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28 April 2014
Houston Man Pleads Guilty to Threatening to Bomb SynagogueRead the Press Release
Dante Phearse, 33, has entered a plea of guilty to calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas.
Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, he admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of the above threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
U.S. District Judge Kenneth M. Hoyt accepted the plea today and has sentencing for July 7, 2014. At that time, Phearse faces a sentence of up to 20 years in federal prison for the civil rights violation and a maximum sentence of 10 years for making bomb threats over the telephone.
The FBI investigated the case with the assistance of the Houston Police Department. Civil Rights Division Trial Attorneys Nicholas Murphy and Saeed Mody and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo are prosecuting in cooperation with the Harris County District Attorney’s Office.
Houston Man Convicted for Threatening to Bomb SynagogueRead the Press Release
HOUSTON – Dante Phearse, 33, has entered a plea of guilty to calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division.
Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, he admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
According to court records, Phearse called the synagogue and left the following voice message.
Yes hello, um I was just wondering when you’re going to actually stop lying to the people you know we been helping you Jews for a long time you know the Shriners and we been considering the fact the people that blacks are the direct descendents of God we know there is no such thing as a white Jew Jews out there in Jerusalem all those (unintelligible)... they’re black we know that Jews are over the media over a lot of things y’all staged these bomb attacks is a lie saying this is an Islamic terrorist group you know we are not supporting you Jews anymore we’re tired of lying to you the Masons and Eastern Stars we are a Satanist group we just we using you Jews for money we know that you’ve been teaching the fact that blacks are cursed that’s why they have long penises we all know they are the real chosen people If you don’t stop and tell your students the truth we will be forced to bomb your facility I’m sorry about this but we will be forced to bomb your facility on May 2nd we’re Mason’s the Illuminati is the one who is going to take over.
As a result of the above threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
U.S. District Judge Kenneth M. Hoyt, accepted the plea today and has sentencing for July 7, 2014. At that time, Phearse faces up to 20 years in federal prison for the civil rights violation and a maximum 10 years for making bomb threats over the telephone.
The FBI investigated the case with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ruben Perez and Joe Magliolo and Civil Rights Division Trial Attorneys Nicholas Murphy and Saeed Mody are prosecuting in cooperation with the Harris County District Attorney’s Office.
Holyoke, Massachusetts Woman Indicted for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury has returned a two-count Indictment charging Seanna Krasin, 22, of Holyoke, Massachusetts, with two counts of heroin distribution. On April 25, 2014, United States Magistrate Judge John M. Conroy entered pleas of not guilty on Krasin's behalf at an arraignment. Krasin is released on conditions previously imposed by Judge Conroy.
According to court documents, the Vermont Drug Task Force (VDTF) used a confidential informant to make controlled purchases of heroin from Krasin in Springfield. Krasin sold the informant 250 bags of heroin on April 7, 2014 and 800 bags of heroin on April 10, 2014. Evidence acquired during the investigation revealed that Krasin sold between 6000 and 8000 bags of heroin to two Vermont customers between November 2013 and her arrest on April 10.
United States Attorney Tristram J. Coffin emphasized that the charges are merely accusations and that defendant is presumed innocent unless and until proven guilty. If convicted, defendant faces a maximum possible term of imprisonment of twenty years, however any actual sentence in the event of conviction will be determined pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors.
United States Attorney Coffin commended the investigation by the VDTF and stated, "This office will continue to work with federal, state and local law enforcement agencies to investigate and prosecute those who feed and profit from the opiate addiction of Vermonters." The Office of the Federal Defender represents Krasin. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Hollidaysburg Man Filed False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., pleaded guilty in federal court to charges of filing false tax returns, United States Attorney David J. Hickton announced today.
Michael Herman pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Herman filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $9,873,745 in taxable income, resulting in an underpayment of $655,934 in income tax owed to the United States.
Judge Gibson scheduled sentencing for Sept. 30, 2014, at 10 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 Herman.
Fruitland, N.M., Man Pleads Guilty to Federal Voluntary Manslaughter and Assault ChargesRead the Press Release
ALBUQUERQUE – Jason Yazzie, 31, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., pleaded guilty this morning to voluntary manslaughter and assault charged. Under the terms of the plea agreement, Yazzie will be sentenced to a federal prison sentence within the range of 20 to 25 years.
