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Thursday 13 March 2014
Media Advisory - Press Conference March 17Read the Press Release
United States Attorney Brendan V. Johnson will hold a Press Conference on Monday, March 17, 2014, at 11:30 a.m. CST.
Discussed will be the sentencing of Mohammed Alaboudi for Sex Trafficking in Sioux Falls; recent cases of commercial Sex Trafficking and the law enforcement collaboration that led to the prosecutions; and continuing efforts to combat Human Trafficking.
WHO: Brendan Johnson, U.S. Attorney
Marty Jackley, South Dakota Attorney General
Aaron McGowan, Minnehaha County State’s Attorney
Doug Barthel, Chief of Police, Sioux Fall Police Department
Paul Niedringhaus, Captain, Minnehaha County Sheriff’s Office
Joseph Weir, Supervisory Special Agent, Federal Bureau of Investigation
Michael Janak, Resident Agent in Charge, Homeland Security Investigations
Mike Melcher, Federal Bureau of Investigation
WHAT: Press Conference
WHEN: Monday, March 17, 2014, at 11:30 a.m. CST. Members of the media should arrive by 11:00 a.m. due to extra security measures.
WHERE: United States Attorney's Office, 325 S. 1st Ave., Suite 300, Sioux Falls, SD.
NOTE: Media must enter through the third floor reception area. ALL media MUST PRESENT GOVERNMENT-ISSUED PHOTO ID (such as driver’s license) as well as VALID MEDIA CREDENTIALS. Press inquiries regarding logistics should be directed to Community Services Coordinator Ace Crawford at 605.341.1915 or 605.838.6092.
Man Gets 2 Years in Prison After Being Caught Burglarizing A Wolf Point HomeRead the Press Release
The United States Attorney's Office announced that after being caught fleeing with stolen electronics from a stranger's home, BRANDON MICHAEL JACKSON, aka BRANDON BUCKLES, was sentenced on March 11, 2014, to two years in prison, three years supervised release, and ordered by a judge to pay over $7,000 in restitution to the family whose house he burglarized with two others.
U.S. District Court Judge Brian M. Morris sentenced JACKSON, 28, of Wolf Point, Montana, following JACKSON's entry of a guilty plea to a single-count federal indictment for burglary. In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On or about July 6, 2012, JACKSON burglarized a house in Wolf Point, Montana, after allegedly following two other men to a "house party" there. He and two others entered the unoccupied house and began taking things from the home, including electronics and jewelry.
The owners were on vacation. None of the three men had permission to be in the home. The home owner's son and two friends returned to the house and the burglars were still in the home. After hearing people shuffling upstairs, they armed themselves with various makeshift weapons, including a two-by-four. Jackson was caught carrying a television as he ran down the stairs. Jackson threw the television at them and fled, throwing jewelry out of his pockets as he left the residence. The other two burglars also fled the house, dropping items in the yard and neighborhood.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that Jackson will likely serve all of the time imposed by the court. In the federal system, Jackson does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Fort Peck Tribes Department of Law and Justice
Malian National Indicted for Murder of U.S. Diplomat to Be Arraigned Today in Brooklyn Federal CourtRead the Press Release
Alhassane Ould Mohamed, also known as “Cheibani,” a Malian citizen charged with the murder and attempted murder of United States Embassy personnel stationed in Niamey, Niger, in December 2000, will be arraigned today at 2:00 p.m. in the Eastern District of New York. Mohamed was extradited to the United States by the Malian government, and today will be his first appearance on these charges in the United States.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The investigation indicates that the defendant and his confederate brazenly shot and killed U.S. diplomat William Bultemeier in Niger, and wounded U.S. Marine Christopher McNeely as he bravely risked his life to attempt to save his colleague. Today’s extradition shows that the sacrifice of Mr. Bultemeier and the courage of Staff Sergeant McNeely in service to this country have not been forgotten. The tireless efforts of the United States in bringing the defendant to face these charges demonstrate our commitment to bringing to justice those charged with harming our diplomats and embassy personnel,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the governments of Mali and Niger for their exceptional assistance and cooperation in this investigation.
“An attack on U.S. Government personnel, whether domestic or abroad, is an attack on the United States. The extradition of the defendant by the Malian Government to the United States to face charges of murdering U.S. diplomat Bultemeier and attempting to murder Staff Sergeant McNeely is a testament to the cooperative efforts of our law enforcement and international partners. The arms of our justice system are long and far-reaching, and this case should send a clear message to all fugitives: the U.S. Government will not rest until they are brought to justice for their crimes,” stated FBI Assistant Director-in-Charge Venizelos.
According to the indictment, in the early morning hours of December 23, 2000, the defendant and a co-conspirator accosted a group of employees of the United States Embassy in Niger as they left a restaurant in Niamey, Niger. Carrying a pistol and an AK-47 assault rifle, the two men approached Department of Defense official William Bultemeier as he was about to enter his car, a white sport-utility vehicle bearing diplomatic license plates clearly indicating that it belonged to the United States Embassy. The defendant demanded that Mr. Bultemeier turn over the keys to the diplomatic vehicle and shot Mr. Bultemeier with the pistol. Staff Sergeant Christopher McNeely, the Marine Detachment Commander for the United States Embassy in Niger at the time, ran to Mr. Bultemeier’s aid. The defendant’s co-conspirator then fired his AK-47 at Mr. Bultemeier and Staff Sergeant McNeely, hitting them both. After rifling through Mr. Bultemeier’s pockets to get the car keys, the defendant and his fellow assailant drove away in the United States Embassy vehicle.
Mr. Bultemeier died of the injuries inflicted by the gunshot wounds. Staff Sergeant McNeely survived the shooting, and later retired from the Marine Corps as a Master Sergeant.
On September 13, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of murdering an internationally protected person, in violation of Title 18, United States Code, Section 1116(a), and one count of attempting to murder an internationally protected person, in violation of Title 18, United States Code, Section 1116(a). At the request of the United States, the Malian government thereafter commenced extradition proceedings against the defendant in December 2013, and he was ordered extradited in January 2014 in accordance with the Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Celia Cohen, with assistance from Trial Attorney Jennifer Levy of the Justice Department’s Counterterrorism Section and Trial Attorney Dan E. Stigall of the Justice Department’s Office of International Affairs.
The Defendant:
ALHASSANE OULD MOHAMED
Age: 43
Maine Resident Sentenced for Engaging <br /> in Cyber “Sextortion” of New Hampshire VictimRead the Press Release
John Bryan Villegas, 23, of Kittery, Maine, was sentenced today in federal court in New Hampshire to serve 33 months in prison for engaging in a type of cyber stalking known as “sextortion,” announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.
On Sept. 18, 2013, Villegas pleaded guilty to an information charging him with one count of engaging in cyber stalking. The information charges that Villegas attempted to extort a New Hampshire female into providing him with sexually explicit photographs and videos of her. He sent her e-mail messages in which he threatened to publish on the internet – and distribute to the victim’s neighbors and work and social acquaintances – other sexually explicit photographs of the victim that were stored on her laptop computer, which had been recently stolen during a burglary of her residence. On Jan. 9, 2014, Villegas pleaded guilty in New Hampshire state court to charges that he committed that burglary.
The case was investigated by the U.S. Secret Service and was prosecuted by Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The department would like to thank the Dover, N.H., and Kittery, Maine, police departments and the Naval Criminal Investigative Service for their cooperation.Maine Resident Sentenced for Engaging in Cyber "Sextortion" of New Hampshire VictimRead the Press Release
WASHINGTON – John Bryan Villegas, 23, of Kittery, Maine, was sentenced today in federal court in New Hampshire to serve 33 months in prison for engaging in a type of cyber stalking known as “sextortion,” announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.
On Sep. 18, 2013, Villegas pleaded guilty to an information charging him with one count of engaging in cyber stalking. The information charges that Villegas attempted to extort a New Hampshire female into providing him with sexually explicit photographs and videos of her. He sent her e-mail messages in which he threatened to publish on the internet – and distribute to the victim’s neighbors and work and social acquaintances – other sexually explicit photographs of the victim that were stored on her laptop computer, which had been recently stolen during a burglary of her residence. On Jan. 9, 2014, Villegas pleaded guilty in New Hampshire State Court to charges that he committed that burglary.
The case was investigated by the U.S. Secret Service and was prosecuted by Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The department would like to thank the cooperation of the Dover, New Hampshire, and Kittery, Maine, police departments and the Naval Criminal Investigative Service.
Local Man Sentenced to 30 Years in Marijuana Trafficking ConspiracyRead the Press Release
St. Louis, MO – The leader and the final of a 24-defendant, multi-hundred kilogram marijuana trafficking conspiracy ring was sentenced to 30 years in prison this morning by United States District Judge Carol E. Jackson. According to court documents and testimony presented at trial, David Ingram Henderson was the leader of an organization involved in the transportation of more than a ton of bulk marijuana from Arizona to the St. Louis area beginning in the summer of 2006 and continuing to June 2010.Henderson devised a system in which he would use members of the conspiracy to drive multiple rental vehicles with license plates from various states back from Arizona. One of these vehicles would be loaded with a large amount of marijuana intended for distribution in the St. Louis area and the other vehicles would travel in tandem with the loaded vehicle to serve as decoys designed to direct law enforcement attention away from the loaded vehicle. Additionally, Henderson headed another conspiracy that operated indoor marijuana growing operations at various locations in St. Louis City and County.
DAVID INGRAM HENDERSON, Maryland Heights, Missouri, was convicted in November 2013 of one felony count each of conspiracy to distribute and possess with intent to distribute over 1000 kilograms of marijuana; conspiracy to manufacture over 100 plants of marijuana and the manufacture of 100 marijuana plants.
Twenty-three co-defendants previous pleaded guilty to related charges and have been sentenced.
This case was investigated by the Drug Enforcement Administration, U.S. Border Patrol, Nebraska State Patrol, Arizona Department of Safety, Phoenix Police Department, Hall County Nebraska Sheriff’s Department, O’Fallon Police Department and Maryland Heights Police Department.
Local Man Convicted of Kidnapping and A Firearm OffenseRead the Press Release
Follow @SDILNewsAntwon D. Jenkins was found guilty today of kidnapping or aiding and abetting kidnapping and using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The verdict was returned early this afternoon, following a three-day trial.
According to Court documents, Antwon D. Jenkins, was indicted in August 2012 on two counts, kidnapping or aiding and abetting kidnapping, and using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping. Trial commenced on March 10, 2014, in the United States District Court for the Southern District of Illinois in East St. Louis, Illinois.
The evidence at trial showed that on July 17, 2012, Jenkins lured a young man to his house in East St. Louis, Illinois. While there, Jenkins and others brutally attacked the young man and accused him of committing a burglary on Jenkins’ second home in Cahokia. After some time, Jenkins told the young man they were going to “take that ride.” The young man was walked outside and put into Jenkins’ truck where the young man could not get out. Jenkins drove the young man across the Poplar Street Bridge and into Franklin County, Missouri. During the drive, Jenkins pulled off Highway 44 twice and threatened the young man twice at gunpoint. The second time Jenkins pulled over, he told the young man to get out of the truck so Jenkins could shoot him in the back. Fortunately, the victim ran off into the woods and escaped. Jenkins was arrested a few days later.
“This case would not have been successful without the courage and dedication of the investigators, the witnesses, the victim, and his family. It is never easy for crime victims to face their perpetrators in court, and this case was no exception. We are especially appreciative of the cooperative efforts of the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012, and investigated this case.” noted United States Attorney Wigginton.
Jenkins faces the possibility of spending the rest of his life in prison when he is sentenced. Sentencing has been set for June 27, 2014. The case was tried by Assistant United States Attorneys Monica A. Stump and Scott A. Verseman.
