 42, of Memphis, Tennessee, was sentenced by United States District Judge Samuel H. Mays, Jr., to twelve months and one day in federal prison for bribery and extortion under color of official right. Arnold was also ordered to pay $3,473.54 in restitution to the United States Social Security Administration and to serve two years of supervised release.
According to the Indictment and to information presented in court, on at least five occasions while Arnold was working as a Claims Representative for the United States Social Security Administration (SSA) in Memphis, he offered to “process” purported one-time Supplemental Security Income (SSI) payments for beneficiaries in exchange for a fee. Several SSI beneficiaries agreed to pay Arnold a fee to process this purported one-time benefit payment, and at least one beneficiary paid Arnold $1,500 in cash.
Once the purported benefit payment had been electronically deposited into a beneficiary’s account, Arnold would then contact the beneficiary by telephone and by text message to confirm receipt of payment and to make arrangements to obtain his “processing fee.”
“Because of his brazen criminal scheme, Arnold now faces a prison sentence and must pay back the money he stole. We will continue to work closely with the SSA to pursue, prosecute, and bring to justice those who use their position of authority to steal from honest American taxpayers,” stated United States Attorney Edward L. Stanton III.
“While employee fraud is rare in SSA’s dedicated work force, the Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust. I’m grateful that the U.S. Attorney’s office shares our determination to ensure the integrity of SSA’s programs,” said Wayne Warren, Special Agent in Charge, United States Social Security Administration, Office of the Inspector General.
The case was investigated by the United States Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Leetra Harris represented the government.Six People from Rapid City Sentenced for Immigration Related CrimesRead the Press Release
United States Attorney Brendan V. Johnson announced that six individuals, five of whom are family members, have been sentenced for their roles in a conspiracy to harbor aliens and for harboring aliens between January 2008 and May 2013. The fraud is in connection with contracts entered into with the U.S. Forest Service.
The convictions are a result of a criminal investigative operation conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations, in cooperation with the U.S. Forest Service, the Rapid City Police Department, the Pennington County Sheriff's Office, the South Dakota Division of Criminal Investigation, the Custer County’s Sheriff’s Office, the U.S. Department of Labor, and other federal and state law enforcement agencies.The following individuals were sentenced on April 24 and April 25, 2014:
*Angel Munoz-Escalante, age 60, owner and operator of Munoz Logging and Construction Company, was sentenced for False Statement. He received 12 months and 1 day of imprisonment, 1 year of supervised release, 50 hours of community service, $539,507.92 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 2007 Dodge Ram pickup truck, a 2006 Dodge pickup truck, a Timbco Valmet T445 EXL, a Timbco T425B, and $108,590.08 in currency. The total value of the seized and forfeited items is $260,492.08.Munoz-Escalante intentionally submitted approximately 50 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Munoz-Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates. Munoz-Escalante is scheduled to begin his prison term on May 26, 2014.
*Barbara Munoz, age 55, owner and operator of Munoz Logging and Construction Company, was sentenced for Misprison of a Felony. She received 1 year of probation, 100 hours of community service, and a $100 assessment to the Federal Crime Victims Fund. Munoz was aware that her husband, Angel Munoz-Escalante, was committing federal felony crimes by circumventing U.S. Forest Service contract requirements and did not report those crimes.
*Aurelio Munoz-Escalante, age 51, owner and operator of Black Hills Thinning Company, was sentenced for False Statement. He received 3 months of imprisonment, 1 year of supervised release, $135,276.88 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 518C Skidder, a 2005 CAT 525B Skidder, and $116,724.12 in currency. The total value of the seized and forfeited items is $165,590.12. Aurelio Munoz-Escalante intentionally submitted approximately 32 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Aurelio Munoz-Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates. Aurelio Munoz-Escalante is scheduled to begin his prison term at a later date.
*Rogelio Escalante, age 57, owner and operator of Escalante Logging Company and Escalante Logging and Thinning Company, was sentenced for False Statement. He received 6 months of home confinement, 2 years of probation, $249,155.23 in restitution, a $100 assessment to the Federal Crime Victims Fund, and forfeiture of a 2005 ASV Positract RC 100, a Tigercat 610C Skidder, a 1998 Timberjack 460 Skidder, and $38,875.29 in currency. The total value of the seized and forfeited items is $223,875.29. Escalante intentionally submitted approximately 25 contract certifications for payment to the U.S. Forest Service. The certifications were in violation of law, as they contained materially false statements. The work performed on the contracts was not done in accordance with the contract terms because Escalante employed undocumented aliens and failed to pay workers at prevailing wage and benefit rates.
