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28 April 2014
Wichita Man Pleads Guilty to Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Monday to robbing a local bank, U.S. Attorney Barry Grissom said.
John Lee Cline, 49, Halstead, Kan., pleaded guilty to one count of bank robbery. At the hearing, prosecutors told the judge that on Jan. 21, 2014, Cline robbed the Intrust Bank located in the Dillon’s store at 3932 West 13th in Wichita. He handed the teller a note that read: “All of the $ out of your drawr (sic), no questions asked no dye paks (sic) everyone will be fine!!! No alarms!” He left the bank in a maroon, four-door car.
He was arrested several days later after he was identified from bank surveillance photos.
Sentencing is set for July 14. He faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. Grissom commended the FBI, the Harvey County Sheriff’s Office and Assistant U.S. Attorney David Lind for their work on the case.Vale Man Charged with Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Vale, South Dakota, man has been charged with a federal offense of Unlawful Taking of Migratory Birds and Lacey Act Violations by an Information filed on April 11, 2014.
Glen V. Schummer, age 68, appeared before U.S. Magistrate Judge Veronica L. Duffy on April 22, 2014, and pled not guilty to the charge.
The maximum penalty upon conviction is one year of imprisonment and/or a $100,000 fine, one year of supervised release and an additional year of supervised release upon revocation, and up to a $35 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that Schummer, between February 13, 2013, and February 13, 2014, knowingly hunted, killed, transported, received and acquired wildlife, specifically hawks and owls, when Schummer knew the protected birds were taken, possessed, and transported in a manner unlawful under the law and regulations of the United States.
The charges are merely accusations and Schummer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Schummer was released on bond pending trial, which has been set for July 1, 2014.
US Marshals Arrest Fugitive in FairfieldRead the Press Release
SACRAMENTO, Calif. — U.S. Marshals arrested a woman who has been a fugitive since she missed her sentencing date in October 2011, United States Attorney Benjamin B. Wagner and United States Marshal Albert Nàjera announced.
Niesha Nicole Jackson, 34, was featured on CNBC’s program “American Greed: The Fugitives” and labeled as the “Bank Robbing Babe. After receiving information that Jackson was in Fairfield, the Pacific Southwest Regional Fugitive Task Force, composed of U.S. Marshals and state and local agencies, set up surveillance and arrested her at a hotel. When she was arrested, she had in her possession a T-shirt with “BR Babe” printed on it.
According to court documents, Jackson was part of a bank fraud scheme that netted between one to two million dollars in losses to 37 banks in 2007 and 2008. The organizers, operating from California, sent runners to Alabama, Arizona, Illinois, Indiana, Montana, New Mexico, Ohio, Oklahoma, and Texas to use “pre-paid” credit cards at banks for cash advances. Although the cards only had small amounts of money available, the runners would tell the bank tellers to call a toll-free number that was controlled by Jackson or another co-conspirator. Jackson, posing as a card services representative, would mislead the bank employee into believing that there were thousands of dollars available on the card, and then would instruct the teller what buttons to press on the card terminal in order to make the transaction go through. After receiving the cash, the runner would keep a portion and the rest of the fraudulently obtained funds would go to the organizers in the Sacramento area.
On July 30, 2009, a federal jury indicted Jackson, charging her with one count of conspiracy to commit bank fraud and one count of bank fraud. She pleaded guilty in March 2010, but then failed to appear at her sentencing and a warrant was issued for her arrest. She is scheduled to appear in Sacramento today at 2:00 p.m. before U.S. Magistrate Judge Carolyn K. Delaney.
This case is the product of an investigation by the U.S. Secret Service with assistance from police and sheriff’s departments in several states. Seven defendants have been sentenced in the conspiracy. Assistant United States Attorney Matthew D. Segal is prosecuting the case.
U.S. Attorney Barry Grissom to Speak to NAACP at Hutchinson Community CollegeRead the Press Release
THUTCHINSON, KAN. U.S. Attorney Barry Grissom will speak at the NAACP’s Law Day event on Thursday, May 1, at Hutchinson Community College.
Grissom’s speech will be titled, “Law Enforcement, Equal Justice and Equal Opportunity.” The presentation will begin at 6:45 p.m. on May 1 in the Shears Technology Center on the Hutchinson Community College campus.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
U.S. Attorney Barry Grissom to Speak to Bar Association in El DoradoRead the Press Release
EL DORADO, KAN. U.S. Attorney Barry Grissom will speak to the Butler County Bar Association on Friday, May 2, at Butler Community College.
Grissom’s speech will be titled, “Law Enforcement, Equal Justice and Equal Opportunity.” The presentation will begin at noon at the Hubbard Welcome Center, Building 2000, 901 S. Haverhill in El Dorado on the Butler Community College Campus.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.Two University of Houston Professors IndictedRead the Press Release
HOUSTON – Two professors at the University of Houston have been charged with making false statements and wire fraud in connection obtaining federal funds for research grants, announced United States Attorney Kenneth Magidson.
Abdelhak Bensaoula, Ph.D., 57, and David Starikov, Ph.D, 58, both of Houston, surrendered to federal authorities this morning. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m.
The 29-count indictment, returned April 24, 2014, alleges one count of conspiracy, seven counts of making false statements and 21 counts of wire fraud, all in connection with the Small Business Innovation Research (SBIR) program.
According to the indictment, both defendants are professors in the Physics Department at the University of Houston and are affiliated with The Nitride Group. They allegedly started a small business known as Integrated Micro Sensors Inc. (IMS) which applied for and received SBIR grants or contracts from NASA, National Science Foundation, Department of Energy and the United States Air Force.
The indictment further alleges Bensaoula and Starikov made false statements in the application and proposal process and in filing electronic claims for payment after they were awarded grants or contracts. On behalf of IMS, they both allegedly used false and fraudulent letters of support and made false representations with regards to facilities, equipment and materials. Additionally, the indictment alleges the defendants stated in proposals that IMS would pay a required subcontract fee to the University of Houston, which it failed to pay on four of five contracts. Bensaoula and Starikov, through IMS, also allegedly applied for and received at least 25 SBIR grants between 2000 and 2013. From 2008 through 2013, the defendants and IMS allegedly received at least five SBIR contracts for approximately $1.3 million.
The defendants allegedly attempted to hide their scheme from detection from the government and university officials.
If convicted of the conspiracy, both face up to a five-year prison term as well as another five years upon each conviction of making false statements. For the wire fraud charges, the defendants face up to 20 years for each conviction. All charges also carry as possible punishment a $250,000 fine.
The investigation of this case has been conducted by the NASA - Office of Inspector General, National Science Foundation, U.S. Department of Energy, U.S. Air Force, Defense Criminal Investigative Service and the Defense Contract Audit Agency with the assistance and cooperation of the University of Houston. Assistant United States Attorney Cedric L. Joubert is prosecuting.
Topeka Man Sentenced for Making Pipe BombRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to a year and a day for making a bomb, U.S. Attorney Barry Grissom said.
Joseph E. Rogers, 36, Topeka, Kan., pleaded guilty to one count of making a destructive device. In his plea, he admitted that on Nov. 12, 2012, officers of the Topeka Police Department stopped him and co-defendant Kyle C. Roe. Roe was immediately taken into custody on an active felony warrant. Roe told police that he had a bomb in his pocket.
When Rogers was interviewed, he told investigators that he had constructed explosive devices for the entertainment value. Rogers talked about using PVC pipe, wrapped in tape and filled with smokeless powder removed from ammunition.
Co-defendant Kyle C. Roe was sentenced to 33 months in federal prison.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Title Company Manager Sentenced to over 4 Years in Prison for $4.8 Million Mortgage Fraud SchemeRead the Press Release
Five Co-Conspirators Previously Pleaded Guilty
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland, on April 25, 2014, to 51 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million. Judge Bredar also ordered Kreamer to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million.
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; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.
In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.
Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.
Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Demetrius Peete, age 46, of Manassas, Virginia each previously pleaded guilty to their roles in the fraud and are scheduled to be sentenced on May 1, May 2, and May 7, respectively. Gregory Green, age 49, of Waldorf, Maryland, also pleaded guilty and was sentenced to three months in prison and ordered to pay restitution of $404,596. A fifth conspirator, Emeka Udeze, age 38, of Bowie, Maryland, also pleaded guilty and is awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Three Leaders of Citytime Fraud Scheme Each Sentenced in Manhattan Federal Court to 20 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the leaders of the fraud, kickback, and money laundering scheme targeting the City of New York’s (the “City’s”) CityTime information technology project, were sentenced today in Manhattan federal court and ordered to forfeit millions of dollars in cash and property. MARK MAZER, who managed the CityTime project for the City and who was convicted of defrauding the City, receiving kickbacks while managing the project for the City, and laundering the proceeds of his crimes, was sentenced to 20 years in prison. GERARD DENAULT, who managed the project on behalf of the prime contractor on the project, Science Applications International Corporation (“SAIC”), and who was convicted of defrauding the City, defrauding SAIC of its right to DENAULT’s honest services, and laundering the proceeds of his crimes, was sentenced to 20 years in prison. DIMITRY ARONSHTEIN, who managed a subcontractor on the project and who was convicted of paying kickbacks to MAZER and working with MAZER to launder crime proceeds, was sentenced to 20 years in prison. MAZER, DENAULT, and ARONSHTEIN were sentenced today by U.S. District Judge George B. Daniels, who also presided over the defendants’ six-week jury trial in the fall of 2013. Judge Daniels also ordered that the defendants forfeit over $40 million in cash and property tied to their crimes.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentences punctuate an epic scheme by Mark Mazer, Gerard Denault, Dimitry Aronshtein, and others to steal millions of dollars through kickbacks and fraud from the City of New York, and then squirrel away the proceeds. These defendants are being justly punished – through lengthy sentences and forfeiture of over $40 million in cash and property – for orchestrating one of the largest and most brazen frauds ever committed against the City. This Office’s CityTime prosecutions have held accountable culpable individuals, as well as SAIC, the contractor at the center of the scheme, and through penalties and restitution of over $550 million, has made the City economically whole.”