Leader of Stolen Identity Refund Fraud Ring Sentenced to JailRead the Press Release
Christopher Davis, of Montgomery, Ala., was sentenced today to serve 60 months in prison, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Davis was also ordered to forfeit $300,559, which represented the proceeds of his offenses. Davis previously pleaded guilty to charges of conspiracy to defraud the United States, wire fraud and aggravated identity theft.
According to court documents and evidence from the sentencing, Davis was the leader of a multi-state tax fraud conspiracy that operated by filing false tax returns using stolen identities, causing the Internal Revenue Service (IRS) to issue tax refunds. Davis obtained personal identifying information from different sources, including a medical facility in Alabama. He and a co-conspirator, Kenneth Blackmon, who was sentenced to serve 51 months in prison in April 2013, would then file false tax returns using the stolen identities in which they would direct the fraudulently claimed tax refunds to be deposited onto prepaid debit cards.
According to court documents, Davis recruited Blackmon and several other individuals involved in the conspiracy to act as paid runners to help with obtaining the refund money. Davis and Blackmon, who both lived in Alabama, would organize trips to Georgia and South Carolina during which the runners would use the debit cards loaded with fraudulently obtained tax refunds to make cash withdrawals at numerous locations across both states, and then provide the cash to Davis and Blackmon. The runners would also buy new debit cards for use in the ongoing scheme. In his plea agreement, Davis admitted that at one point during the scheme he had over 600 stolen identities and 200 prepaid debit cards with him in Georgia.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorney Jason Poole for the Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case. The Alabama Department of Pardons and Paroles and the Gwinnett County Sheriff’s Department in Georgia provided assistance in the investigation.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Kern County Man Indicted on Drug and Gun Charges After A Lengthy, Multi-Agency InvestigationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today charging Jose Trinidad Salas, 43, of McFarland, with conspiring to distribute and possess with the intent to distribute methamphetamine, cocaine and marijuana, being a felon in possession of a firearm, and being a person in the United States unlawfully in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that between January 2010 and February 26, 2014, Salas and others conspired to distribute methamphetamine and other drugs. Court documents allege that pound quantities of methamphetamine were seized in New Mexico and Southern California from associates of Salas that are believed to have been destined for Mississippi. The indictment further alleges that Salas possessed firearms while being a prohibited person. Salas is alleged to have a felony conviction for a drug offense and also to be in the United States unlawfully.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Salas faces a statutory penalty of 10 years to life in prison and a $10 million fine for the drug conspiracy and up to 10 years in prison and a $250,000 fine for the weapons charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Kennewick Man Sentenced for Distribution of MethamphetamineRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Alfredo Ozuna Ahumada, a resident of Kennewick, Washington, was sentenced to 100 months in prison following his plea of guilty to one count of Distribution of Methamphetamine, in violation of 21 U.S.C. section 841(a)(1). Senior U.S. District Judge Edward F. Shea sentenced Ahumada in Richland, Washington.
The indictment alleged that, on May 14 of 2013, the Defendant distributed over 5 grams of pure methamphetamine. According to information disclosed during the court proceedings, the case began with in investigation by the Tri-City Metro Drug Task Force, which conducted a series of controlled purchases of methamphetamine from Ahumada. On May 14, 2013, Ahumada delivered 13.6 grams of pure methamphetamine. He delivered similar quantities of methamphetamine on three other occasions.
Michael C. Ormsby said, "This prosecution was made possible by the hard work of members of the Tri-City Metro Drug Task Force and the Drug Enforcement Administration. The citizens of the Tri-Cities are fortunate not only to have the support of their local law enforcement agencies for the continued operation of the Task Force, but also for those agencies' support of the cross-designation the Task Force detectives to work within the Drug Enforcement Administration. Having state officers that are also commissioned to enforce Federal narcotics laws enhances the prosecution of methamphetamine dealers. It makes the Tri-Cities a safer place."
Administration, and the prosecution was coordinated by Task Force Officer Kevin Barton and Special Agent Mark Minor of the Drug Enforcement Administration. This case was prosecuted by Alexander C. Ekstrom, an Assistant U.S. Attorney for the Eastern District of Washington.
CR-13-6057
KC Man Sentenced to 13 Years for Leading $100 Million Nationwide Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for leading a tax fraud conspiracy that attempted to receive nearly $100 million in fraudulent refunds from the IRS. Co-conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 13 years in federal prison without parole. The court also ordered Poynter to pay $951,930 in restitution to the government.
On Nov. 7, 2013, Poynter pleaded guilty to one count of conspiracy to defraud the United States by filing fraudulent tax returns and one count of filing a fraudulent tax return. Poynter admitted that conspirators prepared and filed 284 fraudulent tax returns from July 1, 2008, to Sept. 21, 2011. Each of the returns contained false claims that the taxpayer listed was due a refund due to over-withholding of taxes, based on fictitious forms 1099-OID. In actuality, Poynter’s clients had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld. Conspirators claimed that a total of $96 million dollars in fraudulent tax refunds were due. The IRS mistakenly paid out $3.5 million on these fraudulent claims.
Some individuals received hundreds of thousands of dollars in refunds. For the returns that successfully were paid out, Poynter received a fee. In an attempt to mask his involvement, Poynter requested that conspirators refer to his fees as “love donations,” frequently directing them to write checks to “Jerry Love Ministries.” Poynter used computer software to file returns electronically from his karate studio in Blue Springs.
Poynter filed returns in his own name, and in the names of his family. Poynter received a refund of $196,348 as a result of filing a fraudulent claim in July 2008. Poynter personally was responsible for recruiting at least 44 filers to the scheme. Poynter submitted at least $25 million in fraudulent claims on 81 returns filed for his clients, which caused a tax loss to the United States of at least $951,930.
Poynter also recruited “branch managers” who in turn recruited additional filers to the scheme.
Poynter is among 11 defendants who have pleaded guilty, including Kristi Jones, 41, of Riverside, Mo.; Shirley Oyer, 72, of Overland Park, Kan.; Jennifer Wilson, 37, of Cumming, Ga.; Mark J. Murray, 52, of Newton, Ala.; John V. Perdido, 58, of Temecula, Calif.; Earl Lee Davis, 55, of Monroe, La.; Robert E. Morris, 68, of Rocklin, Calif.; and Karen A. Olson, 42, of Wood Dale, Ill. Marian Fine-Kennedy, 36, of Eugene, Ore., and Maria Haro Campos, 42, of Vista, Calif., have each pleaded guilty in separate but related cases.
Poynter conducted a training seminar in December 2008 at the Doubletree Hotel in Atlanta, Ga. At the seminar, Poynter gave a presentation outlining his “OID process,” during which he pointed out that the IRS would issue refunds even if the name listed on the OID form was “Spongebob Squarepants” or “Spiderman.” Poynter told attendees they would use a rented office rather than process the OID returns at home to avoid their homes being raided by the FBI. He talked about attracting attention from IRS criminal investigators, and he provided pointers on how to avoid that outcome. He also joked that his going to prison was a possibility.
In addition to this training session, Poynter conducted and participated in numerous other seminars and conference calls around the country to promote his OID process. Poynter also maintained a Web site called “luckytown” that was used to promote the scheme.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers. Bond holders then file these OID forms with the IRS, along with their income tax forms.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators, working with their branch managers, assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received income from bond proceeds and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ OID bond income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – any bond income. No bond payer had issued any 1099-OID forms. Instead, the bond income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of bond interest.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.Holland, Ohio, Man Indicted for $500,000 FraudRead the Press Release
A criminal indictment was returned this week charging Mark O. Wittenmyer, age 54, of Holland, Ohio, with one count of conspiracy to commit wire fraud, wire fraud, and five counts of money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Wittenmyer fraudulently obtained a $500,000 consultant’s fee by representing that he could deliver several interest-only government bonds to a group of investors.
Wittenmyer also falsely alleged that he could recruit institutional buyers for the bonds that would pay the group of investors a substantial premium at the conclusion of the transaction. The investor group was falsely advised by Wittenmyer that he had successfully delivered the bonds, and therefore Wittenmyer was entitled to a $1 million consultant’s fee, according to the indictment.
When a representative of the investor group learned that the bonds had not been delivered, Wittenmyer threatened to file a lien against the bonds to prevent their sale. The investor group then paid $500,000, in a wire transfer on November 8, 2013, to induce Wittenmyer not to file a lien. Wittenmyer directed the funds to an account at PNC Bank that was controlled by an associate, and from that account, Wittenmyer and his associate spent the funds, according to the indictmet.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys James V. Moroney and Gene Crawford.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Hinsdale Man Pleads Guilty to Child ExploitationRead the Press Release
CONCORD, NEW HAMPSHIRE: Benjamin Maes, 32, of Hinsdale, pled guilty in United States District Court for the District of New Hampshire to one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in November, 2012, when an FBI/Metropolitan D.C. Police Department task force received images of child pornography from an individual from Hinsdale, New Hampshire. Benjamin Maes had been communicating with an undercover agent on-line and had sent the agent sexually explicit images of children. He was arrested in December of 2012, pursuant to a federal arrest warrant issued in the District of Columbia.
Various electronic items belonging to Maes were seized pursuant to a search warrant and forensic examination of his cellular phones revealed numerous images of child pornography, including images of Maes engaged in sexually explicit conduct with a minor.
The defendant faces a minimum mandatory sentence of 15 years in prison when he is sentenced on June 27, 2014.
The charge was the result of an investigation by the Federal Bureau of Investigation, the Washington D.C., Metropolitan Police Department, the Hinsdale Police Department and the New Hampshire Internet Crimes Against Children Task Force is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
Hawaii Man Pleads Guilty to Communicating Classified National Defense Information to an Unauthorized PersonRead the Press Release
HONOLULU – Benjamin Pierce Bishop, 60, a Honolulu, Hawaii defense contractor and former Lt. Colonel in the U.S. Army, pleaded guilty today in federal court to willfully communicating classified national defense information to a person not authorized to receive it and willfully retaining classified national defense information. The guilty plea was announced by Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, and John P. Carlin, Acting Assistant Attorney General of the National Security Division of the Department of Justice.
Bishop was arrested on March 15, 2013 on charges that he communicated classified information to a person identified as a 27 year old Chinese woman with whom he had a romantic relationship during the year preceding the charges. According to the criminal complaint, during Bishop’s relationship with the woman, further identified as a graduate student in the United States on a J1 Visa, he communicated classified information concerning U.S. national defense systems and removed classified information from his work space at U.S. Pacific Command which he then kept at his Honolulu area residence. In his plea agreement filed with the Court, Bishop admitted that on or about May 12, 2012, he “willfully communicated, in an email attachment entitled “Comments on Extending Deterrence from the Triad”, to PERSON 1, classified U.S. national defense information related to joint training and planning sessions between the United States and the Republic of Korea, which information related to the national defense and was classified at the SECRET level.” Bishop also admitted to willfully retaining multiple classified documents at his residence related to U.S. national defense, including the U.S. Armed Forces Defense Planning Guide for years 2014-2018; a document entitled: Optimizing U.S. Force Posture in the Asia-Pacific; the U.S. Department of Defense China Strategy; and the 2010 Guidance for Employment of Force (GEF).
When sentenced on June 26, 2014 by United States District Judge Leslie E. Kobayashi, Bishop will face a maximum sentence of 10 years in prison, a fine of up to $250,000, and three years of supervised release for each of the two counts of conviction.
U.S. Attorney Florence T. Nakakuni stated: “This case once again demonstrates our commitment and unwavering resolve to pursue and prosecute individuals who violate their security oaths and endanger our national security by unlawfully communicating sensitive and damaging classified national defense information to persons who are not entitled to receive it.”
