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Wednesday 12 March 2014
Identity Thief Sentenced for Filing Tax Returns in the Names of the Attorney General and OthersRead the Press Release
ATLANTA – A federal judge sentenced Yafait Tadesse to one year and one day in prison for using the identities of over ten individuals, including the Attorney General of the United States, to file false and fraudulent tax returns.
“Identity theft affects people from all walks of life, from hardworking taxpayers trying to make ends meet, to senior government officials,” said United States Attorney Sally Quillian Yates. “Identity thieves should be aware that we will continue to aggressively pursue them no matter who their victims happen to be.”
“Identity thieves have figured out that if they can obtain your Social Security Number they can file false tax returns with the IRS,” said Veronica Hyman-Pillot, IRS Special Agent in Charge IRS Criminal Investigation. “It does not matter your political position, economic status, or social standing, you are susceptible to identity theft. No one is immune.”
FBI Atlanta, Special Agent in Charge J. Britt Johnson said, “This investigation serves as a warning to those who conspire to devise schemes to defraud and steal money from hard-working citizens through embezzlement and identity theft. Regardless of whom the victims may be, the FBI takes these violations very seriously and will continue to work with our Federal law enforcement partners in investigating violations of income tax refund fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: From November 2012 through April 2013, Tadesse and co-defendant Eyaso Abebe carried out a scheme to obtain the names and social security numbers of unsuspecting victims from various websites and use this information on false tax returns that claimed fraudulent refunds. The tax returns falsely claimed that the victims earned similar wage and withholding amounts and worked at Wal-Mart. The returns all claimed fraudulent refunds that were to be loaded onto pre-paid debit cards. These pre-paid debit cards listed Tadesse’s apartment complex in Carrollton, Ga., as the mailing address.
While the IRS stopped several of the false returns from being fully processed, several fraudulent refunds were directed onto prepaid debit cards. Surveillance videos showed that Tadesse used one of these prepaid cards at stores in Carrollton, Ga.
One of the tax returns filed by Tadesse and Abebe used the name, social security number, and date of birth of U.S. Attorney General Eric H. Holder, Jr. There is no indication that the Attorney General was specifically targeted as a result of his position. The defendants obtained their victims’ information from publicly available websites that publicize the names, social security numbers, and other personally identifying information of unsuspecting individuals.
The other individuals targeted in this scheme were not government officials and were located across the United States. One of the victims wrote in a letter to the sentencing judge that at the time of the offense, his wife was pregnant with the couple’s seventh child and that the defendant’s actions prevented the couple from getting their legitimate tax refund, causing a financial burden to the family.
Tadesse, 21, of Dekalb County, Ga., was sentenced by United States District Judge Amy Totenberg to one year and one day in federal prison and three years of supervised release, and ordered to pay $4,014 in restitution to the IRS. The Court also ordered Tadesse to forfeit his interest in computers that were used to carry out this offense. Tadesse pleaded guilty on November 13, 2013, to theft of government funds. The co-defendant in this case, Eyaso Abebe, pleaded guilty on October 16, 2013, to theft of government funds and will be sentenced on August 7, 2014.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. If you believe you may be a victim of tax return-related identity theft, please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Thomas J. Krepp and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government SymposiumRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 12, 2014INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government Symposium
WASHINGTON - On Tuesday, March 11, 2014, Director Bray attended the annual Symantec Government Symposium where he presented on the topic “Fighting Cybercrime in a Borderless World.” The theme for this year's symposium was “Resilient Security for Today's World.” Other distinguished members of the panel included Department of Justice's Principal Deputy Chief Richard Downing, Computer Crime and Intellectual Property; Catherine Lotrionte, Director of the Institute for Law, Science and Global Security from Georgetown University; and Senior Advisor for Cybercrime James Vigil, Bureau for International Narcotics and Law Enforcement Affairs at the Department of State. The Symantec Government Symposium is the world's largest annual information security event for government audiences where the nation's top IT leaders can discuss how government and industry can collaborate and best secure America's critical infrastructure.
Hogsett Announces Public Corruption Charges Against Former City of Bloomington Public OfficialRead the Press Release
Senior Project Manager alleged to have embezzled over $800,000 from Bloomington taxpayers
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal criminal charges have been filed against a former City of Bloomington Senior Project Manager. Specifically, Justin Wykoff, 43, has been charged with 24 counts of embezzlement and one count of conspiracy. Two other accomplices, Roger D. Hardin, 51, and his son, Zachary, 25, both of Bedford, have also been charged.
It is alleged that the three men bilked hundreds of thousands of dollars from public works projects by submitting and approving fraudulent invoices. Wykoff was arrested early this morning at his home by federal agents. The Hardins were also arrested and face charges of conspiracy to commit a federal crime.
The criminal complaint alleges that from May 13, 2011 to February 14, 2014, acting as the Manager of Engineering Services and, thereafter, as a Senior Project Manager for the City of Bloomington, Wykoff approved false invoices which caused the City to pay more than $800,000 for work on concrete projects that was never completed at all or actually done by other construction companies. In furtherance of this scheme, the co-conspirators sent false invoices to the City for payment to Reliable Concrete Construction (RCC), a company owned by the Hardins. Once paid by the City, the money was then deposited into an account held by Roger and Zachary Hardin.
The complaint further alleges that the Hardins would then make cash payments to Wykoff. Invoices were presented and paid at least 24 times over a two and one half year period. Wykoff received thirty-three percent (33%) of each fraudulent invoice. The cash returned to Wykoff were alleged kickbacks for his approval of the invoices. The case involved projects for concrete work to be performed on Rogers Street and College Avenue. The investigation is ongoing and the final amount of loss has not yet been determined.
These arrests come at a time when the United States Attorney’s Office and the Federal Bureau of Investigation have significantly increased efforts to root out public corruption. In April of 2012, Hogsett announced the formation of the U.S. Attorney’s Office’s Public Integrity Working Group (“PIWG”), a collaborative effort between federal, state and local law enforcement agencies to rid Indiana of the “culture of corruption” that all too often rears its ugly head.
Since its creation, the PIWG has charged 30 public officials for various crimes committed at the local, state and federal levels. Ten of the 30 charged are scheduled for trial in this upcoming year. Individual defendants include two former Indianapolis City-County Councilors, the former Chief Deputy Prosecutor of the Marion County Prosecutor’s Office, local police officers and sheriff’s deputies, township level officials, employees of the Indiana Bureau of Motor Vehicles, as well as employees of the Internal Revenue Service and the United States Postal Service.
“Our message has been consistent, but bears repeating: it doesn’t matter what your politics are or who you know,” Hogsett noted, “if you violate the public trust, our investigators will find you, will investigate you and the U.S. Attorney’s Office will then prosecute you to the fullest extent of the law.”
FBI Special Agent in Charge Robert A. Jones stated, “Contract cheating in the form of bribery and conspiracy is public corruption that violates the trust of the community and unfairly burdens honest taxpayers. The FBI will continue to work with our law enforcement partners to preserve the integrity of public contracting.”
According to Steven DeBrota, Senior Litigation Counsel for the United States Attorney’s Office and who is prosecuting the case for the government, Wykoff could face up to 10 years on each count if convicted. The Hardins could face five years if convicted.
The investigation is being conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
A complaint is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
Henrico Man Convicted of Armed Robbery at Chesterfield Towne Center MallRead the Press Release
RICHMOND, Va. – Samuel G. Mamudu, 25, of Henrico, Va., was convicted yesterday by a federal jury on charges for his role in the October 9, 2013, gun-point robbery of Prince Jeweler’s jewelry store in the Chesterfield Towne Center Mall.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field office; and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after the verdict was accepted by United States District Judge Henry E. Hudson.Mamudu was convicted on one count of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. Mamudu faces a mandatory minimum sentence of seven years of incarceration and a maximum penalty of life imprisonment when he is sentenced on June 13, 2014.
Mamudu was indicted on December 17, 2013, by a federal grand jury on interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. According to court records and evidence at trial, Mamudu entered into the Prince Jeweler’s jewelry store, located in Chesterfield Towne Center Mall, brandished a firearm, robbed the clerk of several items of jewelry, and fled the scene. Several days later, Mamudu was identified as the armed robber and arrested by the Chesterfield County Police Department with several of the stolen pieces of jewelry in his possession. At trial the government’s evidence included fingerprints, surveillance video, and testimony from the victim, who identified the defendant and described the handgun he brandished during the robbery. Mamudu testified in his own defense at trial, admitting that he stole the jewelry but denied committing an armed robbery. Assistant United States Attorney Erik Siebert cross-examined Mamudu, highlighting the multiple versions of events he had previously given to law enforcement, including his initial denial that he was even in the store during the robbery.This case was investigated by the FBI and Chesterfield County Police Department. Assistant United States Attorneys Erik S. Siebert and Peter S. Duffey 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.Hazelwood Man Sentenced on Sex Trafficking ChargesRead the Press Release
St. Louis, MO – BARRY WIMBERLY was sentenced to 57 months in prison, followed by supervised release for life, on charges of transporting five female victims from five states to Missouri and back for prostitution.According to court documents, Wimberly served as a pimp for numerous women whom he transported between Missouri, Illinois, North Dakota, Minnesota, Georgia and Florida. Wimberly ran his business out of various locations in Hazelwood, Missouri.
Wimberly, Hazelwood, Missouri, pled guilty last December to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation, the Kirkwood Police Department and the Maryland Heights Police Department. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Hallandale Resident Charged with Attempted ExtortionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office, and Scott Israel, Sheriff, Broward Sheriff's Office (BSO), Bomb Squad, announce the unsealing of an indictment charging Brian Henderson, 49, of Hallandale. The indictment, which was returned in the Southern District of Florida, is the result of a joint investigation conducted by the FBI Miami Field Office, the Tampa Field Office and the New Jersey Field Office.
Brian Henderson is scheduled to make his initial appearance in the Southern District of Florida before U.S. Magistrate Judge Alicia O. Valle on Friday, March 14, 2014.
According to the eleven-count indictment, which was returned on February 25, 2014, Henderson is charged with attempting to extort money from Publix Super Markets, Inc. (Publix), by the use of actual and threatened force, violence and fear of economic loss.
As set forth in the indictment, Henderson attempted to obtain money from Publix by sending several threatening emails to Publix in which he threatened to damage Publix stores through the use of explosive devices. In furtherance of his attempt to extort money from Publix, Henderson placed, and caused to be detonated, a pipe bomb at the Publix store located in Dania Beach.