According to the evidence introduced at trial, public filings, and statements made in court:
The CityTime project was a City initiative to modernize its timekeeping and payroll systems across City agencies. In 2000, SAIC became the lead contractor on CityTime, which at the time had a contract value of approximately $73 million. In 2003, SAIC appointed DENAULT as Program Manager on CityTime. DENAULT later became a Vice President of SAIC and head of SAIC’s New York office. SAIC, at the behest of DENAULT, hired Technodyne LLC (“Technodyne”) as a “single source” subcontractor to provide staffing services on the CityTime project, and repeatedly renewed Technodyne’s “single source” arrangement on the project.
Technodyne’s principals, Reddy Allen and Padma Allen, agreed to pay kickbacks to DENAULT and others in connection with the CityTime project, in exchange for obtaining what ultimately became over $325 million in work on CityTime as an SAIC subcontractor. In 2004, MAZER began managing the CityTime project for the City. Soon thereafter, he arranged with DENAULT for a company controlled by ARONSHTEIN, who is MAZER’s uncle, to become a subcontractor to Technodyne. MAZER used his power on the project to steer over $65 million in business to ARONSHTEIN’s company, and another $23 million in business to a company controlled by Victor Natanzon. In exchange for the business, ARONSHTEIN and Natanzon paid MAZER over $30 million in kickbacks, representing 80% of their net profits on the project. DENAULT received a $5 kickback from Reddy Allen and Padma Allen for every hour Technodyne billed to the City for labor. He also received an additional $2 per hour billed by ARONSHTEIN and Natanzon, resulting in total kickbacks to DENAULT of over $9 million.
Further, in order to maximize the amount of kickbacks they received, DENAULT and MAZER worked together to defraud the City into overpaying for the CityTime project by, among other things, inflating the rates charged for CityTime labor sourced through Technodyne, and overstaffing the project. MAZER also submitted fraudulent timesheets for consultants who had been fired or were on vacation. In part as a result of the fraud and kickback schemes, the costs of the CityTime project ballooned to over $620 million by the time the defendants were arrested in December 2010.
MAZER, DENAULT, and ARONSHTEIN also devised and carried out elaborate schemes to launder the proceeds of their crimes. DENAULT arranged for the kickbacks to be laundered through companies controlled by Padma Allen’s mother in India before being deposited into a shell entity account in the United States that he controlled. MAZER devised a scheme whereby ARONSHTEIN and Natanzon would launder money through shell company bank accounts controlled by Larisa Medzon, Anna Makovetskaya, and Svetlana Mazer. ARONSHTEIN also laundered millions of dollars through wire transfers to shell entity bank accounts located abroad and through other entities that he himself controlled.
In addition to the prison terms, MAZER, 50, of Manhasset, New York, ARONSHTEIN, 53, of Oceanside, New York, and DENAULT, 52, of Danbury, Connecticut, were each sentenced to three years of supervised release. The defendants were also ordered to forfeit $40 million.
These sentences follow a number of earlier developments in the case, including the guilty pleas of co-defendants Medzon, Makovetskaya, Svetlana Mazer, Carl Bell, and Natanzon; SAIC’s entry into a deferred prosecution agreement (“DPA”) in which it agreed to forfeit over $500 million to the United States; forfeiture of over $10 million in cash and property belonging to fugitive defendants Reddy Allen and Padma Allen; and payment of record restitution to the City of over $466 million, which, along with cancellation of $40 million in debt owed to SAIC, brings the total amount recovered for the City’s taxpayers as a result of the investigation and prosecution to over $500 million. The charges contained in the Indictment against Reddy and Padma Allen are merely accusations and they are presumed innocent unless and until proven guilty.
The sentencings of Medzon, Makovetskaya, and Svetlana Mazer are scheduled to take place before Judge Daniels on June 24, 2014 at 10:00 a.m. The sentencings of Natanzon and Bell have not yet been scheduled.
Mr. Bharara thanked and praised the New York City Department of Investigation (“DOI”) for its outstanding work on the case.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master and Andrew D. Goldstein are in charge of the investigation.
Tate and Merritt Indictment Sex Trafficking ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a Federal Grand Jury returned an indictment last week against JEREMIE J. TATE, of Zachary, Louisiana, and ROXANNE R. MERRITT, of Greenwell Springs, Louisiana, on sex trafficking charges, including conspiring to use interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 371, using interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 1952, and enticing another to travel interstate for prostitution, in violation of Title 18, United States Code, Section 2422(a).
TATE and MERRITT are both in custody. TATE was apprehended last Friday night by the U.S. Marshal’s Fugitive Task Force and the Federal Bureau of Investigation in Houston, Texas. TATE is expected to have an initial appearance today in the Southern District of Texas before being transferred to the Middle District of Louisiana for prosecution.
The indictment alleges that, from in or about November 2012 through in or about November 2013, TATE and MERRITT conspired together and with others to use interstate facilities, such as telephones and the internet, to promote and manage TATE’s prostitution business which involved multiple prostitutes, including a minor female. The indictment alleges further that TATE enticed a prostitute who worked for him to travel from Baton Rouge to Las Vegas to engage in prostitution. As part of his prostitution business, TATE allegedly used intimidation and manipulation to ensure that he received most of the proceeds earned by his prostitutes.
If convicted, TATE faces up to 50 years imprisonment, a $1,250,000 fine, forfeiture of the proceeds from his crimes and facilitating property, restitution, and up to 5 years of supervised release following a term of imprisonment. If convicted, MERRITT faces up to 15 years imprisonment, a $750,000 fine, restitution, and up to 3 years of supervised release following a term of imprisonment. TATE and MERRITT are currently in federal custody following their arrest.
U.S. Attorney Green stated: “Sex trafficking is one of the highest priorities of this office and the entire U.S. Department of Justice. We will continue to aggressively pursue such matters, along with our dedicated federal, state, and local partners and the Human Trafficking Task Force for the Middle District of Louisiana.”
This investigation is being conducted by the United States Attorney’s Office, the Federal Bureau of Investigation, Louisiana Attorney General’s Office, and the Louisiana State Police, with assistance from the East Baton Rouge Sherriff’s Office, Baton Rouge Police Department – Narcotics, the U.S. Marshal’s Office and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
NOTE: An Indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Springfield Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Daniel Gay, 42, of Burlington, Vermont, was sentenced on April 28, 2014, in United States District Court in Burlington, Vermont, to serve eighteen (18) months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve a five-year term of supervised release and to pay a $100 special assessment.
According to court records, law enforcement was conducting undercover operations on a file-sharing network, and discovered a computer later identified as belonging to Gay was offering to share image files depicting child pornography. Law enforcement seized Gay’s computer and other digital media pursuant to a search warrant on June 28, 2013, and discovered thousands of images and videos depicting child pornography.
United States Attorney Coffin commended the work of the Vermont Attorney General’s Office and the Vermont Internet Crimes Against Children Task Force. Gay was represented by Steven L. Barth of the Federal Public Defender’s Office. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Salina Man Sentenced on Federal Gun ChargeRead the Press Release
TOPEKA, KAN. A Salina man was sentenced Monday to 37 months in federal prison on a federal firearms charge, U.S. Attorney Barry Grissom said.
Kalun James Purucker, 22, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm. In his plea, he admitted that the Salina Police Department stopped a car in which he was a passenger on April 9, 2012. Police recovered a .380 caliber handgun and ammunition. At the time, Purucker was prohibited by federal law from possessing a firearm because of a prior felony conviction.
Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Sacramento Real Estate Professional Pleads Guilty to Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — Licensed real estate agent Manuel Herrera, 34, of Sacramento, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Herrera served as a loan officer and later a branch manager at Delta Homes and Lending Inc., a real estate and mortgage lending company. Between October 2004 and May 2007, Herrera and his co-defendants conspired to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. As part of the scheme, the defendants, including Herrera, provided money to borrowers in order to fraudulently inflate the borrowers’ assets and bank account balances. Once the defendants had secured the loans, the borrowers returned the money the defendants had provided for the scheme. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.
Herrera’s co-defendants, including Moctezuma Tovar, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, of Woodland, formerly a loan officer; and Christian Parada Renteria, of Sacramento, formerly a loan officer have a trial date of April 21, 2015. Herrera’s co-defendant Jun Michael Dirain pleaded guilty on February 3, 2014, and is currently scheduled to be sentenced on July 7, 2014.
Herrera is scheduled for a status conference concerning sentencing in front of Judge William B. Shubb on July 7, 2014. Herrera faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rosebud Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Chauncy Crow Dog, age 20, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 24, 2014, Crow Dog, having been charged with the offenses of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, did knowingly fail to appear for a pretrial conference on March 24 and a jury trial on March 25.
The charge is merely an accusation and Crow Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service, the Federal Bureau of Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Crow Dog was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Roger and Sherryanne Christie Sentenced to PrisonRead the Press Release
HONOLULU – Defendants Roger Cusick Christie, 64, and Sherryanne L. Christie, 62, husband and wife, were sentenced today by U.S. District Judge Leslie E. Kobayashi. Roger Christie was sentenced to 60 months imprisonment, to be followed by a term of supervised release of four years. Sherryanne Christie was sentenced to a 27 month imprisonment term, to be followed by a term of supervised release of three years.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Roger Christie had also asked the Court to permit him to possess and use marijuana for religious purposes during his term of supervised release, but the Court refused to do so, imposing the standard conditions of release on him, which prohibited the use or possession of controlled substances. In addition, while Roger Christie may participate in Ministry functions that do not involve the use or possession of controlled substances, the court also ordered that he was prohibited from associating with other persons who were using or possessing such drugs. A similar condition was imposed for Sherryanne Christie’s term of supervised release.
Last September, Roger Christie had pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 100 or more marijuana plants and two separate tax counts for failure to file federal income tax returns for calendar years 2008 and 2009. Sherryanne Christie had pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 50 or more marijuana plants. Under the terms of their plea agreements, both Christies reserved their right to seek appellate review of the District Court’s denial of four pretrial motions, including the Court’s finding that enforcement of marijuana trafficking laws against them did not violate the Religious Freedom Restoration Act (RFRA).