This case was investigated by the FBI and the Naval Criminal Investigative Service. This case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Robert E. Wallace Jr., of the Counterespionage Section of the Justice Department’s National Security Division.
Greenville Man Sentenced in Firearms CaseRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that MICHAEL WAYNE ROUSE, JR. 29, of Greenville was sentenced yesterday resulting from his earlier guilty plea to a firearm charge. In September, 2013, the defendant pled guilty to being a felon in possession of a firearm. In January, 2013, the defendant was found in possession of a shotgun that had been stolen from a Pitt County residence the previous day.
Senior U.S. District Judge James C. Fox sentenced ROUSE to 17 years and 8 months in prison. ROUSE will also be supervised for 5 years following release. ROUSE was sentenced under the Armed Career Criminal Act. That statute requires that a defendant convicted of being a felon in possession of a firearm be sentenced to at least 15 years in prison without parole if that defendant has at least three prior drug trafficking or violent felony convictions.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Garcia Duran, Former Rocky Boy Health Board Supply Technician, Sentenced for TheftRead the Press Release
The United States Attorney's Office announced that GARCIA DURAN, 35, of Box Elder, was sentenced to three years' probation and ordered to pay $7,674.43 in restitution to the Rocky Boy Health Board by U.S. District Judge Brian Morris during a federal court session in Great Falls on March 12, 2014.
In a Sentencing Memorandum filed by Assistant U.S. Attorney Chad C. Spraker, the government described Duran's conduct as the following:
From 1999 to January 2010, Duran was employed at the Rocky Boy Health Board as a supply technician, a job that required him to procure supplies for the clinic. From September 2009 to November 2009, Duran purchased a number of goods and services from Havre Tire Factory and Big R Stores. Before these purchases, Duran submitted requisition forms and purchase orders to the Rocky Boy Health Board. The vendors issued invoices indicating the vendee as Rocky Boy Health Center.
Duran submitted $7,674.43 in invoices to the Health Board under the pretense that the items were for legitimate clinic expenses when, in fact, the invoices were for Duran's personal expenses. As a result of Duran's fraud, the Rocky Boy Health Board paid the vendors for Duran's expenses. On March 5, 2013, Duran was interviewed by an FBI Special Agent at the Rocky Boy Police Department. In the interview, Duran admitted he purchased items for personal use and caused Health Board to pay for the items. Duran confessed that $7,674.43 in expenses from Havre Tire Factory and Big R Stores were in fact personal. Duran admitted he knew it was wrong to use Health Board funds to purchase personal items.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Duran will likely serve all of the time imposed by the court. In the federal system, Duran does have the opportunity to earn a sentence reduction for (good behavior.( However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigations.
Fresno County Men Indicted for Selling Methamphetamine and HeroinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment today charging Facundo Lopez-Perez, aka Jose Huerta Maldonado, aka Israel Lopez Zasueta, 43, of Del Rey, and Jorge Perez Robles, aka James Gonzalo Jara, 41, of Fresno, with conspiring to distribute and possess with the intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that between January 2013 and February 25, 2014, Lopez-Perez and Robles sold methamphetamine and heroin to an undercover officer on numerous occasions. Lopez-Perez possessed more than 18 pounds of methamphetamine and more than one kilogram of heroin.
This case is the product of an investigation by a Drug Enforcement Administration Task Force made up of members of Federal, state and local law enforcement agencies including the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Indicted for Federal Prescription Drug FraudRead the Press Release
U. S. Attorney Michael J. Moore announced today that Celeste Smith, aged 38, of Statham, Georgia, as well as Jessica Wise, aged 28, Antwan Byrd, aged 30, and Jerry Cooper, aged 64, of Athens, Georgia, were charged, on March 12, 2014, in United States District Court in Macon, in multiple-count indictments of illegally acquiring thousands of Schedule II, III, and IV, prescription pills, such as Oxycodone, Hydrocodone, and Alphrazolam (Xanax).
If convicted, Ms. Smith, Ms. Wise, Mr. Cooper and Mr. Byrd face a maximum penalty of four (4) years imprisonment and a fine of 250,000.The indictment is only an allegation and the accused are presumed innocent until and unless proven guilty.
These indictments were the result of a joint federal/local investigation involving the United States Drug Enforcement Administration, Department of Health and Human Services Office of Inspector General, Athens-Clarke County Police Department and Monroe Police Department. Assistant U. S. Attorney Danial E. Bennett is prosecuting the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Veterans Affairs PsychiatristSentenced for Medicare FraudRead the Press Release
A licensed psychiatrist formerly employed by the Department of Veterans Affairs (VA) was sentenced today to serve 18 months in prison for falsely claiming to provide at-home services to Medicare beneficiaries.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Dr. Mikhail L. Presman, 56, of Brooklyn, N.Y., was sentenced by Judge I. Leo Glasser in the Eastern District of New York. Presman was sentenced to serve three years of supervised release following his prison term and ordered to forfeit $1.2 million and pay restitution to Medicare.
According to court documents, from Jan. 1, 2006, through May 10, 2013, Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time salaried position as a psychiatrist at the VA hospital in Brooklyn. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Presman also submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
The case was investigated by the HHS-OIG, with assistance from the VA Office of Inspector General, and brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case was prosecuted by Trial Attorney Bryan D. Fields of the Fraud Section and Assistant United States Attorney Patricia E. Notopoulos of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Former Veterans Affairs Psychiatrist Sentenced to 18 Months’ Imprisonment for Medicare FraudRead the Press Release
BROOKLYN, NY – Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), was sentenced today by Judge I. Leo Glasser in U.S. District Court in Brooklyn, New York, to 18 months’ imprisonment, to be followed by 3 years of supervised release for Medicare fraud. As part of the sentence, Judge Glasser ordered Presman to pay restitution to Medicare and forfeit $1.2 million.
The sentence was announced by U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent-in-Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG).
According to court documents, from January 1, 2006 through May 10, 2013, Dr. Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his representations, Dr. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Dr. Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Dr. Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
The case was investigated by the HHS-OIG, with assistance from the Department of Veterans Affairs Office of Inspector General, and brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case was prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Department of Justice Trial Attorney Bryan D. Fields.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Seattle Investment Advisor Sentenced to 16 Years in Prison for Wire Fraud, Money Laundering and Investment Advisor FraudRead the Press Release
A long-time Seattle investment advisor was sentenced today in U.S. District Court in Seattle to 16 years in prison, three years of supervised release and $19.8 million dollars in restitution for 32 criminal counts including wire fraud, money laundering and investment advisor fraud, announced U.S. Attorney Jenny A. Durkan. MARK F. SPANGLER, 58, formerly of Seattle, promised his clients that he would protect their life’s savings by investing it in safe investments. Instead, SPANGLER diverted their money – without their knowledge or consent – to two risky start-up companies that he controlled and in which he had a significant financial stake. SPANGLER was convicted in November 2013 following a three week trial. U. S. District Judge Ricardo S. Martinez said at sentencing that SPANGLER “touted his ethical foundations . . . But used his clients’ trust against them. It was a complete betrayal in the worst possible way . . . He became someone willing to lie, cheat and swindle those same clients he described as friends and family.”
“Mark Spangler convinced his clients they were family and he would only do right by them. But his wealth was built on lies and by defrauding those who trusted him,” said U.S. Attorney Jenny A. Durkan. “He risked his clients’ retirement funds, money for their children’s education, for charitable giving and for their livelihood, on risky start-up ventures – the very investments they told him they wanted to avoid. He now has a long time to think about all the harm he has done.”
The evidence at trial demonstrated that SPANGLER repeatedly violated his fiduciary duty as an investment advisor by hiding where his clients’ money was invested, and by providing them with false account statements which, among other things, drastically inflated the value of their investments. SPANGLER told his clients that their assets were worth over $73 million. However, after SPANGLER ran out of money and put his business into receivership, only approximately $28 million was recovered for the victims, resulting in a loss of approximately $50 million.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the shameful criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
“The fraud perpetrated by Mr. Spangler was egregious,” said Acting Special Agent in Charge W. Jay Abbott of the FBI’s Seattle field office. “As a family investment advisor, he was trusted to invest according to his client’s wishes. Instead of respecting their sacred trust, Mr. Spangler chose to place his own interests above those of his clients. Spangler’s deceit resulted in the diversion of tens of millions of his client’s hard-earned savings. The FBI is committed to holding people like Spangler accountable, and will continue to partner with the U.S. Attorney’s Office, IRS Criminal Investigations, and the Securities Exchange Commission to accomplish this mission.”
Many of the investors who testified in court described how they were told their funds were conservatively invested in publicly traded companies and in bonds. SPANGLER provided them false quarterly account statements fraudulently inflating the value of their accounts and how the money was invested. When some investors sought to liquidate their holdings SPANGLER ran a Ponzi scheme seeking new money from investors to pay out the other investors. Eventually, SPANGLER was unable to raise money to cover all the liquidation requests and was forced to place his investment business into receivership.
The Securities and Exchange Commission (SEC) has ongoing civil litigation underway against SPANGLER in federal court.
The case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorneys Mike Lang, and Francis Franze-Nakamura.
Former Puerto Rico Correctional Officer Sentenced for Scheme to Smuggle Heroin into State PrisonRead the Press Release
A former correctional officer in Puerto Rico was sentenced to serve 37 months in prison for attempting to smuggle heroin into state prison by delivering it to an inmate in the parking lot of the Medical Center in San Juan, Puerto Rico.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.
William Joel Medina, 32, of Quebradillas, Puerto Rico, pleaded guilty on Nov. 22, 2013, to conspiracy and attempt to distribute controlled substances. Medina was sentenced by U.S. District Judge Carmen C. Cerezo of the District of Puerto Rico.
From July through August 2009, Medina and a co-conspirator agreed to receive $2,500 to deliver heroin to an inmate at the Medical Center in San Juan. On Aug. 5, 2009, Medina and his co-conspirator met with an undercover agent, who they believed was a drug dealer, and were given what they believed to be a package of heroin. Medina delivered the purported heroin to an inmate in the parking lot of the Medical Center that same day.
In September 2009, Medina and a co-conspirator agreed to receive $4,000 to deliver another package of heroin to the same inmate at the Medical Center in San Juan. On Sept. 9, 2009, Medina and his co-conspirator met with an undercover agent, who they believed was a drug dealer, and were given what they believed to be a package of heroin. Medina’s co-conspirator delivered the purported heroin to the inmate that same day.
Medina also admitted in his plea agreement that he had engaged in a similar scheme on a third occasion.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico.Former Federal Correctional Officer Indicted for Sexual Relations with InmateRead the Press Release
TALLAHASSEE, FLORIDA – Angel Santiago, 43, of Ambrose, Georgia, has been indicted for engaging in a sexual act with an inmate who was then under his custodial authority as a federal correctional officer. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida and Teresa M. Gulotta-Powers, Special Agent in Charge, United States Department of Justice Office of the Inspector General, Miami Field Office.
The indictment alleges that the offense took place between 2010 and 2012, at the Federal Correctional Institution in Tallahassee. Santiago was arraigned in federal court today and a trial date was scheduled for May 6, 2014.
If convicted, Santiago faces a maximum sentence of 15 years in federal prison.