*Miguel Soto, age 31, foreman for Black Hills Thinning Company, was sentenced for Continuing Unlawful Employment of Aliens. He received a $2,500 fine, a $10 special assessment to the Federal Crime Victims Fund, and forfeiture of $3,087 in currency. Soto, while working for Black Hills Thinning Company as a supervisor, knowingly paid illegal alien employees. In addition, while running his own logging crew, he knowingly employed illegal workers.
*Pascual Munoz, age 55, owner and operator of Pine Forest Logging and Thinning, was sentenced for Continuing Unlawful Employment of Aliens. He received a $2,500 fine, a $10 special assessment to the Federal Crime Victims Fund, and forfeiture of his logging equipment. The total value of the seized and forfeited items is $22,500. Munoz hired illegal workers, did not pay insurance or overtime, and did not provide safety equipment, all in violation of his U.S. Forest Service contracts.
Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the cases.
Four additional defendants associated with this case will be sentenced at a later date.
Sentencing for April 25 - May 1, 2014Read the Press Release
John Scott Pinkerton, 58, of Pierce, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on May 1, 2014, for attempted online enticement of a child. Pinkerton was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $1,000.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Ryan Michael Myron, 29, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2014, for being a felon in possession of a firearm. Myron was arrested in Riverton, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Max Brian McDermott, 45, of Daniel, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2014, for possession of child pornography. McDermott was arrested in Daniel, Wyoming. He received 60 months imprisonment, to be followed by a life-time term of supervised release, and was ordered to pay a $2,000.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Chandler Allen Ingersoll, 43, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more methamphetamine and on one count of possessing a firearm in furtherance of a drug trafficking crime. Ingersoll was arrested in Gillette, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Campbell County Sheriff’s Office, the Gillette Police Department, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Benjamin Paredes-Aguirre, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, for illegal re-entry of a previously deported alien into the United States. Paredes-Aguirre was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edgar Valencia-Hernandez, 31, of Mexico, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2014, for illegal re-entry of a previously deported alien into the United States. Valencia-Hernandez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hugo Cartaya, 58, of Littleton, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on April 25, 2014, for making false statements in a report required to be filed under the Clean Water Act and making false statements to special agents of the United States Bureau of Land Management and the United States Environmental Protection Agency during a criminal investigation of an oil spill in Carbon County, Wyoming. Cartaya self-surrendered to the U.S. Marshals Service. He received three years of supervised probation, was ordered to serve 250 hours of community service, and was ordered to pay a $10,000.00 fine and a $200.00 special assessment. This case was investigated by the U.S. Environmental Protection Agency and the U.S. Bureau of Land Management.
Seller of Shipping Containers Convicted of FraudRead the Press Release
HOUSTON – Steven Patrick Jones, 49, of Kingwood, and Panama City, Panama, has pleaded guilty to mail fraud, announced United States Attorney Kenneth Magidson.
Jones has admitted he and a partner formed a company called Intermodal Wealth to sell shipping containers. Intermodal offered to sell shipping containers to investors, then lease the containers for the investors. Jones promised to pay their investors 16% per year from the proceeds of the leases.
However, the company had few containers and did not lease any of them. Payments were made to investors, but the funds came from subsequent investors rather than from true proceeds.
Intermodal received more than $5.5 million from investors throughout the United States and worldwide. Jones, his family and partners spent the majority of the investment funds they received.
John Patrick Acord, 71, of Magnolia, is named in the indictment as Jones’ partner. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Postal Inspection Service at 713-238-4444. He is considered innocent unless convicted through due process of law.
U.S. District Judge Gray Miller, who accepted the guilty plea today, has set sentencing for Sept. 5, 2014. At that time, Jones faces up to 20 years in federal prison without parole and a fine of up to $250,000. He has been and will remain in custody pending that hearing.
The U.S. Postal Inspection Service investigated the case with the assistance of the Texas State Securities Board. Assistant U.S. Attorney Jay Hileman is prosecuting.
San Diego Man Sentenced to 14 Years in Prison for Receipt of Child PornographyRead the Press Release
Howard Willie Carter, II, a San Diego resident, was sentenced yesterday by U.S. District Judge Barry Ted Moskowitz to 168 months in federal prison, followed by 10 years of supervised release, based on Carter’s conviction for receipt of child pornography.
Carter, who has been in custody since his arrest by the Federal Bureau of Investigation on October 17, 2012, pled guilty on November 14, 2013.
According to court documents, in August 2012, Carter was receiving and viewing images of minors engaged in sexually explicit conduct. After a forensic review of his computer, it was discovered that he possessed well over 600 illegal images and videos, with the majority of the images involving minors under the age of 12. The forensics examination of the computer conducted by the San Diego Regional Computer Forensic laboratory (RCFL) revealed that Carter attempted to upload one of those videos to YouTube to be viewed by others.