If convicted, Brian Henderson faces the following potential penalties: up to 20 years in prison, followed by five years of supervised release, and a possible $250,000 fine as to Count 1, attempted interference with commerce by extortion, and as to count 10, attempting to destroy property by explosives; up to 10 years in prison, followed by three years of supervised release, and a possible $250,000 fine on counts 2, 4, 6 and 8, using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives; up to two years in prison, followed by three years of supervised release, and a possible $250,000 fine, on counts 3, 5, 7 and 9, transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings; and, a mandatory minimum term of 30 years in prison, followed by five years of supervised release, and a possible $250,000 fine on count 11, using and carrying a firearm during and in relation to a crime of violence.
A separate criminal complaint charging Henderson in connection with alleged product tampering threats made to a consumer products company was unsealed today in the District of New Jersey.
Mr. Ferrer commended the investigative efforts of the FBI Tampa Field Office, the New Jersey Field Office, and the Miami Field Office, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Grand Jury Returns Four-Count Indictment Charging Moab Resident in Dinosaur Track CaseRead the Press Release
SALT LAKE CITY - A federal grand jury returned a four-count indictment Wednesday afternoon charging Jared Ehlers, age 35, of Moab, with violations of federal law in connection with the excavation and removal of a three-toed dinosaur track from the Hell’s Revenge area of the Sand Flats recreation. The land is administered by the U.S. Bureau of Land Management.
A summons will be issued to Ehlers to appear in federal court.
The first count of the indictment, removal of paleontological resources, alleges Ehlers knowingly excavated, removed, damaged or otherwise altered or defaced the three-toed dinosaur track, located on federal land. The potential maximum penalty for this count is five years in prison.
Ehlers is charged with theft of government property in the second count of the indictment. The indictment alleges he took the dinosaur print, which was property of the United States, and converted it to his own use. The potential maximum penalty for this count is 10 years in prison.
The third count of the indictment alleges depredation of government property. According to the indictment, Ehlers damaged property of the United States by excavating and altering paleontological resources. This count also carries a potential 10-year prison sentence,
The final count of the indictment, destruction of evidence, alleges Ehlers tried to destroy or conceal the dinosaur track in an effort to obstruct or influence the investigation. The potential penalty for this count is 20 years in prison.
The case is being investigated by BLM special agents and the Grand County Sheriff’s Office. The Utah Department of Public Safety also assisted in the case.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Jury Indicts Wife of Former Executive at Collin Street Bakery on Conspiracy, Money Laundering and False Statement Felony OffensesRead the Press Release
Defendant Sandy Jenkins Allegedly Embezzled More than $16 Million from Corsicana Business, Which Sandy and Kay Jenkins Used on a Lavish Lifestyle
DALLAS — A federal grand jury returned a 22-count superseding indictment today charging Sandy Jenkins, 65, and his wife, Kay Jenkins, 63, both of Corsicana, Texas, with various felony offenses stemming from Sandy Jenkins’s alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana, which was used by Sandy and Kay Jenkins to maintain an extensive and lavish lifestyle. This indictment supersedes a 10-count indictment, returned in September 2013 that charged Sandy Jenkins with 10 counts of mail fraud stemming from the alleged embezzlement. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud. He has been in custody since his arrest in August 2013 on related charges outlined in a criminal complaint. Kay Jenkins is expected to self-surrender and make her initial appearance on Tuesday, March 18, 2014. Sandy Jenkins will appear in court at date to be determined.
This superseding indictment charges Sandy Jenkins with 10 counts of mail fraud and three counts of money laundering. In addition, Sandy and Kay Jenkins are also each charged with one count of conspiracy to commit money laundering; six counts of money laundering and aiding and abetting; and two counts of making a false statement to a financial institution.
This indictment alleges that from December 2004 until June 21, 2013, Sandy Jenkins schemed to embezzle funds from the bakery for his and Kay’s self-enrichment. Between 2005 and 2013, Sandy Jenkins allegedly caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to his personal creditors, resulting in losses to the Bakery of approximately $16,649,786.
Starting in at least December 2004 and continuing through approximately August 12, 2013, Sandy and Kay Jenkins conspired together to maintain an extensive and lavish lifestyle through expenditures of the money embezzled from the Bakery. During this time, Sandy and Kay Jenkins maintained a vacation home in Santa Fe, New Mexico, a multi-million dollar watch and jewelry collection, luxury automobiles, and took numerous trips on private jets, among other things, funded with money Sandy Jenkins stole from the Bakery.
During that time, Sandy and Key Jenkins incurred more than $11 million in charges on American Express credit cards, which were subsequently paid with monies embezzled from the Bakery. Those charges included, among other things, approximately $3.3 million in payments for approximately 223 trips on private jets contracted through North Dallas Aviation to various locations including Santa Fe; Napa, California; and Aspen, Colorado. The Jenkins also used funds Sandy Jenkins embezzled to deposit into their joint bank accounts, purchase a 2010 Mercedes-Benz, a 2013 GMC Yukon Denali, and a $25,000 men’s Patek Philippe 18 karat rose gold watch.
The indictment further alleges that Sandy and Kay Jenkins knowingly made false statements, i.e., overstating their monthly income, to financial institutions in connection with their applications for a mortgage loan to purchase a residence in Santa Fe.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties, per count, are: mail fraud – 20 years in federal prison and a $250,000 fine; conspiracy to commit money laundering and money laundering – 10 years in federal prison and a $250,000 fine, or alternatively, not more than twice the amount of the criminally derived property involved in the transaction; and making false statements to a financial institution – 30 years in federal prison and a $1 million fine.
The indictment also includes a forfeiture allegation that would require Sandy and Kay Jenkins to forfeit not only the total proceeds derived from the offense ($16,649,786), but also property including: real estate in Corsicana and Santa Fe; vehicles, including a Mercedes, a Lexus, a GMC Denali and a BMW; more than $440,000 in currency seized or surrendered to date; one Steinway piano; electronic equipment; six firearms; furs, jewelry, precious gems and metals, watches, handbags, luggage, shoes, crystal and miscellaneous collectables; a wine and liquor collection; artwork seized from the residence in Santa Fe; and two watches seized from deBoulle Diamond & Jewelry, Inc.
The FBI is conducting the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
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Frederick, Maryland Man Pleads Guilty to Defrauding Two Government Contractors of More Than $635,000Read the Press Release
ALEXANDRIA, Va. – John Spangler, 43, of Frederick, Md., pleaded guilty today to mail fraud for a scheme to defraud two government contractors of more than $635,000.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Spangler pleaded guilty to one count of mail fraud. Spanglerfaces a maximum penalty of 20 years in prison and fines totaling the greater of $250,000 or twice the gross gain or loss when he is sentenced on June 6, 2014.
In a statement of facts filed with the plea agreement, Spangler admitted that from 2007 to 2012, he defrauded two government contractors out of approximately $635,000 to $735,000 by using his position as an information technology (“IT”) manager for those contractors to funnel funds intended for IT supplies to a shell company run by Spangler. Over the course of the scheme, Spangler created fraudulent documentation for 19 purported purchases of IT supplies from the shell company that he owned. In reality, however, Spangler did not provide the supplies at the agreed-upon prices and instead used the funds for personal expenses. Spangler has agreed to forfeiture and restitution of between $635,843.06 and $735,843.06.
This case is being investigated by the FBI’s Washington Field Office. Assistant United States Attorney Ryan Faulconer and Special Assistant United States Attorneys Jennifer Ballantyne and Emily Mintz are prosecuting 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.Four Individuals Indicted in March Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the March 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JUSTIN SLATE THRONEBERRY, age 32, of Ardmore, OK
Delay Or Destruction Of Mail By Postal Employee
The Indictment alleges that on or about December 19, 2013, in the Eastern District of Oklahoma, the defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and open a package entrusted to him and which came into his possession to be conveyed by mail, while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service, Office of Inspector General. The charge is in violation of Title 18, United States Code, Section 1703, punishable by up to 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
BILLY DON FULLER, age 47, of Spiro, OK
DONNA JEAN SCHAFER, age 53, of Spiro, OK
Drug ConspiracyPossession of a Controlled Substance with Intent to DistributeDrug Forfeiture
The Indictment alleges that in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, within the Eastern District of Oklahoma, the defendants did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Section 846, punishable by not less than 20 years imprisonment and/or up to a $20,000,000.00 fine.
Assistant United States Attorney Shannon Henson
DANIEL RAY JOHNSON, age 31, of McAlester, OK
Possession with Intent to Distribute MethamphetaminePossession of a Firearm in Furtherance of a Drug Trafficking Crime
The Indictment alleges that on January 6, 2014, the defendant, did knowingly and intentionally possess with intent to distribute 5 grams or more of actual methamphetamine, a Schedule II Controlled Substance and from on or about January 6, 2014, to January 11, 2014 the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of actual methamphetamine, a Schedule II Controlled Substance within the Eastern District of Oklahoma, while knowingly possessing firearms.
The charges arose from an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A) and 841(b)(1)(B), punishable by not less than 20 years imprisonment and/or up to a $20,000,000.00 fine and Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment to be served consecutively to any other sentence imposed and/or up to a $250,000.00 fine.
Assistant United States Attorney Shannon Henson
Former Treasurer and Chairman of Board Sentenced for Kickback SchemeRead the Press Release
BOSTON – The former treasurer and chairman of the board of directors of a Nevada-based publicly traded company was sentenced yesterday for his role in a fraudulent kickback scheme.
U.S. District Court Judge Denise J. Casper sentenced Albert Reda, 67, of Tustin, Calif., to 26 months in prison, one year of supervised release, a fine, and forfeiture of his illegal earnings. In November 2013, following a six-day trial, a jury convicted Reda of wire fraud and mail fraud.
Reda was involved in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in the Reda’s company, First Global Financial Corporation, which traded on the over-the-counter securities market. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents, such as bogus invoices. What Reda did not know was that the purported investment fund representative was actually an undercover federal agent.