The case was investigated by the United States Department of Justice Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on March 12, 2014:
Andre Allen Forbes, 31, of South Bend, Indiana, was charged in a seven-count Indictment with one-count of distributing cocaine, four-counts of distributing crack cocaine, one-count of possessing a firearm in furtherance of a drug trafficking crime, and one-count of being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department – Metro Special Operations Section and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Brian M. Kandefer, 36, of San Diego, California, and K2 Capital Management Inc. located in LaJolla, California were both charged in a fifty-one-count Indictment.Kandefer was charged with twenty-counts of wire fraud, twenty-counts of mail fraud, one-count of conspiracy to commit fraud, and ten-counts of money laundering.K2 Capital Management Inc. was charged with twenty-counts of wire fraud, twenty-counts of mail fraud, and one-count of conspiracy to commit fraud.Charges were filed as a result of an investigation by the U.S. Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service - Criminal Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Erskine A. Jones, 22, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of firearms and ammunition.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Demarcus Moran, 23, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of firearms and ammunition.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Wanda C. Shorter, 43, of Elkhart, Indiana and Empowerment Non-Emergency Medical Transportation, Inc. located in Elkhart, Indiana, were both charged in a four-count Indictment with one-count of healthcare fraud and three-counts of aggravated identity theft.Charges were filed as a result of an investigation by the Indiana Attorney General’s Medicaid Fraud Control Unit and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Otis A. Tate, 25, of South Bend, Indiana, was charged in a two-count Indictment with one-count being a felon in possession of firearms and ammunition, and one-count possessing a stolen firearm.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Aaron Mendoza, 34, of South Bend, Indiana, was charged in a one count Indictment with illegal alien in possession of a firearm.These charges were filed as the result of an investigation by the United States Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Fugitive Killed During Encounter with PPB OfficerRead the Press Release
PORTLAND, Ore. - On March 12, 2014, federal fugitive Kelly Vern Mark Swoboda, 49, was killed during an encounter with a Portland Police Bureau Officer near Wilson High School. Swoboda was a wanted federal fugitive based on a supervised release violation issued in connection with his prior bank robbery conviction. He was convicted of the bank robbery in 2006 in Portland and received a sentence of 70 months in prison. His supervised release commenced last March and a supervised release violation warrant was issued in November of last year. The United States Marshal’s Service Fugitive Task Force had been actively trying to locate Swoboda since the warrant was filed.
Yesterday, a federal indictment was filed against Swoboda alleging that he committed three bank robberies: (1) November 22, 2013, NW Priority Federal Credit Union in Milwaukie, Oregon, (2) December 6, 2013, Cutting Edge Federal Credit Union in Milwaukie, Oregon and (3) December 21, 2013, Unitus Community Credit Union in Portland, Oregon.
Federal Charge Filed in Bank Robbery in Manhattan, Kan.Read the Press Release
TOPEKA, KAN. - Ronald David Brown, Jr., 39, who is in custody at CCA’s Leavenworth Detention Center, is charged with one count of bank robbery. The indictment alleges that on Nov. 27, 2013, he robbed the Kansas State Bank at 1101 Bluemont Avenue in Manhattan, Kan.
If convicted, he faces a maximum penalty 20 years in federal prison and a fine up to $250,000. The Lenexa Police Department, the Riley County Police Department and the Federal Bureau of Investigation investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
John Wesley Zollicoffer, 42, who is in custody in Shawnee County, is charged with one count of commercial robbery. The indictment alleges that on Jan. 29, 2014, he robbed the Kwik Shop at 1700 S.W. Boulevard in Topeka, Kan.
If convicted he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Juana Guerrero-Lopez, 55, Edwardsville, Kan., is charged with unlawfully re-entering the United States after being deported. She was found Feb. 6 in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
John M. Noel, 58, Wichita, Kan., is charged with two counts of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in March 2014 and November 2013 in Sedgwick County, Kan.If convicted, he faces a maximum penalty of 40 years in federal prison and a fine up to $2 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Luis Velasquez, 35, Compton, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of traveling from California to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred March 10 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the charge of possession with intent to distribute, and a maximum penalty of 5 years and a fine up to $250,000 on the other charge. The Wichita Police Department, the Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Farmington Woman Arraigned on Federal Wire Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE –Michelle Smith, 31, of Farmington, N.M., was arraigned this morning in federal court on an 18-count indictment charging her with wire fraud and aggravated identity theft charges. Smith entered a not guilty plea to the indictment and was released on her own recognizance pending trial, which has yet to be scheduled.
The indictment, which was filed on Feb. 26, 2014, includes 14 counts of wire fraud and four counts of aggravated identity theft arising from Smith’s alleged scheme to defraud Allstate Workplace Division and American Heritage Life Insurance (Allstate) of approximately $224,000 in advance commissions by submitting fraudulent policy enrollments. At the time of the offenses charged in the indictment, Smith was employed by Wells Insurance Agencies (Wells), exclusive brokers for Allstate with offices in Farmington, as an insurance agent to sell Allstate insurance policies.
According to the indictment, Allstate pays its brokers a commission for each Allstate insurance policy the broker sells. When Allstate receives a new policy enrollment, Allstate pays the broker an advance commission amounting to a percentage of six months’ work of premiums on the policy. If the enrollee cancels the policy or fails to pay premiums for six months, the broker is required to return the advance commission to Allstate. When Smith was employed by Wells, Wells paid Smith 70% of the advance commissions she allegedly generated by submitting Allstate insurance policy enrollments.
The indictment alleges that from Aug. 1, 2009 through May 3, 2010, Smith devised a scheme to defraud Allstate and Wells by submitting fraudulent policy enrollments and obtaining advance commissions to which she was not entitled. During this ten month period, Smith allegedly submitted enrollments in the names of approximately 150 different enrollees for a total of approximately 505 Allstate insurance policy enrollments. The enrollment forms allegedly transmitted electronically to Allstate by Smith were in the names of individuals who had not purchased insurance from Allstate and had forged signatures. According to the indictment, between Nov. 2009 and April 2010, Smith allegedly received approximately $224,000 in advance commissions based on the fraudulent enrollments she submitted to Allstate.
Smith also is charged with unlawfully using the identification of others, including their names, addresses, telephone numbers, Social Security numbers, dates of birth and driver’s license numbers, to facilitate four of the fraudulent enrollments. The indictment includes forfeiture allegations that seek forfeiture of assets constituting or derived from the proceeds of Smith’s alleged criminal activity.
If convicted, Smith faces a maximum penalty of 20 years in prison on each of the 14 wire fraud counts. Smith also faces a mandatory two year prison sentence on each of the four identity theft counts that must be served consecutive to any prison sentence imposed on the wire fraud charges.
The charges in the indictment are merely accusations, and Smith is presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorney Jeremey Peña.- Smith Indictment
Eight New York Residents Charged with Using Stolen Social Security Numbers to File False Tax ReturnsRead the Press Release
Six indictments and a complaint were unsealed today in federal court in Central Islip, New York, charging eight individuals, Rosa Adames, Ramon DeLosAngeles, Robert Diaz, Reyssy Duran, also known as “Tuti,” Nelson Guzman, Alex Rodriguez, Jokasta Taveras and David Turcios, each arising out of schemes to defraud the United States by using stolen Social Security numbers to file false income tax returns seeking refunds.1 Taveras will be arraigned before United States District Judge Leonard D. Wexler; Adames, Diaz, Rodriguez and Turcios will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson; DeLosAngeles will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay. Duran and Guzman remain at large. All arraignments will be held at the U.S. Courthouse, 100 Federal Plaza, Central Islip. The cases have been assigned to United States District Judges Leonard D. Wexler, Arthur D. Spatt and Denis R. Hurley.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), Farrell Dolan, Resident Agent-in-Charge, United States Secret Service, Long Island Resident Office (USSS), Philip R. Bartlett, Inspector-in-Charge, New York Division, United States Postal Inspection Service (USPIS), Joseph A. D’Amico, Superintendent, New York State Police (NYSP) and Thomas Krumpter, Acting Police Commissioner, Nassau County Police Department (NCPD).
“As alleged, this collection of thieves victimized hundreds of unsuspecting Puerto Rican citizens, using their stolen identities to defraud the IRS and steal taxpayer dollars,” stated United States Attorney Lynch. “This scheme has metastasized throughout the country, which led to the formation of a special task force to combat such crimes. Since the formation of that task force, my Office has worked tirelessly to eradicate such crimes. Today’s arrests demonstrate my Office’s commitment to holding accountable those individuals who take advantage of the federal tax system for personal profit at the expense of the United States and honest taxpayers.”
IRS Acting Special Agent-in-Charge Kitchen stated, “The Internal Revenue Service takes identify theft very seriously. Vigorous criminal investigations and prosecutions are important components of the fight against stolen identity tax refund fraud. Although it has only been in existence for a short time, the “Identify Theft Task Force” has proven to be innovative and effective in these investigations. IRS-Criminal Investigation is proud of its leadership role on this task force and is most appreciative of the spirit of cooperation among its law enforcement partners.”
“Fraudulent schemes such as this have evolved significantly over the last several years,” said Farrell Dolan, Resident Agent-in-Charge of the U.S. Secret Service Long Island Resident Office. “Cooperation between law enforcement has allowed us to focus our resources and respond quickly to uncover criminal activity that exploits tax laws and financial institutions at the expense of US taxpayers.”
USPIS Inspector-in-Charge Bartlett stated, “The arrest of these individuals for participating in a scheme to defraud the IRS and victimize Puerto Rican residents, is an example of the commitment of Postal Inspectors and the law enforcement community to stamp out crime wherever it exists; keeping the mail safe and secure for the public.”
"Identity theft is a rapidly growing crime that causes its victims serious, far-reaching problems," State Police Superintendent Joseph A. D'Amico said. "As alleged, these eight people not only stole Social Security numbers from unsuspecting citizens, but used them to try to defraud the Federal Government. I am pleased that the New York State Police was once again able to partner with the United States Attorney's Office to help bring this important case to a successful conclusion."
According to the indictments, complaint and other court filings by the government, in each scheme, the defendants exploited tax laws that exempt Puerto Rican citizens from filing federal income tax returns, provided they derive their incomes solely from sources within Puerto Rico. The defendants, and coconspirators, illegally obtained identification information for Puerto Rican citizens, including names, dates of birth, and social security numbers, and used that information to file false returns claiming large refunds with the IRS. Once filed, the defendants, and their coconspirators, allegedly bribed Postal Service employees to intercept mailed tax refund checks, which the defendants then negotiated at check-cashing services and banks. The schemes were uncovered in part by a law enforcement officer working in an undercover capacity. If convicted, the defendants face a range of imprisonment between 10 and 35 years.
In mid-2012, the IRS created a task force called the Identity Theft Task Force (ITTF) to address the growing issue of identity theft in New York. The ITTF combines the resources of several agencies to investigate identity theft, including investigating the use of stolen identities to file fraudulent tax returns. The agencies currently participating in the ITTF include the IRS-Criminal Investigation; the Federal Bureau of Investigation; USSS; USPIS; New York City Police Department; Department of Social Security; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Reserve Board, Office of Inspector General; USPIS, Office of Inspector General; Homeland Security Investigations, Immigration and Customs Enforcement; Social Security Administration, Office of Inspector General; Treasury Inspector General for Tax Administration, Department of Treasury, Office of Inspector General; and Department of Labor, Office of Inspector General. Since the creation of the ITTF, the United States Attorney’s Office for the Eastern District of New York has arrested 25 defendants, including today’s cases, which are summarized below, for their roles in such identity theft schemes.
United States v. Rosa Adames, 14-CR-135 (ADS)
Between April 2011 and October 2011, Adames and her coconspirators allegedly cashed more than 100 fraudulently obtained tax refund checks worth approximately $600,000. The checks were cashed at a bank in Amityville.
United States v. Ramon DeLosAngeles, 14-MJ-240
On October 4, 2011, DeLosAngeles was in possession of more than 100 fraudulently obtained tax refund checks worth approximately $900,000.
