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29 April 2014
Mission Man Receives 20 Years for Drug Trafficking for the Gulf CartelRead the Press Release
LAREDO, Texas - Israel Garza, 40, of Mission, has been ordered to federal prison for 240 months following his conviction for possession with intent to distribute more than five kilograms of cocaine, announced United States Attorney Kenneth Magidson. Garza pleaded guilty Dec. 10, 2013, admitting he possessed with the intent to distribute 14 kilograms of cocaine.
Today, U.S. District Judge Marina Garcia-Marmolejo handed Garza the 20-year sentence which will be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Marmolejo noted Garza is a career drug offender and his actions resulted in a significant punishment. At sentencing, Garza addressed the court as well as a group of visiting school children, whom he told to live a clean and positive life and not make the mistakes he did or else they will spend their lives in prison.
On Sept. 18, 2013, Border Patrol (BP) agents arrested Garza at the checkpoint approximately one mile south of Hebbronville. At that time, a canine dog alerted to the presence of narcotics in an ice cooler located in the cab of the freightliner tractor-trailer he was driving. The cooler appeared to be bulging abnormally. Upon further inspection, agents discovered 12 vacuumed-sealed packages inside, containing approximately 14 kilograms of cocaine, valued at $976,000.
Garza admitted he was delivering drugs for the Gulf Cartel.
The case was investigated by the Drug Enforcement Administration and United States Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted this case.
Miramar Resident Convicted for Filing A False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of defendant Erica Jacovia Bryant, 33, of Miramar, after a two day jury trial on charges of filing a false claim, in violation of Title 18, United States Code, Section 287.
At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine. Sentencing has been scheduled for July 11, 2014 at 9:00 a.m. in front of U.S. District Judge James I. Cohn in Ft. Lauderdale.
According to the indictment and evidence introduced in court, Bryant filed a false 2011 tax return that fraudulently sought a $110,859.00 tax refund. Based upon this fraudulent return and the information contained therein, Bryant obtained a $100,653.22 tax refund from the Internal Revenue Service, which was later utilized to purchase a 2013 Lincoln MKZ. The 2013 Lincoln MKZ was subsequently seized by the IRS for forfeiture.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service-CI Division. This case is being handled by Assistant U.S. Attorney Marc Anton.
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.
Mercer County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BLUEFIELD, W.Va. – A 54-year old Mercer County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. David A. Punturi, of Bluefield, West Virginia entered a guilty plea before Senior United States District Court Judge David A. Faber.
Punturi admitted that on August 14, 2013, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computers. The court scheduled sentencing for September 2, 2014 in Bluefield.
The West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Members of Violent Trinitarios Gang Found Guilty in Manhattan Federal Court in Connection with Racketeering, Murder, Attempted Murder, and Narcotics OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CARLOS URENA and LIMET VASQUEZ were both found guilty after trial of racketeering, racketeering conspiracy, and a drug conspiracy involving marijuana, crack cocaine, powder cocaine, and oxycodone. As part of the racketeering conviction, the jury found, among other things, that URENA and VASQUEZ participated in a conspiracy to murder Ka’Shawn Phillips in Yonkers, New York, in 2005, and in a separate attempted murder in Manhattan, New York, in 2005. URENA was also convicted of murder in aid of racketeering and the use of a firearm in connection with the murder in aid of racketeering, both in connection with the murder of Ka’Shawn Phillips. URENA and VASQUEZ were convicted following a seven-week jury trial presided over by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “The defendants, Carlos Urena and Limet Vasquez, now stand convicted after trial for perpetuating the crusade of crime for the Bronx Trinitarios Gang, including conspiring to murder a sixteen year-old rival gang member. The Bronx streets are safer because of the jury’s verdict and the continued efforts of our law enforcement partners – the NYPD, ATF, and the DEA – who help us in building these cases.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
URENA and VASQUEZ were members of the Bronx Trinitarios Gang (“BTG”), a criminal organization that operated primarily in the Bronx, New York. The BTG started in the prison system in the late 1980s and subsequently spread to the streets. URENA, VASQUEZ, and others carried out illegal activities as part of a racketeering conspiracy, and to accomplish BTG’s goals of enhancing its power, protecting its turf from rival gangs including the Dominicans Don’t Play, the Bloods, the Crips, the Latin Kings, and other gangs, and enriching its members. Those activities included murder, attempted murders, conspiracies to commit murders, robbery, and narcotics trafficking.
On September 2, 2005, URENA and VASQUEZ participated in an attempted murder of a rival gang member in the Fort Washington area of Manhattan. The next evening, on September 3, 2005, URENA and VASQUEZ participated in a conspiracy to murder a 16-year-old named Ka’Shawn Phillips, who they had been told was a member of a rival gang. On that evening, a group of Trinitarios attacked Phillips on Saratoga Avenue in Yonkers, stabbing and shooting him to death. URENA was one of the men who shot and killed Phillips. In addition, as part of their membership in the BTG, URENA and VASQUEZ also participated in other acts of violence and a narcotics conspiracy involving marijuana, crack cocaine, powder cocaine, and oxycodone.
URENA faces a mandatory minimum sentence of life in prison. VASQUEZ faces a maximum sentence of life in prison, with a mandatory minimum sentence of five years in prison. A sentencing date has not yet been scheduled. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Joint Firearms Task Force, and the Drug Enforcement Administration.
This case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Ryan P. Poscablo, Timothy D. Sini, and Micah W. J. Smith conducted the trial.
U.S. v. Leonides Sierra et al S5 Indictment
Mayfield Rheumatologist Pleads Guilty to Importing Medications Not Approved by the FDARead the Press Release
A Mayfield Village rheumatologist pleaded guilty to importing medications that had not been approved by the Federal Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dr. David Mandel, 65, admitted causing the shipment of misbranded drugs, a misdemeanor violation of the Food, Drug and Cosmetic Act.
“This doctor used drugs that had not been approved by the FDA,” Dettelbach said. “Our office is committed to working with our partners to make sure patients are getting medicine that has been properly inspected.”
“FDA’s regulatory standards are designed to ensure the safety and quality of the medical devices and drugs distributed to American consumers,” said Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations. “We will continue to work to investigate all persons, including medical professionals, who disregard regulatory requirements and jeopardize the public health by participating in the distribution of misbranded products.”
“Acquiring and prescribing prescription medications that have not met regulatory standards puts the safety and well-being of patients at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our law enforcement partners to ensure that medical professionals who choose to evade these standards are held accountable.”
Dr. Mandel obtained Boniva, Aclasta, Prolia, Euflexa and Orthovisc, from outside the United States, where the drugs are not approved by the FDA, according to the charges.
A drug may be considered misbranded even if it is identical in composition to an FDA-approved drug (that is, a drug labeled and packaged in compliance with the FDA’s standards) and even if it was made by the same manufacturer in the same facility as the FDA-approved version.
Dr. Mandel faces up to one year in prison and fines up to $100,000. His sentence will be determined by the court after reviewing factors unique to this case, including his prior criminal record, if any, his 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.
These cases are being prosecuted by Assistant U.S. Attorney Michael L. Collyer following investigations by the FDA – Office of Criminal Investigations and the Department of Health and Human Services – Office of Inspector General.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov
A charge is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mansfield Man Indicted on Multiple ChargesRead the Press Release
Michael J. Kisling, 24, of Mansfield, Ohio, was charged with sexual exploitation of a child, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, and identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about November 1, 2010, through on or about November 22, 2010, Kisling used, persuaded, induced, enticed and coerced a minor, that is, a 14-year-old girl to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct, knowing that such visual depictions would be transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce, and such visual depictions were actually transported using any means and facility of interstate and foreign commerce in and affecting interstate and foreign commerce.
The indictment also charges that on or about November 22, 2010, and again on or about April 4, 2013, Kisling knowingly distributed, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor, that is, a 14-year-old girl engaged in sexually explicit conduct.
The indictment also charges that on or about April 4, 2013, Kisling knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit a violation of federal law.
The indictment also charges that on or about December 23, 2013, Kisling knowingly possessed several printed pages that contained visual depictions of a real minor, that is, a 14-year-old girl engaged in sexually explicit conduct, which visual depictions had been shipped and transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce. The indictment also charges that on or about January 28, 2013, through on or about December 10, 2013, Kisling knowingly received in interstate and foreign commerce, numerous digital files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Eau Claire County, Wisconsin Sheriff’s Office.
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.
Local Labor Official Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was indicted for his alleged embezzlement of approximately $40,660 of union funds.
Davis, O’Fallon, IL, was indicted by a federal grand jury April 23, on one count of embezzlement of Labor Union funds. He appeared in federal court Monday afternoon, April 28.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Labor-Office of Inspector General and Office of Labor-Management Standards. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Li Fangwei Charged in Manhattan Federal Court with Using A Web of Front Companies to Evade U.S. SanctionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, and George C. Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that LI FANGWEI, who is more commonly known by his alias “Karl Lee,” is charged with violating the International Emergency Economic Powers Act (“IEEPA”) by using United States-based financial institutions to engage in millions of dollars of U.S. dollar transactions in violation of economic sanctions that prohibited such financial transactions. In addition, LI FANGWEI is also charged with conspiring to commit wire fraud and bank fraud, a money laundering conspiracy, two separate violations of IEEPA, and two separate substantive counts of wire fraud, in connection with such illicit transactions. LI FANGWEI, a national of the People’s Republic of China, is a fugitive.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Li Fangwei has used subterfuge and deceit to continue to evade U.S. sanctions that had been imposed because of his illicit trade in prohibited materials with Iran. Previously having been exposed as a violator of those sanctions, Li spun a web of front companies to carry out prohibited transactions essentially in disguise. He now stands charged with serious crimes, and millions of his dollars have been seized. It is the hope of this Office not only that Li’s banned commerce cease once and for all, but that he be apprehended and brought before the bar of American justice.”
Assistant Attorney General for National Security John P. Carlin said: “These charges are an important part of the all tools approach our government is taking against Li Fangwei to shut down and deny him the profit from his proliferation activities. This case is an outstanding example of multiple agencies working together to focus various enforcement efforts on the significant threat to our national security posed by such proliferation networks.”