Reda’s conviction and sentence followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the undercover operation, cooperated with criminal authorities in bringing these charges, as well as charges against other defendants who participated in the kickback scheme. To date, 14 other individuals have been convicted for their participation in the scheme.United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis, Eric P. Christofferson, and Sarah E. Walters of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Former Fci Danbury Employee Sentenced to Prison for Sexually Abusing InmateRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Ronald G. Gardella, Special Agent-in-Charge, Department of Justice Office of the Inspector General, New York Field Office, announced that STEVEN WOLFF, 46, of the Bronx, N.Y., was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to five months of imprisonment, followed by five years of supervised released, for sexually abusing an inmate at the Federal Correctional Institution in Danbury. WOLFF was also ordered to serve the first five months of his supervised release in home confinement under electronic monitoring.
According to court documents and statements made in court, WOLFF, while employed as a Utilities Systems Repair Operator Foreman by the Federal Bureau of Prisons at the Federal Correctional Institution in Danbury, engaged in sexual acts with a female inmate at the prison. On multiple occasions between July 2011 and November 2011, WOLFF and the victim met privately in the boiler area of the prison facility and engaged in sexual intercourse. In addition, WOLFF provided contraband including hair dye, candy, greeting cards and over-the-counter medication to the inmate. Contraband was also provided to another inmate who acted as a lookout during the illicit sexual activity.
On August 6, 2013, WOLFF pleaded guilty to one count of sexual abuse of a ward.
This case was investigated by the Department of Justice Office of Inspector General and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
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Tom Carson
(203) 821-3722
[email protected]Former Cleveland Job Corps Center Director Faces Tax ChargesRead the Press Release
A three-count indictment was filed charging the former director of the Cleveland Job Corps Center with withholding more than $872,000 in federal taxes from employees but never paying the money over to the Internal Revenue Service, law enforcement officials said.
Clark V. Hayes, 53, of Richfield, Ohio, was the owner of Applied Technology Systems, Inc. or ATSI, in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to the indictment.
“This defendant was hired to make sure struggling workers learned new job skills, but instead used it as an opportunity defraud his workers and the government,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues those who violate employment tax laws.”
Under the terms of the agreement, ATSI staffed and maintained the centers, subject to reimbursement by the Department of Labor for their costs based on a budget. The reimbursable costs included the wages ATSI paid to the centers’ employees, including amounts to be withheld and paid over to the IRS, according to the indictment.
The Labor Department paid ATSI more than $15.5 million between from on or about July 1, 2010, through August 16, 2011, according to the indictment.
For the quarter ending Sept. 30, 2010, Hayes withheld but did not pay over $138,208. For the quarter ending Dec. 31, 2010, Hayes withheld but did not pay over $483,495. For the quarter ending March 31, 2011, Hayes withheld but did not pay over $250,307, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Antoinette T. Bacon following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Labor -- Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Campaign Treasurer Indicted on Federal Charges, Accused of Stealing More Than $115,000-Defendant Allegedly Used Money for Trips, Retail Goods, Limousine Services-Read the Press Release
WASHINGTON - Hakim J. Sutton, 32, of Washington, D.C., has been indicted on federal charges accusing him of stealing more than $115,000 from a District of Columbia political campaign in which he served as the treasurer and custodian of records.
The indictment, unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Sutton was named in a sealed indictment returned by a grand jury on Feb. 21, 2014. The charges include five counts of wire fraud, two tax offenses, six counts of filing false and misleading campaign finance reports, and one count of first-degree theft. The indictment includes a forfeiture allegation seeking a money judgment representing proceeds from the crimes.
According to the indictment, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. The candidate, identified in court documents as “Candidate A,” ultimately lost in the November 2012 election.
According to the indictment, between September 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, while serving as the campaign treasurer and in his capacity as a signatory on the campaign bank account, Sutton allegedly wrote 36 checks payable to himself and drawn from the campaign bank account.
Sutton used the money at various retailers, the indictment alleges, such as Gucci, Armani Exchange, and the Apple Store; to pay for limousine and car services, and to pay expenses for various trips, including to Martha’s Vineyard, Mass., Las Vegas, Miami, and other places.
The indictment alleges that Sutton omitted references to the checks that he had written to himself in a series of six reports he filed with the District of Columbia Office of Campaign Finance. Sutton also is accused of tax evasion and failing to file a tax return for calendar 2011.
“Hakim Sutton is charged with looting a political campaign of more than $115,000,” said U.S. Attorney Machen. “According to the indictment, Sutton stole political donors’ money to go shopping at Gucci and Ferragamo and to travel to Las Vegas, Miami Beach, and Greece. This indictment reflects our commitment to ensuring integrity and transparency in the way political campaigns operate in the District of Columbia.”
“The theft of campaign funds impacts the donors’ right to participate in the election process, and the constituents are the ultimate victim,” said Special Agent in Charge Kelly. “This indictment reaffirms that IRS-CI is committed to working with the US Attorney’s Office and the Metropolitan Police Department to ensure political campaigns in the District of Columbia are transparent.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Metropolitan Police Department and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Bryan Seeley and David A. Last, of the Fraud and Public Corruption Section, and Anthony Saler, of the Asset Forfeiture and Money Laundering Section. Assistance was provided by former Paralegal Specialist Shanna Hays and Nicole Wattelet, Legal Assistant Angela Lawrence, and former Paralegal Specialist Lenisse Edloe.
14-063Former Accounting Firm Partner Sentenced in Manhattan Federal Court to 54 Months in Prison for Stealing Nearly $4 Million in Client PaymentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CRAIG B. HABER, a former partner of a global accounting firm, was sentenced today in Manhattan federal court to 54 months in prison for stealing nearly $4 million in client payments intended for the accounting firm. HABER pled guilty in August 2013 to one count of mail fraud before U.S. District Judge P. Kevin Castel, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Craig Haber abused his position as partner of an accounting firm, stealing millions of dollars in client payments to fund his own personal expenses, including the mortgage on his Manhattan apartment. Haber’s efforts to conceal his fraud failed and, with today’s sentence, he will pay for his fraud with time in a federal prison and the forfeiture of his ill-gotten gains, including his apartment.”
According to the documents filed in Manhattan federal court and statements made in related court proceedings:
From 1993 through July 2012, HABER was a partner at a global accounting firm headquartered in Chicago, Illinois, (the “Accounting Firm”) that provided a variety of auditing, accounting, and tax preparation services to businesses and individuals in the U.S. and abroad. HABER worked at the Accounting Firm’s office in New York, New York, and provided tax preparation and advisory services to clients of the Accounting Firm.
The Accounting Firm’s bills to clients ordinarily included payment instructions directing clients to pay the firm by wire transfer or by sending checks to its headquarters in Chicago. However, on multiple occasions from 2004 through July 2012, HABER sent bills to clients containing payment instructions directing them to send checks to him at the Accounting Firm’s New York, New York, office instead of the Chicago headquarters.
Upon receiving those checks, HABER deposited a number of them into a bank account that he had opened in the name of a sham business that was very similar to the name of the Accounting Firm. HABER opened the bank account specifically to receive checks from clients that were intended for the Accounting Firm. After depositing the clients’ checks into that account, HABER then transferred the money from that account to two personal bank accounts which he used to pay various personal expenses, including mortgage payments for his residence in New York, New York. In total, HABER stole nearly $4 million in client payments.
In addition to his prison term, HABER, 60, of New York, New York, was sentenced to two years of supervised release, and ordered to forfeit $3,970,000 in cash, his Manhattan apartment, and his brokerage account.
Mr. Bharara praised the outstanding investigative work of the United States Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Joseph Facciponti is in charge of the prosecution.
Folk Nation Gang Leader Sentenced to 20 Years in PrisonRead the Press Release
Earlier today, Devon Rodney, also known as “D-Bloc,” a former leader of the violent Brooklyn street gang “Six Tre Outlaw Gangsta Disciples Folk Nation,” also known as the “Folk Nation,” was sentenced to 20 years in prison at the federal courthouse in Brooklyn, New York. Rodney pled guilty on November 15, 2013 to charges of racketeering, including attempted murder and robbery conspiracy as predicate racketeering acts, and brandishing a firearm.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“The defendant led the Folk Nation gang in committing senseless acts of violence, including shootings and robberies, which terrorized the residents of the Ebbets Field Houses in Brooklyn. The gang shooting of an innocent 10-year old girl attending a neighborhood block party highlights the moral depravity of the gang life,” stated United States Attorney Lynch. “Every community, including the Ebbets Field Houses community, deserves the opportunity to raise its children without the specter of gang violence.”
The Folk Nation is a nationwide gang active in numerous cities and prisons across the United States. The Six Tre set of the Folk Nation operated out of the Ebbets Field Houses in the Flatbush area of Brooklyn for years. In order to fund its illegal activities, the defendant and other members of the gang committed violent robberies of individuals and commercial establishments, including the Lee Perla jewelry store at the Riverside Square Mall in Hackensack, New Jersey, where they made off with hundreds of thousands of dollars’ worth of luxury watches. In his role as the leader of the Folk Nation, Rodney ordered his subordinates in the gang to commit numerous acts of violence, which often missed their intended targets – perceived rivals or enemies of the gang – and severely injured innocent bystanders. In the attempted murder to which the defendant pled guilty, Rodney ordered the killing of a rival Crips member upon learning that the rival had been spotted near the Ebbets Field projects. In the chaos that ensued when gang members rushed to implement the orders of their leader, an innocent 10-year old girl attending a block party was shot in the neck.
Rodney is one of nine defendants charged in connection with this case by the United States Attorney’s Office for the Eastern District of New York for crimes they committed as members of the Folk Nation. Ms. Lynch thanked the FBI and the New York City Police Department for their outstanding investigative efforts.
The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The government’s case was prosecuted by Assistant United States Attorneys Zainab Ahmad, Berit Berger and Kristin Mace.
The Defendant:
DEVON RODNEY, also known as “D-Bloc”
Brooklyn, New York
Age: 26
TweetFlorida Man Charged in New Jersey with Threatening to Poison Consumer ProductsRead the Press Release
NEWARK, N.J. – Federal charges are filed in Newark against a man who allegedly contacted a consumer products company and claimed he poisoned its products and would return them to store shelves if his demands were not met, New Jersey U.S. Attorney Paul J. Fishman announced today.
Brian Henderson, 49, of Hallendale, Fla., is charged by criminal complaint with two counts of threatening to tamper with a consumer product. Henderson is already in custody on bank robbery charges filed Dec. 19, 2013, in the Southern District of Florida, and will appear in Newark federal court on a date to be determined.