United States v. Robert Diaz and Alex Rodriguez, 14-CR-133 (ADS)
Between June 2012 and June 2013, Diaz, Rodriguez and their coconspirators allegedly cashed more than 30 fraudulently obtained tax refund checks worth approximately $200,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Rodriguez and Diaz allegedly bribed a bank teller to cash those checks.
United States v. Reyssy Duran, 14-CR-132 (ADS)
Between June 2012 and June 2013, Duran and his coconspirators allegedly cashed more than 30 fraudulently obtained tax refund checks worth approximately $200,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Duran allegedly bribed a bank teller to cash those checks.
United States v. Nelson Guzman, 14-CR-134 (JS)
Between August 2011 and November 2013, Guzman and his coconspirators allegedly cashed more than 65 fraudulently obtained tax refund checks worth approximately $430,000. The checks were cashed at a check cashing service in Lindenhurst and Roosevelt. Guzman and his coconspirators allegedly bribed an employee of a check cashing service to cash the refund checks.
United States v. Jokasta Taveras, 14-CR-136 (LDW)
Between December 2011 and March 2012, Taveras and her coconspirators allegedly cashed approximately 14 fraudulently obtained tax refund checks worth approximately $105,000. Taveras worked at a bank in Farmingdale, which is where she allegedly cashed the checks.
United States v. David Turcios, 14-CR-137 (ADS)
Between June 2012 and June 2013, Turcios and his coconspirators allegedly cashed more than 40 fraudulently obtained tax refund checks worth approximately $280,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Turcios allegedly bribed a bank teller to cash those checks.
The government’s cases are being prosecuted by Assistant United States Attorney Christopher Caffarone.
The Defendants:
ROSA ADAMES
Age: 42
Valley Stream, New York
RAMON DELOSANGELES
Age: 62
Cairo, New York
ROBERT DIAZ
Age: 29
Copiague, New York
REYSSY DURAN
Age: 30
Freeport, New York
NELSON GUZMAN
Age: 44
Copiague, New York
ALEX RODRIGUEZ
Age: 37
Freeport, New York
JOKASTA TAVERAS
Age: 28
Lindenhurst, New York
DAVID TURCIOS
Age: 32
Roosevelt, New York
____________________________________________________________
1 The charges contained in the indictments and complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Distribution of Fentanyl Leads to Lengthy Prison TermRead the Press Release
The United States Attorney's Office announced that DACOTA ROGERS, 21, of Butte, was sentenced on February 21, 2014, in the federal courtroom in Butte, by Senior U.S. District Judge Sam Haddon, to 224 months in prison followed by 3 years supervised release in connection with a guilty plea to Distribution of Fentanyl.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government advised the Court that on December 8, 2013, Butte-Silverbow law enforcement officers were called to 828 West Park Street in relation to a male who was not breathing and unresponsive. Upon arrival at the scene they found Kara Spaabeck attempting to do CPR on Mark Phillip Allen. Allen was then transported to St. James Hospital, but emergency personnel were unable to revive Allen. During the drive from Allen's house to the Hospital, Spaabeck stated that she believed that Allen had been smoking fentanyl. She said she had been told this by Miles Muretta who had been with Allen earlier in the night.
Spaabeck turned over a cellular telephone she stated belonged to Allen. Officers reviewed the phone to determine ownership and next of kin, etc., when they discovered text messages that appeared to be drug related. One of the texts was from Muretta who in his text stated that whatever Allen had taken had caused him to start to drool immediately.
A short while later, the phone given began to ring. The officers answered the phone and the caller identified himself as Muretta. During the conversation, Muretta stated that he had been at Allen's house at 0148 hours and had placed Allen's head on a pillow because he had been snoring.
Officers later searched Allen's house and found fentanyl patches and drug paraphernalia. Fentanyl is a potent, synthetic opioid analgesic with a rapid onset and short duration, creating an intense "high". It is a highly addictive drug considered 100 times more potent than morphine. Fentanyl skin patches are used to control moderate to severe chronic (around-the-clock, long-lasting) pain that cannot be controlled by the use of other pain medications in people who have become tolerant (used to the effects of the medication) to other narcotic pain medications.
Officers interviewed Muretta wherein he stated that he had been with Allen the night he died. He said that Allen had been attempting to buy drugs and was able to make contact with a dealer identified as Dacota Rogers. Rogers had come to Allen's house while Murretta was present and sold Allen a Fentanyl patch for $35.00. Allen paid Rogers $10.00 dollars in cash, and then gave Rogers his debit card to go to an ATM to withdraw the other $25.00 dollars he owed for the patch.
Following the interview, officers contacted Allen's father who gave them bank account information relating to Allen's bank account. With that information, officer's found an ATM video showing Rogers withdrawing money from Allen's account the night of his death.
Investigators then conducted an interview with Rogers. After being advised of his Miranda rights, Rogers told investigators that he had in fact sold Allen the Fentanyl patch and had shown him how to ingest it. Rogers further stated that he had received money from Allen for the patch and had used Allen's ATM card to get the money from Allen's account.
The government would introduce evidence and testimony that Fentanyl is Schedule II controlled substance.
Dr. Gary E. Dale, a State Medical Examiner, performed a postmortem examination of Allen. Dr. Dale's examination revealed that there were toxic levels of fentanyl in Allen's body at the time of death. Dr. Dale concluded that Allen died as a result of fentanyl toxicity.
The investigation was conducted by the Drug Enforcement Administration and Butte-Silver Bow Law Enforcement.
Defendant Sentenced to Prison for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 5, 2014, before U.S. District Judge Donald Molloy, MARCO ANTONIO MORALES-ROA, was sentenced to 78 months in prison followed by 4 years supervised release in connection with his December 2013 guilty plea.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the Government states that in August 2013, law enforcement interviewed a confidential informant ("CI #1") in which he/she stated that about in about March 2013 he/she called a source of supply (SS #1) asking for assistance in obtaining some methamphetamine. The source of supply provided CI #1 with a phone number and told him to contact a Hispanic male by the name of "Antonio" (later identified as the defendant). CI #1 contacted Morales and made arrangement to meet Morales at his residence in Fairview, Montana. The next day CI #1 drove to Fairview, met with Morales and received 7 grams of meth from Morales on a front. Three days later CI #1 met with Morales at his residence and provided him with $700.00 for the meth he had received.
Several days later CI #1 again met with Morales and received $6,000.00 from him which CI #1 took to Butte, Montana to meet with a second source of supply from Washington (SS #2). This individual provided CI #1 with 1/2 pound of methamphetamine in exchange for the $6,000.00. CI #1 drove back to Sidney, Montana and provided Morales with 1/4 pound of the meth and provided the rest to others and himself for distribution.
Several days later CI #1 again met with Morales and received $4,500.00 which CI #1 combined with $500.00 which he/she already had. CI #1 then drove to Butte to again meet with the source of supply from Washington (SS #2). SS #2 provided CI #1 with 1/2 pound of meth in exchange for the cash. CI #1 drove back to Sidney and provided Morales with 1/4 pound of the meth and provided 28 grams to two other individuals. CI #1 then kept the remaining amount of meth for him/herself.
Furthermore, near the end of August 2013, law enforcement also conducted an interview with CI #2. CI #2 was a good friend of Morales and said he introduced Morales to SS #1 for the purpose of obtaining meth. When SS #1 was arrested in March 2013, Morales became the main distributor for meth in the Sidney area as a replacement for SS #1. CI #2 further stated that Morales owed an approximately $10,000.00 drug debt. CI #2 stated that he/she had observed Morales with approximately 1 ounce of meth at a time.
On September 20, 2013, Morales was interviewed by law enforcement wherein he stated that he had possessed methamphetamine and had distributed it to others.
The total amount of methamphetamine possessed by Morales was approximately 233 grams.
Defendant Pleads Guilty to Federal Offense of Sex Trafficking of A ChildRead the Press Release
Defendant Faces Imprisonment term of 10 years to Life
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Alexandria Samson Davall, from Utica, New York, pleaded guilty today in federal court to an offense charging her with Sex Trafficking Of A Child.
In pleading guilty, Davall admitted that in and about February of 2012, in the Broome, Oneida, and Onondaga counties in the Northern District of New York and elsewhere, defendant Alexandria Samson Davall and others, aiding and abetting each other, while in and affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain, and maintain by any means a person with the initials M.L., who had not attained the age of 18 years, knowing, or in reckless disregard of the fact that M.L. would be caused to engage in one or more commercial sex acts, and did benefit, financially and by receiving things of value, from participation in the venture which has engaged in the act described above, in violation of Title 18, United States Code, §§ 1591(a) & (b) and 2.
Davall further admitted that she and others, while aiding and abetting each other, knowingly recruited, enticed, harbored, transported, provided, obtained, and maintained a minor with the initials M.L., who was 16 years of age at the time, in order to prostitute M.L. to adult men in exchange for money and controlled substances. Davall and the others photographed and caused M.L. to be photographed in sexually seductive poses wearing only lingerie and posted said photographs of M.L. on Backpage.com, an internet classified advertising website, offering M.L. for sex in exchange for money. Additionally, Davall and the others utilized cellular telephones to send mass cellular texts offering M.L. for sex to customers in exchange for money. Furthermore, Davall and the others transported and caused M.L. to be transported to various locations including hotels where M.L. was instructed and caused to engage in commercial sex acts, in that, M.L. engaged in sexual acts including intercourse and oral sex with customers in exchange for money and controlled substances. Davall and the others benefitted, both financially and by receiving things of value, by prostituting M.L. to customers, in that, Davall and the others shared the money and controlled substances acquired from customers with whom M.L. was caused to engage in sex acts.
The federal charge stems from an investigation conducted by the FBI-Albany Division, New York State Police, Oneida County District Attorney’s Office, Utica Police Department, and the Oneida County Child Advocacy Center. The investigation concerned a prostitution ring involved in selling a minor to engage in sexual conduct in exchange for money and drugs. The prostitution ring utilized the website Backpage.com to advertise the prostitution. The ring also utilized a texting network to advertise their prostitution business. The Oneida County District Attorney has charged several other defendants with state crimes in connection to this overall joint investigation. The investigation is continuing.
Davall continues to be held in the custody of the U.S. Marshal’s Service pending sentencing. Davall is scheduled to be sentenced on July 22, 2014. At sentencing, she faces a statutory mandatory minimum term of 10 years prison and a maximum of life. The maximum possible fine is $250,000.
Custom Furniture Builders Plead Guilty to Tax EvasionRead the Press Release
George Despotopoulos and Steve Tepelidis pleaded guilty to tax evasion today in the District Court for the Eastern District of New York, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Despotopoulos and Tepelidis jointly owned and operated Furniture Design by Knossos, a custom furniture and cabinetry business. They caused business checks to be cashed and used some of the cash to supplement their reported income. The informations allege that Despotopolous and Tepelidis filed or caused to be filed false individual income tax returns for the 2007 tax year. Both Despotopoulos and Tepelidis have agreed to pay over $300,000 each in restitution.
Tax evasion carries a statutory maximum sentence of five years in prison, three years of supervised release, and a $250,000 fine.
This case was investigated by special agents of IRS-Criminal Investigation and prosecuted by Trial Attorney Jennifer Laraia of the Tax Division.
Construction Company Owner Convicted of Two Counts of Filing False Corporate Tax ReturnsRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that construction company owner Tomas Olazabal, of Fresh Meadows, N.Y., was convicted of two counts of filing false corporate tax returns for his corporation, Tupac Construction Corporation. Olazabal was convicted by a jury sitting in the U.S. District Court for the Eastern District of New York.