FBI Assistant Director in Charge George C. Venizelos said: “Whether motivated by greed or otherwise, Li Fangwei allegedly ignored sanctions imposed by the United States Government and hid behind front companies he developed to engage in a series of illegal transactions, including attempts to acquire ‘dual use’ items on behalf of Iran-based entities. IEEPA makes it a crime to willfully violate U.S. sanctions on designated countries such as Iran. Individuals and companies who evade U.S. sanctions and misuse our banking system to further their illegal activity not only undermine the integrity of our financial markets but also threaten U.S. National Security interests. The FBI is committed to ensuring that strategically important goods and technology, particularly those that could be used in the production or delivery of weapons of mass destruction, do not end up in the wrong hands.”
According to the Superseding Indictment previously filed in Manhattan federal court and other court documents:
LI FANGWEI controls a large network of industrial companies based in eastern China, one of which is LIMMT Economic and Trade Company, Ltd. (“LIMMT”). Over the years, LI FANGWEI’s companies have done millions of dollars of business with Iran. This business has included selling to Iranian entities various metallurgical goods and related components that are banned for transfer to Iran by, among others, the United Nations, because the items are controlled by the Nuclear Supplier’s Group (a multinational group that maintains “control lists,” which identify nuclear-related dual-use equipment, material, and technology). LI FANGWEI has been, among other things, a long-time supplier to Iran’s Defense Industries Organization and Iran’s Aerospace Industries Organization. In addition, LI FANGWEI has been a principal contributor to Iran’s ballistic missile program through China-based entities that have been sanctioned by the United States.
In light of his supply of restricted items to Iran, the United States has imposed targeted sanctions on both LI FANGWEI and LIMMT. Specifically, the United States Department of the Treasury’s Office of Foreign Asset Controls (“OFAC”) publicly added LIMMT (in 2006) and LI FANGWEI (in 2009) to its List of Specially Designated Nationals and Blocked Persons (the “SDN List”). By virtue of their inclusion on the SDN List, LI FANGWEI and LIMMT were effectively precluded from conducting any business within the United States without first obtaining a license or authorization from OFAC. Neither LI FANGWEI nor LIMMT has sought such a license or authorization.
The above-referenced restrictions have forced LI FANGWEI to operate much of his business covertly. In response to United States sanctions, LI FANGWEI has built an outsized network of China-based front companies – to conceal his continuing participation, and LIMMT’s continuing participation, in sanctioned activities. The front companies are listed in Exhibit A to the Superseding Indictment. As shown in Exhibit A, many of those front companies have used the same address as LIMMT, or a close variant thereof.
During the period from 2006 through the present, LI FANGWEI has used front companies to engage in more than 165 separate U.S. dollar transactions, with a total value in excess of approximately $8.5 million. Included in those illicit transactions have been transactions involving sales to U.S. companies, sales of merchandise by LI FANGWEI to Iran-based companies utilizing the U.S. financial system, as well as attempts to acquire on behalf of Iran-based entities so-called “dual use” items from the United States, China, and other countries that could be used in the production of weapons of mass destruction and/or devices used to deliver weapons of mass destruction.
The U.S. Attorney’s Office and the FBI announced the seizure of over $6,895,000 in funds attributable to the LI FANGWEI front companies, and the filing of a civil complaint seeking the forfeiture of those funds to the United States. The seized funds are substitutes for money held by LI FANGWEI’s front companies at banks in China, and were seized from accounts at U.S. banks held in the name of foreign banks used by these front companies to conduct U.S. currency transactions (the “correspondent accounts”). The funds were seized pursuant to seizure warrants issued on December 18, 2013, and April 25, 2014. The $6,895,000 represents funds used by the LI FANGWEI front companies to engage in transactions that violate the U.S. sanctions laws and thus are subject to forfeiture. There are no allegations of wrongdoing by the U.S. or foreign banks that maintain these accounts. Because the funds used in those transactions are held in banks overseas, the United States is unable to seize the funds directly. However, pursuant to U.S. law, the United States can seize funds located in a bank’s correspondent accounts in the United States if there is probable cause to believe that funds subject to forfeiture are on deposit with that bank overseas. Based on this provision and others, the seizure warrants were executed. These funds were transferred to a seized asset account maintained by the United States Marshals Service pending resolution of the forfeiture action.
Based on information developed in the course of the FBI’s investigation into LI FANGWEI that forms the basis of the Superseding Indictment, OFAC today is adding eight additional front companies used by LI FANGWEI to its List of Specially Designated Nationals and Blocked Persons.
Finally, the United States Department of Commerce announced today the addition of nine China-based suppliers of LI FANGWEI to its Entity List.
The Superseding Indictment charges LI FANGWEI with seven separate offenses:
- Count One: Conspiracy to violate the International Emergency Economic Powers Act;
- Counts Two and Three: Substantive violations of the International Emergency Economic Powers Act;
- Count Four: Money laundering conspiracy;
- Count Five: Conspiracy to commit wire fraud and bank fraud; and
- Counts Six and Seven: Wire fraud.
If convicted, LI FANGWEI faces a maximum sentence of 20 years in prison on each of Counts One through Four and Counts Six and Seven, and 30 years in prison on Count Five. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The U.S. Department of State’s Transnational Organized Crime Rewards Program is offering a reward of up to $5 million for information leading to the arrest and/or conviction of LI FANGWEI.
Mr. Bharara praised the outstanding investigative efforts of the FBI and thanked the New York County District Attorney’s Office, which had charged LI FANGWEI and LIMMT in April 2009 for their use of front companies to commit books and records violations and to evade U.S. sanctions. Evidence developed by the New York County District Attorney’s Office greatly assisted the FBI's investigation of LI FANGWEI's more recent criminal conduct.
In addition, Mr. Bharara thanked the U.S. Department of Justice’s National Security Division Counterespionage Section, the U.S. Department of State, the U.S. Department of Treasury, and the U.S. Department of Commerce for their assistance in this matter.
The case is being handled by the Terrorism and International Narcotics Unit. Assistant United States Attorney Sean S. Buckley is in charge of the prosecution. Assistant United States Attorneys Micah W. J. Smith and Paul M. Monteleoni are in charge of the forfeiture aspects of the case.
The charges contained in the Superseding Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Li Fangwei in Rem Complaint and S1 Indictment
Laredo Downtown Merchant Heads to Federal PrisonRead the Press Release
LAREDO, Texas – Yi Hui Chen, 47, a merchant in downtown Laredo, has been ordered to federal prison for trafficking in counterfeit goods and ordered to pay more than $400,000 in restitution, United States Attorney Kenneth Magidson announced today along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI). Chen pleaded guilty May 16, 2013.
Today, U.S. District Judge Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Chen a sentence of 18 months in federal prison. He was further ordered to pay restitution in the amounts of $265,836 to Coach and $80,324.23, $39,943.33, $35,675, $5,343, $826.23 and $290 to Tory Burch, Louis Vitton, Gucci, Burberry, Nike and Prada, respectively.
Chen, a U.S. legal permanent resident who was born in Taiwan, was the owner of J Design located in downtown Laredo. He is expected to face deportation proceedings following his release from prison.
HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna.
“Intellectual property theft is not a victimless crime and should concern every American,” said Ayala. “Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”
The case was investigated by HSI. The case was prosecuted by former Assistant U.S. Attorney (AUSA) Roel Canales. AUSA Shawn Coker handled the sentencing today.
Jamaican Citizen Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Oneike Mickhale Barnett, a Jamaican citizen, was sentenced today in Ft. Lauderdale, Fla., in connection with his role in a fraudulent lottery scheme based in Jamaica that targeted victims in the United States, the Justice Department announced. Barnett was sentenced by U.S. District Court Judge William J. Zloch to serve 60 months in prison and 5 years supervised release. Barnett also was ordered to pay $94,456 in restitution.
Barnett’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent foreign lottery schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“This sentence sends a strong message that the American justice system will not stand by while criminals defraud unsuspecting Americans of their savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will use all available means to hold these international criminals accountable.”
Barnett was arrested in Orlando, Fla., in August 2013, following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. Barnett pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. As part of his guilty plea, Barnett acknowledged that had the case gone to trial, the United States government would have proved beyond a reasonable doubt that, from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. In an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings which claimed to be from a genuine sweepstakes company, and from federal agencies, including the Internal Revenue Service and the Federal Reserve.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “ We will continue to bring international fraudsters to justice in the United States.”
Also as part of his guilty plea, Barnett acknowledged that the government would have proved beyond a reasonable doubt that he knew the claims of lottery winnings were completely fabricated and he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings.
Assistant Attorney General Delery and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning.Jamaican Citizen Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Oneike Mickhale Barnett, a Jamaican citizen, was sentenced today in Ft. Lauderdale, Fla., in connection with his role in a fraudulent lottery scheme based in Jamaica that targeted victims in the United States, the Justice Department announced. Barnett was sentenced by U.S. District Court Judge William J. Zloch to serve 60 months in prison and five years’ supervised release. Barnett also was ordered to pay $94,456 in restitution.
Barnett’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent foreign lottery schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to bring international fraudsters to justice in the United States.”
“This sentence sends a strong message that the American justice system will not stand by while criminals defraud unsuspecting Americans of their savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will use all available means to hold these international criminals accountable.”
Barnett was arrested in Orlando, Fla., in August 2013, following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. Barnett pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. As part of his guilty plea, Barnett acknowledged that had the case gone to trial, the United States government would have proved beyond a reasonable doubt that, from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. In an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings which claimed to be from a genuine sweepstakes company, and from federal agencies, including the Internal Revenue Service and the Federal Reserve.
Also as part of his guilty plea, Barnett acknowledged that the government would have proved beyond a reasonable doubt that he knew the claims of lottery winnings were completely fabricated and he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings.
U.S. Attorney Ferrer and Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning.
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.