An additional indictment was unsealed today in the Southern District of Florida charging Henderson with a scheme to extort Publix Super Markets Inc., by threatening to bomb its stores.
According to the District of New Jersey complaint made public today and statements made in court:
On July 28, 2013, Henderson contacted the company, headquartered in New Jersey and referred to in court documents as “Company 1,” by sending a message through its online customer care center. In the message, Henderson threatened to place 20 poisoned packages of the company’s products on the shelves of 20 different stores unless he was paid an unspecified sum of money. The message was addressed to the chairman of the board of directors and the company’s chief executive officer.
Henderson sent another message on Aug. 5, 2013, saying:
“I am the angel of death. I have put poison in 20 packages of your products. I will put them back on the shelves unless you pay me what you owe me. Last week I gave you an e-mail address that no longer works. You will have until Thurs 8/8 at 5pm to reply to my new e-mail address or I will replace the products and alert the media. You can handle this quietly and cheaply or publicly and very very expensive [sic].”
The complaint does not allege that Henderson actually poisoned any consumer product.
The second threat was transmitted from an internet protocol address which, at that time, was assigned to the wireless network of a restaurant in Dania, Fla. Security footage retrieved from the restaurant shows an individual believed to be Henderson.
Law enforcement executed a search warrant at Henderson’s residence on Dec. 14, 2013, recovering what appeared to be a draft of an extortion demands.
Each count of threatening to tamper with consumer products carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in Florida, under the direction of Special Agents in Charge George Piro in Miami and Paul Wysopal in Tampa, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Henderson Complaint
Federal Jury Convicts Gregg County Man of Drug ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 72-year-old Longview, Texas man has been convicted of drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
This case was investigated by the Drug Enforcement Administration and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####
Jerry Don Castleberry was found guilty by a jury on March 11, 2014, of conspiracy to possess with intent to distribute and distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of drug trafficking activity, following a two day trial before U.S. District Judge Michael H. Schneider.
According to information presented in court, up until May 1, 2013, Castleberry conspired with other persons to acquire and distribute large quantities of methamphetamine from a source in Dallas, Texas to dealers throughout the Longview, Texas area. Evidence indicated that Castleberry was distributing methamphetamine manufactured in Mexico. Castleberry was also in possession of numerous firearms and ammunition, which are subject to forfeiture. Castleberry is a former member of the Bandidos motorcycle gang. As a result of his crime, Castleberry will also forfeit 2 Harley Davidson motorcycles and a Corvette Stingray.
A federal grand jury returned an indictment on June 27, 2013, charging Castleberry and others with the federal violations.
Castleberry faces a minimum of 15 years in federal prison. A sentencing date has not been set.Eleven People Indicted for Conspiring to Traffic Oxycodone and Heroin in BoiseRead the Press Release
BOISE – Austin Serb, 20, Christopher Snyder, 24, and Andrew Colwell, 23, of Boise, Idaho, appeared in federal court yesterday on a nine-count federal indictment charging them and eight others with conspiracy to distribute oxycodone and heroin; distributing oxycodone, and distributing heroin, U.S. Attorney Wendy J. Olson announced today.
“Prescription drug abuse, indeed the addiction to opiates and heroin, is a growing national problem and a growing Idaho problem,” said Olson. “The U.S. Attorney’s Office and its federal, state and local law enforcement partners are prepared to vigorously investigate and prosecute those who distribute these dangerous drugs in our community.”
In addition to Serb, Snyder, and Colwell, the defendants named in the federal indictment, returned yesterday by the grand jury sitting in Boise, are:
- Jeffery Manchester, 28, of Boise, Idaho
- Jordan Baptista, 19, of Boise, Idaho
- Travis Fraser, 19, of Boise, Idaho
- Kekai Wachi, 19, of Boise, Idaho
- Jared Hicks, 22, of Boise, Idaho
- Jordan Grainger, 24, of Meridian, Idaho
- Ellen McDaniel, 44, of Boise, Idaho
- James Acarregui, 29, of Boise, Idaho
A trial date has been set for May 6, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The remaining defendants have not yet made their initial appearances in court, and no dates have been set.
The indictment alleges that between September 1, 2012, and March 10, 2014, the defendants conspired together to distribute oxycodone and heroin. The indictment alleges that on various dates beginning on August 29, 2013, one or more of the defendants distributed oxycodone or heroin in the Idaho.
The charge of conspiracy to distribute oxycodone and heroin carries a maximum term of 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. Each charge of distribution of oxycodone and heroin is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. A criminal forfeiture allegation contained in the indictment also seeks to forfeit cash proceeds of $1 million as to all defendants.
Olson also announced that the indictment marks the first large-scale prosecution involving investigation by the Drug Enforcement Administration’s Tactical Diversion Squad. The Tactical Diversion Squad, based in Boise, began operating in January of this year and includes law enforcement personnel from DEA, U.S. Department of Health and Human Services, Office of Inspector General, the Ada County Sheriff’s Office, the Boise Police Department, the Nampa Police Department, the Meridian Police Department and the Idaho State Police. According to Olson, the Tactical Diversion Squad will target prescription drug crime from all angles, including criminal distribution schemes, health care provider abuse and burglaries.
“Opiate addiction is a dangerous path,” said DEA Special Agent in Charge Matthew G. Barnes. “Many young Americans start out abusing opiate based pain killers then switch to a cheaper and deadly alternative, heroin. This trend is alarming. These arrests represent a significant stride in Boise area law enforcement's concerted effort not only to combat this growing trend but to get ahead of it.”
“This is a great example of how a citizen tip to Crime Stoppers can lead to a major federal case on an urgent threat to public safety, prescription drug abuse,” said Deputy Chief William Bones of the Boise Police Department. “Prescription drug dealers have the capacity for getting hundreds if not thousands of people addicted creating a market for their criminal activity. They often target young people who have everything to lose by an addiction to drugs like oxycodone and Heroin. As we increase targeted enforcement we also hope this case leads to a greater awareness of the incredible dangers of these drugs before we lose more lives.”
Olson noted that U.S. Attorney General Eric Holder earlier this week made national comments highlighting the alarming rise nationally in overdose deaths from heroin and prescription pain-killers. Attorney General Holder vowed that the Justice Department would combat the epidemic through a mix of enforcement and treatment efforts. Speaking in a video posted on the Justice Department’s website, Holder noted that between 2006 and 2010, heroin overdose deaths increased by 45 percent. “As part of the law enforcement community in Idaho, we must direct appropriate resources and focus our attention on the most dangerous drugs,” said Olson. “As prescription pain-killer abuse and heroin abuse increase, we must target the trafficking of those drugs. I commend the outstanding work of the Boise Police Department, the DEA Tactical Diversion Squad and the local agencies that are working with us to address this serious community and public safety threat.”
In addition to involving work by the DEA Tactical Diversion Squad, the indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The investigation was initiated by the Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
East St. Louis Man Sentenced for Cocaine DistributionRead the Press Release
Follow @SDILNewsDione J. Joyce, 31, from East St. Louis, Illinois, was sentenced on March 7, 2014, in federal district court, in East St. Louis, Illinois, on three counts of cocaine distribution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Joyce was sentenced to 60 month concurrent prison terms for each count, four years of supervised release, fined $300, and ordered to pay $300 special assessment. Court proceedings revealed that Joyce sold over 100 grams of cocaine base in the form of “crack” on April 26, 2013, May 1, 2013, and May 22, 2013, to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East St. Louis Man Sentenced for "Crack" Cocaine DistributionRead the Press Release
Follow @SDILNewsDeAnthony Tillman, 27, from East St. Louis, Illinois, was sentenced on March 7, 2014, in federal district court, in East St. Louis, Illinois, for distribution of cocaine, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Tillman was sentenced to 30 months in prison, three years of supervised release, fined $200, and ordered to pay $100 special assessment. Tillman, who previously pled guilty, admitted that on June 27, 2013, he sold two grams of cocaine base in the form of “crack” cocaine to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on March 10, 2014, by U.S. District Judge Roberto A. Lange.
Torin DeWitt, age 25, was sentenced to 10 months in custody, 2 years of supervised release, $3,310.07 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
DeWitt was indicted by a federal grand jury on November 14, 2013. He pled guilty on December 18, 2013.
The conviction stems from an incident occurring on October 23, 2013, wherein DeWitt stole a 2007 gray Jeep Laredo from someone’s driveway.
This case was investigated by the Cheyenne River Sioux Tribe Police Department. Assistant U.S. Attorney Jay Miller prosecuted the case.DeWitt was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficking Organization Manager Sentenced to Twelve Years for Heroin Overdose of Milwaukie ManRead the Press Release
PORTLAND, Ore. - On March 12, 2014, U.S. District Court Judge Michael Simon sentenced Charly Aguayo-Caro to 12 years in prison for his role in distributing heroin that resulted in the death of Michael Rael. Aguayo-Caro, 24, of Xalisco, Nayarit, Mexico, was responsible for managing the day-to-day operations of an active heroin distribution business operating out of Portland, Oregon. Aguayo-Caro managed the business and accepted telephone orders for heroin from customers. Aguayo-Caro then employed couriers to distribute the heroin throughout the Portland metro-area beginning in 2008 and continuing until 2012.
On September 10, 2012, Michael Rael, 23, of Milwaukie, Oregon, was found deceased from a heroin overdose near his residence. Rael recently moved to Oregon from New Mexico to pursue higher-education and full-time employment. Following Rael's death, Clackamas County Interagency Task Force officers specializing in overdose investigations began re-tracing the heroin ingested by Rael. Investigators were able to trace the heroin to the drug-trafficking organization managed by Aguayo-Caro. On September 18, 2012, investigators arrested Aguayo-Caro in Wilsonville, Oregon where he was returning from California.
At sentencing, Judge Simon acknowledged the "national emergency" communities are facing from heroin overdoses. Simon referenced United States Attorney General Eric Holder's recent public statement about the "urgent and growing public crisis" heroin is having in communities across the country where heroin overdose deaths have increased 45 percent nationally between 2006-2010. U.S. Attorney Amanda Marshall echoed Simon and Holder by affirming her commitment to prosecuting drug trafficking organizations that are responsible for saturating the Portland market with heroin that led to the heroin overdose deaths of 147 Oregonians in 2012. Marshall stated: "We will continue to use every tool at our disposal to actively dismantle these drug trafficking organizations that are responsible for the devastating effects of heroin in our communities." This case was prosecuted under the "Len Bias" sentencing enhancement which increases mandatory sentences for individuals and organizations that distribute heroin which ultimately results in an overdose death.