The prosecution resulted from the combined efforts from 2008-2010 of the Drug Enforcement Administration; the Internal Revenue Service - Criminal Investigations; Homeland Security Investigations; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the U.S. Marshals Service; the National Park Service; the Sheriff’s Office, Department of Public Safety; the Hawaii Police Department; and the Honolulu Police Department. The case was prosecuted by Assistant U.S. Attorney Michael K. Kawahara.
River Forest Man Guilty of Sending Threats to Kill Chicago Politicians, Local Police, and Texas and California Oil ExecutivesRead the Press Release
CHICAGO — A federal jury today convicted a River Forest man of mailing and emailing threatening communications to kill Chicago area politicians, River Forest police officers, as well as oil executives in Texas and California. The defendant, RONALD HADDAD, Jr., 38, was found guilty of all 30 counts against him ― 28 counts of mailing threats and two counts of emailing threats.
The jury deliberated less than four hours this afternoon following a trial that began last Tuesday in U.S. District Court.
U.S. District Judge Virginia Kendall set sentencing for July 21. Haddad faces a maximum sentence of five years in prison and a $250,000 fine on each count. The Court must impose a reasonable sentence under federal statues and the advisory United States Sentencing Guidelines.
Haddad remains in federal custody without bond while awaiting sentencing. He has been in custody most of the time since he was arrested and charged in 2009, and during that time he underwent several mental competency evaluations.
The evidence at trial showed that Haddad sent multiple threatening communications in three waves starting in Dec. 2007, again in June and July 2008, and again in January 2009. The first group of letters, addressed to individuals such as former Chicago Mayor Richard M. Daley and former Chicago Ald. Bernard Stone, contained white powder. The letters in June and July 2008 contained a brown substance, and the letters and packages in January 2009 contained an oily substance or shotgun shells that appeared to be rigged to explode. None of the substances or shells proved to be harmful but witnesses who opened the letters and packages testified that they were fearful when they opened them.
The guilty verdicts were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; and Chicago Police Superintendent Garry F. McCarthy. The government was represented by Assistant U.S. Attorneys Joseph Thompson and William Ridgway.
Restaurant Owner and Wife Sentenced for Employing Alien Illegally in U.S.Read the Press Release
WICHITA, KAN. – A Wichita restaurant owner and his wife were sentenced Monday for harboring a Chinese girl who worked at their restaurant, U.S. Attorney Barry Grissom said.
The owner, Yong “Tony” Lin, 33, Wichita, Kan., was sentenced to two years supervised release. He pleaded guilty to harboring an alien unlawfully in the United States. His wife, Zhuo Mei “Mandy” Weng, 29, Wichita, Kan., was sentenced to one year on probation. She pleaded guilty to hiding the crime. Both charges are federal felonies.
As part of their guilty pleas, the couple agreed to forfeit about $8,000 in cash seized by Homeland Security agents investigating the case. The money will go to employees who are owed back wages.
In September 2013, the Exploited and Missing Child Unit (EMCU) received a report that a minor teenager from China was being housed with other restaurant workers at a west Wichita apartment complex and that she also was employed at the World Buffet Grill, 2243 N. Ridge Road. With the assistance of the Wichita Police Department and Homeland Security Investigations, EMCU confirmed the reports and was able to place the minor elsewhere.
An indictment was filed in the case Sept. 11 alleging that Lin and Weng harbored and employed at least three restaurant employees they knew were unlawfully in the United States. They often paid the employees in cash, failed to follow wage and hour guidelines, and failed to maintain I-9 employment eligibility verification forms, according to the indictment.
Grissom commended the EMCU, the Wichita Police Department, Homeland Security Investigations and Assistant U.S. Attorney Brent Anderson for their work on the case.Rapid City Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on April 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lavina Mackey, age 54, was sentenced to 5 years in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mackey was indicted for Felony Child Abuse and Neglect, Involuntary Manslaughter, and Operating a Motor Vehicle under the Influence of Alcohol Resulting in Serious Bodily Injury to a Minor Child by a federal grand jury on August 29, 2012. She pled guilty to the Involuntary Manslaughter charge on December 2, 2013.
The charge related to Mackey driving a Ford Expedition while intoxicated on May 4, 2012, near Red Shirt Table on the Pine Ridge Indian Reservation. Mackey lost control of the vehicle and caused a roll-over accident. Among the several occupants of the vehicle was an unrestrained three-year-old child, who was thrown from the vehicle and died from his injuries.
This case was investigated by the South Dakota Highway Patrol, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mackey was immediately turned over to the custody of the U.S. Marshals Service.
Plummer Man Sentenced for Meth TraffickingRead the Press Release
COEUR D’ALENE B Raymond Henry Lowley III, 36, of Plummer, Idaho, was sentenced today in United States District Court to 46 months in prison, followed by four years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered a $100 special assessment, and to forfeiture $1,200. Lowley pleaded guilty to the charge on January 30, 2014.
According to the plea agreement, Lowley sold a confidential informant and an undercover officer methamphetamine in November and December 2012. The December drug sale occurred at a gas station on the Coeur d’Alene Indian Reservation. In total, Lowley sold $1,200 in methamphetamine.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
Pennsylvania Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Newton Square, Pennsylvania, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on April 23, 2014, by U.S. District Judge Roberto A. Lange.
David Wallace, age 53, was sentenced to 57 months of imprisonment, a $1,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wallace was indicted by a federal grand jury on April 2, 2013. He pled guilty on December 12, 2013.
The conviction stems from an incident on March 14, 2013, when a South Dakota Highway Patrol Trooper spoke with occupants of a motor home, including Wallace, when they stopped for fuel. After his suspicions were stirred during the conversations, the trooper deployed his narcotics detection dog. The dog indicated to the odor of illegal drugs in the motor home.
The trooper searched the motor home and found four jars of hashish oil, weighing approximately 673 grams.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Wallace was immediately turned over to the custody of the U.S. Marshals Service.
Palm Beach Man Filed False Tax Returns, Underpaid IRS Nearly $800K in Taxes OwedRead the Press Release
JOHNSTOWN, Pa. - A resident of Palm Beach, Fla., pleaded guilty in federal court to charges of filing false tax returns, United States Attorney David J. Hickton announced today.
Robert Paltrow pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Paltrow filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $4,787,222 in taxable income, resulting in an underpayment of $798,969 in income tax owed to the United States.
Judge Gibson scheduled sentencing for September 30, 2014, at 11 a.m. The law provides for a total sentence of six years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service/Criminal Investigation conducted the investigation that led to the prosecution of Paltrow.
Ortiz Appoints New First Assistant U.S. AttorneyRead the Press Release
BOSTON - U.S. Attorney Carmen Ortiz announced that John T. McNeil will serve as First Assistant United States Attorney. Mr. McNeil replaces Jack Pirozzolo who served as Ortiz’s First Assistant for more than four years.
“I am pleased to announce that John McNeil will serve as the new First Assistant United States Attorney,” said U.S. Attorney Ortiz. “I am confident that John’s breadth of legal and managerial experience will serve the Office and the District well. I look forward to working with him in this new capacity.”
Mr. McNeil has been a public interest litigator for more than 20 years. He has held several leadership positions under U.S. Attorney Ortiz, serving as the Deputy Chief of the Criminal Division from 2010-2012, Acting Chief of the Major Crimes Unit, and Counsel to the United States Attorney.
Mr. McNeil has been the lead prosecutor in a number of notable cases, including the prosecutions of State Senator Dianne Wilkerson, Boston City Councilor Chuck Turner, Massachusetts Speaker of the House Thomas Finneran, and a number of corrupt law enforcement officers, including Boston Police Officers Roberto Pulido and Jose Ortiz, and Malden Police Detective David Jordan. Mr. McNeil also brought the first federal investigation of clergy sexual abuse of children, and reached the first criminal settlement in the nation with a Catholic diocese in In re Archdiocese of Boston. In addition to his trial work, Mr. McNeil has briefed and argued numerous matters before the U.S. Court of Appeals for the First Circuit, and more recently, several matters before the Ninth Circuit Court of Appeals.
He joined the U.S. Attorney’s Office in 1999, after serving for nearly a decade at the U.S. Environmental Protection Agency, investigating and prosecuting complex environmental crimes. He has also represented the United States in numerous civil environmental matters including the negotiation and litigation of multi-million dollar hazardous waste clean-up cases, emergency remedial actions, and regulatory penalty matters. His litigation career started as an Assistant District Attorney in Norfolk County. He recently returned to Boston after serving one year as an Assistant US Attorney in Seattle where he tried a multi-defendant international gun running and narcotics trafficking case.
Mr. McNeil currently serves as a lecturer at Boston University School of Law, and has been a speaker and taught courses at the Federal Law Enforcement Training Center, Harvard Law School and the Boston Bar Association, among others. He earned his J.D. from Harvard Law School and his B.A. from the University of California at Berkeley.
Orlando Felon Sentenced for Possession of Firearm and Impersonating A DEA AgentRead the Press Release
Orlando, Florida –Senior U.S. District Judge Gregory A. Presnell today sentenced Benjamin William Mejias (43, Orlando) to 18 months in federal prison for possessing a firearm as a convicted felon and for impersonating a DEA agent. The court also ordered Mejias to forfeit a Glock .40 caliber pistol and ammunition that he possessed. Mejias pleaded guilty on February 12, 2014.
According to court documents, Mejias appeared at nightclubs in Orlando dressed in clothes that identified him as an agent with the Drug Enforcement Administration (DEA). Mejias wore authentic-looking DEA badges, carried a firearm and reportedly told several people that he was a DEA agent. He also posted photos of himself on social media websites wearing DEA paraphernalia, and a firearm. In September 2013, local police officers conducted a traffic stop on Mejias and he displayed a fake DEA badge and credentials to get out of the ticket. During a later search of Mejias’s residence, agents found a loaded semi-automatic firearm.