According to the evidence admitted at trial, Olazabal was the sole owner and operator of Tupac Construction. Between 2006 and 2008, Olazabal cashed a large number of checks representing gross receipts to Tupac Construction at a commercial check cashing service. Olazabal did not tell his tax return preparer about the cashed checks and failed to report those gross receipts on Tupac Construction’s 2007 and 2008 corporate tax returns.
Olazabal faces a statutory maximum potential sentence of six years in prison and a fine of up to $500,000.
Assistant Attorney General Kathryn Keneally for the Tax Division commended the IRS-Criminal Investigation Special Agents who investigated the case, as well as Trial Attorneys Steve Descano and Mark Kotila of the Tax Division, who prosecuted the case.
Carthage, Texas Resident Pleads Guilty to Trying to Entice an Underage Girl to Have SexRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced today that Sammy D. Mosely, 39, of Carthage, Texas, pleaded guilty before U.S. District Judge S. Maurice Hicks to attempting to entice a minor to engage in criminal sexual activity.
According to evidence presented at the guilty plea, Mosely responded to an online advertisement July 24, 2013 soliciting a mother and daughter for sex. Mosely began to correspond with a law enforcement officer posing as a 13-year-old girl. Mosely negotiated prices for sex with the minor and asked her to send nude pictures of herself. Mosely was arrested on August 1, 2013 at a meeting place in Bossier City, La., where he had agreed to meet the girl and her mother.
Mosely faces 10 years to life in prison, five years to life supervised release, and a $250,000 fine for one count of attempting to entice a minor to engage in sexual activity. A sentencing date of June 26, 2014 was set. The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Caregiver at Child Development Center Charged with Misdemeanor AssaultRead the Press Release
ALEXANDRIA, Va. – Va Nessa Taylor, 47, of Temple Hills, Md., was charged today by criminal complaint for allegedly engaging in misdemeanor assaults while working as a caregiver at the Cody Child Development Center (CDC) on Joint Base Myer-Henderson Hall (JBM-HH) in Arlington, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Col. Fern O. Sumpter, Joint Base Commander at JBM-HH, made the announcement.
Taylor has been charged with committing the offense of simple assault against a child under 16 years of age at a facility located within the special maritime and territorial jurisdiction of the United States. The offense is a Class A misdemeanor under federal law, and if convicted, Taylor faces a maximum penalty of one year in prison and a $100,000 fine.According to court records, Taylor worked at the CDC as a caregiver. On Jan. 29, 2014, a CDC employee reported to a supervisor that Taylor had been observed withholding food from a two-year-old child during the facility’s lunch period. After this conduct was reported, officials investigated the allegations and conducted a thorough review of surveillance footage within the CDC. That investigation ultimately revealed four instances in which Taylor allegedly assaulted four children within her care by hitting and pushing the children. The children ranged in ages from 18 months to two years, and the observed conduct occurred from Nov. 26, 2013 to Jan. 29, 2014.
Based on the investigation, Taylor’s conduct did not appear to result in sustained physical injury to the children. Taylor was removed from her duties of supervising children on Jan. 30, 2014, immediately after her conduct was reported to the relevant authorities at JBM-HH.
This case was investigated by the U.S. Army’s Criminal Investigation Command (CID) at JBM-HH. Special Assistant U.S. Attorney Amanda O’Neil and Assistant U.S. Attorney Rosanne C. Haney are prosecuting the case on behalf of the United States.
The Cody Child Development Center, which cares for infants and school-age children, is the largest in the Department of Defense and serves military and civilian families who work at the Pentagon, Forts Myer-Henderson and McNair and throughout the national capital region.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on PACER and on the website of the U.S. District Court for the Eastern District of Virginia.Burlingame Business Owner Pleads Guilty to $1.96 Million Loan FraudRead the Press Release
SAN FRANCISCO – Nimer Anton Massis, of Burlingame, Calif., pleaded guilty in federal court in San Francisco yesterday to making false statements to three federally insured lenders and the federal Small Business Administration (“SBA”) to obtain approximately $1.9 million in loans for his various businesses, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Massis, 40, admitted to making false statements in three separate business loan packages in 2008 and 2009. Each loan package was guaranteed in some form by the SBA, which provides financial support to small businesses across the country. The loans were made by Mission National Bank, One California Bank, and Capital Access Group. On each application, Massis was required to disclose to the lender his full financial portfolio, including all preexisting debts and obligations owed to other lenders. At the time he applied for each of the three loans, Massis was in default on approximately $630,000 in debt owed to Citibank. He did not disclose the debt that he owed to Citibank on his SBA-backed loan applications and then falsely certified that his applications represented his full financial situation. Massis ultimately fell behind and into default on the SBA-backed loan packages. He owed approximately $1.8 million to the government and lenders at the time his fraud was discovered by federal investigators. As of February 2014, he still owed approximately $1 million on his fraudulently obtained loans.
Massis was indicted on October 8, 2013. The indictment charged three counts of making false statements to a federally insured bank, in violation of 18 U.S.C. § 1014, and one count of making a false statement to the United States, in violation of 18 U.S.C. § 1001. The defendant pleaded guilty to all four counts.As part of his guilty plea, Massis admitted that he knew that these statements to the lenders and SBA were false. He also admitted that he made them for the purpose of influencing the lenders to loan him the money, and in the case of the SBA, that the false statements were material to the agency’s decision to loan him money.
Massis is scheduled for sentencing on July 23, 2014, at 2:30 p.m. before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1014 is thirty years in prison, five years of supervised release, and a $1 million fine, plus restitution. The maximum statutory penalty for violating 18 U.S.C. § 1001 is five years in prison, three years of supervised release, and a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robin Harris and Benjamin Kingsley are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Denise Oki and Rawaty Yim. The prosecution is the result of an investigation by the Small Business Administration and the Federal Bureau of Investigation.
(Massis indictment )
Bozeman Man Sentenced for Child PornographyRead the Press Release
The United States Attorney's Office announced that KEVIN SCOTT NESSLAND, 41, of Bozeman, Montana, was sentenced to 84 months in prison followed by 15 years supervised release during a federal court hearing in Missoula, on March 6, 2014, before U.S. District Judge Dana Christensen. Nessland was sentenced in connection with his November 2013 bench trial conviction on three counts of Receipt of Child Pornography.
In a Trial Brief filed by Assistant U.S. Attorney Cyndee Peterson, the Government stated that defendant Kevin Scott Nessland was surreptitiously observing (through holes he made in the attic) and recording the adult females in the apartment next to his apartment in Bozeman, Montana. Nessland's residence was searched pursuant to a search warrant. Law enforcement seized several items including electronic devices.
When the crimes (state charges) were first detected, Nessland immediately left the Bozeman area. This occurred prior to the search of his residence. When he left Bozeman, Nessland took some of his computers and equipment. Nessland called the Bozeman Police Department from the road, and multiple telephonic conversations with Bozeman Police were recorded. During the telephonic conversations, Nessland stated that he has sex addiction issues and was seeking treatment.
Nessland was subsequently located in Idaho after law enforcement officers responded to his vehicle during Nessland's suicide attempt. At that time, he was arrested on a warrant for the state charges and returned to Montana. Electronic items found in his vehicle were seized and transferred to the Bozeman Police Department in Montana.
When detectives were searching one of Nessland's external hard drives for evidence of the burglary and surreptitious observation crimes, the detective found images of child pornography. Detectives obtained a second search warrant and submitted the computers and electronic devices to the Montana DCI Computer Crime Lab for forensic examination. This included the devices seized from Nessland's residence and vehicle.
Numerous items were forensically examined. A DCI Forensic Examiner found evidence which tied the computers to certain of the drives. The examiner located more than 1,700 files which depicted child pornography.
The case was investigated by the Bozeman Police Department, the Montana Department of Criminal Investigations, and the Federal Bureau of Investigation.
Bolivian Police Officer Convicted on Extortion ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce yesterday’s conviction of Mario Fabricio Ormachea Aliaga, 43, of La Paz, Bolivia. After a three-day jury trial in Ft. Lauderdale before U.S. District Judge Jose A. Gonzalez, Jr., Ormachea was convicted of traveling to the United States with the intent to commit extortion and attempted extortion.
At trial, the evidence showed that Ormachea, the National Chief of the Bolivian Police’s Anti-Corruption Department, traveled to the United States to extort Humberto Roca, a Bolivian citizen and political exile who was living in the United States.
Mr. Roca was a successful and prominent Bolivian businessman who had run the country’s largest private airline, Aerosur. After Mr. Roca spoke out against the Bolivian government, the Bolivian government charged him and members of his family with various crimes against the State. Ormachea flew to the United States to meet with Mr. Roca. During his meetings with Mr. Roca, Ormachea told Mr. Roca that he was in charge of several of the criminal cases against him, that he decided what the criminal investigations showed and what they did not show, and that he provided the components necessary for the Bolivian government to make decisions on Mr. Roca’s cases. Ormachea then told Mr. Roca that he believed him to be innocent of any crimes but that it would cost him $30,000 to have Ormachea shift the investigations to the guilty parties.
Ormachea faces a statutory maximum sentence of up to 25 years in prison, plus fines and restitution. Ormachea will be sentenced in May by U.S. District Judge Robin S. Rosenbaum.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys John R. Byrne and Jon Juenger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bloomfield Man Pleads Guilty to Federal Involuntary Manslaugher ChargeRead the Press Release
ALBUQUERQUE – This morning in federal court, Jasper Fernandez, 39, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., entered a guilty plea to a felony information charging him with involuntary manslaughter under a plea agreement with the United States Attorney’s Office.
Fernandez was arrested on Feb. 22, 2012, on a criminal complaint charging him with the Nov. 4, 2011, murder of a 36-year-old Navajo woman on the Navajo Indian Reservation.
During today’s plea hearing, Fernandez admitted that he killed the victim while defending himself from a physical assault by the victim. According to the plea agreement, Fernandez and the victim were both intoxicated when the victim began kicking and punching Fernandez because he criticized her. Fernandez, who lost a tooth as a result of the assault, pushed the victim away too hard and caused her to hit her head against the door pillar of a vehicle and die. Fernandez acknowledged that instead of seeking medical attention for the victim or contacting the police, he attempted to conceal his crime by burying the victim’s remains.
Under the terms of his plea agreement, Fernandez will be sentenced to a prison term of time served. Fernandez remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Farmington offices of the FBI, the Navajo Nation Department of Public Safety and San Juan County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Billings Man Subject to Restraining Order Sentenced to Prison for FirearmsRead the Press Release
The United States Attorney's Office announced that ANTHONY MARCOS CHADWELL, 20, of Billings, was sentenced to 48 months in prison followed by 3 years supervised release by Senior U.S. District Judge Donald Molloy on February 19, 2014. In November 2013, a jury found Chadwell guilty of being a subject of a court order in possession of firearms and ammunition after a 2 day trial.
On August 26, 2012, a Billings Police Officer performed a traffic stop on a vehicle that was believed to contain the subject of an active felony arrest warrant, namely Charlie Lawson. The vehicle did not stop right away and the officer observed movements as he followed it.
After the vehicle did pull over, the officer approached and spoke with the two males inside. The officer identified the driver of the vehicle as Anthony Marcos Chadwell.
The defendant told the officer he did not have an ID, but he gave his correct name and told the officer he was a habitual traffic offender ("HTO"). The officer immediately knew he was going to arrest the defendant for the HTO offense if confirmed by dispatch.
Dispatch later confirmed that Mr. Chadwell was in fact HTO and was on probation. Dispatch also advised the officer that the defendant had an "officer caution" on him stemming from a previous incident where he had a .357 firearm near the center console/arm rest area.
After cover officers arrived, the officer asked the defendant to step out of the car and the defendant did so without issue. The officer was aware the defendant had been stabbed recently and he placed two sets of handcuffs on the defendant for his comfort. The defendant kicked the driver's side door closed. The officer walked the defendant back to his patrol vehicle and placed him in the back seat.