The federal charges stem from an investigation led by state and federal law enforcement agencies including the Clackamas County Inter-Agency Task and the Federal Bureau of Investigation with the assistance of the Clackamas County District Attorney's Office.
The case was prosecuted by Special Assistant U. S. Attorney Steve Mygrant.
Defendant in Los Zetas Money Laundering Case, His Son, and A Business Associate Plead Guilty to Conspiring to Bribe A Federal JudgeRead the Press Release
In Austin, 53-year-old Veracruz, Mexico businessman Francisco Colorado Cessa, his son, 25–year-old Francisco Colorado Cessa, Jr., and a business associate, 52–year-old Ramon Segura Flores face up to five years in federal prison after pleading guilty to attempting to bribe a federal judge announced United States Attorney Robert Pitman, Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
Appearing before United States Magistrate Judge Andrew Austin this morning, all three defendants pleaded guilty to one count of conspiracy to bribe a federal judge. By pleading guilty, the defendants admitted to conspiring last year to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado Cessa. According to the criminal complaint filed in this case, at no time before or during this investigation was the judge involved in the alleged criminal activity. Colorado Cessa is currently serving a 20-year federal prison term for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States.
All three remain in federal custody at this time. No sentencing date has been scheduled.
This case was investigated by the FBI and IRS-Criminal Investigation.
Criminal Enterprise Results in Multiple Arrests in Cherokee County, TexasRead the Press Release
Department of Justice
Office of Public AffairsOn February 26, 2014, a federal grand jury returned a sealed 6‑count indictment charging 7 individuals with multiple counts of federal drug and firearms violations. The indictment resulted from a lengthy investigation launched by the Federal Bureau of Investigation, the Cherokee County Sheriff’s Office, and the Jacksonville Police Department. The Rusk Police Department assisted in the apprehension and arrest of four of the suspects. At the time of the arrests, over 100 grams of methamphetamine, 10 firearms, and cash was seized.
If convicted, the defendants face between 5-40 years in prison and fines of up to $5,000,000 on the drug charges and additional incarceration on the weapons charges.
All of the defendants are residents of Cherokee County and are currently in custody. Initial appearances were held before U.S. Magistrate Judge Nicole Mitchell in Tyler, Texas, on March 11, 2014.
Those named in the indictment are:
Eric Scott Smart, 30
Steven Ray Davis, 42
Michael Wayne Christopher, 52
Jimmy Royce Stafford, aka “Jimmy Loven,” 28
Karl Dwayne Underwood, 23
Jimmy Chance Guillen, 23
Darren Michael Massey, 20Assistant U.S. Attorney Richard L. Moore is prosecuting the case. It is important to note that an indictment is merely a charge and should not be considered as evidence of either innocence or guilt.
####Colorado Man Sentenced to 63 Months in Federal Prison for Defrauding Elderly VictimRead the Press Release
DENVER – Akihiko Siegfried, age 55, formerly of Denver, Colorado, was sentenced Monday, March 10, 2014, by U.S. District Court Judge Philip A. Brimmer to serve 63 months in federal prison for mail fraud and money laundering, federal law enforcement authorities announced. Siegfried was also ordered to serve a 3 year term of supervised release following his prison sentence. Judge Brimmer also ordered him to pay $512,341.97 in restitution to the victim. Siegfried is currently in custody and will ultimately be designated to a Bureau of Prisons facility to complete service of his term of imprisonment.
Siegfried was indicted by a federal grand jury in Denver on June 17, 2013. He pled guilty on October 28, 2013 to one count of mail fraud and one count of money laundering. According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, in January of 2008, Siegfried knocked on the door of the elderly victim’s residence and when the door opened Siegfried pretended to be distraught and was crying. Siegfried falsely told the victim that Siegfried’s parents had just died in a car crash and that he had no money and no family to turn to for help. Siegfried asked to borrow money. The victim was then an 89-year-old widower of Japanese descent with little family, asked Siegfried if he was Japanese which he replied that he was. He felt sorry for Siegfried and, in part because of their shared Japanese heritage, decided to help Siegfried.
Siegfried borrowed from the victim several times and in the middle of 2008 falsely told the victim he would inherit substantial money as a result of his parents’ death, but that it would be tied up in probate for some time and he needed money for paying the associated fees and taxes. During the entire scheme, Siegfried told the victim he would repay all of the money when Siegfried received his inheritance. In fact, Siegfried’s father died in the 1990s, his mother died in 2002, and there was never any inheritance held up in probate; however, from mid-2008 through March of 2013 Siegfried repeatedly falsely told the victim the inheritance was held up in probate.
From March of 2009 through March of 2013, Siegfried frequently spent time as an inmate in the Colorado Department of Corrections. When he was in jail during that time frame, he repeatedly called and sent letters through the mail asking for money, directing the victim to deposit and wire transfer money to Siegfried’s inmate account with the Colorado Department of Corrections. Siegfried told the victim he needed the money because he was required to pay for his diabetes medicine while he was in jail and because he needed to pay more probate fees and taxes for his purported inheritance. In fact, Siegfried has never been diagnosed with diabetes, has never taken medication for diabetes, and inmates of the Colorado Department of Corrections are not required to pay for medicine prescribed to them while they are in custody.
In October of 2012, when Siegfried was released from prison, he received a check payable to himself in the amount of $49,655.30 from the State of Colorado, Department of Corrections. At least $10,000 of this money was proceeds of the fraud scheme involving the elderly victim.“In this case, the defendant targeted his victim not only because he was a senior, but by manipulating his victim’s Japanese-American heritage,” said U.S. Attorney John Walsh. “By that cold, calculating manipulation, the defendant stole a lifetime of savings. The lengthy prison sentence handed down by Judge Brimmer was appropriate and just.”
“We hear all too often of elderly victims robbed of their life’s savings,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “Let this sentencing be a reminder, those who prey on elderly victims will be put in jail.”
“The FBI is confident the outcome of this case will deter future con-artists who seek to get rich by preying on elderly victims,” said FBI Denver Special Agent in Charge Thomas P. Ravenelle.
This case was investigated by agents with IRS Criminal Investigation, Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and the Colorado Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne. AUSA James Russell is handling the asset forfeiture.
Colorado Horse Breeder Sentenced to Prison for Income Tax EvasionRead the Press Release
DENVER – Nikitis A. Mangeris, age 70, of Berthoud, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 4 months in federal prison for tax evasion the U.S. Attorney’s Office and Internal Revenue Service - Criminal Investigation (IRS CI) announced. Mangeris was also ordered to serve 24 months home detention following his prison sentence as part of a 3 year term of supervised release. Mangeris was also ordered by Judge Jackson to pay a $1,200 fine and $891,955.28 in restitution to the IRS. He will report to a Bureau of Prison facility within 15 days from the date of his designation.
Mangeris was indicted by a federal grand jury in Denver on January 9, 2013 and pled guilty to tax evasion on October 1, 2013. According to the indictment and plea agreement, Mangeris owned and operated several vitamin businesses since the mid-1990s. In 1992 he owned twenty-five percent of a vitamin business called Kaire International. The company generated on average between $5 million and $6 million in monthly gross proceeds and Mangeris receive income from Kaire International until approximately 1997 to 1999 when he left the company. He also owned and operated a horse business during this time period.
Beginning as early as 1994, Mangeris began investing in Arabian horses with the intent of breeding them for a profit. The values of the horses were linked to their lineage; therefore, each horse had to be verified and registered with the Arabian Horse Association. Mangeris registered the horses under business names Les Beaux Chevaux and Tenet Investment Group in order to avoid having to disclose his interest in them in public records. He further disguised his ownership interest in Tenet Investment Group by using a nominee name. There were two horses that generated significant proceeds for Mangeris. These horses were named MHR Nobility and Bentlee and Mangeris utilized the Colorado State University Equine Reproductive Laboratory to assist him in extracting and storing semen from MHR Nobility and Bentlee for future sales. Based upon its lineage, Mangeris was able to sell MHR Nobility's semen for, on average, $2,500 to $3,000 per breeding.
In 2002 Mangeris was audited by the IRS for calendar years 1997-1999. In February 2004 he agreed to with the IRS assessment and collection of back taxes, penalties, and interest for calendar years 1997-1999 in the amount of $891,955.28. Within 5 months of agreeing to the IRS assessment, Mangeris opened back accounts in nominee names and started depositing money into these accounts to conceal money. In December 2004 and January 2007 Mangeris falsified IRS Forms 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, which is a form that lists income and assets for an individual.
Particularly, in January 2007 Mangeris falsified Form 433-A and made false verbal representations during a meeting with a revenue officer. He stated on the form that he was self-employed, had no real assets, had no income, lived with friends and relatives, and maintained no bank accounts. This information was false when in fact, Mangeris owned and operated a horse business, earned over $80,000 from this business in calendar year 2006, and controlled a bank account into which he made over $375,000 in deposits in 2006. Furthermore, he and his wife were renting a residence for $3,450 per month at the time of his meeting with the revenue officer. To this day Mangeris has made no voluntary payments towards his tax debt and has also taken overt acts to evade the payment of his tax debt.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon and Department of Justice Tax Division Trial Attorney Kevin Sweeney.
Chicago Area Man Sentenced on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – JAMALL BROWN was sentenced to 51 months in prison, followed by supervised release for life, on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.
According to court documents, in June 2013, St. Louis Metropolitan Police contacted a victim at a local hospital. The victim advised police that Brown had assaulted her and fractured her nose. The victim had initially met Brown in Chicago, Illinois, and advised that Brown was physically assaultive and he directed that she and another female engage in prostitution by advertising on Backpage.com online service. After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution. After a few days he transported them to Denver, then eventually back to St. Louis. Later in June, the victim told Brown that she wanted to stop prostituting and leave. They began to argue and Brown beat her and later dropped her off at the emergency room.
Brown, Chicago, IL, pled guilty last September to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the St. Louis Metropolitan and Hazelwood Police Departments. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Chicago Area Man Convicted of Running West Side Heroin Distribution and Money Laundering ConspiraciesRead the Press Release
CHICAGO — A federal jury deliberated approximately an hour last night and this morning before convicting a Chicago area man on all charges against him for directing a six-year conspiracy to distribute at least a kilogram of heroin on the city’s west side. Attorneys for the defendant, DAVID PRICE, 34, conceded that Price possessed and sold heroin and laundered the cash proceeds by purchasing expensive suburban properties, automobiles, and jewelry, but they denied he conspired to traffic heroin during the week-long trial in U.S, District Court.