Mejias was convicted of three separate felony burglaries in 1994, 1995, and 1996, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
Okreek Man Charged with Assault by Strangulation and Suffocation and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Okreek, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation and Child Abuse.
Joe Scott, age 35, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 23, 2014, Scott assaulted his dating partner and the victim’s three minor children.
The charge is merely an accusation and Scott is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Scott was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Notorious Conman-Turned-Pastor Barry Minkow Sentenced to Five Years in Prison for Bilking Congregation of More Than $3 MillionRead the Press Release
SAN DIEGO – Former San Diego Community Bible Church Pastor Barry Minkow, a prolific fraudster whose crimes and claimed rehabilitation landed him on 60 Minutes and the cover of Fortune Magazine, was sentenced today to five years in prison for embezzling more than $3 million from his own parishioners and then concealing the funds from the Internal Revenue Service.
Minkow, who pleaded guilty in January, has admitted that he tricked a widower into making a $75,000 donation for a hospital in the Sudan to honor his wife after she died of cancer. Only there was no hospital, and Minkow pocketed the money. He also admitted, among others things, that he stole $300,000 from a widowed grandmother who is trying to raise her teenage granddaughter.
“It doesn’t get much worse than that in the world of non-violent crime,” said U.S. District Judge Michael Anello in handing down the maximum sentence. The judge ordered that term to be served after Minkow completes the time he has left on his current prison term for another financial crime.
During the sentencing hearing today, the widower, Brett Wright, was one of eight victims who addressed the court, describing their suffering over Minkow’s betrayal. Wright recalled Minkow’s duplicity in comforting his family through his wife’s illness while plotting to steal the honorarium upon her death. “He was so adept at showing care and concern for our situation,” Wright told the court. “But it was all a lie.”
Minkow even sent Wright and his daughter bogus thank you emails, purportedly from the charity. The message described the gift as worthy of “applause from heaven.” He signed the email, “Love in Christ, Barry.” An email forwarded by Minkow to Wright’s daughter said, “I believe we are honoring your mom’s heart directly helping the sick and needy in Darfur through this hospital construction.”
Minkow pleaded guilty in January to fraud charges, admitting to a litany of improper conduct spanning a decade, including opening unauthorized bank accounts on behalf of the church, forging signatures on the SDCBC checks, using funds drawn on legitimate church accounts for his personal benefit, and charging unauthorized personal expenses on church credit cards. Minkow also confessed to diverting SDCBC member donations for his own benefit and embezzling money intended as church donations.
“Barry Minkow is among the worst kind of predators,” said U.S. Attorney Laura Duffy. “He gained the affection and trust of his victims from the pulpit and then stole not only their money, but their faith in humanity, the clergy, the church, and themselves. This sentence will keep him from exploiting another victim for a while.”
FBI Special Agent in Charge Daphne Hearn commented, “Mr. Minkow violated the faith and trust of his congregation to unjustly enrich himself. The FBI is committed to pursuing those individuals who hide behind a facade of honesty and integrity, only to use their position to unlawfully enrich themselves.”
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented: “Barry Minkow skillfully operated as a predator, using his trusted position as pastor at San Diego Community Bible Church and Fraud Discovery Institute to fraudulently obtain over $3 million for his own benefit. His concealment of his diversion from the IRS, in an attempt to reduce his tax obligations, further displays his uncanny ability to deceitfully use every mechanism to line his own pockets. Today's sentencing reinforces IRS Criminal Investigation's commitment to investigate those who will stop at nothing to perpetuate financial and tax crimes.”
Bilking money from SDCBC is just the latest fraud scheme perpetrated by Minkow. In December 1988, Minkow was convicted of running an elaborate Ponzi scheme related to his ZZZZ Best carpet cleaning enterprise, a NASDAQ-traded entity. In that case, Minkow bilked banks and investors of millions of dollars, for which he was sentenced to 25 years in prison. While incarcerated, Minkow became involved in the Christian ministry, and upon his release in 1995 after having served approximately seven and a half years, he went to work at the Church at Rocky Peak in Chatsworth, California.
In 1997, SDCBC gave the defendant a second chance, a “do-over” of sorts. Soon thereafter founded the Fraud Discovery Institute (“FDI), a for-profit entity, which allegedly was aimed at the detection and prevention of fraudulent business practices. Through the work of FDI, Minkow soon garnered national media attention as a fraud detection expert, and his turn-around story was profiled on 60 Minutes in August 2006.
Yet even as he touted his redemption to gain the trust of parishioners, he began to steal money from the church and congregation. He used the money to found FDI and to fund what he hoped would be a Hollywood blockbuster movie about his life. He insisted that he star in the movie alongside Hollywood actors James Caan and Ving Rhames.
And, even while working through FDI to detect fraud, Minkow was engaged in manipulating the stock prices of the companies he was investigating. Most prominently in 2009, Minkow released a report accusing major homebuilder Lennar of massive accounting irregularities and fraud. In the wake of this report, Lennar’s share price was sliced in half – from 11.57 a share to $6.55 a share. According to court records, unbeknownst to the public, Minkow shorted Lennar stock in advance of the issuance of his report. Based on these transactions, Minkow was charged with conspiracy to commit securities fraud, and on March 30, 2009, he pled guilty in Miami to conspiring to manipulate Lennar’s share price, for which he was sentenced to serve five years in prison and to pay $583.5 million in restitution to Lennar. Minkow is currently serving that sentence. The facts of the current case “show a professional con man expertly plying his craft in an effort to line his pockets with millions of dollars in order to fund his own Hollywood movie,” prosecutor Mark Pletcher wrote in a sentencing memo.
“The facts show a predator from the pulpit ravaging those widowers and elderly, among others, that he convinced to trust him most intimately. This crime went far beyond money and greed, ultimately consuming the congregants of SDCBC physically and emotionally.
“In pursuit of the personification of Barry Minkow, nothing was sacrosanct,” Pletcher wrote. “From counseling a grieving family and then stealing the $75,000 honorarium donated in the deceased’s memory, to preying on a single, elderly woman raising her granddaughter, defendant used every deceit imaginable to slowly bleed SDCBS as an institution and its congregants personally of every last dollar.”
A restitution hearing was set for May 19 at 11:30 a.m.
DEFENDANT Case Number: 14-CR00153 Barry Minkow Age: 48 formerly of Poway, CA CHARGESConspiracy To Commit Mail Fraud, Wire Fraud, Bank Fraud and To Defraud the United States, in violation of Title 18, United States Code, Section 371
INVESTIGATING AGENCY
Maximum penalties: Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.Federal Bureau of Investigation
IRS Criminal Investigations*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Niles-Based Education Firms and Executives Indicted in Alleged $33 Million Fraud; Bribes Allegedly Paid to Four School OfficialsRead the Press Release
CHICAGO — The federal government and more than 200 public school districts in 19 states, including Illinois, were defrauded of more than $33 million by two Niles–based companies and two of their executives, who purported to provide government-funded tutoring services to low-income students, according to a federal indictment announced today. The father and son executives were also charged with paying bribes to three school officials in Texas and one state education official in New Mexico, who were also indicted for accepting bribes, in exchange for recruiting students and steering federal and state funds from school districts.
Indicted were BRILLIANCE ACADEMY, INC., which contracted with school districts to provide “supplemental educational services” (SES) under the 2001 No Child Left Behind Act by tutoring students on-site at schools; its wholly-owned subsidiary, BABBAGE NET SCHOOL, INC., which contracted to tutor students through laptop computers provided to students; JOWHAR SOULTANALI, director of operations for Brilliance and Babbage; and his son, KABIR KASSAM, president of both companies, which Soultanali and Kassam now own.
Soultanali, 58, of Morton Grove, and Kassam, 34, of Wheeling, allegedly obtained between $8 million and $13.6 million for themselves and their families from the more than $33 million they fraudulently obtained from school districts around the country.
Soultanali and Babbage were each charged with five counts of mail fraud and three counts of federal program bribery, while Kassam and Brilliance were each charged with five counts of mail fraud and two counts of federal program bribery in a 12-count indictment returned by a federal grand jury last Thursday.
The indictment also seeks forfeiture from Soultanali, Kassam, Brilliance, and Babbage of more than $33 million, including approximately $1.77 million that was seized from the companies’ bank accounts in 2010 or relinquished by Babbage in 2011, as well as Soultanali’s and Kassam’s residences, and three additional condominiums, five luxury automobiles, six whole life insurance policies, and various items of diamond jewelry purchased in 2009.
Also indicted on one count each of federal program bribery were: ARTURO MARTINEZ, 52, of Rio Rancho, N.M., who was an educational administrator with the New Mexico Public Education Department; CEDRIC PETERSEN, 61, of San Antonio, who was the SES coordinator and assistant principal at Fox Tech High School in San Antonio; ARMANDO RODRIGUEZ, 54, of Corpus Christi, Tex., who was the SES coordinator at Miller High School in Corpus Christi; and BRIAN HARRIS, 33, of San Antonio, who was the SES coordinator at Sam Houston High School in San Antonio.
All eight defendants – six individuals and two companies – will be arraigned on dates to be determined in U.S. District Court in Chicago.
Between July 2008 and February 2012, Soultanali, Kassam, Brilliance and Babbage allegedly defrauded the United States and hundreds of public school districts nationwide by misrepresenting the nature and quality of the tutoring services the companies provided, instead providing substandard supplemental educational materials to students, falsely inflating invoices the companies submitted to school districts for purported tutoring services, and creating and distributing false student progress and improvement reports.
According to the indictment, on behalf of Brilliance and Babbage, Soultanali and Kassam were approved as SES providers in Illinois, Colorado, Georgia, Hawaii, Idaho, Indiana, Louisiana, Maine, Minnesota, Montana, New Mexico, New York, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Virginia, and Washington during the 2008-09 and 2009-10 school years. Those school years are the focus of the charges.