Yazzie was arrested on Aug. 6, 2013, based on a criminal complaint alleging that he killed a two-year-old Navajo child on Aug. 2, 2013, in a location within the Navajo Indian Reservation.
During today’s proceedings, Yazzie entered a guilty plea to a felony information charging him with voluntary manslaughter and assault resulting in serious bodily injury charges. In his plea agreement, Yazzie admitted that on Aug. 2, 2013, he became extremely frustrated with the victim, who had been left in his care, and repeatedly struck the victim about the torso, causing the victim to sustain severe chest and abdominal injuries. Yazzie also admitted that he threw the victim approximately five feet in the air and across the room, causing the victim to sustain severe head and neck trauma. Yazzie admitted that he acted in frustration and in the heat of passion and that his actions caused the victim’s death.
Yazzie has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Forty-Fifth Defendant Sentenced <br /> for Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A Dominican national was sentenced today for his role in trafficking the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Principal Deputy Assistant Secretary Thomas S. Winkowski of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Jorge Luis “Daniel” Mendez, 38, a Dominican national formerly of San Juan, Puerto Rico, was sentenced to serve 75 months in prison, followed by three years of supervised release, and ordered to forfeit $422,793 in illegal proceeds by U.S. District Judge Juan M. Pérez-Giménez in the District of Puerto Rico. The defendant is illegally within the United States and the government will seek his deportation following the service of his prison sentence.
On Dec. 3, 2013, Mendez pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit human smuggling for financial gain and three counts of aggravated identity theft. To date, 53 individuals have been charged for their roles in the identity trafficking scheme. All 49 arrested defendants have pleaded guilty and 45 defendants have been sentenced.
According to court documents, individuals located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators were charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.
The court documents indicate that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
Mendez was a supplier of Puerto Rican identity documents who operated in San Juan and provided Puerto Rican identities to brokers in Massachusetts and Pennsylvania, knowing that the identities would be sold to undocumented aliens who would then pose as U.S. citizens. Court documents show that Mendez was a manager and supervisor in the conspiracy.
Various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Pa.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report them to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Fort Thompson Man Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Emmanuel Harrison, a/k/a Manny Harrison, age 29, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 23, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in October 2013, Harrison knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, at Fort Thompson.
The charge is merely an accusation and Harrison is presumed innocent until and unless proven guilty.The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Harrison was remanded to the custody of the U.S. Marshals Service pending trial.
Former Jersey City Council Candidate Admits Misuse of ContributionsRead the Press Release
NEWARK, N.J. – Former Jersey City Council candidate Lavern Webb-Washington today admitted illegally using contributions to her political campaign for her personal use, U.S. Attorney Paul J. Fishman announced.
Webb-Washington, 65, of Jersey City, N.J., pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging her with converting to her own use and the use of another up to $1,000 in money of the United States to which she was not entitled.
According to documents filed in this case and statements made in court:
As a 2009 candidate for city council in Jersey City, Webb-Washington had a duty truthfully to account to her campaign for contributions received and to not use campaign contributions for any improper purpose, such as for personal use. On March 30, 2009, April 23, 2009, and May 7, 2009, in Bayonne, N.J., and North Bergen, N.J., Webb-Washington accepted cash contributions from Solomon Dwek, a witness cooperating with federal law enforcement agents. Webb-Washington accepted those contributions with the intent to convert a portion of the money to her own use without authority and contrary to New Jersey state laws governing the proper use of campaign contributions. She failed to report these cash contributions to the N.J. Election Law Enforcement Commission (ELEC) as required and used up to $1,000 of that money to pay her own personal expenses. The funds that Webb-Washington admitted converting were federal funds given to Dwek by the FBI as part of the investigation.
The misdemeanor charge to which Webb-Washington pleaded guilty carries a maximum potential penalty of one year in prison and a $100,000 fine. Webb-Washington had been facing a mail fraud charge, which according to the plea agreement, will be dismissed at the time of her sentencing. Sentencing is scheduled for August 5, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading up to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-145
Defense counsel: Wanda M. Akin Esq., Newark
Webb-Washington, Lavern Superseding Information
Former Illinois State Rep. Keith Farnham Charged with Possession of Child PornogrphyRead the Press Release
CHICAGO ― Former Illinois State Rep. KEITH FARNHAM was charged today with possession of child pornography in a criminal complaint filed in U.S. District Court in Chicago. Farnham allegedly possessed two videos depicting child pornography on a computer that was seized from his state office in Elgin in March.