The jury’s guilty verdict on the conspiracy count alone means that Price is facing a mandatory minimum of 20 years in prison and a maximum of life in federal prison. U.S. District Judge Harry Leinenweber set sentencing for July 30.
Price, also known as “Shorty,” “Lil Dave,” and “Hot Sauce,” was convicted on 13 counts, including the heroin conspiracy, using a telephone to facilitate a drug-trafficking crime, money laundering conspiracy, nine counts of money laundering totaling approximately $448,000, and being a convicted felon-in-possession of an Uzi-style 9 millimeter semi-automatic pistol that was loaded with a 30-round extended magazine.
Originally from Chicago, Price was living in Brookfield at the time of his arrest in August 2012 and he remains in federal custody without bond. At various times, Price has lived in homes or apartment buildings in Country Club Hills, Darien, Lombard, Bolingbrook, and high-rises in downtown Chicago, which he purchased or rented in the names of other individuals, including his father, with drug proceeds. Evidence at the trial also established that Price bought at least six luxury vehicles, including a Corvette and a motor cycle, and expensive jewelry with drug money. Jurors were shown a $35,000 watch with 1,018 diamonds, totaling approximately 22 karats, which was seized from Price.
The government’s bid to forfeit the watch, vehicles, and properties, as well as $1.1 million in proceeds, remains pending and will be decided later by Judge Leinenweber.
Evidence showed that Price ran the heroin distribution ring from 2005 through 2011, but focused on 2007-08. Price “fronted” wholesale quantities of heroin to be sold at various west side drug spots and rotated sharing the profits with the supervisors of those locations, which included street corners along Augusta at Keeler, Lawler, and Laramie/Leamington; Kostner and Cortez; Iowa and Lamon; and Erie and Kilptarick, among others.
Price and others involved in the conspiracy ― all of whom have been convicted separately ― used an apartment at 5242 West Division, which they referred to as “Up Top,” to mix heroin with the sleeping pill Dormin, and package it for sale in retail packages and bundles. Three co-conspirators testified as government witnesses, including James Brown. The evidence established that Price directed two members of his crew to shoot and kill Brown on Jan. 25, 2008, because Brown owed a drug debt to Price and believed he was cooperating with law enforcement. Brown survived the shooting.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Carl Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Chicago Police Superintendent Garry McCarthy.
The government is being represented by Assistant U.S. Attorneys Angel Krull, Erik Hogstrom, and Ryan Fayhee.
Bridgewater Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A Bridgewater man was sentenced yesterday for possessing more than 2000 images and videos of child pornography.
Kevin J. Balzarini, 38, was sentenced by U.S. District Court Judge Rya W. Zobel to 36 months in prison and five years of supervised release. In December 2013, Balzarini pleaded guilty to possession of child pornography.
An officer, acting in an undercover capacity, signed onto a peer-to-peer network and observed that Balzarini was offering files indicative of child pornography to share with network users. The officer requested and received an image containing child pornography. A search warrant was then executed at Balzarini’s residence, where computer media containing more than 2000 images and videos of child pornography was seized. At the time of the search, Balzarini admitted to agents that he had been looking at child pornography for a number of years and stated that his interest was in children 13 years old and younger. Printed images of child pornography were recovered from Balzarini's bedroom, as well as a container of girls' underwear that Balzarini admitted he took from homes when he made deliveries as part of his employment.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Bridgewater Police Chief Christopher D. Delmonte, made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Birmingham Man Sentenced to Five Years in Prison for Manufacturing and Selling Synthetic MarijuanaRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to five years and three months in prison for manufacturing synthetic marijuana and distributing it across the country from his apartment in Birmingham's Southside community, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
U.S. District Judge Abdul K. Kallon sentenced ROBERT JAMES PRESSLER, 28, one count of conspiracy to manufacture with intent to distribute the controlled chemical substance XLR11, or "Spice." Pressler pleaded guilty to the charge in December. Judge Kallon ordered Pressler to forfeit $238,428 to the government as proceeds of illegal activity. Pressler must report to prison May 16.
Pressler used his apartment as a laboratory for mixing dried plants and herbs with the XLR11, and used the U.S. Postal Service to ship the synthetic marijuana across the country - cash on delivery, according to court records. He used websites, including "bobsbud" and "bobswackytobacky," to take orders for the substance and conducted the transactions under the business name, Ninja Foot LLC, which had a Birmingham post office box.
Although Pressler's websites noted that the product was not for human consumption, the government introduced e-mails during Wednesday's hearing that showed he knowingly sold the Spice for smoking as synthetic marijuana.
On the websites, Pressler presented the synthetic marijuana as "herbal incense" and also advertised and sold 5FUR144 -- the XLR11 controlled substance -- in bulk as a "research chemical," according to his plea agreement with the government. Prices for 5FUR144 were listed on one site in a range from $50 for five grams to more than $5,000 per kilogram.
Among mail Pressler received at his apartment in 2012 and 2013 were several large packages from China with shipping labels indicating they contained various chemicals, and some listed weights of at least three kilograms, or nearly seven pounds, according to his plea agreement. The agreement also noted that China is a known source for purchase of chemicals used in the production of synthetic marijuana.
Postal inspectors found COD records for Pressler and Ninja Foot between December 2012 and June 2013 that totaled more than $100,000, according to court records.
A second Birmingham man, Seth Alexander Batten, 30, also pleaded guilty in December to the conspiracy to manufacture and distribute XLR11. Batten worked with Pressler to manufacture and ship synthetic marijuana, according to Pressler's plea agreement. Batten is scheduled for sentencing April 23.
The U.S. Postal Inspection Service, along with the Alabama Alcohol Beverage Control Board's state narcotics team, and the Birmingham Police Department, investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
Bangor Man Sentenced to 18 Years as an Armed Career CriminalRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lauren
MacArthur, 29, of Bangor, was sentenced today in U.S. District Court in Bangor to 18 years in
prison and five years of supervised release for possessing stolen firearms. Because the defendant
possessed the firearms after having been convicted of at least three violent felonies, he was
sentenced as an Armed Career Criminal under federal law and faced a mandatory minimum
prison term of 15 years. He pleaded guilty to a two-count indictment on November 26, 2012.Court records reveal that on the evening of January 20, 2012, a Maine State Police
trooper was traveling southbound on I-95 in Old Town. He drove up behind a grey sedan and
noticed that the license plate was covered with dirt and difficult to read. When the trooper
activated his emergency lights, the defendant accelerated away at a high rate of speed, passing
several vehicles. The trooper activated his siren and a prolonged chase followed during which
the defendant drove at speeds of up to 90 miles per hour, ran red traffic lights, and crossed
intersections at high rates of speed. At one point, the defendant crossed over an oncoming lane
of traffic and drove into a bridge guardrail. The vehicle returned to its proper travel lane and the
chase continued for a short distance before the trooper was able to ram it off the road. The
defendant fled, but the trooper caught and arrested him. Law enforcement officers recovered two
loaded rifles that the defendant had thrown from the vehicle during the chase. Their
investigation showed that the defendant had stolen those firearms on the day of the chase from a
home in Medway.
The investigation was conducted by the Maine State Police, the Penobscot County
Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.BGF Associate Sentenced to over 11 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
BGF Associate Arranged for Correctional Officers to Smuggle Contraband into the Jail,
Which He Sold to Other Inmates, Including BGF MembersBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jermaine McFadden, age 25, today to 140 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, McFadden was associated with BGF while incarcerated at BCDC in 2012 to 2013. McFadden arranged with correctional officer Katera Stevenson and another officer for Percocets, cell phones, tobacco, marijuana and other contraband to be brought into BCDC, which he sold to BGF members and other inmates.
Eleven correctional officers, including Katera Stevenson, age 25, have pleaded guilty to their roles in the conspiracy, and three have been sentenced to between 32 and 42 months in prison. Three BGF members have pleaded guilty to the racketeering enterprise and two of them were sentenced to between nine years and 151 months in prison.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Archie Man Pleads Guilty to $109,000 Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Archie, Mo., man pleaded guilty in federal court today to stealing government funds by working full time while he received more than $109,000 in Social Security disability payments.
Michael Burt, 39, of Archie, pleaded guilty before U.S. District Judge Gary A. Fenner to the theft of government money.
According to today’s plea agreement, Burt was approved to receive Social Security disability payments in December 2002 due to back disorders. Burt was deemed to be medically disabled and unable to work at a substantial gainful activity level as a result of his disability.
In July 2004, however, Burt began working full time for Two Bit Training in Overland Park, Kan., which provides horse riding lessons, hunter/jumper training and horse show assistance to its patrons. Between July 2004 and sometime in 2007, Burt worked at a substantial gainful activity level at Two Bit Training doing all sorts of manual labor, including cleaning stalls and looking after the horses. He failed to report his work activity to the Social Security Administration because he knew his work activity would impact his eligibility to receive disability payments. In fact, Burt concealed his work activity by falsely telling the Social Security Administration that he was not working.
Burt also had two minor children who were eligible to receive Social Security auxiliary benefits contingent on his eligibility to receive payments. Due to the fact that Burt was not eligible to receive disability payments, his minor children were also not eligible to receive the auxiliary payments they received. Burt also received a one-time $250 economic stimulus payment under the American Recovery and Reinvestment Act of 2009 that he was not entitled to receive.
As a result of Burt’s intentional concealment of his work activity as part of a scheme to fraudulently obtain Social Security disability payments, the total fraud loss incurred by Burt’s theft is $109,142. Under the terms of today’s plea agreement, Burt must make full restitution to the Social Security Administration.
Under federal statutes, Burt is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General, Office of Investigations.
63 Individuals Indicted for Drug Trafficking in the Municipality of PonceRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 63 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, DEA 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, the Puerto Rico Bureau of Special Investigations and the Department of Corrections and Rehabilitation.
The indictment, handed down March 6, 2014 by a federal grand jury and unsealed in federal court today, charges 63 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the La Ceiba Public Housing Project and other areas nearby in the Municipality of Ponce, Puerto Rico, all for significant financial gain and profit.