Each of the four indicted school officials allegedly received an unspecified amount of money from Soultanali, Kassam, Brilliance and Babbage, sometimes through the companies’ senior regional manager who oversaw Babbage’s activities in Texas and New Mexico. Petersen allegedly also received Caribbean cruise vacations. Martinez, who oversaw New Mexico’s SES program, was in charge of approving and auditing the state’s SES providers, and oversaw New Mexico’s migrant education program, allegedly also received meals and services at a gentlemen’s club.
In order to receive payment for tutoring services, Brilliance and Babbage were required to compile the number of hours spent tutoring eligible school children and submit a bill to each local school district those children attended. Local districts then paid the defendants from federal and other funds, including funds disbursed pursuant to the No Child Left Behind Act. Under the 2001 law, if a school was considered failing after being identified for “school improvement,” school districts were required to make “supplemental educational services,” or tutoring, available to eligible children from a provider with a demonstrated record of effectiveness. The provider was to be selected by students’ parents and approved by the state educational agency. The law required local educational agencies to spend a portion of their federal funding to pay for supplemental educational services, with a maximum allotment per pupil.
In marketing materials and state provider applications, Soultanali and Kassam allegedly falsely represented that:
- Babbage pre-tested enrolled students by administering to them the Basic Achievement Skills Inventory test, which measured students’ academic proficiency in various subjects;
- after reviewing the results of students’ BASI exams, Brilliance and Babbage created tutoring programs customized to address students’ academic needs;
- Brilliance provided students with customized tutoring workbooks, and Babbage provided students with customized laptop computer tutoring programs;
- once students began tutoring, Babbage provided ongoing progress reports to students’ schools and parents; and
- once students completed tutoring, Brilliance and Babbage post-tested students with the BASI exam to determine whether the tutoring had increased students’ academic proficiency, and provided student improvement results to schools.
In fact, the indictment alleges that Babbage and Kassam intentionally failed to properly pre-test students with assessment exams and, instead, administered partial assessment exams, and in some cases, no assessment exams at all; and intentionally failed to review the results of students’ assessment exams before providing them with purportedly customized tutoring materials. Instead, they provided tutoring programs that were not configured to students’ academic needs, and in many cases, were generic tutoring programs configured at or below students’ grade level.
The charges allege that Babbage and the companies’ executive director falsified students’ progress reports, and intentionally failed to post-test tutored students to determine whether the tutoring had improved their academic proficiency. Kassam directed an employee to configure a computer program to ensure that students’ post-test scores were always higher than their purported pre-test scores.
As part of the fraud scheme, the defendants also allegedly engaged in fraudulent billing, including creating inflated invoices based on false attendance records, spreadsheets, and a computer program that contained false tutoring time summaries. When questioned by school districts, Soultanali allegedly lied and said that overbilling had occurred as the result of mistake.
Each count of federal program bribery carries a maximum sentence of 10 years in prison and a $250,000 fine, while each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine or an alternate fine totaling twice the gross gain or loss, whichever is greater. Brilliance and Babbage face a maximum penalty of five years’ probation and a $250,000 fine on each count or an alternate fine totaling twice the gross gain or loss, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas D. Utz, Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General. The Chicago Public Schools Office of Inspector General also assisted in the investigation.
The government is being represented by Assistant U.S. Attorneys Rachel Cannon and Barry Jonas.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
New Leipzig Man Sentenced for False Statements to MedicaidRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on April 28, 2014, Donald A. Hochhalter, 65, New Leipzig, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of Making or Causing to be Made False Statements or Representations in a matter involving Medicaid. Hochhalter pled guilty to the charge, a misdemeanor, on January 16, 2014.
“Medicaid is designed to help those in need. Because it is funded by a combination of federal and state funds, it is in everyone’s interest to prevent fraud and abuse of the system. Here, state and federal law enforcement worked together to help safeguard Medicaid and to send the message that making misrepresentations to obtain government benefits is a crime, will be prosecuted, and has serious consequences,” said U.S. Attorney Purdon. “Protecting the integrity of the Medicaid program is one of our top priorities, and that includes fighting fraud,” said Maggie Anderson, executive director of the N.D. Department of Human Services. “We are pleased with the collaboration between federal law enforcement and the state because we all share the same interest in making sure taxpayer dollars are spent correctly.”
Judge Hovland sentenced Hochhalter to six months of probation. Hochhalter was ordered to pay a $25 special assessment to the Crime Victim’s Fund. Hochhalter has already paid full restitution in the amount $36,995, which is being returned to the State of North Dakota and the United States Treasury. It is the policy of the United States Department of Justice to seek parallel proceedings – that is both criminal and civil remedies – in appropriate cases. Here, the United States recovered an additional $37,121 from Hochhalter to settle claims under the federal False Claims Act. The False Claims Act calls for up to triple damages, plus monetary penalties, from a person who makes misrepresentations to the government in order to receive federal money or benefits.On February 12, 2009 Hochhalter completed and signed a North Dakota Department of Human Services Application for Assistance for Medicaid on behalf of his mother. In the application, Hochhalter falsely understated the value of assets his mother owned so that she would be eligible to receive Medicaid benefits.
The case was investigated by the North Dakota Department of Human Services and the U.S. Department of Health and Human Services Office of Inspector General. Special Assistant U.S. Attorney Matthew D. Greenley prosecuted the criminal case and Assistant United States Attorney James Patrick Thomas handled the civil matter.
Modesto Man Sentenced to Prison for Fraudulent Check-Cashing SchemeRead the Press Release
FRESNO, Calif. — Steven Hamman, 52, of Modesto, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to three years and one month in prison for his involvement in a fraudulent check-cashing scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 2009 and January 2011, Hamman conspired with others to cash stolen or fraudulently procured checks at electronic check-cashing kiosks (known as “Vcom,” or “virtual commerce” machines). Hamman used fraudulently created Vcom accounts to attempt to cash the checks, sometimes using checks that other co-conspirators previously had attempted and failed to cash. On several occasions, Hamman attempted to cash the same check more than once. During the course of the conspiracy, Hamman’s check-cashing scheme caused or threatened to cause a loss of more than $47,000 to more than 50 victims, including financial institutions and others.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Christopher Baker prosecuted the case.
Middleburg Man Sentenced to 33 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan sentenced Daniel Richard Bakaley (23, Middleburg) to 33 months in federal prison for possessing images and videos of child pornography. Bakaley was also sentenced to a 10-year term of supervision and to register as a sex offender, following his incarceration. In addition, he was ordered to forfeit certain computer equipment traceable to the offense.
Bakaley pleaded guilty on October 17, 2013.
According to court documents, an undercover agent with the Naval Criminal Investigative Service (NCIS) determined that a particular computer was hosting images of child pornography using an Internet file sharing service. Further investigation traced the Internet Protocol (IP) address used by that computer back to Bakaley’s residence in Middleburg. A subsequent federal search warrant was executed at this residence. During an interview, Bakaley told agents about printed hard copy photos of child pornography hidden in a video game box in his bedroom that he had previously “found” in the printer connected to his desktop computer. The agents seized five computers and 22 printed images of child pornography from Bakaley’s residence. Subsequent forensic analysis revealed that three of the computers contained a total of 312 videos and 93 images depicting minor children engaged in sexually explicit conduct.
This case was investigated by the Naval Criminal Investigative Service and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Mexican Drug Kingpin Pleads Guilty to Trafficking Black Tar HeroinRead the Press Release
CHARLOTTE, N.C. – Mexican drug kingpin, Carlos Ramon Castro-Rocha, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to conspiracy to import and conspiracy to possess with intent to distribute heroin, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Castro-Rocha, a/k/a “Cuate,” 40, of Sinaloa, Mexico, was the head of a Mexican drug trafficking organization (DTO) responsible for producing and distributing into the United States vast quantities of heroin between 2005 and 2008.
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and court proceeds, as the DTO’s leader, Castro-Rocha ran an extensive drug trafficking network and oversaw all aspects of the drug operation, from production in Mexico to distribution in cities throughout the U.S. The Department of Justice designated Castro-Roca as a Consolidated Priority Organization Target, or “CPOT,” a designation reserved for command and control level drug traffickers, who run organizations that smuggle large quantities of narcotics into the United States.
Castro-Rocha was first charged by the U.S. government via a criminal complaint filed in the Western District of North Carolina in January 2009. He was formally indicted in this district on federal drug trafficking charges in June 2009. The indictment remained sealed until Castro-Rocha was arrested by Mexican authorities on May 30, 2010, pursuant to extradition proceedings initiated the U.S. Department of Justice. Following Castro-Rocha’s several unsuccessful appeals in the Mexican judicial system, his final extradition order to the United States was granted in October 2012, and Castro-Rocha arrived in the U.S. later that month. In addition to the charges against him in Western North Carolina, Castro-Rocha faces separate federal drug trafficking and related charges in the District of Arizona.
U.S. Attorney Tompkins stated, “Castro-Rocha’s guilty plea speaks of our determination to dismantle organized drug networks and take down their bosses, no matter how long it takes. Drug kingpins hiding in foreign countries think they are beyond our reach, either too powerful to go after or too well-hidden to find. But as this case shows, we will take the fight abroad and overcome all hurdles, until those responsible for flooding our streets with drugs face the American justice system.”
“DEA and its law enforcement partners delivered a major assault against a well-established Mexican DTO group which was led by Carlos Ramon Castro-Rocha. This Mexican-based DTO was a pipeline for black tar heroin and other dangerous drugs being shipped from Mexico to our country. Because of the dedication and hard work of all law enforcement agencies involved, Castro-Rocha and those he led will no longer distribute the destructive and deadly substances that wreak havoc in our neighborhoods,” stated Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division.
“The outcome of this case will have a significant impact on the distribution of illegal drugs across our nation and within the City of Charlotte,” said Chief Rodney Monroe, Charlotte-Mecklenburg Police Department. “Dismantling a drug ring of this magnitude only could have been accomplished through the cooperation of all partner agencies involved. Our message is clear: illegal drug trafficking will not be tolerated or condoned in our community.”