Farnham, 66, of Elgin, was not arrested and no date has been set yet for him to appear voluntarily for an initial appearance in Federal Court.
On March 13, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Farnham’s office and residence in Elgin. Several computers and electronic storage devices were recovered that contained child pornography images, including the two charged videos, according to the complaint affidavit. The office computer that contained the videos was labeled “PROPERTY OF THE STATE OF ILLINOIS HOUSE OF REPRESENTATIVES.”
Farnham resigned his seat in the Illinois General Assembly on March 19.
According to the complaint, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet. After agents linked the email account to Farnham they obtained and reviewed instant message chats that occurred between last June and January this year. Excerpts of those chats are detailed in the affidavit.
Possession of child pornography carries a maximum sentence of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Former Fire Chief, Wife, Sentenced on Fraud ChargesRead the Press Release
ROANOKE, VIRGINIA – The former fire chief in Buchanan, Va., and his wife, were sentenced today in the United States District Court for the Western District of Virginia in Roanoke to charges stemming from Fraud.
Billy Joe Carter, 35, and Shana Carter, both of Buchanan, Va., previously waived their rights to be indicted and each pled guilty to one count of conspiracy to commit theft of government funds; conspiracy to commit healthcare fraud; conspiracy to willfully make and subscribe a tax return.
Today in District Court Billy Joe Carter was sentenced to 42 months of federal incarceration. Shana Carter was sentenced to three years of probation. The defendants were also ordered to pay restitution in the amount of $130,665 to the Social Security Administration and $91,828 to Medicare.
Evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day showed that Billy Joe Carter began receiving Social Security Administration (SSA) disability benefits in February 2004 for a personality disorder and affective mood swings. Subsequently, Billy Joe Carter also began receiving Medicare in connection with his SSA benefits. Shana Carter, his wife, was the representative payee for her husband’s social security disability benefits and Medicare benefits. Both Billy Joe and Shana Carter are responsible for reporting any changes income, medical condition or employment status to SSA and Medicare.
However, evidence presented shows that from 2005-2012, Billy Joe Carter was employed by the owner of Oak Hill Farm in Botetourt County, first as a farm hand and later as a farm manager. Neither Billy Joe Carter nor Shana Carter reported this change in income and employment to SSA or Medicare. As a result, Billy Joe Carter received between $200,000-$400,000 in undeserved benefits from SSA and Medicare.
The investigation of the case was conducted by the Social Security Administration, the Department of Health and Human Services, the Internal Revenue Service, the Botetourt county Sheriff’s Office and the Botetourt County Commonwealth’s Attorney’s Office. Assistant United States Attorneys Charlene R. Day and C. Patrick Hogeboom III prosecuted the case for the United States.
Former Employee Sentenced to Three Years in Prison for Stealing Nearly $95,000 from Real Estate Company-Defendant Secretly Collected Rents, Pocketing the Money for Herself-Read the Press Release
WASHINGTON – Kirsten Wilkinson, 34, of Dumfries, Va., was sentenced today to three years in prison for stealing nearly $95,000 from a real estate company where she worked as a personal assistant, announced U.S. Attorney Ronald C. Machen Jr.
Among other things, the government’s evidence showed, Wilkinson secretly collected rent on apartments that were not her own.
Wilkinson pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to charges of interstate transportation of stolen property and second-degree theft. She was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of her prison term, Wilkinson will be placed on three years of supervised release. While on supervised release, the judge barred Wilkinson from opening new credit cards or working in a position in which she would be utilizing financial accounts. Wilkinson also must pay $94,757 to her former employer. Finally, she is subject to a forfeiture money judgment in the same amount.
According to the government’s evidence, Wilkinson began work in November 2010 as a personal assistant for a small company that renovates and refurbishes buildings throughout Washington, D.C. She carried out a scheme to rent the company’s properties for her own gain, secretly telling tenants and potential tenants to write rental checks to her in her own name.