Investment Fund Manager Pleads Guilty in $96 Million Ponzi SchemeRead the Press Release
Earlier today, Brian R. Callahan, 44, pleaded guilty to one count of securities fraud and one count of wire fraud for operating a $96 million Ponzi scheme through his various offshore investment funds. Pursuant to his plea agreement with the government, Callahan has agreed to the forfeiture of $67.4 million, which includes proceeds from the sale of his former residence in Old Westbury, New York and a beachfront condominium in Westhampton, New York. When sentenced, Callahan faces up to 40 years in prison and the payment of approximately $96 million in restitution to the victims of his fraud.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
“Callahan used six offshore entities to perpetrate one of the largest investment frauds in Long Island history. Through lies and deceit, he misled investors and stole investor funds, including investments from a local fire department, to support a lavish lifestyle and operate a multi-million dollar Ponzi scheme. Today’s guilty plea marks the end of Callahan’s schemes and his lavish lifestyle and demonstrates this Office’s steadfast commitment to protect the investing public from fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the IRS, Securities and Exchange Commission, and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
According to court filings and facts presented at the plea hearing, between December 2006 and February 2012, Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. He had assured those investors that their money would be invested in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, that he owned with his brother-in-law and co-defendant, Adam Manson.1 He also commingled the money from the various investment funds and used it to pay tens of millions of dollars in partial redemptions to his victim investors to keep the Ponzi scheme afloat, and to purchase luxury items such as expensive cars and homes in Old Westbury and Westhampton, New York. To avoid detection and continue the scheme, Callahan sent fake account statements to investors that falsely showed that their funds were invested and performing well, and he repeatedly lied to his investors about both the nature and status of their investments.
Today’s guilty plea took place before United States Magistrate Judge A. Kathleen Tomlinson.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Winston M. Paes, Brian D. Morris and Karin K. Orenstein.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
BRIAN R. CALLAHAN
Age: 44
Old Westbury, New York
E.D.N.Y. Docket No. 13-CR-453
___________________________________________________________________________
1 The charges against co-defendant Manson are merely allegations, and he is presumed innocent unless and until proven guilty.
Indictment: Former Cabela's EmployeeStole Merchandise, AmmoRead the Press Release
WICHITA, KAN. – A former employee of Cabela’s in Wichita was indicted Tuesday on charges of stealing ammunition and other merchandise from the store, U.S. Attorney Barry Grissom said.
Garrett T. Alley, 25, Wichita, Kan., is charged with one count of possession of stolen merchandise and one count of possession of stolen ammunition. The indictment alleges that from December 2012 to July 2013, Alley stole merchandise including clothing, optics and binoculars worth more than $5,000 from the Cabela’s store where he worked at 2427 N. Greenwich Road. It also alleges he stole 3,000 rounds of .223 caliber ammunition, 1,000 rounds of .45 ACP ammunition, and 250 rounds of 28 gauge ammunition.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Deandre A. Freeman, 40, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. An affidavit filed in the case alleges that on April 14, 2014, Wichita police responded to a report of a disturbance in the street in the 6400 block of East Cottonwood. Witnesses said they saw Freeman beat a woman with a gun and fire shots at an unidentified man who tried to stop him.
If convicted, Freeman faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Kelly Tunnell, 42, Wichita, Kan., is charged with three counts of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in February and April 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on each drug count and a maximum penalty of 10 years and a fine up to $250,000 on the firearm count. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Ernesto Romo, 48, Wichita, Kan., is charged with eight counts of distributing methamphetamine. The crimes are alleged to have occurred in 2013 and 2014 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on each count. The Sedgwick County Sheriff and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Jose Ambriz-Lara, 20, El Monte, Calif., and Magellan Jimenez, 19, El Monte, Calif., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 11, 2014, in Thomas County, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Jose Manuel Penuelas-Valenzuela is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 27, 2014, in Sedgwick County, Kan. The government is seeking forfeiture of $15,000 seized from the defendant.
If convicted, the defendant faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Macario Mendoza-Saldivar, 29, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found April 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Miguel Soltero-Marin, 39, a citizen of Mexico, is charged with one count of unlawful possession of immigration documents, two counts of aggravated identity theft and two counts of misusing a Social Security number. The crimes are alleged to have occurred at various times from 2002 to 2014 in Finney County, Kan.
Upon conviction, the crimes carry the following penalties: Unlawful possession of immigration documents: A maximum penalty of 15 years and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence and a fine up to $250,000 on each count.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000.Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indiana Man Sentenced to 17 1/2 Years in Prison for Illicit Sexual Conduct with A MinorRead the Press Release
An Indiana man was sentenced to 17 1/2 years in prison for crimes involving illicit sexual conduct with a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
James W. McCormick, 36, of Fort Wayne, Indiana, was sentenced to 210 months in prison by U.S. District Judge Jeffrey J. Helmick. McCormick previously pleaded guilty to four counts of travelling in interstate commerce with the intent to engage in illicit sexual conduct and one count of transportation with the intent of criminal sexual activity.
McCormick travelled across state lines for the purpose of engaging in illicit sexual conduct with a minor between July and August 2013, according to court documents.
The case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling following an investigation by the FBI (both Toledo and Fort Wayne offices), the Northwest Ohio Crimes Against Children Task Force and the Maumee Police Department.
Husband and Wife Admit Role in Million Dollar Scam Involving City Ink and Toner CartidgesRead the Press Release
PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012. A sentencing hearing is scheduled for October 10, 2014.
The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville. They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk. As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD.
Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees. After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors. The Willis’ knew that the cartridges had been stolen. Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan. Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).
The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees. Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account. Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.
Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Husband and Wife Admit Role in Million Dollar Scam Involving City Ink and Toner CartidgesRead the Press Release
PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012. A sentencing hearing is scheduled for October 10, 2014.
The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville. They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk. As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD.
Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees. After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors. The Willis’ knew that the cartridges had been stolen. Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan. Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).
The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees. Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account. Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.
Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Man Sentenced for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Alexander Joseph Johnson, 25, has been ordered to prison following his three convictions of transportation, transportation of a minor and sex trafficking of a minor, announced United States Attorney Kenneth Magidson. Johnson was indicted in August 2013 and pleaded guilty Dec. 16, 2013, to all counts as charged without a plea agreement.
Today, U.S. District Judge Nancy F. Atlas handed Johnson 120 and 128 months for the transportation and transportation of a minor charges, respectively, and 128 months for sex trafficking of a minor. The sentences will run concurrently for a total of 128 months. In handing down the sentence, Judge Atlas commented that he was an adult and should have known better and that hopefully his time in prison would lead him to understand that he cannot exploit young women to make a living. Johnson was further ordered to serve 10 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The investigation concluded that Johnson had posted online advertisements for commercial sex with a female in both Houston and Colorado. The 15-year-old victim was forced to perform sex acts with strangers for money and was required to earn $500 an evening and turn that money over to Johnson. When she met her quota, he would “reward” her by having sex with her. Johnson repeatedly gave the young female marijuana and alcohol. Food was provided only at his discretion.
Johnson was arrested Aug. 6, 2013, based on a criminal complaint. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using online advertisements for the victim’s services and hotel records from several hotels.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Heroin, Ecstasy and Oxycodone Supplier Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Darius Nicholson, 33, of Baltimore, Maryland, pleaded guilty today to a single-count indictment charging him with conspiracy to distribute 100 grams or more of heroin, oxycodone and ecstasy pills.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Nicholson faces a mandatory minimum term of ten years in prison and a maximum term of life imprisonment when he is sentenced on July 25, 2014.
In a statement of facts filed with the plea agreement, Nicholson admitted that from about February 2012 until February 2013, he distributed various quantities of heroin, oxycodone and ecstasy pills to a co-conspirator who delivered the illegal drugs to a customer in the Eastern District of Virginia. During the course of the conspiracy, Nicholson distributed approximately 196 grams of heroin, 75 oxycodone pills and 11,600 ecstasy pills. The conspirators obtained approximately $89,750.00 in profit from the sales of illegal drugs.
This case was investigated by the DEA and the Fairfax County Police Department. Assistant U.S. Attorney Adam B. Schwartz and Special Assistant U.S. Attorney Nicholis D. Mutton prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Hartford Heroin Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGEL ROSA, also known as “Mo Betta” and “Fab,” 43, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 165 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy,” who is a member of the Los Solidos street gang, and his cousin, ANGEL ROSA, also known as “Mo Betta” and “Fab.” ROSA, aka Mo Betta, managed the daily operations of the organization, facilitated the delivery and transportation of large quantities of heroin, and supervised numerous drug sellers, including his own son, who distributed heroin and other narcotics in the Zion Street area. At times, he also used violence to ensure the success of the organization.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
ROSA was arrested on April 11, 2013. On December 19, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
As part of his case, ROSA forfeited $8,767 in cash that was seized from his residence at the time of his arrest, a 2007 Mercedes E550 and a 2006 Harley Davidson XLH1200.
During the investigation, ROSA was on state probation for a similar offense. In 2006, he was convicted of selling heroin and was sentenced to 17 years of incarceration, suspended after seven years.
Mo Betta’s son, Angel Rosa, aka “Booby” and “Little Booby,” pleaded guilty and was sentenced to 66 months of imprisonment. Mo Betta’s cousin, Angel Rosa, aka “Little” and “Daddy,” also pleaded guilty and awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Goodwin Announces Another Record Prescription Drug Take-back TotalRead the Press Release
U.S. Attorney’s Office and DEA announce more than 3 tons collected, breaking previous record by more than half a ton
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge Suzan Williamson jointly announced today that last Saturday's Prescription Drug Take-Back event collected a total of 6,211 pounds of unwanted, unused and expired prescription drugs from citizens and households across West Virginia. The April 26th collection results far surpassed the previous Take-Back record of 4,976 pounds of prescription drugs collected in October 2013.
U.S. Attorney Goodwin said, “The last three Take-Back events have each resulted in record totals of prescription medications collected. Last Saturday, we broke our old record by more than half a ton. My thanks go to the DEA and all of the law enforcement agencies that participated. Most of all, I want to thank the citizens of West Virginia, who've stepped up in tremendous fashion to keep their unwanted prescription medicines out of the wrong hands.” Click here to hear an audio clip from U.S. Attorney Booth Goodwin.
Resident Agent in Charge Williamson commended all of the federal, state and local law enforcement partners in West Virginia for their assistance. “There were 127 collection sites designated throughout the state for the April 26th event, providing convenient and accessible locations for the citizens of West Virginia to drop off expired, unused and unwanted medications. It is the assistance of all of our law enforcement partners that continues to make Prescription Drug Take-Back events in West Virginia so successful.”
In the seven previous Take-Back events, the DEA and its law enforcement partners have collected more than 3.4 million pounds (1,733 tons) of prescription medications nationwide. By removing unwanted prescription medications from American homes, each Take-Back event helps prevent potentially addictive substances from falling into the hands of children and teenagers. The Take-Back program also reduces the risk of burglaries and home invasions staged by criminals seeking household prescription drugs.