The indictment alleges that beginning in 2003, the organization operated several drug points located within La Ceiba 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. The leaders would supply the firearms to their coconspirators.The 63 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: two leaders; four drug point owners; six enforcers; five administrators; 12 runners; 26 sellers; and 11 facilitators. All defendants are facing a forfeiture allegation of ten million dollars.
It was further part of the manner and means of the conspiracy that facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project. At times, taxi cabs would be used to transport organization members, narcotics and firearms to and from the La Ceiba Public Housing Project.
As part of the manner and means of the conspiracy: armed individuals that were not residents of La Ceiba were brought into La Ceiba by the leaders, administrators and drug point owners to provide security and protection from rival gangs.
“Violent drug trafficking gangs should know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“DEA and the Police of Puerto Rico again join forces in support of the US Attorney’s Office Violent Crime Initiative to help eradicate violent drug trafficking organizations intimidating and affecting the quality of life of the law abiding citizens of the City of Ponce,” said Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA), DEA Caribbean Division. “Our joint efforts with the Police of Puerto Rico Strike Forces and the U.S. Attorney’s Office will continue across the Island as we continue bringing to justice other violent drug trafficking organizations regardless in what part of the island they operate.”
Assistant U.S. Attorney Teresa Zapata 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.
4 Charged with Sex Trafficking of MinorsRead the Press Release
HOUSTON – Emanuel Dandre Wade, 24, has been indicted along with Charmaine Henderson, 25, Ashley Shawntal Williams, 21, and Darquesha Perry, 26, for conspiracy to commit sex trafficking of minors, announced United States Attorney Kenneth Magidson. Henderson and Wade are also charged with one and five counts of sex trafficking of minors, respectively.
The six-count indictment, returned under seal March 4, 2014, was unsealed in its entirety upon the arrest of Williams today. She is expected to make her initial appearance before U.S. Magistrate Judge Stephen Smith at 10:00 a.m. or 2:00 p.m., at which time the government expects to request her detention pending further criminal proceedings.
Henderson has been in state custody on charges stemming from this investigation and will make her initial appearance on the federal charges today at 10:00 a.m.
Wade will also appear on these charges today at 10:00 a.m. He was taken into custody Feb. 10, 2014, upon the filing of a criminal complaint and appeared for a detention hearing two days later. At that time, U.S. Magistrate Judge George Hanks found probable cause that Wade committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk. He was ordered into custody pending further criminal proceedings.
Perry was taken into custody March 6 and was released upon posting bond, but will have to wear an electronic monitor and abide by several conditions including having no unsupervised contact with minors.
The criminal complaint, filed Feb. 10, 2014, alleges the girls were forced to prostitute for Wade and were severely beaten in some instances.
According to that complaint, Williams supplied a vehicle in which Wade transported several minor victims to dates where the girls participated in commercial sex acts. Williams often transported the girls herself, according to the allegations. In one instance, after one of the victims had left, Williams allegedly lured her out and transported her back to Wade who then beat her to the point that she needed medical attention, according to the charges.
The complaint further alleges Perry transported a minor victim to Wade on many occasions when the minor victim was caused to participate in commercial sex acts and Perry participated in commercial sex acts herself.
All four defendants face up to life in federal prison for the conspiracy charge, upon conviction. For sex trafficking of minors, Henderson and Wade also face a minimum of 10 years and up to life imprisonment on each count of conviction. All charges also carry as possible punishment a fine of up to $250,000.
The Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office, investigated this case. Assistant United States Attorney Sherri L. Zack is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Tuesday 11 March 2014
Waterloo Convenience Store Manager Charged with Selling Synthetic Drug Known as "Bath Salts"Read the Press Release
Earl James Ramos, age 26, from Waterloo, Iowa, has been charged with distributing a synthetic drug called pentedrone. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about October 2 and October 8, 2012, Ramos distributed pentedrone to another person at the convenience store in Waterloo where Ramos worked as manager. The Complaint alleges that pentedrone is in the class of substances commonly referred to as “bath salts,” and is a form of synthetic methcathinone.If convicted, Ramos faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and life years of supervised release following any imprisonment.
Ramos appeared today in federal court in Cedar Rapids and was released on bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force; the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services; the Federal Bureau of Investigation; the Department of Homeland Security; and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 1:14-mj-00057-JSS.
Waco Family Charged in Federal Grand Jury IndictmentRead the Press Release
Three Waco family members face federal drug distribution charges announced United States Attorney Robert Pitman.
A federal grand jury indictment, returned today in Waco, charges 58–year-old Phillip Larry Koss, his wife, 60-year-old Le’Ann Koss and his son, 26-year-old Conner Phillip Koss with one count conspiracy to possess with intent to distribute marijuana and one substantive count of aiding and abetting the possession with intent to distribute marijuana.
The indictment alleges that from October 2010 until November 2013, the defendants conspired to possess over 50 kilograms of marijuana.
On November 29, 2013, authorities executed a search warrant at the Koss’ residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and some $27,000 in U.S. Currency. Court records allege that the defendants obtain high grade marijuana from the State of California and arrange for it to be transported to their Waco residence for distribution. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation.
Upon conviction, each charge calls for up to 20 years in federal prison. The defendants, who are in custody at this time, are scheduled to have an Initial Appearance in Waco at 2:00pm on March 20, 2014, before United States Magistrate Judge Jeffrey C. Manske.
This investigation is being conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Vian Man Pleads Guilty to Maintaining Drug Involved Premises for Manufacture, Distribution and Use of MethamphetamineRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMI STALEY, a.k.a. "KOUNTRY", age 31, of Vian, Oklahoma, pled guilty to Maintaining Drug Involved Premises, in violation of Title 21, United States Code, Section 856.
The charges are a result of an investigation by the Sallisaw Police Department, the Bureau of Indian Affairs and the Drug Enforcement Administration. The defendant was indicted in August, 2013.
The Indictment alleged that during the period of on or about August 1, 2012 to on or about present date, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally maintain a place at 307 Dennis St., Vian, Oklahoma, for the purpose of distributing, manufacturing and using methamphetamine, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment, and/or up to a $500,000 fine.
Assistant United States Attorney Kyle Waters represented the United States.
U.k. Resident Sentenced to 16 Years in Prison for Travelling to Ohio to Have Sex with A JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom in order to have sexual relations with a juvenile in June 2011.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding today before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England on Jan. 12, 2012.
A federal grand jury indicted Castle on February 15, 2012 and Castle pleaded guilty on October 3, 2013 to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a juvenile to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the juvenile and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same juvenile.
“Threats against our children can come from any corner of the globe,” U.S. Attorney Stewart said. “We must become partners with law enforcement agencies around the world in order to fight child exploitation effectively.”
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, and the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
“This case is a disturbing reminder that international borders are no longer a hindrance for child predators,” said Miller. “However, today’s significant sentencing should assure victims around the world that HSI and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung Claire Park of the Criminal Division’s Child Exploitation and Obscenity Section.
U.S. Attorneys Booth Goodwin and Bill Ihlenfeld to Honor High School Students Selected as Ambassadors for Justice TomorrowRead the Press Release
CHARLESTON, W.Va. – United States Attorneys Booth Goodwin, Southern District of West Virginia, and Bill Ihlenfeld, Northern District of West Virginia, will host a special recognition event honoring more than 60 high school students from across the state who have been selected as United States Attorney’s Ambassadors for Justice on WEDNESDAY, MARCH 12, 2014 at 1:00 p.m. at The Culture Center, State Capitol, in Charleston. The U.S. Attorney’s Ambassador for Justice program is an initiative which honors West Virginia high school juniors who have shown outstanding character, devotion to citizenship, and a commitment to serving others.
U.S. Attorney’s Ambassador for Justice Ceremony
WHO: R. Booth Goodwin II, United States Attorney, Southern District of West Virginia
Bill Ihlenfeld, United States Attorney, Northern District of West Virginia
High School Student NomineesWHERE: The Culture Center
State Capitol, Charleston, WVWHEN: Wednesday, March 12, 2014 at 1:00 pm
U.K. Resident Sentenced to 16 Years in Prison for <br /> Travelling to Ohio to Have Sex with a MinorRead the Press Release
Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom to have illicit sexual activity with a minor in June 2011.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England, on Jan. 12, 2012.
A federal grand jury indicted Castle on Feb. 15, 2012, and Castle pleaded guilty on Oct. 3, 2013, to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a minor to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the minor and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same minor.
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung C. Park of the Criminal Division’s Child Exploitation and Obscenity Section.Two Real Estate Investors Convicted for Roles in Bid-Rigging Conspiracy in San Joaquin County, Calif. Real Estate Foreclosure AuctionsRead the Press Release
WASHINGTON — Following a four-week trial, a federal jury today convicted two real estate investors for conspiring to rig bids at public real estate foreclosure auctions held in San Joaquin County, Calif. One of the investors was also convicted of obstruction of justice for destroying evidence related to the crimes.
Andrew B. Katakis and Donald M. Parker were found guilty in the U.S. District Court for the Eastern District of California, of conspiring to rig bids at real estate foreclosure auctions held in San Joaquin County from at least September 2008 until at least October 2009. Katakis was also found guilty of obstruction of justice for deleting electronic records related to the conspiracy.
Katakis was the owner of California Equity Management Group Inc. and managing partner of Lenders Financial Group LLC, both real estate investing companies based in Modesto, Calif. Parker owned and worked for several real estate investing companies based in and around Sacramento and Stockton, Calif.
“Today’s convictions send a clear signal that conspirators who illegally seek to line their pockets at the expense of distressed homeowners will be held accountable for their crimes,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners are committed to vigorously prosecuting the perpetrators of anticompetitive schemes.”
“The depressed real estate market in the Central Valley provided opportunities for fraud, including bid-rigging at foreclosure auctions,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “The Antitrust Division has done great work in partnering with this office to attack this aspect of mortgage fraud.”
According to the evidence presented at trial, Katakis, Parker and co-conspirators agreed to suppress and restrain competition by rigging bids to obtain selected properties offered at public auctions in San Joaquin County. The bid-rigging conspiracy lasted from at least September 2008 until at least October 2009. The government also offered evidence that in September 2010, Katakis deleted electronic records related to the conspiracy after he received a letter notifying him that a federal grand jury had subpoenaed his bank account.