The scheme involved multiple individuals who believed Wilkinson owned and operated the apartments. When they needed assistance, she made clear that she was the specific point of contact for any issues that might arise. Not only did she dupe these unsuspecting potential tenants through advertisements on Craigslist, but her scheme continued for more than a year, leading to theft of $82,959 in rental income that properly belonged to her employer.
In addition, according to the government’s evidence, Wilkinson made $11,798 in unauthorized charges for personal expenses from her employer’s credit cards.
At sentencing, the government noted that Wilkinson has six prior convictions in Virginia for offenses such as embezzlement, identify theft, larceny, and similar crimes. In this case, her actions nearly bankrupted her employer’s company.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD), especially its Fraud Unit. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo; Investigative Analyst Sharon Johnson; former Paralegal Specialist Shanna Hays, and Assistant U.S. Attorney Zia Faruqui, who assisted with forfeiture issues. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Philip A. Selden, who prosecuted the case.
14-100Former Buffalo Woman Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacquelyn Witman, 31, formerly of Buffalo, N.Y., now residing in the Atlanta, Georgia, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, marijuana, before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum sentence of five years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2010 and February 2011, the defendant conspired with others to distribute marijuana. On February 21, 2011, Witman attempted to board a flight at the Buffalo Niagara International Airport to Arizona. During a security screening, screeners found $21,150 in U.S. currency, money the defendant admitted was the proceeds of marijuana sales.
During the investigation, law enforcement officers seized approximately $1,000,000 in U.S. currency.
Other defendants charged in the case include Shane Grafman, of Phoenix, Arizona and Elijah Chaffino, of Tempe Arizona, who have been convicted and are awaiting sentencing. Charges are still pending against defendants Jordan Ali, formerly of Alden, N.Y, Jason Nati and Gabriel Rodriguez, both of Buffalo, N.Y. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office; United States Postal Service Inspection Service, under the direction of Acting Inspector-in-Charge Shelly A. Binkowski; Federal Bureau of Investigation; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.Federal Jury Convicts Sweetwater Man for Role in Heroin Distribution ConspiracyRead the Press Release
ABILENE, Texas — Following a three-day trial before U.S. District Judge Jorge A. Solis, in federal court in Abilene, Texas, a jury has convicted Ernest Martenez Melendez, 63, of Sweetwater, Texas, on an indictment charging one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melendez faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine. A sentencing date has not yet been set before Judge Solis.
All of Melendez’s six co-defendants in the case have pleaded guilty to their roles in the conspiracy.
The government presented evidence at trial that for a period of several months in 2013, Melendez traveled to Fort Worth, Texas, and obtained ounce quantities of black tar heroin, which he then transported back to Sweetwater, re-packaged in smaller quantities and distributed to numerous individuals there.
The Texas Department of Public Safety – Criminal Investigations Division and the Bureau of Alcohol, Tobacco and Firearms investigated. Assistant U.S. Attorneys Juanita Fielden and Justin Cunningham are prosecuting.
Eagle Butte Man Charged with Aggravated Sexual Abuse by Force and ThreatRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force and Threat.
Frank Duane Baker Jr., age 42, was indicted on April 15, 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 life in custody and/or a $250,000 fine, at least five years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in May 2013, Baker used force and threat of serious bodily injury and death to engage in and attempt to engage in a sexual act with a female victim.
The charge is merely an accusation and Baker is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Baker was remanded to the custody of the U.S. Marshals Service pending trial, which is set for June 16, 2014.
Dr. Robert B. Sperrazza Sentenced for Tax Evasion and Currency StructuringRead the Press Release
United States Attorney for the Middle District of Georgia, announced today that Robert Sperrazza, M.D., age 61, currently a resident of Panama City Beach, Florida, and formerly a resident of Lee Co. Georgia, was sentenced by United States District Judge W. Louis Sands to serve 36 months in Federal prison. The Court also ordered Dr. Sperrazza to forfeit $870,238.99 to the United States.
Dr. Sperrazza was convicted by a jury on June 7, 2013 of 5 felony offenses, 3 counts of tax evasion and 2 counts of currency structuring. Currency structuring is a criminal offense in which a person intentionally makes cash transactions in amounts under $10,000 in order to avoid the Currency Transaction Reporting Requirement of the Internal Revenue Service.The government’s evidence at trial proved that Dr. Sperrazza personally cashed over one million dollars in patient checks at the counter of a local bank, in Albany, Georgia. Dr. Sperrazza structured the cash transactions in amounts under $10,000 for the purpose of evading the bank reporting requirements of federal law and for the purpose of furthering his tax avoidance scheme.