Castro-Rocha’s guilty plea stems from “Operation Dirty Girl II,” which is the local portion of a national anti-drug initiative, “Project Deliverance,” aimed at stemming the flow of illegal narcotics into the U.S. Led by the DEA and other members of the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), Dirty Girl II focused on disrupting and dismantling the infrastructure of Castro-Rocha’s drug trafficking network, which was responsible for producing and smuggling in the U.S. vast quantities of heroin, including a highly dangerous form, black tar heroin. “Dirty Girl” is the street name for black tar heroin.
Filed court documents indicate that Castro-Rocha’s drug organization produced the heroin in Mexico, smuggled it across the border and distributed it throughout the United States, including the Charlotte area. According to court records, in September 2007, law enforcement in Charlotte seized more than two and a half kilograms (approx. six pounds) of black tar heroin that had been trafficked to Charlotte through Castro-Rocha’s drug distribution network. More than $110,000 in cash and a handgun were also seized. Court records indicate that in August 2008, law enforcement made two additional seizures of approximately one kilogram of black tar heroin. According to court records, between 2005 and 2008, Castro-Rocha’s network trafficked up to ten kilograms of black tar heroin in the Charlotte area alone, with an approximate street value of $1.2 million.
In addition to the organization’s leader, a total of 11 defendants associated with Castro-Rocha’s DTO have been prosecuted in Western North Carolina.
Castro-Rocha pleaded guilty to one count of conspiracy to import heroin and one count of conspiracy to possess with intent to distribute heroin in Charlotte and elsewhere. He faces a mandatory minimum prison sentence of 10 years and a maximum of life in prison, and a $10,000,000 fine. A sentencing date has not been set yet. Following Castro-Rocha’s sentencing in this district, he will be transferred to Arizona to face the federal drug charges pending against him there.
In making today’s announcement U.S. Attorney Tompkins praised the DEA agents and CMPD officers who worked tirelessly to build a successful case against Castro-Roca. She also thanked the FBI, the Gastonia Police Department and the Union County Sheriff’s Office for their invaluable assistance and commended Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte for his prosecution of the case.
McLaughlin Woman Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman convicted of Larceny was sentenced on April 24, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Rhea Archambault, age 52, was sentenced to 18 months of probation, a $25 special assessment to the Federal Crime Victims Fund, and $1,450 in restitution.
Archambault was indicted by a federal grand jury on August 21, 2013. She pled guilty to Larceny on January 31, 2014.
The conviction stems from an incident that happened between March 15 and March 20, 2013, when Archambault stole a book of checks belonging to L & L Auto, LLC. Over the next three to five days, Archambault negotiated several checks by forging the signature of one of the co-owners. Some checks were stopped before the money was debited from the account holder’s checking account, while some checks remain due and owing to the various businesses to which they were written.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Maryland Man Sentenced for Multi-State "Black Money" Fraud SchemesRead the Press Release
BOSTON – A Maryland man was sentenced today in U.S. District Court in Springfield today for a number of charges related to the altering of U.S. currency in connection with a "black money" scheme.
Cole Williams, 32, of Frederick, Md., was sentenced by U.S. District Judge Michael A. Ponsor to 27 months in prison, $329,000 in restitution to five victims, and forfeiture of $329,000.
In November 2013, Williams pleaded guilty to conspiracy, wire fraud, and possession of altered U.S. currency with intent to defraud involving a fraud scheme in Springfield, Mass. Williams admitted that he perpetrated similar "black money" schemes in Billerica, Leominster, Groton, Conn., and Woonsocket, R.I.In the charged scheme, Williams and another co-conspirator defrauded two businessmen who operated Village Pizza in Indian Orchard, Mass. Williams and his partner first offered to purchase Village Pizza with $150,000 of what they called “black money,” which they represented to be genuine U.S. currency that had been altered to appear completely black, and they said, could be converted back into genuine currency through a chemical process. They claimed the currency had been colored black as part of a plan to smuggle it back to the U.S. from Africa.
In July 2011 at Village Pizza, Williams and the co-conspirator presented the two businessmen with genuine U.S. currency that they had previously coated black, and then used chemicals and powder to remove the black coating, thereby convincing the two businessmen into believing that they really possessed hundreds of thousands of dollars in “black money.” Williams and the co-conspirator then induced the businessmen to provide them with $50,000 in cash, which they said they would use to convert more “black money” into genuine U.S. currency that they promised to give to the businessman in exchange for the pizza restaurant. Williams and the co-conspirator then pretended to use the businessmen’s $50,000 to convert their “black money,” which was simply black paper cut to the size and shape of U.S currency, and then they took the $50,000 and left the businessmen with a large amount of black paper. The co-conspirator was indicted for a similar scheme in Rhode Island, but fled prior to trial, and is a fugitive from justice.
United States Attorney Carmen M. Ortiz and Stephen Marks, Acting Special Agent in Charge of the United States Secret Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Maryland Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Maryland man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on April 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Francis Fox Jr., 44, was sentenced to 10 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Fox will also be required to register as a sex offender, and he is ordered to forfeit his 2007 Suzuki motor vehicle.
Fox was one of nine men who were arrested and federally indicted as a result of a sex trafficking undercover operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
On August 4, 2013, as part of the undercover operation, Fox was arrested for attempting to obtain sex with a 12-year old girl. He responded to a law enforcement-generated Internet advertisement which purported to offer young girls for sex, and he proceeded to negotiate the terms of the sexual encounter. Fox then met with an undercover agent posing as someone who could provide the young girl, and he had the negotiated amount of money and condoms in his possession. Fox was subsequently arrested.
Of the nine original defendants, five have pled guilty. Of those five, three have been sentenced, and the other two await sentencing. One defendant was found guilty by a federal jury, and the 3 remaining defendants are scheduled for trial.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Fox was immediately turned over to the custody of the U.S. Marshals Service.
Marijuana Cases UpdateRead the Press Release
FRESNO, Calif. — Four marijuana cultivators were sentenced today in four separate large-scale marijuana cultivation cases involving private lands in Stanislaus, Fresno, and Tulare Counties, according to U.S. Attorney Benjamin B. Wagner.
Fresno/Alabama Drug Ring Member Sentenced (1:12-cr-38 AWI)
Herman Graves, 47, of Fresno, was sentenced eight months in custody (four months in prison and four months home detention) for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on South Marks Avenue in Fresno County. The marijuana had been designated as “medical” but was, in fact, destined for distribution in Birmingham, Ala.
This case is the product of an investigation by the DEA and IRS Criminal Investigation with assistance from the Treasury Inspector General of Tax Administration, U.S. Postal Inspection Service in Birmingham, Ala., California Highway Patrol, Fresno County Sheriff’s Office, Fresno Police Department, Birmingham Police Department, and the Madera County Narcotics Enforcement Team.
907 Marijuana Plants/Firearm Seized from Stanislaus County Riverside Grow
(1:12-cr-342 AWI)Sengphachanh Boungnavong, 34, of Fresno, was sentenced to two years in prison for conspiring to cultivate, distribute and possess with intent to distribute 907 marijuana grown in Newman, California beside the San Joaquin River. Water was diverted from the San Joaquin River to irrigate the illegal cultivation operation. During the execution of a search warrant there, drug agents found Boungnavong at the cultivation site, along with four other men who have entered guilty pleas in this case. The agents found and seized 907 marijuana plants, a handgun, respirators, motion detectors, chemicals, fertilizers, and “medical” marijuana recommendations from a doctor who has been charged in another federal case with the unlawful distribution of other controlled substances. Marijuana is a prohibited Schedule I controlled substance under federal law.
This case was investigated by the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
1,313 Marijuana Plants/Firearms Seized from Tulare County Agricultural Grow
(1:12-cr-341 LJO)Carlos Adan Lupian-Lua, 26, of Michoacàn, Mexico, was sentenced to one year and seven months in prison for cultivating marijuana on agricultural land in Terra Bella. According to court records, drug agents discovered the cultivation operation after following a supplier to the property. The supplier had previously delivered equipment and material for other marijuana cultivation operations on public lands in Ventura, San Luis Obispo, and Kern Counties. During the execution of a federal search warrant at the Terra Bella property, agents seized 1,313 marijuana plants, two firearms, and arrested six people, including Lupian-Lua. The marijuana had a wholesale value of $1.5 million.
The case was investigated by the U.S. Forest Service, Homeland Security Investigations (HSI) of Immigration and Customs Enforcement (ICE), and the Tulare County and Ventura County Sheriff’s Offices.
816 Pounds Processed Marijuana Seized from Fresno County Agricultural Grow
(1:11c-r-0357 AWI)Reney Bousangouane, 50, of Fresno, was sentenced today to one year of home detention for his involvement in a large marijuana cultivation operation on agricultural land on Armstrong Avenue in Fresno County. According to court documents, Bousangouane was involved in the cultivation and processing of more than 800 pounds of marijuana grown at a property leased by his brother, Shavane Bousangouane. Shavane Bousangouane was previously sentenced to four years and nine months in prison for his involvement in the cultivation operation. The property is the subject of pending civil forfeiture action initiated by the U.S. Attorney’s Office.
This case is the product of a joint investigation by the U.S. Drug Enforcement Administration and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen Escobar prosecuted the criminal cases and Assistant United States Attorney Kevin Khasigian is handling the forfeiture of the property referenced in the Bousangouane case.
Manhattan Woman Sentenced to ProbationFor Conspiracy in Rx Drug CaseRead the Press Release
TOPEKA, KAN. – A Manhattan woman who worked in a doctor’s office was sentenced Monday to two years on federal probation after pleading guilty to conspiracy to unlawfully distribute prescription drugs, U.S. Attorney Barry Grissom said.
Sarah Harding-Huffine, 30, Manhattan, Kan., pleaded guilty to one count of conspiracy to unlawfully distribute prescription drugs. In her plea, she admitted that she conspired with co-defendant Dr. Michael P. Schuster while he was doing business as Manhattan Pain and Spine and New Medical Group PC at 1135 Westport Drive in Manhattan, Kan. Although the defendant was not a licensed health care provider and she did not have a drug registration number from the Drug Enforcement Administration, she distributed controlled substances to Schuster’s patients using pre-signed blank prescription pads.