U.S. Attorney Goodwin encouraged West Virginia citizens to make proper disposal of their prescription medications a regular habit. “While the twice-a-year Take-Back events are tremendously successful, many of our law enforcement agencies now maintain permanent drop-off boxes to allow more frequent disposal of prescription drugs. Sheriffs’ Departments in Kanawha, Putnam, Raleigh, Greenbrier and Wood counties are among those agencies that collect prescriptions drugs throughout the year. Since proper disposal is vital in keeping these drugs off the streets, I encourage our citizens to continue to take advantage of permanent drop-off boxes available in their communities.”
Click here to listen to an audio clip from U.S. Attorney Booth Goodwin.Georgia Dentist Sentenced to Jail for Tax EvasionRead the Press Release
Dr. Dayo Obebe of Muscogee County, Georgia, was sentenced today to serve 12 months and one day in prison for tax evasion and ordered to pay $189,661 in restitution, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Obebe pleaded guilty to one count of tax evasion on Feb. 6, 2014.
According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Georgia, and the Brent Dental Dentistry in Brent, Alabama. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the Internal Revenue Service (IRS) by placing credit card payments into a separate bank account from cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practices on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
According to court documents, during an IRS audit of Obebe’s tax return, he lied to the IRS revenue agent conducting the audit when he stated that the dental practices did not accept credit cards as a form of payment for dental services when, in fact, the dental practice did accept credit cards. In total, Obebe evaded paying over $185,000 in taxes to the IRS on his 2004, 2005 and 2006 federal income tax returns.
The case was investigated by special agents of IRS - Criminal Investigation and Trial Attorney Charles Edgar for the Tax Division prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Georgia Dentist Sentenced to Jail for Tax EvasionRead the Press Release
WASHINGTON – Dr. Dayo Obebe of Muscogee County, Georgia, was sentenced today to serve 12 months and one day in prison for tax evasion and ordered to pay $189,661 in restitution, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Obebe pleaded guilty to one count of tax evasion on Feb. 6, 2014.According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Georgia, and the Brent Dental Dentistry in Brent, Alabama. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the Internal Revenue Service (IRS) by placing credit card payments into a separate bank account from cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practices on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
According to court documents, during an IRS audit of Obebe’s tax return, he lied to the IRS revenue agent conducting the audit when he stated that the dental practices did not accept credit cards as a form of payment for dental services when, in fact, the dental practice did accept credit cards. In total, Obebe evaded paying over $185,000 in taxes to the IRS on his 2004, 2005 and 2006 federal income tax returns.
The case was investigated by special agents of IRS - Criminal Investigation and Trial Attorney Charles Edgar for the Tax Division prosecuted the case.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Waldo Chiropractor Pleads Guilty to $3 Million Medicare FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic pleaded guilty in federal court today to a $3 million Medicare fraud scheme.
Michael Kelly Miller, 59, of Temple Terrace, Fla., formerly the owner of Waldo Rehabilitation Health & Wellness in Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to a federal information that charges him with one count of health care fraud.
Miller, a licensed chiropractor, was the owner of Brookside Health Services, doing business as Waldo Rehabilitation Health & Wellness at 7337 Broadway, Kansas City, during the time period of February 2009 to December 2011. He currently practices at Miller Clinic for Optimal Health in Temple Terrace.
By pleading guilty today, Miller admitted that he submitted claims to Medicare for nerve block injections that were false and fraudulent because the nerve block injections were not medically indicated and necessary for the patients’ health per Medicare coverage guidelines. Between February 2009 and December 2011, the clinic billed Medicare approximately $3,083,454, and Medicare paid the clinic approximately $879,582 for nerve block injections.
Beginning in 2009, the clinic shifted its focus from primarily providing chiropractic services to purportedly diagnosing and treating neuropathy. This shift in focus was due, in part, to information Miller received from a third party promoting a new, “cutting edge” treatment for neuropathy, which included nerve block injections. At the time, Medicare had no specific coverage guidelines regarding the use of nerve block injections for peripheral neuropathy. Miller did not investigate or inquire whether Medicare considered nerve block injections to be medically indicated and necessary for patients experiencing neuropathy.
Miller’s patients typically received anodyne infrared light and electrical stimulation therapies two or three times per week for four to eight weeks. The clinic’s purported treatment of neuropathy was not supported by medical research studies or peer-reviewed medical publications, and would be considered an experimental or investigational treatment or alternative medicine.
During this time, most of the clinic’s patients were Medicare beneficiaries, and most of the clinic’s revenues were received from Medicare. Medicare will not cover experimental or investigational procedures and treatments or alternative medicine. Miller was aware of these Medicare requirements.
Based on Miller’s experience with Medicare, he knew and expected that the clinic would be paid less than the full amount sought in the claims submitted. For example, for nerve block injections, the clinic was paid approximately 29 percent of the claims submitted. Miller estimates that the reasonably foreseeable pecuniary harm and intended loss with respect to nerve block injections was more than $1 million but not more than $2.5 million.
Under the terms of today’s plea agreement, Miller will be sentenced to at least 15 months, and as much as 21 months, in federal prison. Miller must pay approximately $879,582 in restitution to Medicare, with the exact amount to be determined prior to sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Diabetic Neuropathy
Diabetic neuropathy is a type of nerve damage resulting from diabetes, often damaging nerves in the legs and feet. Diabetic neuropathy is usually diagnosed based on the patient’s symptoms, medical history, and physical examination. While presently there is no medically recognized cure, treatment usually focuses on slowing the disease’s progression, controlling blood glucose, relieving pain, and restoring function. Type II diabetes, one of the underlying causes of neuropathy, is a manageable disease with medicine and dietary change.
This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Daniel M. Nelson. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.Former Social Security Administration Employee Pleads Guilty to Taking Bribes in Return for Giving People Increased Benefits-Admits Accepting Total of $54,662 from 13 People-Read the Press Release
WASHINGTON – Christopher Payton, a former specialist for the Social Security Administration in Washington, D.C., pled guilty today to soliciting more than $50,000 in bribes from Social Security recipients in return for providing them with extra, unauthorized benefits.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr. and Michael McGill, Special Agent in Charge of the Philadelphia Field Division of the Social Security Administration’s Office of the Inspector General.
Payton, 46, of Mount Rainier, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of bribery. The Honorable Senior Judge Gladys Kessler scheduled sentencing for July 16, 2014. The charge carries a statutory maximum of 15 years in prison and financial penalties. Under federal sentencing guidelines, Payton faces a likely range of 30 to 37 months in prison and a fine of up to $60,000. The plea agreement calls for him to pay $54,662 in restitution and an identical amount in a forfeiture money judgment.
According to a statement of offense, signed by the defendant and the government, Payton was a Social Insurance Specialist for the Social Security Administration’s Anacostia Office in Southeast Washington. His duties included conducting interviews regarding eligibility for benefits, authorizing or disallowing entitlement, and reviewing and authorizing Supplemental Security Income. He had computerized access to the agency’s database.
Between January and May of 2013, Payton met with 13 people as part of his responsibilities at the agency. Upon meeting these individuals, Payton told them, in substance, that if they gave him a tip, he would take care of them. After they agreed to his solicitation, Payton caused retroactive Supplemental Security Income benefits to go into the individuals’ bank accounts. These retroactive payments were not properly authorized, and Payton knew that the people receiving them were not entitled to the extra income.
After the individuals began seeing increased retroactive benefits in their bank accounts, they met with Payton throughout the Anacostia neighborhood and gave him payments. All told, Payton received $54,662 in cash payments from the individuals for his actions.
Payton’s activities came to light after someone reported his suspicious conduct. In addition, authorities received information through a fraud hotline operated by the Social Security Administration’s Office of the Inspector General. The public can report allegations of waste, fraud, and abuse online at http://oig.ssa.gov/report or by phone at 1-800-269-0271.
In announcing the plea, U.S. Attorney Machen and Special Agent in Charge McGill praised the work of those who investigated the case from the Social Security Administration’s Office of the Inspector General. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Krishawn Graham, and Angela Lawrence; Investigative Analyst Sharon Johnson, and former Paralegal Specialist Shanna Hays. They expressed appreciation for the assistance provided by Trial Attorney Edward P. Sullivan of the Department of Justice’s Public Integrity Section.
Finally, they commended the work of Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case, and Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues.
14-101Former Mendenhall Police Chief Sentenced to Five Years in Federal Prison for Conspiracy to Commit Extortion, Bribery and TheftRead the Press Release
Jackson, Miss – Bruce Barlow, 50, former Chief of Police for the Mendenhall Police Department, in Mendenhall, Mississippi, was sentenced to five years in federal prison followed by three years of supervised release for conspiracy to commit extortion, bribery and theft during this tenure as Mendenhall police chief, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. The amount of restitution to be paid by Barlow will be determined at a restitution hearing scheduled for July 10, 2014.
From January, 2010, through July, 2010, Bruce Barlow instructed Mendenhall police officers to pull over motorists and find ways to gain access into and search their vehicles. He also instructed his officers to seize cash at every arrest, including arrests for misdemeanor charges.
When Barlow was interviewed by FBI agents on March 7, 2013, he admitted to stealing money and property and allowing others to take property seized by the Mendenhall Police Department from the victims after an arrest or detention.
As part of his plea agreement, Barlow agreed to make restitution to the victims of the crime and forfeit any money or property related to the crime. Barlow also agreed to never be employed by any governmental entity in the future.
“The job of a police chief is to serve and protect the public,” said U.S. Attorney Davis. “Mr. Barlow made the choice to go from upholding the law to breaking it. This office will aggressively pursue allegations of public corruption wherever they lead, and this case should serve as a stern and sobering reminder that no one is above the law.”
This case was investigated by the Federal Bureau of Investigation, the Simpson County Sheriff’s Office, and the Mississippi State Auditor’s Office. Assistant U.S. Attorneys Mike Hurst and Mary Helen Wall prosecuted the case.
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Former Lawmen Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Five defendants, all former law enforcement officers, have been ordered to federal prison for their roles in a drug trafficking conspiracy, announced United States Attorney Kenneth Magidson.
Jorge Garza, 60, of Edinburg, was convicted in August 2013 after six days of trial, while Fernando Guerra Jr., 24, Claudio Mata, 35, and James Phil Flores, 47, all of Edinburg, and Gerardo Mendoza-Duran, 31, of Pharr, all previously pleaded guilty in relation to the case.