Dr. Sperrazza was formerly an anesthesiologist in Albany, Georgia. He later moved to Panama City Beach, Florida where he briefly operated a pain clinic. Dr. Sperrazza is not currently involved in the practice of medicine.
“Our tax and currency reporting laws simply require that we play by the rules. Dr. Sperrazza tried to get around the rules and was caught by his own greed. He may have been able to evade the tax laws, but now he faces a considerable prison sentence because the criminal law caught up with him,” said U.S. Attorney Michael Moore.
The case was jointly investigated by the Criminal Investigation Division and the Special Enforcement Program of the Internal Revenue Service and by the United States Secret Service. The case was prosecuted by Assistant United States Attorney James N. Crane.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Detroit One PartnershipAnnounces Anti-Carjacking CampaignRead the Press Release
The Detroit One violence reduction partnership today announced a campaign to raise public awareness about the serious federal penalties for carjacking.
Joining in the announcement were United States Attorney Barbara L. McQuade, Detroit Police Chief James Craig, Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office (FBI), Special Agent in Charge Steven Bogdalek, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Crime Stoppers President John Broad.
The campaign's message, "Carjacking is a ride straight to prison," will be communicated on billboards and in a public service announcement for broadcast media. The billboards are located on northbound I-75 at Holbrook, on westbound I-94 at Schaefer and 7300 N. Saginaw at Taylor in the City of Flint.
The Detroit Police Department, FBI and ATF are working together as part of the Violent Crime Task Force and Comprehensive Violence Reduction Program to combat the problem of carjacking in Detroit. The City has seen 165 reported cases of carjackings in 2014. Violent crimes typically increase during warmer weather, so this campaign is designed to coincide with the approaching summer months.The campaign is designed to raise awareness of the stiff federal sentences that carjackers receive. In 1992, in response to the escalating violence associated with carjacking, Congress passed an armed carjacking law that carries penalties of up to 15 years in prison for each count; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. Those who use a firearm during the commission of a carjacking could be sentenced to an additional minimum consecutive sentence of five years in prison for each count, seven years in prison if a firearm was brandished, ten years in prison if a firearm is discharged and a maximum of life in prison. A subsequent conviction for using a firearm in furtherance of a crime of violence carries a minimum consecutive sentence of 25 years. As a result of this structure, serial carjackers face lengthy consecutive sentences.
Case examples include United States v. Tyree Washington. Washington, 22, of Detroit, was sentenced to 57 years in prison for committing three counts of armed carjacking. He used a .45 caliber handgun to commit carjackings and steal cars with custom rims, which he hoped to sell on the street.In the case of United States v. Frank Harper, et al., Frank Harper, 29, of Detroit, Phillip Harper, 25, of Detroit, and Bernard Edmond, 46, of Redford Township, were convicted at trial for conspiring to steal cars to support a chop shop. The defendants conspired with several others to steal high-end vehicles, many by committing armed carjacking, and then to retag the vehicles for sale. One of the men would purchase the stolen vehicles from the two carjackers, alter the vehicle identification numbers, create false documents to file with the Secretary of State and then sell the vehicles to unwitting buyers. The three face sentencing in July. Phillip Harper faces a mandatory minimum sentence of 80 years in federal prison and Frank Harper and Bernard Edmond are facing a mandatory minimum sentence of 55 years in federal prison. Co-defendants Statford Newton, 25, was sentenced to 12 years in federal prison, Justin Bowman, 24, was sentenced to 14 years in federal prison and Darrell Young, 31, was sentenced to five years in federal prison.
"Carjackers create an unacceptable risk of physical harm or death and instill fear in our community," McQuade said. "We hope that if criminals are aware of the very serious penalties for carjacking, then they will think twice before victimizing innocent motorists."