She distributed controlled substances including Oxycodone to patients while Schuster was out of the office at various times traveling to Russia, South Africa, Canada, Uruguay, Chile, Argentina, Israel, Argentina, Brazil and Paraguay.
Co-defendant Michael P. Schuster pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances and was sentenced to five years in federal prison.
Grissom commended the Riley County Police Department; the FBI; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); the Diplomatic Security Service (DSS), Assistant U.S. Attorney Tanya Treadway, Assistant U.S. Attorney Jared Maag, and Special Assistant U.S. Attorney Robin Graham for their work on the case.
Manderson Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Voluntary Manslaughter was sentenced on April 21, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Leonard David Yankton, a/k/a Lenny Yankton, age 38, was sentenced to 114 months in custody, 3 years of supervised release, and ordered to pay $3,000 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Yankton was indicted for Second Degree Murder by a federal grand jury on August 13, 2013. He pled guilty to Voluntary Manslaughter on December 19, 2013.
The conviction relates to an incident that took place on August 2, 2013, when Yankton and the victim were drinking at a home in Manderson Housing and begin to argue. The fight was eventually taken outside, and Yankton killed the man by repeatedly striking him in the head with a metal bar.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Yankton was immediately turned over to the custody of the U.S. Marshals Service.
Man Charged with Murder on the Meskwaki Nation SettlementRead the Press Release
Jonathan Curtis Youngbear, age 20, from the Meskwaki Nation Settlement, Iowa, has been charged with first degree murder within “Indian Country.” The charge is contained in an Indictment filed on April 24, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 24, 2014, Youngbear killed Severn Daniel Jefferson on the Meskwaki Nation Settlement near Tama, Iowa. The Indictment alleges Youngbear killed Jefferson by stabbing him with a knife.If convicted, Youngbear faces a mandatory sentence of life imprisonment.
Youngbear appeared today in federal court in Cedar Rapids and was held without bond. Youngbear’s next appearance for trial is set for June 23, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
In 2010, the Department of Justice launched an initiative making public safety in tribal communities a top priority. The goal of the initiative is to help tribes build and sustain safe and secure communities across the country. Information about the initiative is available at http://www.justice.gov/tribal.
The case is being prosecuted by Assistant United States Attorneys Peter Deegan and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-46-LRR.
Mail and Identity Theft Convictions Result in a Federal Prison SentenceRead the Press Release
Mail Theft Victims Subjected to Identity Theft and FraudMEDFORD, Ore. – Gregory Stephen Brooks, 50, Grants Pass, Oregon was sentenced Monday to 81 months in federal prison by Senior U.S. District Judge Owen M. Panner after his convictions for conspiracy to commit mail theft, conspiracy to commit bank fraud and aggravated identity theft. As part of the sentence, Brooks received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank fraud. Brooks was also ordered to pay $12,387.06 in restitution to victims of the fraud.
Between March 2013 and July 2013, Brooks and his co-defendant, Michelle Renee Lustig, 45, Grants Pass, Oregon, stole substantial quantities of mail from over 400 residential and business mailboxes in Jackson and Josephine Counties. Large quantities of stolen mail were recovered at a series of locations: discarded along the roadside; in a U-Haul truck being used by defendants; and from a residence where defendants were staying in Grants Pass. Defendants forged and deposited stolen checks, used stolen debit and credit cards to make withdrawals from victim bank accounts and to make fraudulent retail purchases, and used victim personal identification to apply for and obtain fraudulent credit and debit cards from victim companies. Brooks has an extensive criminal history of convictions dating back to 1981 including numerous thefts and burglaries, as well as drug trafficking offenses. Lustig is scheduled to be sentenced next month for her role in the criminal activity.
This case was investigated by the Jackson County Sheriff’s Office, Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U. S. Attorney Byron Chatfield.
Longtime Fugitive Sentenced for Racketeering, Murder Conspiracy, Other CrimesRead the Press Release
BOSTON – Enrico M. Ponzo, a/k/a Jeffrey John Shaw, a/k/a Jay Shaw, a longtime fugitive who posed as a rancher while living on the run in Idaho, was sentenced today for racketeering charges in U.S. District Court in Boston.
Ponzo, 45, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 28 years in prison to be followed by three years of supervised release. In November 2013, following a seven-week-trial, Ponzo was found guilty of racketeering conspiracy, the 1989 attempted murder of Francis P. Salemme, Sr. and the 1994 attempted murder of Joseph Cirame, both of whom were shot and seriously injured.U.S. Attorney Carmen Ortiz said, “This case should send a clear message that we take seriously our commitment to hold violent criminals accountable for their actions, even after many years on the run. The severity of today’s sentence reflects the seriousness of his actions and I believe that it adequately addresses the violent nature of his crimes.”
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Luis Spencer of the Massachusetts Department of Correction - Office of Investigations made the announcement today. The case was prosecuted by Michael L. Tabak, Karen D. Beausey and Dustin Chao, respectively of Ortiz’s Strike Force, Drug Enforcement and Major Crimes Units.
The jury found Ponzo guilty of murder conspiracy in aid of racketeering, firearm possession in relation to murder conspiracy, conspiracy to distribute more than 500 grams of cocaine, conspiracy to distribute more than 1,000 kilograms of marijuana, conspiracy to use extortionate means to collect a debt, use of extortionate means to collect a debt, unlawful flight to avoid prosecution, money laundering conspiracy, money laundering, and attempted witness tampering.Local Fisherman Pleads Guilty to Illegal Sale of Red Snapper and GrouperRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Natalie McArdle of Foley, Alabama, pleaded guilty today to charges of violating the Lacey Act by transporting and selling Gulf Reef Fish in interstate commerce, knowing that the fish had been landed illegally under Alabama law.
According to the plea agreement, McArdle acted as a broker for commercial fisherman selling unreported red snapper and grouper. On six occasions in 2012 and 2013, McArdle sold or attempted to sell red snapper and grouper that had been landed illegally in Alabama to undercover law enforcement officers posing as employees of a Georgia-based fish and seafood dealer.
The maximum penalty for violating the Lacey Act is up to five years in prison and a $250,000 fine. Pursuant to the plea agreement filed today, the prosecution and the defendant will jointly recommend that McArdle be sentenced to eight months of home detention. A sentencing hearing is set for July 18, 2014.
This case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, the Florida Fish and Wildlife Conservation Commission, and the Alabama Department of Natural Resources, and was prosecuted by Maria E. Murphy of the United States Attorney=s Office for the Southern District of Alabama and Colin L. Black of the Department of Justice’s Environmental Crimes Section.
Lincoln County Father and Son Plead Guilty to Oxycodone DistributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Ronnie Dale Norman Sr., 67 and his son, Ronnie Dale Norman Jr., 23, both of Branchland, West Virginia, entered guilty pleas today to distribution of oxycodone. They each face up to 20 years when they are sentenced on August 13, 2014 by United States District Court Judge John T. Copenhaver Jr.
In January of 2012, detectives with the Huntington Violent Crime and Drug Task Force used a confidential informant to buy oxycodone from Ronnie Norman, Sr., at Branchland home in Lincoln County. In September of 2012, detectives made another controlled buy from the Norman residence. This time, however, when the informant asked to buy oxycodone pills, Ronnie Norman, Sr. retrieved the pills, handed them to his son, Ronnie Norman, Jr., who then gave the pills to the informant in exchange for cash. Ronnie Norman, Jr. then handed the drug money to his father.The Huntington Violent Crime and Drug Task Force is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Larchwood, Iowa Man Sentenced on Methamphetamine Manufacturing ChargesRead the Press Release
A Larchwood, Iowa man was sentenced April 22, 2014 to 10 years in federal prison.
DUANE MIDDLEN, age 56, from Larchwood, Iowa, received the prison term after a January 30, 2014, guilty plea to conspiracy to manufacture methamphetamine.
At the guilty plea, Middlen admitted that from no later than January 2012 and continuing until about September 2013, he was involved in a conspiracy to manufacture methamphetamine with many people. Middlen and Durant Kruger had received pseudoephedrine pills as well as other items and in turn manufactured methamphetamine at Middlen’s residence. Numerous persons purchased pseudoephedrine pills in Iowa, Minnesota, South Dakota and Nebraska, and in turn provided them to Middlen. Middlen then manufactured methamphetamine within his residence and in buildings throughout property owned by Middlen, in Lyon County, Iowa. During the conspiracy, methamphetamine was manufactured at least 500 times at Middlen’s property.
Middlen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Middlen was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Middlen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Iowa Division of Narcotics Enforcement and Lyon County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4092.
Landover Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Greenbelt, Maryland –U.S. District Judge Paul W. Grimm sentenced Gregory Warrick, age 53, of Landover, Maryland, today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possessing with intent to distribute five or more kilograms of cocaine powder. Judge Grimm enhanced Warrick’s sentence upon finding that he is a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, from May 2012 to March 2013, Warrick bought cocaine powder from a co-conspirator about two to three times a week. Warrick distributed the drugs to others. Beginning in November or December 2012, Warrick used an apartment located on Addison Road in Capital Heights to store and sell cocaine powder.On March 22, 2013, Warrick bought cocaine powder. Later that afternoon, law enforcement executed a search warrant on Warrick’s vehicle while he was a gas station in Landover. They seized 6.22 grams of cocaine powder packaged in 22 baggies from Warrick. Shortly thereafter, law enforcement also executed a search warrant at the apartment Warrick used to sell drugs and seized 133 grams of cocaine powder packaged in 26 baggies, a scale and other drug paraphernalia.
Between five and 15 kilograms of cocaine powder was reasonably foreseeable within Warrick’s agreement to sell, and possess with intent to sell, cocaine powder.
United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.
Kern County Drug Courier Sentenced to 10 Years in PrisonRead the Press Release
FRESNO, Calif. — Juan Carlos Martinez-Carranza, 26, of Delano, was sentenced today by United States District Judge Anthony W. Ishii to 10 years in prison for possessing methamphetamine with intent to distribute it to another person, United States Attorney Benjamin B. Wagner announced.