Today, U.S. District Judge Randy Crane handed Mata a total sentence of 140 months in federal prison. Garza received a sentence of 121 months, while Flores was sentenced to a 120-month term of imprisonment. Mendoza-Duran and Flores both received 96-month terms.
“The prosecution of corrupt law enforcement officers will always be a priority of this office in order to ensure the community’s faith in our judicial system,” said Magidson. “The sentencings today represent part of that continuing effort.”
Fernando Guerra Sr., 48, Jonathan Trevino, 29, Eric Alcantar, 29, Alexis Espinoza, 30, all of McAllen, Salvador Arguello, 34, of Edinburg, and Fabian Rodriguez, 29, of Edcouch, have all also pleaded guilty in the case and are expected to be sentenced tomorrow.
Arguello, Mata, Alcantar and Rodriguez were former members of the Hidalgo County Sheriff’s Office (HCSO) and the now infamous and defunct Panama Unit. Espinoza was a former Mission Police Officer, as was Trevino who also served on the Panama Unit. Mendoza-Duran, Flores and Garza were all members of the HCSO, but not part of the Panama Unit itself. All were convicted of using their positions as law enforcement officers to traffic narcotics.“Today’s sentencing of law enforcement officials involved in crimes they are sworn to investigate serves as a sobering warning about the consequences of violating the public's trust,” said Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. “While HSI is saddened by the circumstances that brought this sentencing to bare, HSI feels justice has been served.”
The investigation revealed that from 2010 through 2012, the defendants used their positions to steal narcotics and currency from local drug traffickers. The stolen narcotics were then re-distributed to Guerra Sr. In addition, Trevino, Espinoza and Mendoza-Duran attempted to assist narcotics traffickers by escorting loads of cocaine which travelled through Hidalgo County in exchange for thousands of dollars.The Guerras, Flores and Garza were also convicted for their roles in the distribution of stolen narcotics. Flores and Garza assisted Guerra Sr. and Jr. by performing false traffic stops utilizing HCSO vehicles in order to assist the Guerras with the theft of the narcotics.
The investigation leading to the charges was conducted by HSI, Drug Enforcement Administration, Immigration and Customs Enforcement - Office of Professional Responsibility, FBI and the Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Former Laredo/Dallas Business Owner Heads to Prison in Large Marijuana CaseRead the Press Release
LAREDO, Texas – Marco Antonio Marchan, 45, has been ordered to federal prison for engaging in a conspiracy to distribute and possession with intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury convicted Marchan Wednesday, Dec. 18, 2013.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a sentence of 210 months in federal prison to be immediately followed by a five-year-term of supervised release.
At the hearing, additional information was presented to include that Marchan was was not just any offender, but a leader/organizer in a long standing conspiracy. The government argued Marchan had been engaged in drug trafficking on a long-term basis and that between 2008 and 2009 alone he arranged for others to transport more than 8,500 kilograms of marijuana from Laredo to the Dallas area. The government noted that the evidence presented at trial established Marchan was the man who coordinated and arranged for the delivery of several loads of marijuana from Laredo to Dallas. Marchan would call upon co-defendants to deliver the drugs to warehouses in Laredo to his drivers who would then transport it to Dallas. Marchan would then dictate where and to whom the marijuana would ultimately be delivered. Marchan would set the price of the marijuana in Dallas in order to ensure he would profit from the endeaver.
Further information was also presented today to indicate Marchan obstructed and impeded justice when he indirectly attempted to intimidate and otherwise influence a witness who was set to testify against him.
The court concurred and found him to be a leader/organizer, that he did in fact obstruct justice and, therefore, was subject to a significant sentence. Following the hearing, a family member of Marchan stood and protested the sentence.
During trial, evidence was presented that Marchan was a former Laredo resident who had several businesses but moved to the Dallas area in 2008, where he operated a business known as Bumper World. According to testimony, upon moving there, he began coordinating to have Los Zetas supply him with multi-ton quantities of marijuana in the Laredo area for ultimate delivery to him in the Dallas area.
A former co-conspirator testified that Marchan had previously been kidnapped by the Zetas for a drug debt and decided to move his drug trafficking operation to the Dallas area. From 2008 to 2009, Marchan had been supplied with at least six marijuana loads. The investigation revealed Marchan’s co-conspirators had sent him 5,500 pounds to the Dallas area on Nov. 30, 2009, and then an additional load of 1,132 kilograms three days later.
Between Nov. 24, 2009, through Dec. 2, 2009, Marchan recruited a person to secure a warehouse and truck driver who could deliver 1,300 kilograms of marijuana from Laredo to Dallas. That person reported the incident to the Drug Enforcement Administration (DEA) and an undercover operation was launched during which time agents coordinated to receive the marijuana.
Marchan ordered the drugs to be delivered to a certain address on Dan Morton Street in Dallas. Marchan’s Bumper World business trucks were seen throughout the area conducting counter surveillance while the transaction was underway. Marchan’s people also followed a white van to a second location where the marijuana was off-loaded from the undercover tractor trailer to the van. The white van then transported the marijuana to a third location, a residence on Lynnacre in Dallas. There, a search warrant was executed which resulted in the discovery of the 1,132 kilograms of marijuana in the van. An additional 2,877 kilograms of marijuana was also found inside the residence which was believed to be the load sent to Marchan on Nov. 30, 2009.
The total weight of marijuana seized by DEA Laredo and Dallas was 4009 kilograms with a value of more than $2.5 million.
The jury deliberated for less than an hour in returning the guilty verdict against Marchan in December 2013.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The case was investigated by DEA Laredo and Dallas with the assistance of local Dallas law enforcement authorities and prosecuted by Assistant United States Attorneys Mary Lou Castillo and Sanjeev Bhaskar.
Former CEO of SEMO Health Network Pleads Guilty to Submitting False Grant DocumentsRead the Press Release
St. Louis, MO – CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.
According to court documents, Southeast Missouri Health Network, Inc. (SEMO), is a non-profit, federally qualified health center (FQHC), which provides health services in six counties in southeast Missouri. SEMO had administrative offices and medical, dental and fitness centers in Benton, Bernie, Kennett, Matthews, New Madrid, Portageville, Senath and Sikeston, Missouri.
White was the chief executive officer of SEMO and a non-voting member of the board of directors until December 2013. Her duties included preparing or supervising the preparation of applications for operational and construction grants to be submitted to the United States Department of Health and Human Services (HHS), administering the grants and insuring that the grant funds were expended as required by the grants and preparing and submitting required reports to HHS and other regulatory agencies.
With her plea, White admitted that SEMO submitted annual grant reports for 2008 through 2012 and as many as 40 grant applications, which contained false information, including information about the number of patients needing services and the number of services provided by SEMO. White also admitted to using SEMO funds to pay for a roof on a building she owned; selling another building and a trailer to SEMO while concealing her ownership; using SEMO funds to purchase personal gifts for a relative and some of her co-conspirators; and issuing checks to SEMO employees, who then gave the cash to her. White also admitted to giving information to a co-conspirator, who was then awarded, contrary to federal regulations, the contract to construct the clinic in Bernie, Missouri; repeatedly awarding contracts to the same co-conspirator although seven SEMO buildings he constructed or renovated had leaking roofs or cracked slabs; and receiving payments from the co-conspirator, later disguised as a loan. White also admitted to falsely certifying that an engineering company had determined the Bernie clinic was constructed in compliance with the grant requirements; falsely certifying that SEMO spent $110,000 for two floor–mounted x-ray machines and $40,000 for a digital imaging system, when the equipment was never purchased.
White, New Madrid, Missouri, pled guilty to one felony count of conspiracy to submit false documents before United States District Judge Carol E. Jackson Monday, in St. Louis. Sentencing has been set for July 30, 2014.
She now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of the Inspector General, Office of Investigations, and the Office of Audit of the U.S. Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Florida Resident Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Charmaine Anne King was sentenced today in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. King was sentenced by U.S. District Court Judge K. Michael Moore in Miami to serve 57 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014. King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud, and two counts of wire fraud.
King’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“The Justice Department will continue to hold criminals accountable for fraudulent lottery schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This illegal conduct creates significant financial harm to people throughout the country, and we will continue to investigate and prosecute such crime, and bring those responsible to justice.”
A federal grand jury in Miami returned an indictment against King and co-conspirator Althea Angela Peart on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014, and on March 20, 2014, he sentenced Peart to 33 months’ incarceration. As part of her plea agreement, Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
“International lottery fraudsters have cheated Americans out of tens of millions of dollars,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “In this particular scheme, the fraudsters convinced the victims to deposit counterfeit checks into their bank accounts in order to pay fees to collect their purported lottery winnings. After the victims sent the money to King, the counterfeit cashier’s checks bounced and they lost their money. Such fraud will not be tolerated. Together with federal and local law enforcement, we are working to put an end to this type of scheme.”
The evidence at King’s trial showed that a co-conspirator sent fraudulent lottery letters to the victims and included counterfeit cashier’s checks made out to the victims for thousands of dollars. These letters instructed victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in fees in order to collect their purported lottery winnings. The claims agents told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators instructed the victims on how to send and wire this money to King and others. The cashier’s checks that victims received from the fraudulent lottery had no value. The evidence demonstrated that after the victims sent money to King, the counterfeit cashier’s checks bounced. Victims never received any lottery winnings.
Evidence presented at trial showed that King kept a percentage of the money she received from victims and sent the rest of the money to a co-conspirator. King continued to participate in this scheme even after the U.S. Postal Inspection Service verbally informed her that she was participating in unlawful activity, and after she later signed a Cease and Desist Order requiring that she stop receiving money from victims of fraud. The order that King signed described the lottery related activity that the U.S. Postal Inspection Service explained was unlawful.Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
Felon Arrested for Plotting to Blow up Store and Gas Stations as Diversion for Bank RobberiesRead the Press Release
A recently released prison inmate was arrested yesterday for plotting to blow up a large store and gas station as part of his bank robbery scheme, announced U.S. Attorney Jenny A. Durkan. LARRY GILLETTE, 53, of Shelton, Washington, is charged with solicitation to commit a crime of violence and being a felon in possession of a firearm. GILLETTE allegedly began plotting the bombings and bank robberies while still serving a state prison sentence for identity theft. After being released from prison on April 14, 2014, GILLETTE described his plot in detail to someone he thought would assist him with his crimes. In fact the person he met with was an undercover officer working for the FBI’s Safe Streets Task Force. GILLETTE will appear in U.S. District Court in Tacoma at 2:30 today.