“The most troubling thing can be the violence that is attached with such a heinous crime”, said Chief James Craig. “With the continued support of our local and federal partners and tough sentencing guidelines in place, I am confident we will continue to drive down on this crime and those who seek to prey on our citizens.”“When law abiding citizens face the constant fear of being carjacked during the normal course of their daily lives, it negatively impacts the entire community,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As part of the Detroit One violent crime reduction partnership, the FBI, Detroit Police Department, ATF and our other law enforcement partners are using this public awareness campaign to put would be perpetrators on notice that carjacking is a serious criminal offense that comes with significant federal penalties, and the Violent Crime Task Force is dedicated to combating these crimes.”
“Crime Stoppers is pleased to be a partner in the Detroit One violence reduction initiative,” stated John Broad, President. “We encourage those who witness a carjacking or have information which might lead the arrest of a carjacker to call their local police department or Crime Stoppers at 1-800-SpeakUp.”
Participating agencies in the Detroit One initiative include the Detroit Police Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshal’s Service, Homeland Security Investigations, Michigan State Police, Michigan Department of Corrections, Wayne County Sheriff’s Department, Wayne County Prosecutor’s Office and U.S. Attorney’s Office.
Motorists need to heighten their awareness to protect themselves against becoming victims of a carjacking. For tips on how to avoid becoming a victim go to http://www.state.gov/m/ds/rls/rpt/19782.htmDetroit Man Pleads Guilty to Prescription Drug Trafficking in NitroRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Gregory Lindsey Jr, 22, of Detroit, Michigan, entered a guilty plea today to possession with intent to distribute oxymorphone pills, commonly known as “Opana.” Lindsey faces up to 20 years imprisonment when he is sentenced on August 4, 2014, by Chief United States District Court Judge Robert C. Chambers.
In January of 2014, detectives with the Metropolitan Drug Enforcement Network Team (MDENT) searched the residence at 21A Bailes Drive in Nitro, West Virginia. When officers entered the apartment, they found Lindsey holding a gun. Officers chased Lindsey as he ran to the back bedroom of the apartment to dispose of the gun. After a brief struggle with the officers, Lindsey was restrained and searched. Officers found two baggies containing Opana pills in the pocket of his pants and $2,000.00 in cash. The gun, a semiautomatic pistol, was found under Lindsey.
MDENT conducted the investigation. Assistant United States Attorney Monica D. Coleman 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.
Detroit Drug Dealer Sentenced to More Than Three Years for Bringing Heroin to HuntingtonRead the Press Release
Huntington, W.Va. – U.S. Attorney Booth Goodwin announced today that James Anthony Jones, 28, of Detroit, Michigan, was sentenced in federal court in Huntington, West Virginia to 37 months imprisonment for possession with the intent to deliver heroin. United States District Court Chief Judge Robert C. Chambers handed down the sentence.
In November of 2012, Jones and his girlfriend took a Greyhound bus from Detroit, Michigan to Huntington to deliver heroin for Zachary Merritt. Upon their arrival in at the Huntington bus station, Jones gave the heroin to his girlfriend and directed her to conceal it inside her body. Instead, Jones’ girlfriend placed the heroin under the seat of the taxi they took after arriving at the Huntington bus station. Shortly after leaving the bus station, Huntington police officers stopped the taxi and seized the heroin.
As part of his plea agreement, Jones admitted that he participated in trafficking 528 grams of heroin to Huntington for resale. Merritt, also from Detroit and the source of the heroin transported by Jones, has pled guilty to his role in the heroin trafficking and was sentenced to almost seven years in federal prison.
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. 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 in communities across the Southern District.
Denver Attorney and Others Named in Superseding Indictment Alleging Money Laundering Related to Marijuana Cultivation and DistributionRead the Press Release
Money was being wired from bank accounts in Colombia to bank accounts in Colorado for purchase of marijuana grow facility
DENVER – Hector Diaz, age 49, David Jeffrey Furtado, age 48, Luis Fernand Uribe, age 28, and Gerardo Uribe, age 33, were named in a just unsealed superseding indictment, returned by a federal grand jury in Denver on April 22, 2014, federal law enforcement agencies announced. The superseding indictment alleges violations of federal firearms law and money laundering related to marijuana laws. Diaz, who was previously charged, was sent a summons to appear in court Wednesday, April 30, 2014. Furtado and Luis Uribe were arrested on Friday, April 25, 2014. Furtado and Luis Uribe made their initial appearances this afternoon before U.S. Magistrate Judge Boyd N. Boland, where they were advised of their rights and the charges pending against them. Gerardo Uribe has been charged but is not in custody. He is currently considered a fugitive from justice. Furtado, Luis Uribe, and Hector Diaz are scheduled to be back in court on Wednesday, April 30, 2014.