At sentencing yesterday, Judge Moskowitz stated that given Carter’s past criminal history and his conduct in the current case, Carter appeared to be a danger to the community and a significant sentence was warranted.
“Unfortunately, child exploitation is an epidemic in this nation,” said U.S. Attorney Laura Duffy. “Howard Carter’s actions highlight the dangerousness of this type of activity in our community. I hope this long sentence will prevent him and others from exploiting a victim in the future.”
FBI Special Agent in Charge Daphne Hearn, commented, “Each image Mr. Carter possessed represented the victimization of a child. We hope today's sentencing sends a clear message to anyone involved in the online sexual exploitation of a child, that the FBI will not tolerate the victimization and destruction of our children's future. We will remain vigilant and committed to removing sexual predators from our children's lives.”
This case stems from an investigation by the Federal Bureau of Investigation.
DEFENDANT Case Number: 12CR4191-BTM Howard Willie Carter Age: 37 San Diego, California CHARGESTitle 18, United States Code, Section 2252(a)(2) – Receipt of Child Pornography
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Rough and Ready Man Found Sentenced to 14 Years Prison for Nevada County Crime SpreeRead the Press Release
SACRAMENTO, Calif. — Today, United States District Judge Troy Nunley sentenced Jasen Lynn Dushane, 38, of Rough and Ready, to 14 years prison for possession of stolen United States mail, possession of stolen credit cards with intent to defraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Dushane was previously convicted after a five-day trial.
In sentencing, Judge Nunley characterized Dushane’s criminal history as extensive and said that Dushane was “a crime spree waiting to happen.”
According to testimony presented at trial, on June 5, 2011, at approximately 2:25 a.m., a Nevada County sheriff’s deputy observed a silver Lexus sedan southwest of Nevada City. He checked the license plate number of the Lexus and confirmed that it was reported stolen. The deputy stopped the vehicle and directed the driver to turn off the engine. Although the driver initially complied, he restarted the engine and drove off. A vehicle chase ensued for nearly 1.5 miles on dark and muddy Black Forest Road. The two occupants of the Lexus fled from the vehicle, but not before the driver threw the Lexus into reverse, sending it backward toward the deputy and ultimately down an embankment. Law enforcement officers were unable to find the male driver, but they found the passenger, Manda Lynn Wentzloff, hiding in some nearby brush. Wentzloff identified the driver as Dushane. Dushane was arrested at a store later that day in Grass Valley while attempting to pick up a police scanner that he had ordered using a stolen credit card.
According to court documents, Wentzloff told officers that she and Dushane had been stealing mail and other items from mailboxes and a residence in and around Nevada County. She said that she and Dushane had stolen a BMW vehicle during the course of their activities, and that it was parked outside her and Dushane’s motel room in Reno. They searched the hotel room, the Lexus, and the BMW and found bags, folders, and other containers full of opened and unopened U.S. mail with recipient addresses in Nevada County and Las Vegas. Officers also found photocopies of credit cards and various official identification documents, credit cards, opened bank and credit card statements, and personal checks. In total, more than a thousand pieces of stolen mail were recovered.
Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, San Francisco Division stated “we work closely with the U.S. Attorney Office and our partners in law enforcement to arrest and prosecute those who steal mail for criminal gain. A primary goal of the Postal Inspection Service is to protect postal customer’s mail and ensure that their mail is safe from theft.”
This case is the product of an investigation by the United States Postal Inspection Service and the Nevada County Sheriff’s Office. Assistant United States Attorneys Jared S. Dolan and Nirav K. Desai prosecuted the case.
Rosebud Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Arnold Eagle Bear, age 31, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 30, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 1, 2013, and December 31, 2013, Eagle Bear had sexual contact with a minor who had not attained the age of 16.
The charge is merely an accusation and Eagle Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Eagle Bear was released on bond pending trial. A trial date has not been set.
Rapid City Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted by a federal jury on charges of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, was sentenced on April 25, 2014, by U.S. District Court Judge Karen E. Schreier.
Richard Bear Runner, age 25, was sentenced to 57 months of imprisonment, 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
In September 2012, at Porcupine, Bear Runner assaulted a woman with a wooden stick that had a sharp hook on it, causing multiple cuts on her legs and back.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Bear Runner was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on April 21, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wilber Sinai Valdovinos-Gil, age 23, was sentenced to 120 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Valdovinos-Gil was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 4, 2012. He pled guilty on December 20, 2013.
From June 2010 until April 4, 2012, Valdovinos-Gil conspired and agreed with Hugo Arechiga-Torres, and other persons, to distribute more than 1.5 kilograms of methamphetamine in South Dakota. Torres is scheduled to be sentenced on June 2, 2014.
This case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, Sioux Falls Area Drug Task Force, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Valdovinos-Gil was immediately turned over to the custody of the U.S. Marshals Service.