Evidence showed that after the conspirators’ designated bidder bought a property at a public auction, they would hold a second, private auction, at which each participating conspirator would bid the amount above the public auction price he or she was willing to pay. The conspirator who bid the highest amount at the end of the private auction won the property. The difference between the price at the public auction and that at the second auction was the group’s illicit profit, and it was divided among the conspirators in payoffs.
Also today, the jury could not reach a verdict on a count of mail fraud against Katakis and Parker. The jury also found W. Theodore Longley, an auctioneer who worked on behalf of various trustee companies to sell foreclosed houses at public auctions in San Joaquin County, not guilty on both counts.
Katakis and Parker were convicted of bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The obstruction of justice conviction carries a maximum sentence of 20 years in prison and a $250,000 fine.
In addition to today’s convictions, 11 individuals have pleaded guilty in U.S. District Court for the Eastern District of California in connection with the investigation. They are: Anthony B. Ghio; John R. Vanzetti; Theodore B. Hutz; Richard W. Northcutt; Yama Marifat; Gregory L. Jackson; Walter Daniel Olmstead; Robert Rose; Kenneth A. Swanger; Wiley Chandler; and Anthony B. Joachim.
These convictions arose from an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division, and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
The charges in this indictment were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 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, please visit www.StopFraud.gov.
Two Northern California Real Estate Investors Charged with Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors pleaded guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed on June 30, 2011, in the U.S. District Court for the Northern District of California in Oakland, against Grant Alvernaz, of Pleasant Hill, Calif., and Douglas Moore, of Walnut Creek, Calif. Alvernaz pleaded guilty to the charges on Sept. 7, 2011. Moore pleaded guilty to the charges on Aug. 24, 2011. The charges and the guilty pleas were unsealed yesterday. Including Alvernaz and Moore, a total of 46 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Alvernaz and Moore conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa and Alameda counties, Calif. Alvernaz and Moore were also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Contra Costa and Alameda County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Alvernaz and Moore pleaded guilty to participating in the conspiracies in Contra Costa County beginning as early as February 2009 and continuing until in or about December 2010 and in Alameda County from as early as March 2009 and continuing until about November 2010.
“The integrity of real estate foreclosure markets depends on open and honest competition, which the perpetrators of these collusive schemes undermined,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “The division will continue to pursue those who illegally enrich themselves at the expense of lenders and financially distressed homeowners.”
The department stated that the primary purpose of the conspiracies was to suppress and restrain competition in order to obtain selected real estate offered at Contra Costa and Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties and, in some cases, the defaulting homeowner.
“The unsealed court documents narrate the criminal actions taken as part of this real estate bid-rigging conspiracy in northern California,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The public should consider this an example of how a competitive marketplace can be taken advantage of by those who are shortsighted by greed.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s cases were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 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, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Two Men Arrested in Buncombe Co. Face Drug Trafficking Charges Following 1,400 Lbs. Marijuana SeizureRead the Press Release
ASHEVILLE, N.C. – Jose Chavez and Ely Ramirez-Sanchez were arrested on Friday, March 7, 2014 in Buncombe County and face drug trafficking charges in connection with the seizure of approximately 1,400 pounds of marijuana, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
A criminal complaint filed today in U.S. District Court in Asheville charges Jose Chavez, 31, of Candler, N.C. and Ely Ramirez-Sanchez, 28, of Canton, N.C. with one count of possession with intent to distribute 100 kilograms or more of marijuana.
According to court records and allegations contained in filed court documents:
Law enforcement officers were alerted to the pair’s drug trafficking activities in connection with a drug trafficking investigation conducted by the U.S. Drug Enforcement Administration (DEA) and its task force members. On Friday, March 7, 2014, law enforcement conducted a traffic stop of Ramirez-Sanchez’s vehicle and seized approximately 40 pounds of marijuana contained in a cardboard box located on the back seat of the car. Later that day, while executing a search warrant at Chavez’s mobile home residence, law enforcement seized two large black trash bags filled with marijuana, three digital scales, plastic wrapping material, and a handgun with an obliterated serial number. Law enforcement also seized 15 cardboard boxes containing 23 blocks of marijuana from a pull-behind box trailer, and 27 cardboard boxes containing 111 blocks of marijuana stored in a small rental truck, both located on the property. The total weight of marijuana seized from Chavez’s residence was approximately 1,400 pounds, with an estimated street value between $840,000 and $1,820,000.
The defendants are currently in federal custody and will be arraigned on the federal charges on Wednesday, March 12, 2014, in Asheville before U.S. Magistrate Judge Dennis L. Howell. The possession with intent to distribute charge carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $10,000,000 fine.
The charges contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Tompkins credited the DEA under the direction of Special Agent in Charge Harry S. Sommers and the DEA task force members for their work leading to the arrests and drug seizures. The DEA task force is made up of local law enforcement agencies, including the Asheville Police Department, the McDowell County Sheriff’s Office, the Buncombe County Sheriff’s Office, the Henderson County Sheriff’s Office, the Transylvania County Sheriff’s Office, and the Bureau of Indian Affairs, all of which provided assistance in the investigation of this case.
U.S. Attorney Tompkins also thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brock D. Nicholson, the North Carolina State Highway Patrol, under the direction of Colonel William J. Grey, and the North Carolina Alcohol Law Enforcement under the direction of Director B.W. Collier for their invaluable assistance in this investigation.
The government is represented by Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville.
Two Defendants Sentenced in Greece Triple MurderRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard Anderson and Aston Johnson were each sentenced to four consecutive life terms plus five years by U.S. District Judge Charles J. Siragusa for participating in a large, multistate marijuana distribution conspiracy and murdering three men in furtherance of that conspiracy in the Town of Greece in March, 2010. A third defendant, Andrew Wright, will be sentenced on April 24, 2014.
“While nothing can bring back the lives of the victims, the multiple life sentences handed down today will ensure that the defendants who murdered them will never again walk the streets of this or any other community,” said U.S. Attorney Hochul. “This Office, working with our law enforcement partners at all levels, will continue to pursue members of other violent criminal organizations with the same vigor until each is brought to justice.”
In December, 2013, a jury convicted Anderson, Johnson and Wright of murdering Robert Moncriffe, Mark Wisdom and Christopher Green in Greece on March 9, 2010. The evidence presented by the Government at trial established that in the days prior to March 9, the defendants traveled to Rochester from Phoenix, Arizona and planned the murders. The evidence also showed that Anderson, Johnson and Wright targeted the victims because they believed Moncriffe, Wisdom and Green were cheating them out of proceeds from the sale of marijuana. The defendants went to the apartment in Greece where the three victims lived. They bound and gagged Christopher Green and waited for Moncriffe and Wisdom to arrive home. Once they arrived, the defendants shot the victims to death at the same time.
In addition to sentencing the defendants to prison, Judge Siragusa also imposed a $1,000,000 forfeiture judgment against defendants Anderson and Johnson as well as the forfeiture of three guns seized at the house in Phoenix, Arizona.
The sentences are the result of an investigation conducted by the Greece Police Department under the direction of Chief Todd Baxter; the Federal Bureau of Investigation; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief Michael Ciminelli; the U.S. Marshal’s Service under the direction of Marshal Charles Salina; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff’s Department, under the direction Sheriff Patrick O’Flynn; the Monroe County Crime Analysis Center; the United States Postal Inspection Service, under the direction of Raymond Williams; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff’s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.Truth or Consequences Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Michael Capps, 52, of Truth or Consequences, N.M., pled guilty this morning in federal court in Las Cruces, N.M.to a felony information charging him with being a felon in possession of a firearm. The guilty plea was entered without the benefit of a plea agreement.
Michael Capps and his wife, Roberta Capps, 53, were arrested on May 21, 2013, on criminal complaints alleging that they unlawfully distributed quantities of Oxycodone and Oxymorphone to a DEA confidential source on three occasions between Dec. 10, 2012 and Jan. 15, 2013. On June 19, 2013, the couple was charged in a five-count indictment with one count of conspiracy and three counts of distribution of Oxycodone. The fifth count charged Michael Capps with being a felon in possession of a firearm.
According to the indictment, Roberta Capps and Michael Capps conspired to distribute Oxycodone and unlawfully distributed Oxycodone on three separate occasions on Dec. 10, 2012, Dec. 18, 2012 and Jan. 15, 2013, in Sierra County, N.M. Court filings reflect that the couple sold the Oxycodone to an individual who unbeknownst to them was a confidential source for the DEA and that Roberta Capps admitted knowing that it was illegal to sell prescription medications to others during a recorded conversation with the source.
The indictment also alleges that on May 21, 2013, the date of his arrest in this case, Michael Capps unlawfully possessed a firearm and ammunition. At the time, Capps was prohibited from possessing firearms or ammunition because he previously had been convicted of first degree burglary.
Today, Michael Capps entered a guilty plea to being a felon in possession of a firearm and ammunition. At sentencing, Capps faces a maximum penalty of ten years in prison. His sentencing hearing has yet to be scheduled.
Roberta Capps previously entered guilty pleas to Counts 1 through 4 of the indictment charging her with conspiracy and distribution of Oxycodone on Jan. 7, 2014. At sentencing, she faces a maximum penalty of 20 years in prison. Her sentencing hearing also has not yet been scheduled.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Police Department and is being prosecuted by Assistant U.S. Attorney Amanda L. Gould of the U.S. Attorney’s Las Cruces Branch Office.
Thoreau Man Sentenced to Twenty-Four Months for Unlawful Possession of Unregistered Sawed-Off ShotgunRead the Press Release
ALBUQUERQUE – Joe Herrera, Jr., 44, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., was sentenced this morning to 24 months in federal prison followed by two years of supervised release for unlawfully possessing a sawed-off shotgun that was not registered to him.
Herrera was indicted in Feb. 2013, on the charge to which he pleaded guilty this morning. According to the indictment, Herrera unlawfully possessed the unregistered sawed off shotgun on Aug. 16, 2011, in McKinley County, N.M. Herrera admitted committing the offense when he entered his guilty plea on July 11, 2013.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Third Defendant Pleads Guilty to Racially-Motivated Assault on White Man and African-American Woman in CaliforniaRead the Press Release
Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.
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, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson 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.
“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”
“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”
Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Third Defendant Pleads Guilty to Racially Motivated Assault on White Man and African-American Woman in MarysvilleRead the Press Release
WASHINGTON – Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.
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, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson 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.
“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”
“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”
Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.