The superseding indictment includes the original charge that Hector Diaz illegally possessed a firearm. The superseding indictment further alleges that Diaz committed visa fraud by making a false statement regarding the purpose of his visit to the United States.
The superseding indictment alleges that all four defendants conspired with each other and others known and unknown to the grand jury, to commit offenses against the United States. The manner and means of their conspiracy include:
- Effect the international transfer of funds from the Republic of Colombia into the United States to facilitate the purchase of real property, with existing physical structures, located at 5200 East Smith Road, in Denver, Colorado.
- The defendants intended to permit the use of the Smith Road property to cultivate, manufacture, and/or distribute marijuana.
- In 2013, Gerardo Uribe filed documents with the Colorado Secretary of State to incorporate a company known as Colorado West Metal, LLC. Attorney David Furtado was the registered agent. Hector Diaz was listed as the person responsible for forming the corporation.
- Furtado opened a bank account at Wells Fargo in the name of Colorado West Metal, LLC, and was the sole signor on that account.
- Furtado used his attorney trust account, held in the name of his law firm, to facilitate the purchase of the Smith Road property.
- It was part of the conspiracy for Furtado, Gerardo Uribe and Hector Diaz to communicate regarding a wire transfer associated with Colorado West Metal, which was later used to purchase the Smith Road property.
- On November 7, 2013, Furtado transferred $424,000 from the Colorado West Metal Wells Fargo account to a Colorado First Bank account, held in the name of Land Title Guarantee Company.
- The conspirators caused and/or agreed for Land Title Guarantee Company to transfer those same funds to Westerra Credit Union – the mortgagor for the Smith Road property.
- Between November 1, 2013 and November 4, 2013, Furtado made and caused to be made two separate wire transfers in the amount of $200,000 each from his attorney trust account into the Colorado First Bank account in the name of Land Title Guarantee to facilitate the purchase of the Smith Road property.
- Members of the conspiracy deposited, and attempted to deposit into financial institutions, and/or converted to cashier’s checks and/or bulk U.S. currency (cash) to facilitate the purchase of the Smith Road property. These bulk currency amounts included proceeds from the cultivation and sale of marijuana.
- On October 31, 2013, Furtado met with Gerardo Uribe and obtained $449,980 in U.S. currency (cash). Those funds represented proceeds of specified unlawful activity, namely the cultivation and sale of marijuana, as derived through the operation of the “VIP Wellness Center”, operated by Gerardo Uribe, Luis Uribe and others.
The superseding indictment also alleges that Diaz, Furtado and Gerardo Uribe did transfer $424,000 using wire transfers from the Banco Bilbao Vizcaya Argenteria (BVVA) in the Republic of Colombia to the Colorado West Metal, LLC Wells Fargo account with the intent to cultivate, manufacture and distribute marijuana. Also, Furtado did two wire transfers, one for $100,000 and a second for $20,000 from the Banco de Occidente, in the Republic of Colombia, to his attorney trust account with Wells Fargo in Colorado, with the intent to promote the cultivation, manufacture and distribution of marijuana.
Finally, Furtado, Luis Uribe and Gerardo Uribe did knowingly engage in money laundering by and through a financial institution affecting interstate and foreign commerce, in criminally derived property greater than $10,000; that is, the attempted deposit of $449,980 in U.S. Currency (cash) into a Wells Fargo bank account, with such property having been derived from a specified unlawful activity, namely the cultivation, manufacture and distribution of marijuana.
The superseding indictment includes an asset forfeiture allegation, which includes the firearms possessed by Diaz, and the money derived from the unlawful activity, namely the cultivation, manufacture and distribution of marijuana, a Schedule I controlled substance.
The investigation and charges closely follow the guidance provided by the Department of Justice in August 2013. More than one of the enforcement priorities outlined in the Department guidance are implicated in this ongoing criminal matter.
In the superseding indictment, Hector Diaz is named in counts one, two, three and four. David Furtado is named in counts three, four, five, six and seven. Luis Uribe is named in counts three and seven. Gerardo Uribe is named in counts three, four and seven.