According to the criminal complaint, law enforcement learned that GILLETTE told others in prison of his plan to rob banks in Shelton using bombs at various businesses as a diversion during which he would commit violent takeover style robberies. Following his release from prison, an undercover officer posed as someone who could assist GILLETTE in obtaining weapons and explosives for his plot. On two different occasions in April 2014, GILLETTE was recorded on audio and video describing his plot to the undercover officer as they drove around Shelton. As described in court documents, the plot involved powerful bombs at Walmart, and Arco and Chevron gas stations. The plot allegedly anticipated that while first responders were busy with the bombings, GILLETTE would rob three banks. GILLETTE indicated he wanted the maximum loss of life to occur in the bombings and the bank robberies. At one point in the investigation, GILLETTE took possession of four Glock firearms. GILLETTE did not know the firearms had been modified so they would not fire. GILLETTE was arrested yesterday afternoon when he met again with the undercover officer, and attempted to ignite a car bomb. The “bomb” was inoperable.
Solicitation to commit a crime of violence is punishable by up to twenty years of imprisonment. Being a felon in possession of a firearm is punishable by up to ten years of imprisonment.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Safe Streets Task Force -- which includes special agents from the FBI and task force officers from the Seattle Police Department (SPD) -- and the SPD Major Crimes Task Force. SPD SWAT, the Mason County Sheriff’s Office, and Shelton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) partnered with the task forces on the arrest and the serving of search warrants.
The case is being prosecuted by Assistant United States Attorney Jeffrey A. Backhus.Federal Prison Terms Handed Down in Sex Trafficking of A Minor CaseRead the Press Release
This afternoon, 32-year-old Ivan Gonzales of San Antonio was sentenced to 168 months in federal prison followed by 20 years of supervised release for his role in a sex trafficking scheme involving a minor announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division.
On October 2, 2013, Gonzales pleaded guilty to one count of sex trafficking of a minor. By pleading guilty, Gonzales admitted that in December 2012, he recruited and enticed a minor female to engage in sexual activity for financial gain. According to court records, Gonzales and his girlfriend, 19–year-old Ashley Nicole Gonzales of San Antonio, posted advertisements to promote the minor, explained prostitution terminology to her, told her how to conduct business, and transported her to locations where she would meet clients and perform sexual activity. Court records also revealed that Ivan Gonzales and Ashley Gonzales took all of the proceeds from the scheme.
On January 7, 2014, U.S. District Judge Xavier Rodriguez sentenced Ashley Gonzales to three years in federal prison followed by one year of supervised release for her role in the scheme.
This investigation was conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.
Ex-Postal Employee Sentenced for Worker's Compensation FraudRead the Press Release
COEUR D'ALENE— Pamela J. Unruh, 58, of Rainer, Washington, was sentenced yesterday to two years of probation for false statement or fraud to obtain Federal Employee’s Compensation, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Unruh to complete 100 hours of community service.
According to court documents, from at least as early as August 2006 to 2011, Unruh admitted that she failed to report her self-employment income to the Office of Worker's Compensation (OWCP) on the annual form she was required to complete and return to OWCP.
The case was investigated by United States Postal Service-Office of the Inspector General.
Elk County Man Sentenced to Eight Years in Prison for Drug and Gun Law ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Brockport, Pa., has been sentenced in federal court to 97 months in prison and four years supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James A. Volpe, 55.
According to information presented to the court, Volpe distributed an imprint die on Aug. 20, 2012, which would facilitate the production of counterfeit Viagra tablets. In addition, on Nov. 1, 2012, Volpe possessed with the intent to distribute in excess of 50 marijuana plants and 50 grams or more of methamphetamine, and he also possessed a German Sports Gun pistol. He had been convicted in 2009 in United States District Court of unlawful possession of a firearm by a convicted felon. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Unlawful possession of a firearm by a convicted felon is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Food and Drug Administration-Office of Criminal Investigations, Homeland Security Investigations, the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Volpe.
According to Mr. Hickton, Volpe was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Eight More Individuals Sentenced in Operation SoonerRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Anne C. Conway yesterday sentenced eight individuals in a cocaine trafficking investigation, dubbed Operation Sooner or Later, which has spanned more than three years. In the latest round of prosecutions, Chief Judge Conway sentenced Rodrigo Cantu Morales, Carlos Uriostegui-Nunez, Mario Ginorio, and Willie Brooks, IV to 10 years’ imprisonment; Monte Washington to 12 years and 11 months in federal prison; Isaias Ochoa to 7 years and 3 months in federal prison; Deonte Dallas to 5 years’ imprisonment, and David Ruvio, III to 3 years in federal prison. These individuals were sentenced for their respective roles in an international cocaine conspiracy that spanned from Mexico, McAllen and Mission, Texas, and into Ocala and Jacksonville, Florida.
According to court records and trial testimony, these drug trafficking groups were based in Guerrero and Tamaulipas, Mexico. From early 2007 until late 2011, they were responsible for importing several hundred kilograms of cocaine into the Ocala area. During the investigation, Jesus Lozano Alvarez and Rodrigo Cantu Morales were identified as working with a Mexican cocaine source of supply known as “El Nino” in Tamaulipas, Mexico. They shipped loads of cocaine via transport vehicles and couriers from south Texas to the Ocala area. When the loads of cocaine reached Ocala, Carlos Uriostegui-Nunez, Jesus Lozano Alvarez, Mario Ginorio, and Tavaries Norris worked together to redistribute the cocaine to other large scale dealers in the Middle District of Florida and South Carolina. The cocaine was re-sold to other kilogram level dealers, a portion of which was converted into crack cocaine and sold on the streets of Marion County.
As a result of this multi-year investigation, 55 individuals were indicted in the Ocala and Jacksonville Divisions of the Middle District of Florida. Forty-nine of the individuals were arrested and have pleaded guilty, or were convicted at trial. One individual is deceased, and five remain at-large. During this investigation, the United States seized $1.1 million in United States currency, more than $900,000 worth of real property, vehicles valued at more than $220,000, and 50 firearms.
These cases were investigated by the Drug Enforcement Administration’s Gainesville Resident Office and Jacksonville District Office. They are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The cases were prosecuted by Assistant United States Attorney A. Tysen Duva.
(Download Defendant Summary Sheet )
Detroit Man Sentenced for Wire Fraud and Identity Theft Fraudulent Tax Returns Filed for Deceased IndividualsRead the Press Release
A Detroit man was sentenced to prison for wire fraud and identity theft, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber.
Willie Watkins, III, was sentenced to 30 months in prison to be followed by a three-year term of supervised release. The sentence was imposed by U.S. District Judge Avern Cohn. In addition, Judge Cohn ordered Watkins to pay restitution to the Internal Revenue Service of $410,949.
In October of 2013, Watkins pleaded guilty to one count of wire fraud and one count of use of false identification. According to court records, Watkins used the names and Social Security numbers of recently deceased individuals who had passed away between September 1 and November 30, 2010 throughout the United States. Watkins participated in the filing of several hundred fraudulent 2010 income tax returns of dead individuals. These income tax returns generated substantial claims for refunds that were deposited into different bank accounts which he controlled. Watkins disbursed the proceeds from the fraudulently obtained refunds.
"Watkins' actions are particularly reprehensible because he used the identities of the recently deceased. The stolen identities could have belonged to loved ones related to any one of us," said Carolyn Weber, Acting Special Agent in Charge for IRS Criminal Investigation. "The IRS has zero tolerance for this type of deplorable behavior."
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Ross MacKenzie and Department of Justice Tax Division Trial Attorney Ken Vert.Delaware Man Charged with Drug and Gun CrimesRead the Press Release
Keith Stroud, 34, of New Castle, Delaware, was charged today by indictment with possession of heroin with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of firearm, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of lifetime imprisonment, a five year period of supervised release, a $1 million fine, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware County Criminal Investigation Division, and the City of Chester Police Department. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Dallas Tax Return Preparer Admits Preparing Fraudulent Tax ReturnsRead the Press Release
Defendant Was a Fugitive for Six Years
DALLAS — A Dallas-area tax return preparer who was indicted in 2007 on federal felony charges stemming from the operation of that business and who remained a fugitive until November 2013, pleaded guilty in federal court in Dallas today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ousmane Sow pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return. He faces maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. A sentencing date was not set.
According to the factual resume filed in the case, from 2003 to 2005, Sow and co-defendant Tichafara Mpariwa provided tax preparation services through a business they jointly owned and operated under the name of DSL Tax Services, LLC., located on Forest Lane in Dallas. In 2004, Sow opened a second location of DSL on Airport Freeway in Irving, Texas. Both Sow and Mpariwa were the Electronic Return Originators at the Dallas and Irving office locations of DSL.
From 2003 to 2005, according to the factual resume, Sow knowingly prepared and caused to be filed U.S. individual tax returns, along with supporting schedules and forms, which contained materially false credits and deductions to fraudulently increase the taxpayer clients’ refunds. This included the use of false business expenses and the use of false education expenses to create a false education credit, thus increasing the taxpayer client’s refund.
Defendant Mpariwa remains a fugitive.
Internal Revenue Service – Criminal Investigation is leading the investigation. The U.S. Department of State’s Bureau of Diplomatic Security assisted in securing the return of Sow to the U.S. Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Dallas Man Associated with Anonymous Hacking Group Pleads Guilty to Federal ChargesRead the Press Release
Pleas Resolve All Criminal Cases Pending Against Defendant in Northern District of Texas
DALLAS — Barrett Lancaster Brown, who has been associated with the hacking group, Anonymous, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to three separate offenses that essentially resolve all three criminal indictments pending against him in the Northern District of Texas (NDTX), announced U.S. Attorney Sarah R. Saldaña.
Plea negotiations between the United States Attorney’s Office in the NDTX and Brown resulted in filing of a plea agreement and factual resume on April 2, 2014. In the documents unsealed last week and in open court this morning, Brown, 32, of Dallas, admitted his guilt and waived his right to a speedy and public trial.
Pursuant to the plea agreement, Brown pleaded guilty this morning to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant. In court this morning, Brown assured the Magistrate Judge that he was pleading guilty because he was guilty, and not for any other reason.