The officer told Chadwell that he was going to contact his probation officer to obtain authority to search the vehicle. Immediately, Chadwell became agitated and he yelled at the other passenger to get out and lock the doors. Chadwell yelled again for the passenger to lock the doors. The officer asked dispatch to inform Chadwell's probation officer that he was going to arrest Chadwell for the HTO violation. The defendant also yelled at the passenger to call his mother and to tell her they were being harassed. The passenger told the defendant she was on her way and told the defendant to calm down.
The officer asked the defendant if he had insurance and the defendant said he did. The officer asked if it was in the glove box and the defendant replied to just give him a no-insurance ticket because he was not getting in the glove box. The defendant was adamant and told the officer that he had the keys and the officer wasn't getting them.
The defendant was moved to another officer's patrol car and transported to jail. A probation officer authorized a search and requested that the police search the Chadwell's car. Because the officer was aware of the "officer caution" alert on Chadwell, that indicated there may be a firearm near the center armrest, he started his search there. The officer discovered a Colt model 1908 .25 caliber semi-automatic, loaded and with a round in the chamber. Officer Ward also found a Bryco Jennings J-22 semi-automatic pistol in the glove box.
Follow-up investigation showed that Chadwell was the subject of an "Order of Protection" issued on November 8, 2011. The order is one that prohibits the defendant from the lawful possession of firearms, with all four firearms prohibition criteria checked by the issuing court. Further, Chadwell had an opportunity to participate, had actual notice of the hearing and he was served with the order.
The investigation was conducted by the Billings Police Department and presented for federal prosecution by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bethany Man to Serve 17 Years in Prison for Operating A Ponzi SchemeRead the Press Release
Oklahoma City, Oklahoma – Earlier this week, BRIAN WILLIAM McKYE, 50, from Bethany, Oklahoma, was sentenced to serve 204 months in federal prison after being found guilty of seven counts of securities fraud and one count of conspiracy to commit money laundering in operating a Ponzi scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, McKye was ordered to serve three years of supervised release after being released from prison and pay $4,566,727.24 in restitution to victims.
Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 83 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
McKye’s original conviction on November 17, 2011, was overturned on appeal. Following a four-day retrial last fall, a jury convicted McKye again in November of 2013 after deliberating for less than 90 minutes. McKye represented himself at trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Baltimore Armed Career Criminal Exiled to 15 Years Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Ellen L. Hollander sentenced Robert Stewart, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Stewart’s sentence upon finding that he is an armed career criminal based on four previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, in early 2013, Baltimore Police officers received information that an individual, later identified as Robert Stewart, was engaged in drug trafficking while armed with a firearm in the 1200 block of Washington Boulevard in Baltimore. Officers watched the vehicle Stewart was using to conduct the drug trafficking and saw Stewart leaving in the car with a woman driving and returning no more than 15 minutes later.
On February 4, 2013, the officers received information that Stewart was returning to his residence with the gun in the car after having just dropped off narcotics. Officers stopped the car and saw Stewart bend down with hands between his feet. After repeated commands to show his hands, Stewart eventually put both hands in the air and officers removed Stewart and the driver from the vehicle.
During a search of the car officers recovered a .45 caliber semi-automatic pistol, loaded with six rounds of .45 caliber automatic, full metal jacket cartridges from the front passenger floor, partially hidden beneath the seat. After being advised of his rights, Stewart admitted that the gun was his.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Attorney General Holder Urges Changes in Federal Sentencing Guidelines to Reserve Harshest Penalties for Most Serious Drug TraffickersRead the Press Release
In testimony delivered before the U.S. Sentencing Commission Thursday, Attorney General Eric Holder endorsed a proposed change to the Federal Sentencing Guidelines that would reserve the harshest penalties for the most serious drug offenders.
The Sentencing Commission proposal, first unveiled in January, would lower by two levels the base offense associated with various drug quantities involved in drug trafficking crimes. If adopted, the change would impact nearly 70% of all drug trafficking offenders and reduce the average sentence by 11 months, or nearly 18%, according to the Commission.
As an added result of the new proposal, the Commission projects that the Bureau of Prisons population would drop by 6,550 inmates at the end of five years.
“This straightforward adjustment to sentencing ranges – while measured in scope – would nonetheless send a strong message about the fairness of our criminal justice system,” Holder testified. “And it would help to rein in federal prison spending while focusing limited resources on the most serious threats to public safety.”
The move is Holder’s latest step to alter the federal government’s approach to dealing with nonviolent drug offenders. Last August, Holder announced his “Smart on Crime” initiative, which included a major change to the department’s charging policy intended to reserve strict, mandatory minimum sentences for high-level or violent drug traffickers.
The “Smart on Crime” initiative would help ease the nation’s overcrowded prison system. Today, the United States comprises just five percent of the world’s population but it incarcerates almost a quarter of the world’s prisoners. In 2010 alone, state and federal governments spent $80 billion on incarceration. And of the 216,000 current federal inmates, nearly half are serving time for drug-related crimes.
The Commission is expected to vote on the proposal endorsed by Holder in April. Until then, the Justice Department will direct prosecutors not to object if defendants in court seek to have the newly proposed guidelines applied to them during sentencing.
The complete text of the Attorney General’s statement to the Sentencing Commission, as prepared for delivery, is below.
Testimony by Attorney General Eric H. Holder, Jr.
U.S. Sentencing Commission
March 13, 2014Chief Judge [Patti] Saris and Members of the Commission: good morning, and thank you for the invitation to appear before you to discuss our shared goals – and to provide the Justice Department’s views on proposed changes to the Federal Sentencing Guidelines related to certain drug trafficking crimes.
In particular, I appreciate the opportunity to speak in support of the amendments under consideration today. The Justice Department strongly supports the Commission’s proposed change to the Drug Quantity Table. If adopted, this amendment would lower by two levels the base offense levels associated with various drug quantities involved in drug trafficking crimes. This would have the effect of modestly reducing guideline penalties for drug trafficking offenses while keeping the guidelines consistent with current statutory minimums – and continuing to ensure tough penalties for violent criminals, career criminals, or those who used weapons when committing drug crimes.
This straightforward adjustment to sentencing ranges – while measured in scope – would nonetheless send a strong message about the fairness of our criminal justice system. And it would help to rein in federal prison spending while focusing limited resources on the most serious threats to public safety. Let me be clear, my primary obligation as Attorney General is to ensure the safety of the American people. The changes that I have implemented over the past year are designed to do exactly that – while making our system more fair and more efficient.
This proposed amendment is consistent with the “Smart on Crime” initiative I announced last August. Its implementation would further our ongoing effort to advance commonsense criminal justice reforms. And it would deepen the Department’s work to make the federal criminal justice system both more effective and more efficient when battling crime and the conditions and behaviors that breed it.
As it stands – and as this Commission has recognized – certain types of cases result in too many Americans going to prison for too long, and at times for no truly good public safety reason. Although the United States comprises just five percent of the world’s population, we incarcerate almost a quarter of the world’s prisoners. One in 28 American children currently has a parent behind bars. State and federal governments spent a combined $80 billion on incarceration during 2010 alone. And as you know – of the more than 216,000 current federal inmates – nearly half are serving time for drug-related crimes.
This focused reliance on incarceration is not just financially unsustainable – it comes with human and moral costs that are impossible to calculate. That’s why, in recent years – under the leadership of President Obama and alongside members of this Commission; with the support of policymakers as well as prosecutors; and with the expertise of advocates and researchers, law enforcement officials, and government leaders on both sides of the aisle – we have taken significant steps to improve criminal justice policies and implement targeted reforms. I am particularly proud of the work we did together to reduce the inappropriate and unjust 100-to-1 sentencing disparity between crack and powder cocaine – a disparity that this Commission had correctly found to be unjustifiable, and which President Obama alleviated with the signing of the Fair Sentencing Act in 2010.
Just over a year ago, in an effort to take our collective work to a new level, I launched a targeted Justice Department review of the federal criminal justice system – to identify areas for improvement, and to seek ways to make the system more efficient, more effective, and more closely aligned with our highest ideals, while not sacrificing our duty to promote public safety. Last August, I announced a new “Smart on Crime” initiative – based on the results of that review – and it is already allowing the Justice Department to make critical improvements; to conserve precious resources; to improve outcomes; and to disrupt the destructive cycle of poverty, incarceration, and crime that traps too many Americans and weakens entire communities.
Among the key changes I mandated as part of this initiative is a modification of the Justice Department’s charging policies – to ensure that people convicted of certain low-level, nonviolent federal drug crimes will face sentences appropriate to their individual conduct – rather than stringent mandatory minimums, which will now be applied only to the most serious criminals. The Commission’s proposed amendment to the Federal Sentencing Guidelines would help to further advance and institutionalize this work, controlling the federal prison population and ensuring just and proportional sentences.
I’m pleased to note that this approach enjoys significant bipartisan support on Capitol Hill, where a number of leaders, including Senators Patrick Leahy, Dick Durbin, and Mike Lee – along with Representatives Bobby Scott and Raul Labrador – have introduced legislation that would give judges more discretion in determining appropriate sentences for those convicted of certain crimes. By reserving the most severe penalties for dangerous and violent drug traffickers, we can better promote public safety, deterrence, and rehabilitation while saving billions of dollars and strengthening communities. And as my colleagues and I work with Congress to refine and pass this legislation, we are simultaneously moving forward with a range of other reforms.
We’re investing in evidence-based diversion programs – like drug treatment initiatives and veterans courts – that can serve as alternatives to incarceration in some cases. We are working to reduce unnecessary collateral consequences for formerly incarcerated individuals seeking to rejoin their communities. And we are building on innovative, data-driven reinvestment strategies that have in many cases been pioneered at the state level.
In recent years, no fewer than 17 states – supported by the Department’s Justice Reinvestment Initiative, and led by officials from both parties – have directed significant funding away from prison construction and toward evidence-based programs and services, like supervision and drug treatment, that are proven to reduce recidivism while improving public safety. Rather than increasing costs, a new report – funded by the Bureau of Justice Assistance – projects that these 17 states will actually save $4.6 billion over a 10-year period. Many have already seen drops in recidivism rates – as well as overall crime rates – even as their prison populations have declined. And although the full impact of our justice reinvestment policies and other reforms remains to be seen, it’s clear that these efforts are bearing fruit – and showing significant promise across the country.
We can be encouraged by this ongoing work – which is enabling us to better promote public safety, deterrence, and rehabilitation while making our expenditures smarter and more productive. Yet each of us is here this morning because we recognize that we cannot yet be satisfied. And a great deal remains to be done.
By adopting these proposed amendments to the Federal Sentencing Guidelines, this Commission can take an important step to allow judges to make commonsense determinations; to provide legal professionals and law enforcement leaders with the 21st-century solutions they need to address 21st-century challenges; and to build on the progress we’ve already seen in constructing a criminal justice system that deters and punishes crime, keeps us safe, and ensures that those who have paid their debts have the chance to become productive citizens.
As the Commission considers these and other actions – and as you hear testimony from a diverse group of expert panelists over the course of today’s hearing – I urge you to seize this opportunity to make our criminal justice system more fair and to keep the American people more safe.
I look forward to continuing to work closely with each of you – and with leaders in Congress and throughout the Administration – to strengthen America’s criminal justice system and forge the more just society that everyone in this country deserves.
I thank you, once again, for the opportunity to appear before you today. And I would be happy to take a few questions at this time.
Ashland Man Sentenced to Five Years in Prison for Labor TraffickingRead the Press Release
An Ashland man was sentenced to five years in prison for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.