According to court documents, on February 27, 2013, during a traffic stop, Martinez‑Carranza consented to a search of his vehicle. The officer found approximately six pounds of methamphetamine concealed in the airbag compartment in the dashboard. Martinez-Carranza admitted to the officer that he intended to deliver the drugs to another person. Martinez-Carranza is subject to deportation following the completion of his prison term.
This case was the product of an investigation by the Madera County Narcotics Enforcement Team, the California Highway Patrol, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Kapolei Man Sentenced to 15 Years for Methamphetamine TraffickingRead the Press Release
HONOLULU – Ernesto Hernandez, 51, of Kapolei, was sentenced today to 180 months imprisonment for conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine from April to May 2013 as well as possessing methamphetamine with the intent to distribute.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial in January 2014 showed that Hernandez agreed with other individuals to distribute methamphetamine that was sent from California, via express mail service, to Honolulu in early May 2013. The evidence also established that Hernandez arranged the shipment of 213 grams of pure methamphetamine which was intercepted at the Honolulu Airport on May 7, 2013 by Federal Express security personnel. Hernandez was also found to be in possession of methamphetamine, with the intent to distribute, when the Drug Enforcement Administration executed a search warrant at a Kapolei residence on May 8, 2013.
U.S. District Judge J. Michael Seabright found Hernandez’s dishonesty during his testimony at trial to be an aggravating factor in determining his sentence. Hernandez also faces deportation to Mexico upon the conclusion of his prison sentence.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration and Hawaii Airport Task Force.
Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Jury Convicts Dallas Area Man for Role in Murder Plot in Connection with 2013 Fort Sam Houston Shooting IncidentRead the Press Release
A Richardson, TX, man faces up to life in federal prison after a federal jury in San Antonio convicted him this morning for plotting with his uncle to kill his uncle’s intimate partner announced United States Attorney Robert Pitman, FBI Special Agent in Charge Christopher H. Combs, San Antonio Division, and United States Marshal Robert Almonte.
Jurors convicted 29-year-old Leonard Roundtree, III, of one count of conspiracy to commit murder. Evidence presented during trial revealed that on June 10, 2013, Roundtree’s uncle, 52-year-old Alvin Leon Roundtree of San Antonio, shot and wounded his intimate partner with a .45 caliber handgun inside the Medical Training Facility located on Fort Sam Houston Army Post. The victim, who suffered a total of seven gunshot wounds, was immediately taken into surgery and survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm.
During the trial, recorded phone calls between Leonard Roundtree and his uncle revealed that the two conspired to hire someone to kill Alvin’s intimate partner to prevent her testimony in the upcoming federal trial. The evidence revealed that Leonard Roundtree agreed to, and in fact did, deliver information between his uncle and the hitman ultimately agreeing to pay $10,000 upon proof the murder.
“Leonard Roundtree facilitated the murderous plot that his uncle initiated. Fortunately, the crime was thwarted and the victim did not suffer additional harm. Roundtree’s participation in the crime revealed callous disregard for human life and he will pay a severe penalty for his conduct,” stated U.S. Attorney Robert Pitman.
Leonard Roundtree is scheduled to be sentenced on August 1, 2014. In March, Alvin Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon and is awaiting sentencing scheduled for September 12, 2014. Alvin Roundtree still faces two counts of conspiracy to commit murder.
“The collective investigative efforts of Army Criminal Investigative Division, United States Marshals Service, San Antonio Police Department and the FBI came together in this case and stopped a plot from becoming a violent and cold blooded murder of a victim and witness in a criminal prosecution,” stated FBI SAC Christopher Combs.
“I am extremely proud of the collaborative work done by our task force and I am also pleased with the jury’s guilty verdict,” stated U.S. Marshal Robert Almonte.
Assistant United States Attorneys Bettina Richardson and Joey Contreras are prosecuting this case on behalf of the Government.
Judge Sentences Drug Dealer to Seven Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Warren, Ohio, has been sentenced in federal court to 84 months imprisonment, with six years of supervised release to follow on his conviction of possession with intent to distribute crack cocaine and heroin, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Matthew Hosey, 62.
According to information presented to the court, on or about April 24, 2013, Hosey possessed with intent to distribute a quantity of crack cocaine and heroin.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Southwest Regional Police Department, Pennsylvania State Police, Drug Enforcement Administration, and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Hosey.
International Community Mobilizes to <br /> Recover Stolen Assets for People of UkraineRead the Press Release
A high-level international meeting to support the Government of Ukraine in recovering stolen assets begins tomorrow in London. The gathering is a landmark for Ukraine in underscoring the rule of law and international cooperation. The international community and the Government of Ukraine are united in their commitment and determination in returning stolen assets to the people of Ukraine.
The Ukraine Forum on Asset Recovery (UFAR) is jointly organized by the United Kingdom and the United States of America in support of efforts by the Government of Ukraine to recover stolen assets. Asset recovery is essential in stopping those who have stolen assets from benefitting from their crimes, and in sending a strong message that there can be no impunity for those who carry out such illegal actions. The two-day meeting brings together representatives of key international financial centers and international organizations to bolster collective action, foster direct exchange between practitioners and plan practical steps towards this goal. Key objectives include:
• Reaffirming the political commitment of the international community in tracing and recovering stolen assets; • Facilitating international cooperation for the early tracing of such assets; • Enabling sharing of best practices, lessons learned and available tools; • Addressing ways of tracing assets hidden behind complex corporate structures; • Facilitating networking and trust-building among practitioners across jurisdictions; and
• Identifying specific capacity building needs for Ukraine.Senior government officials alongside policy makers, judicial experts, prosecutors, financial intelligence analysts, and regulators are participating in UFAR. Bilateral meetings between Ukrainian officials and other delegations will be an important feature of UFAR in helping to identify concrete actions to be taken to advance asset recovery.
Attorney General Eric Holder of the United States, which is jointly organizing UFAR, emphasized the importance of asset recovery in bringing justice and in mobilizing against corruption.
“This community of nations stands united in our determination to support Ukrainian leaders and citizens as they combat corruption and strive to ensure the stability, the independence, and the national sovereignty of a strong and free Ukraine.
“We know that the costs of corruption can be immense and long-lasting. That is why, within days of the fall of President Yanukovych’s regime, the U.S. Department of Justice had a response team on the ground in Kyiv to assess the needs of Ukraine’s investigation into any stolen assets belonging to its people; to provide assistance with document review and preservation; and to help initiate and coordinate any and all efforts required by further investigations.
“The United States will never stop fighting alongside Ukraine and its partners to ensure accountability, to strengthen transnational cooperation, and to meet instability with resolve – and robust diplomacy.”
In hosting UFAR in London, the British Home Secretary, the Right Hon. Theresa May MP, stressed the importance of the international community’s role in assisting Ukraine.
“By taking urgent and immediate steps to provide political and economic stability, the UK, US and wider international community has already demonstrated a strong commitment to the people of Ukraine. This forum provides a further opportunity to show our ongoing support.
“Building on our expertise in the field of asset recovery, it will also provide practical leadership and assistance to the Ukrainian government as they identify and recover assets looted under the Yanukovych regime and introduce political and economic reform.
“The message is clear - we are making it harder than ever for corrupt regimes or individuals around the world to move, hide and profit from the proceeds of their crime.”
Individual Sentenced to 35 Years in Prison for CarjackingRead the Press Release
SAN JUAN, PR – Judge Juan Pérez-Giménez sentenced Luis A. García-Pagàn to 35 years in prison for the commission of a home invasion and carjacking on February 4, 2013, in which the victims were a medical doctor (ophthalmologist) and his young son. The defendant was indicted by a Grand Jury on February 28, 2013 and was found guilty by a federal jury on December 18, 2013.
One of the victims testified at trial, in the early hours of February 4th, 2013, three subjects including Ricardo Urbina-Robles and Luis A. García-Pagàn, recently sentenced to 30 years in prison, for the commission of the same offense, entered his home carrying firearms and wearing masks. During the next hour and a half, the defendant and other two individuals, attacked and threatened the doctor and his son multiple times. At one point, one of the assailants ordered the others to kill the doctor and his son, but the murder was not carried out.
The defendants took the doctor and his son from their room in the upper level of their home to the living room downstairs, where they stole a plasma TV and other valuables. The individuals also stole around $40,000 from the safe and a 2000 grey Acura that belonged to the doctor. At one point, García-Pagàn spoke with the victim in a bathroom, while the victim’s hands were tied and told the victim: “no salgas, no llames a la policía, usted se crió distinto que yo, así yo le doy de comer a mis hijos, usted va a tener una vida larga, a mí me van a matar en la calle o en la càrcel.” (“Do not come out, do not call the police, you were raised different than me, I feed my kids this way, you are going to have a long life, I will get killed on the street or in jail.”) The vehicle was later found in the housing complex, after the assailants failed to exit the area with the vehicle.
Ricardo Urbina-Robles and Luis A. García-Pagàn were both indicted for the commission of this offense. Urbina-Reyes plead guilty to all counts and received a sentence of 30 years in prison on April 2, 2014.
Huntington Man Sentenced to 33 Months Imprisonment for Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A convicted felon who illegally possessed firearms was sentenced to two years and nine months imprisonment today, U.S. Attorney Booth Goodwin announced. Jonathan Kyle Masters, 30, of Huntington, West Virginia, previously pleaded guilty to illegal possession of firearms by a convicted felon.
In December of 2012, police officers found a handgun in Masters’ car after he was caught shoplifting ammunition from Cabela’s in Charleston, West Virginia. Shortly thereafter, federal agents executed a search warrant at Masters’ Huntington, West Virginia home where they seized two more pistols, a shotgun, and numerous rounds of ammunition.
In 2007, Masters was convicted in Wayne County, West Virginia of wanton endangerment and possession of a deadly weapon on premises of educational facilities, both felonies. As a result of these convictions, Masters was not permitted to possess any firearm.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. The sentence was imposed by Chief United States District Judge Robert C. Chambers. Special Assistant United States Attorney Sharon M. Frazier handled the prosecution.