Brown faces a maximum statutory penalty of 60 months in federal prison and a $250,000 fine on the threat conviction; 30 months in federal prison and a $125,000 fine on the accessory after the fact conviction; and 12 months in federal prison and a $100,000 fine on the interference with the execution of a search warrant conviction.
According to the stipulations set forth in the factual resume, Brown understands that in determining the appropriate sentence, the District Court may consider all the facts underlying and relevant to the offenses of conviction. The Court is not limited to those facts set out in Brown’s stipulated factual resume. Sentencing is set for August 18, 2014, before U.S. District Judge Sam A. Lindsay.
The Dallas office of the FBI investigated, and the U.S. Attorney’s Office in the NDTX prosecuted.
(Download Plea Agreement)
(Download Factual Resume)
Clarkston Man Pleads Guilty to Tax EvasionRead the Press Release
A 40-year-old Clarkston man pleaded guilty today to income tax evasion in connection with his 2008 federal income tax return, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service, Criminal Investigation.
Bradley T. McKouen entered the guilty plea before U.S. District Judge Gershwin A. Drain.
The case was investigated by special agents of the Internal Revenue Service and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
According to court records, during the 2008 tax year, McKouen was the president and sole member of Delta Staffing, LLC, an employee leasing company located in Clarkston. Delta was a Schedule C company, meaning its profits were to be reported on Schedule C as a part of McKouen’s personal federal income tax return. In 2008, Delta’s gross receipts were approximately $5.7 million. However, McKouen reported $0 gross receipts on his return. He also reported $0 business income, $0 taxable income, and $0 income tax. In 2008, McKouen’s actual taxable income was approximately $299,000 and his tax due was approximately $110,000. Under his plea agreement, McKouen is also being held responsible for filing similar false returns for the years 2004-2007. In all, he evaded $319,000 in federal income taxes for the years 2004-2008.
"Each of us is responsible for filing accurate tax returns," said Acting Special Agent in Charge Carolyn Weber. "IRS Criminal Investigation will pursue those who attempt to dodge their tax obligations."
The sentencing hearing was set by Judge Drain for September 4, 2014 at 2 p.m.. The maximum penalty for tax evasion is imprisonment of five years, a $250,000 fine, and an order of restitution.Certified Public Accountant Convicted of Preparing False ReturnsRead the Press Release
A federal jury convicted certified public accountant Jeffery Deshon Applewhite, aka Jeffrey Donald Mason, a resident of Los Angeles County, California, of 20 counts of aiding and assisting the preparation and presentation of false tax returns late yesterday, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, U.S. Attorney Melinda Haag for the Northern District of California and Internal Revenue Service (IRS)-Criminal Investigation Special Agent in Charge José M. Martinez. Applewhite was not convicted on five charges of identity fraud.
The evidence presented during the five day trial before U.S. District Court Judge Jeffrey S. White showed that Applewhite, who owned and operated tax preparation businesses in Los Angeles and Oakland, California, prepared false and fraudulent income tax returns for clients during the years 2006 through 2011 on which he fabricated deductible expenses, including gifts to charity, and other expenses. Applewhite also fraudulently included residential energy credits and education credits to which his clients were not entitled on tax returns he prepared. Applewhite prepared and filed false returns using the names Jeffery Deshon Applewhite and Jeffrey Donald Mason, and used the name and tax preparer identification number of another tax return preparer.
Applewhite’s sentencing hearing is scheduled for Aug. 5, 2014, before Judge White in Oakland. The maximum statutory penalty for each count of aiding and assisting the preparation of false tax returns is three years in prison and a fine of $250,000.
The case was investigated by Special Agents from IRS - Criminal Investigation . Assistant U.S. Attorney Cynthia Stier and Trial Attorney Sonia Owens of the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website
California Man Sentenced to Federal Prison for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
Perry Sylvester Jackson, 28, of Marysville, Calif., was sentenced today by U.S. District Court Judge John A. Mendez to serve 70 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act in a 2011 racially motivated attack against a white man and an African-American woman in Marysville. Jackson, who previously pleaded guilty on Dec. 17, 2013, was also ordered to serve three years of supervised release following his prison sentence and to pay restitution in the amount of $175. Co-defendant Billy James Hammett, who also pleaded guilty, was sentenced on March 25, 2014, to serve 87 months in prison and three years of supervised release, as well as to pay $175 in restitution. Anthony Merrell Tyler, 33, also pleaded guilty and is awaiting sentencing.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson, who has the words “white power” tattooed on his legs, punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
Tyler is scheduled to be sentenced on July 8, 2014, where he faces a statutory maximum sentence of 10 years in prison and a fine of up to $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Benjamin B. Wagner for the Eastern District of California and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
Bonners Ferry Man Pleads Guilty to Lacey Act ViolationRead the Press Release
Admits Aiding and Abetting Unlawful Acquisition and Transportation of Three Mountain Lions
COEUR D’ALENE – Tod S. Navarro, 49, of Naples, Idaho, pleaded guilty yesterday in United States District Court to a superseding information charging him with one count of aiding and abetting the unlawful acquisition and transportation of a mountain lion, a misdemeanor, U.S. Attorney Wendy J. Olson announced. Navarro was initially indicted by a federal grand jury in Coeur d’Alene on July 16, 2013.
According to the plea agreement, Navarro admitted that on January 19 and 20, 2012, he aided and abetted the unlawful hunting and transporting of three Pumas concolors, more commonly known as mountain lions. Navarro admitted that he allowed his Idaho tag to be put on a mountain lion taken by a hunter from North Dakota, knowing that it was going to be transported to North Dakota.
The charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release, or a maximum term of five years’ probation. Navarro is set for sentencing on July 21, 2014, before United States District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The cases are being investigated by the U.S. Fish and Wildlife Service and Idaho Fish and Game.
Area Man Sentenced to Nine Years in Prison for Conspiracy to Illegally Traffic Firearms from Missouri to IllinoisRead the Press Release
CHICAGO — A former Crest Hill man was sentenced to more than nine years in federal prison for illegally trafficking and possessing five firearms that his sister illegally bought in Missouri and shipped to him in Illinois. The defendant, RICHARD CARRINO, a previously convicted felon who was barred from possessing guns, obliterated the serial numbers on at least three of the guns that he sold to an undercover ATF agent who was posing as a convicted felon and could not obtain guns on his own.
Carrino, 29, also known as “R.J.,” was sentenced to 110 months in prison by U.S. District Judge Rebecca Pallmeyer who imposed the sentence yesterday in Federal Court in Chicago.
“Carrino’s conduct reflects a complete lack of respect for the laws and rules of society, particularly with respect to keeping handguns out of the hands of felons,” Assistant U.S. Attorney Christopher McFadden argued at sentencing.
Carrino’s sister, ANGELA MARIE CARRINO, 25, of O’Fallon, Mo., is scheduled to be sentenced on May 23 after also pleading guilty in the case.
Both defendants pleaded guilty to conspiracy to deliver firearms to a person who did not live in the same state, to sell firearms to a convicted felon, and to make false statements in records kept by a federally licensed gun dealership, and Richard Carrino also pleaded guilty to being a felon-in-possession of firearms.
Both defendants admitted that they conspired between November 2012 and February 2013 to have Angela Marie Carrino make illegal “straw purchases” of firearms from licensed dealers in Missouri, and illegally transfer them to her brother, a convicted felon who lived in Illinois. They discussed types of guns to obtain and Richard Carrino sent his sister money to make the purchases. She falsely certified that she was the actual buyer of the firearms and then shipped at least five firearms from Missouri to her brother in Illinois. Richard Carrino, in turn, sold or transferred three of the firearms to an undercover agent, believing that the individual was a convicted felon.
Three of the firearms – two .45 caliber semi-automatic Hi-Point pistols and a 9- millimeter semi-automatic Hi-Point model C-9 handgun – were obtained by ATF agents during the investigation.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Chicago.
Apopka Man Sentenced to 30 Years in Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – Senior United States District Judge Gregory A. Presnell yesterday sentenced Dale Matthews Clar (47, Apopka) to 30 years and one month in federal prison for two counts of bank robbery with assault, and two counts of using and carrying a firearm during and in relation to a crime of violence. The court also ordered Clar to serve a two-year term of supervision, following his prison sentence, and to forfeit a 9mm Glock pistol and 17 rounds of ammunition, which were used in the commission of the crimes.
A federal jury found Clar guilty on February 6, 2014.
According to testimony and evidence presented at trial, on January 4, 2013, April 3, 2013, and September 6, 2013, Clar robbed the Chase Bank in Apopka, at gunpoint. He stole a total of approximately $18,000 in the three robberies. During each robbery, Clar rushed into the bank wearing a full ski mask. He pointed his gun at bank employees and customers, demanding cash from the tellers. When Clar fled the bank, he covered his license plate to avoid being caught.
On September 6, 2013, Clar covered his license plate with a temporary registration tag associated with his car. He also attempted to further avoid suspicion by placing a Domino’s Pizza delivery sign on the top of his car. Police located Clar and arrested him near his home. A subsequent search of Clar’s car revealed Clar’s disguise, a Glock 9mm handgun, and thousands of dollars in cash that he had just stolen from the bank.
This case was investigated by the Federal Bureau of Investigation and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Ambassadors for Justice: Celebrating Good Kids - A Column by U.S. Attorney Booth GoodwinRead the Press Release
Ambassadors for Justice: Celebrating Good Kids
By
Booth Goodwin
United States Attorney, Southern District of West VirginiaTeenagers today face a mountain of challenges and temptations, as those of us with kids and grandkids are painfully aware. We live in a world that is much more complicated than it was just a generation ago. Back then, parents and teachers worried mainly about drinking and cutting class. Today, we face an epidemic of prescription drugs—powerful narcotics that many students mistakenly believe are safe because they come from a pharmacy. In reality, these drugs are just as deadly as street drugs, like heroin, if not taken as prescribed. Other problems, like bullying, are also growing worse: far too often these days, we see incidents of bullying and harassment boil over into tragedies in our schools. Simply put, being a good kid is getting harder and harder.