“The conduct laid out in this case is almost incomprehensible,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to prosecute human trafficking cases in all their various forms.”
"The manner in which this young lady and her small child were treated during two years of involuntary servitude is beyond disturbing," said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office. "The FBI hopes that the victims in this investigation can continue to heal and lead their own lives now that Daniel Brown and the others have been brought to justice."
Daniel J. Brown, 34, previously pleaded guilty to one count of conspiracy. He admitted that he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby from 2010 through 2012 to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
Together, they used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to court documents.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to trial testimony and court documents.
All four people have been found guilty of crimes related to the case. Silsby is scheduled to be sentenced later this month while Callahan and Hunt are scheduled to be sentenced in July.
The case is being handled by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Army Soldier Sentenced for Facilitating <br /> Thefts of Fuel in AfghanistanRead the Press Release
A U.S. Army soldier was sentenced to serve 12 months and one day in prison for his role in stealing fuel at Forward Operating Base (FOB) Fenty near Jalalabad, Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement after sentencing by U.S. District Court Judge Thomas B. Russell in the Western District of Kentucky.
According to court documents, in May and June 2010, U.S. Army Sergeant Kevin Bilal Abdullah, 40, of Clarksville, Tenn., was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. Abdullah created fraudulent documents called Transportation Movement Requests purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, these fraudulent documents were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures. In truth, the fuel was simply stolen, and Abdullah and his co-conspirators received payment in cash from a representative of the Afghan trucking company that allegedly stole the fuel.
Abdullah pleaded guilty on Aug. 29, 2013, to receiving payments from a representative of the trucking company in exchange for facilitating the theft of fuel in approximately 25 fuel trucks. He pleaded guilty to conspiracy to commit bribery and to the substantive count of bribery. At sentencing, he was ordered to pay $466,250 in restitution.
Abdullah’s sentencing was the fourth conviction arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah and others, pleaded guilty to similar charges. After cooperating with the government, he was sentenced on Oct. 28, 2013, to serve 27 months in prison. On Oct.10, 2012, Christopher Weaver, another conspirator, pleaded guilty to fuel theft charges and, after cooperating with the government, was sentenced on Oct. 28, 2013, to serve 37 months in prison. On Sept. 5, 2013, former Specialist Stephanie Charboneau pleaded guilty, and on Feb. 4, 2014, she was sentenced to serve 87 months in prison. Weaver, Hightower and Charboneau were prosecuted in the District of Colorado.
These cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR), the Department of the Army - Criminal Investigation Division, the Defense Criminal Investigative Service and the FBI.
The Abdullah case was handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Michael Bennett.Army Soldier Sentenced in Kentucky on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
PADUCAH, Ky. – A U.S. Army soldier was sentenced to serve 12 months and one day in prison for his role in stealing fuel at Forward Operating Base (FOB) Fenty near Jalalabad, Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement after sentencing by U.S. District Court Judge Thomas B. Russell in the Western District of Kentucky.
According to court documents, in May and June 2010, U.S. Army Sergeant Kevin Bilal Abdullah, 40, of Clarksville, Tenn., was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. Abdullah created fraudulent documents called Transportation Movement Requests purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, these fraudulent documents were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures. In truth, the fuel was simply stolen, and Abdullah and his co-conspirators received payment in cash from a representative of the Afghan trucking company that allegedly stole the fuel.
Abdullah pleaded guilty on Aug. 29, 2013, to receiving payments from a representative of the trucking company in exchange for facilitating the theft of fuel in approximately 25 fuel trucks. He pleaded guilty to conspiracy to commit bribery and to the substantive count of bribery. At sentencing, he was ordered to pay $466,250 in restitution.
Abdullah’s sentencing was the fourth conviction arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah and others, pleaded guilty to similar charges. After cooperating with the government, he was sentenced on Oct. 28, 2013, to serve 27 months in prison. On Oct.10, 2012, Christopher Weaver, another conspirator, pleaded guilty to fuel theft charges and, after cooperating with the government, was sentenced on Oct. 28, 2013, to serve 37 months in prison. On Sept. 5, 2013, former Specialist Stephanie Charboneau pleaded guilty, and on Feb. 4, 2014, she was sentenced to serve 87 months in prison. Weaver, Hightower and Charboneau were prosecuted in the District of Colorado.
These cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR), the Department of the Army - Criminal Investigation Division, the Defense Criminal Investigative Service and the FBI.
The Abdullah case was handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Michael A. Bennett from the Western District of Kentucky.
Apartment Complex Owner, Company Sentenced to Prison for Violations of Clean Air ActRead the Press Release
The owner of a Kent, Washington apartment complex and his company, were sentenced today in U.S. District Court in Seattle for violating the Clean Air Act by exposing residents and workers to airborne asbestos, announced U.S. Attorney Jenny A. Durkan. STANLEY XU, 53, was sentenced to 15 months in prison, 90 days of home confinement and ordered to make a $75,000 community service payment to the National Environmental Education Foundation. XU’s company, LONGWELL COMPANY, was fined to $159,850 and placed on five years of probation to ensure it complies with all environmental regulations. The defendants pleaded guilty in October 2013 for failing to protect residents of the Avante Apartments in Kent from asbestos exposure following a pipe rupture in December 2009. XU knew the ceiling material that rained into the apartments contained asbestos, but still hired a clean-up contractor who took no steps to protect the apartment residents or workers hired to clean up and dispose of the hazardous waste. At sentencing U.S. District Judge Thomas S. Zilly said this case concerned him “because of the terrible risks posed to people exposed to asbestos.”
“Asbestos has killed scores of people in our country and the rules are meant to protect against its dangers. Mr. Xu and his company were well aware of the regulations surrounding clean-up and disposal of asbestos contamination, and chose instead to put his tenants and workers at risk,” said U.S. Attorney Jenny A. Durkan. “Not only had Xu and his company been cited by the state before, he had obtained bids from qualified asbestos contractors; but to put money in his pocket, he instead hired someone on the cheap. Now he pays a hefty price.”
According to records filed in the case, in 2006 the Environmental Protection Agency filed complaints against XU for lead paint contamination at another apartment complex he owns. In 2007, he was cited by the Washington State Department of Labor and Industries for failing to do an asbestos survey before construction work at another complex. At a hearing in November 2009, XU stated he understood the code and that popcorn ceiling material contains asbestos. Despite those statements, less than a month later when the pipes burst, he took no steps to ensure the asbestos material that fell into the apartments was disposed of properly. In fact, after XU’s guilty plea in October 2013, he again failed to protect tenants and workers from airborne asbestos during another apartment repair project.
“Defendant Xu obstructed a federal investigation, potentially exposed workers and dozens of his tenants, including young families, to harmful asbestos fibers and repeatedly failed to follow the law,” said Tyler Amon, Special Agent in Charge with EPA's Criminal Investigation Division. “Because there's no safe level of asbestos exposure, business owners who knowingly put others at risk should expect tenacious prosecution.”
In asking that XU be sentenced to a prison term, prosecutors explained how the apartment residents were put at risk. “These tenants included families with young children, pregnant mothers, minorities, and low-income individuals. According to interviews, many of the tenants were specifically told that they were required to clean this asbestos-containing debris from their belongings. The tenants spent long hours – with their children in tow – over the course of several weeks cleaning and literally shaking this debris from their items. The apartments, although initially damp, quickly dried out, creating a dusty environment inside. Several tenants reported that they or their children, some of whom already had asthma, experienced difficulty breathing during this time. They did all of this never knowing that this “dust” in their apartments likely contained asbestos fibers,” prosecutors wrote in their sentencing memo.
The community service payment in this case goes to the National Environmental Education Foundation, a Congressionally mandated foundation established and dedicated to advancing environmental education.
The case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Kathryn K. Frierson and Special Assistant United States Attorney Karla G. Perrin with the EPA.
Angel Cristobal-Sarmientos Sentenced for Illegal Reentry into the United StatesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on March 5, 2014, before U.S. District Judge Donald W. Malloy, ANGEL CRISTOBAL-SARMIENTOS was sentenced to a term of:
- ison: 13 months and 1 day
Cristobal-Sarmientos was sentenced in connection with his guilty plea to Illegal Re-Entry into the United States.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Cristobal-Sarmientos, who had previously been deported from the United States on multiple occasions, was involved in an alleged domestic dispute in Glendive, Montana on September 15, 2013, in which Dawson County Sheriff Deputies responded to the scene. The
United States Border Patrol was subsequently contacted and Cristobal-Sarmientos was
Cristobal-Sarimentos advised that he was a citizen of Mexico and in the United States illegally. There is no record that Cristobal-Sarimentos ever applied for or obtained the permission of the United States Attorney General or his successor the Secretary of the Department of Homeland Security to reenter the United States. Moreover, records indicate that Cristobal-Sarimentos had previously been deported subsequent to a felony conviction.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Sanchez-Gonzalez will likely serve all of the time imposed by the court. In the federal system, Sanchez-Gonzalez does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the United States Border Patrol.
Albuquerque Man Sentenced to Five Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Curtis Caylor, 60, of Albuquerque, N.M., was sentenced today to five years in federal prison to be followed by five years of supervised release for his child pornography conviction. Caylor will be required to register as a sex offender after he completes his prison sentence.
Caylor was arrested on Dec. 20, 2012, on an indictment charging him with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct. The indictment alleged that Caylor received child pornography on three occasions in Sept. 2011 and that he possessed child pornography in Jan. 2012, in Bernalillo County.
On Aug. 21, 2013, Caylor entered a guilty plea to Count 2 of the indictment charging him with receipt of child pornography. In his plea agreement, Caylor acknowledged that investigators with Homeland Security Investigations (HSI) and the New Mexico Internet Crimes Against Children Task Force (New Mexico ICAC Task Force) executed a federal search warrant at his residence on Jan. 12, 2012 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the New Mexico State Police that began in June 2011, and targeted individuals who possessed, received and distributed child pornography. The investigation revealed that an IP Address which was subscribed to Caylor’s residence was being used to download child pornography images and videos through a peer-to-peer file-sharing program.
Caylor also acknowledged that a forensic examination of his computers and computer-related media by HSI and the New Mexico Regional Computer Forensics Lab revealed thousands of images and videos consistent with child pornography. Caylor also acknowledged that HSI sent more than 1000 of these images and 600 of those videos to the National Center for Missing and Exploited Children (NCMEC) and the NCMEC has issued a preliminary report indicating they include 154 videos of 48 children who have been identified as child pornography victims and have been rescued.
This case was investigated by the Albuquerque office of HSI, the Online Predator Unit of the NMSP, the New Mexico Regional Computer Forensic Laboratory and other members of the New Mexico ICAC Task Force. It was prosecuted by Assistant U.S. Attorney Marisa A. Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Wednesday 12 March 2014
Youngsville Company Owner Pleads Guilty to Negligently Discharging Pollutants into Vermillion RiverRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Robbie Mouton, 56, of Youngsville, La., pleaded guilty before U.S. Magistrate Judge C. Michael Hill to one count of negligent discharge of pollutants.
According to evidence presented at the guilty plea, Mouton, who owns Robbie’s Gauging Service Inc. of Youngsville and is its principal gauger, negligently discharged a mixture of produced water and crude oil into the Vermilion River during the period January 6, 2009 to January 19, 2009, at an oilfield exploration site in Milton, La. Mouton admitted that the discharge took place without a permit.Mouton faces a year in prison, a year of supervised release, and a fine of $2,500 to $25,000 per day of the violation or $100,000, whichever is greater. No sentencing date was set.
The U.S. Environmental Protection Agency, the Louisiana Department of Environmental Quality-Criminal Investigations Division, and the Louisiana State Police-Emergency Services Unit conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.