We make it a point to celebrate athletic achievement and academic achievement—and we should. But too often, we fail to celebrate students who are just plain good kids. That’s why, three years ago, my office started a program called Ambassadors for Justice. I got in touch with all the high school principals in my district and asked them to designate juniors from their schools as Ambassadors for Justice. The title Ambassador for Justice recognizes a student’s devotion to justice, citizenship and serving others—to being a good kid and a good influence on those around them.
There is no requirement that the student chosen be the class president or the most popular (although they certainly can be). Rather, I asked principals to identify students with outstanding character and strong ethical compasses; students who are respected by their peers; students who will speak up if a classmate makes a self-destructive choice or bullies someone else. Being recognized as an Ambassador for Justice is not just an award or certificate. The program’s goal is to encourage students to stay the course and keep contributing to their schools and communities by doing the right thing every day—even when no one else is watching.
Every year, a new group of Ambassadors for Justice is recognized in a ceremony held in Charleston. After the ceremony, the Ambassadors are brought together to talk about the hurdles facing teenagers in today’s world, and to share ideas about how to overcome them. The first group of Ambassadors comprised 40 students from all around southern West Virginia, and the second group grew to 57. This year, I was honored to collaborate with my friend, Bill Ihlenfeld, the United States Attorney in the Northern District of West Virginia. Together, Bill and I honored 88 Ambassadors for Justice chosen from the entire State of West Virginia. To see this year’s class of Ambassadors, along with individual pictures of those who were able to attend the March 12, 2014 ceremony in Charleston, you can visit http://www.justice.gov/usao/wvs/AforJ.html.
Every time I meet with these remarkable young people, I come away inspired. It’s easy to be cynical about teenagers, but these students bring the Golden Rule to life. They look out for classmates who are having trouble, whatever it may be, and they stand up for those who can’t defend themselves. They are bright, thoughtful, and committed to improving their schools, their state, and their country. I’m honored to be able to support them, and I hope this program will remind others of the importance of building character in our kids. It doesn’t take much to get involved: Just keep an eye out for young people like these Ambassadors for Justice, who do the right thing even when it’s hard, and let them know you’ve noticed their good deeds. Remind your kids and grandkids that we should always do unto others as we would have them do unto us. Together, we can do much more than you think to keep old-fashioned values alive and well in our schools and our communities.
Alleged “Anonymous” Computer Hacker Charged with 18 Counts of CyberstalkingRead the Press Release
McALLEN, Texas - A federal grand jury has returned a second superseding indictment against Fidel Salinas, 27, of Donna, adding additional attempted computer-hacking charges and 18 counts of cyberstalking, announced U.S. Attorney Kenneth Magidson.
According to the criminal complaint originally filed in the case, Salinas is allegedly linked to the computer-hacking group Anonymous. With the return of the second superseding indictment today, he now faces 44 charges arising out of his alleged attempts in 2011-2012 to hack into the computers of Hidalgo County, La Joya Independent School District and the McAllen Monitor newspaper, as well as a female victim, whom he allegedly cyberstalked at least 18 times in the days surrounding Christmas 2011.
According to the allegations, between Dec. 23-29, 2011, Salinas had the intent to harass and intimidate a female victim. Allegedly, he repeatedly e-mailed her, attempted to gain unauthorized access to her website, made submissions through a contact form on that site and tried to open user accounts without her consent.
The indictment lists his alleged attempts to stalk her and hack into her website. According to the indictment, he repeatedly did so late at night and early in the morning, with his stalking attempts or messages sometimes occurring less than one minute apart from each other. He allegedly did so as part of a conspiracy or agreement with at least one other person, according to the charges.
Salinas also remains charged with attempting to hack into and damage computer servers belonging to Hidalgo County, the La Joya School District and The Monitor over the course of five days in 2011-2012 and causing thousands of dollars in loss as a result. Court documents allege that between the late night and early morning of Jan. 4-5, 2012, Salinas made more than 14,000 hacking attempts to the administration management page of the Hidalgo County website server, resulting in true administrators temporarily not being able to access it. The county allegedly incurred a loss of more than $10,000 in responding to the attack.
He believed the web server contained voter registration information, Social Security numbers, personal identifiers and human resource and payroll information on county employees, according to the charges.
The superseding indictment charges Salinas with conspiring with others to attempt to hack into and damage these sites and links him to the computer-hacking group Anonymous.
Salinas allegedly participated in an online chat room for the Operation Anti-Security faction of Anonymous and attempted to enter the IRC Operations server for Anonymous. According to the charges, after his alleged attempt to hack his way into the Hidalgo County web server, he posted a profanity-laced rant on his Facebook page that ended with a quote used by Anonymous members: “We do not forgive, we do not forget, divide by zero we fall, EXPECT US!”
Salinas faces up to 10 years in federal prison on each of the charges, upon conviction.
The FBI is investigating with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
A complaint or indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Alabama Man Sentenced to Prison for Million Dollar Scheme Using Prisoner Identities to Obtain False Tax RefundsRead the Press Release
Harvey James was sentenced today to serve 110 months in prison for his role in a stolen identity refund fraud scheme, 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. James previously pleaded guilty to one count of mail fraud and one count of aggravated identity theft on Oct. 25, 2013. James was also ordered to serve three years of supervised release and to pay $618,042 in restitution.
Between January 2010 and 2012, James and his sister, Jacqueline Slaton, obtained stolen identities from various individuals, including one person who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file federal and state tax returns that claimed fraudulent refunds. James directed some of the false refunds to prepaid debit cards, and directed others to be issued in the form of a Treasury check. Vernon Harrison, a U.S. Postal Service employee, provided James with addresses from his postal route, which were used as mailing addresses for the fraudulent prepaid debit cards and state tax refund checks. Harrison collected the debit cards and checks and provided them to another individual, who in turn gave them to James and Slaton. In total, James filed over 1,000 federal and state income tax returns that claimed over $1 million in fraudulent tax refunds. Slaton was sentenced to serve 70 months in jail, and Harrison was sentenced to serve 111 months in jail.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Al-Qaeda in the Arabian Peninsula Operative Pleads Guilty in Brooklyn Federal CourtRead the Press Release
Earlier today, Lawal Olaniyi Babafemi, a Nigerian citizen, pleaded guilty to conspiring to provide and providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (“AQAP”). Today’s plea took place before United States District Judge John Gleeson. At sentencing, Babafemi faces a maximum of 30 years in prison.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and John P. Carlin, Assistant Attorney General for National Security.
“The defendant traveled to Yemen to put himself at the disposal of a violent terrorist organization that has repeatedly demonstrated its determination to inflict bodily and economic harm on the United States and its citizens,” stated United States Attorney Lynch. “After meeting and training the defendant, senior leaders of al Qaeda in the Arabian Peninsula dispatched him back to Nigeria with instructions and funding to recruit others to join the terrorist group. The defendant’s guilty plea to terrorism charges is a testament to the tireless work of the FBI’s Joint Terrorism Task Forces in New York and San Diego in gathering evidence around the world in order to bring the defendant to justice.” Ms. Lynch also expressed her grateful appreciation to the government of Nigeria for its assistance and cooperation in this extradition.
According to previous court filings, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the magazine “Inspire.” At the direction of the now-deceased senior AQAP commander Anwar al-Aulaqi, Babafemi was provided by AQAP leadership with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join that group. While in Yemen, Babafemi also received weapons training from AQAP.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Hilary Jager, with assistance from Trial Attorneys William M. Narus and Annamartine Salick of the Justice Department’s Counterterrorism Section, as well as from the Justice Department’s Office of International Affairs.
The Defendant:
LAWAL OLANIYI BABAFEMI
Age: 33
41 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 41 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, ICE-HSI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from ATF, FBI, CBP, San Juan Municipal Police and the Puerto Rico Department Housing.
The indictment, handed down April 22, 2014 by a federal grand jury and unsealed in federal court today, charges 41 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), cocaine, and marihuana, all within 1,000 feet of the real property comprising the Nemesio R. Canales Public Housing Project, all for significant financial gain and profit.
The indictment alleges that beginning in 2007, the organization established drug distribution points at the area known as “El Medio” which constitutes the basketball court, and the areas surrounding the gym, and the Administration Office. Other areas of drug distribution also include the areas between buildings 4, 5, 32, 33, 50, 51, 60, and 61 of the housing project. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs.As part of the manner and means of the conspiracy, some of the defendants and their co-conspirators would have access to different vehicles in order to transport money, narcotics and firearms. Also, these vehicles would often be used by some of the defendants and their co-conspirators to conduct drive by shootings and to go out and “hunt” rival gang members. Some of these vehicles were altered with hidden compartments to conceal drugs and firearms.
The 41 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: nine leaders/drug point owners/drug point administrators; one supplier; two enforcers; five runners; 18 sellers; and six facilitators. Thirty-one of the defendants are facing one count of using and carrying firearms during and in relation to a drug trafficking crime.
“This investigation and five-count indictment represent a top-to-bottom dismantling of a violent criminal organization intent on polluting our neighborhoods with drugs,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The criminal activity laid out in this indictment shows the lengths people will go to sell drugs, but it should also underscore our commitment to fighting back. Federal and local law enforcement agencies remain committed to work tirelessly to target and eliminate the most significant threats to our communities.”
Special Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
28 April 2014
Woman Sentenced to 10 Years in Salina Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. – A woman was sentenced Monday to 10 years in federal prison in a federal drug trafficking case from Salina, U.S. Attorney Barry Grissom said.
Abigail Torres Soto, 23, pleaded guilty to one count of conspiracy to distribute methamphetamine, three counts of distributing methamphetamine and one count of possession with intent to distribute methamphetamine. In April 2013, Soto was indicted along with co-defendants Jon Reed Woodbridge, 23, and Delaine Rae Romeo, 48, Salina, Kan. The indictment alleged that beginning in January 2013 the defendants conspired to distribute methamphetamine in Saline County, Kan.
In June 2013, Romeo pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted that on Feb. 7, 2013, agents with the drug task force based in Salina executed a search warrant at the Koyotee lounge in Salina and seized more than $6,000 in cash, marijuana, methamphetamine and other drug paraphernalia. Agents had made three controlled buys of methamphetamine from the Koyotee lounge. Romeo admitted that she had been receiving methamphetamine from Soto to sell.
Co-defendants include: Jon Reed Woodbridge, who was sentenced to 21 months in federal prison.
Delaine Rae Romeo, who was sentenced to 41 months.Grissom commended the 1-70/I-35 Drug Task Force, the Salina Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.