Count one is possession of a firearm by a prohibited possessor. If convicted, the defendant faces not more than 10 years imprisonment, and up to a $250,000 fine. Count two is false statements with respect to a material fact. If convicted, the defendant faces not more than 20 years imprisonment, and up to a $250,000 fine. Count three is conspiracy to commit money laundering. If convicted, the defendants face not more than 20 years imprisonment, and a $500,000 fine (or twice the value of the property involved in the transaction, whichever is greater). Count four is money laundering and aiding and abetting the same. If convicted, the defendants face not more than 20 years imprisonment, and a $500,000 fine (or twice the value of the property involved in the transaction, whichever is greater). Counts five and six are money laundering and aiding and abetting the same. If convicted, the defendants face not more than 20 years imprisonment, and a $500,000 fine (or twice the value of the property involved in the transaction, whichever is greater). Count seven is engaging in monetary transactions in property derived from specified unlawful activity. If convicted, the defendants face not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service – Criminal Investigation (IRS CI), the U.S. Department of State, Diplomatic Security Services (DSS) and the Denver Police Department. This investigation is ongoing, and no further information outside of the superseding indictment can or will be provided.
The defendants are being prosecuted by Assistant U.S. Attorneys M.J. Menendez and Bradley Giles. Assistant U.S. Attorney Tonya Andrews is handling the asset forfeiture aspect of this case.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Couple Sentenced for Stealing Hundreds of Identities to Claim over $600,000 in False Tax RefundsRead the Press Release
ATLANTA – Justin Cody, and his wife, Aeshia Wilmore, have been sentenced for their roles in a fraudulent income tax refund scheme.
“Stealing identities of innocent people has become all too common,” said United States Attorney Sally Quillian Yates. “The sentence these two received makes it clear that we are committed to exposing and bringing to justice anyone who engages in this conduct.”"IRS Criminal Investigation will remain proactive in the investigation of individuals and groups who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “We will utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI is pleased with the role it played in bringing these defendants to justice. The FBI will continue to provide its investigative resources and assets in protecting individuals’ identities and their use in these growing schemes involving false tax returns.”
According to United States Attorney Yates, the charges and other information presented in court: From as early as February 2013 to May 2013, Justin Cody and his wife, Aeshia Wilmore, participated in a scheme to defraud the Department of the Treasury by filing hundreds of fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Cody used stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare numerous fraudulent tax returns, claiming over $600,000 in tax refunds. After the refunds were processed, Cody had the refunds applied to blank prepaid debit cards that he and Wilmore used at various ATM machines throughout the Atlanta area.
Justin Cody, 33, of Atlanta, Ga., was sentenced to serve seven years and three months in federal prison. Aeshia Wilmore, 25, also of Atlanta, was sentenced to two years in federal prison by United States District Judge Steve C. Jones. On November 22, 2013, Cody and Wilmore each pleaded guilty to count three of the indictment, which is a substantive count of theft of public funds. Cody also pleaded guilty to aggravated identity fraud.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Karlyn J. Hunter and Nekia Hackworth prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Congressman Michael Grimm Indicted for Mail, Wire and Health Care Fraud, Filing False Tax Returns, Perjury, Obstruction of an Official Proceeding, Hiring and Employing Unauthorized Aliens and Related Charges, in Connection with A Manhattan Restaurant HeRead the Press Release
A 20-count indictment was unsealed this morning in federal court in Brooklyn charging Michael Grimm with five counts of mail fraud, five counts of wire fraud, three counts of aiding and assisting in the preparation of false federal tax returns, one count of conspiring to defraud the United States, one count of impeding the Internal Revenue Service, one count of health care fraud, one count of engaging in a pattern or practice of hiring and continuing to employ unauthorized aliens, two counts of perjury and one count of obstructing an official proceeding.1 Since 2011, Grimm has served as a member of the United States House of Representatives, representing New York’s 11th Congressional District, which includes the borough of Staten Island and parts of the borough of Brooklyn, in New York City. Grimm will be arraigned later today before United States Magistrate Judge James Orenstein at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard Weber, Chief, Internal Revenue Service-Criminal Investigation (IRS-CI).
“In 2007, Michael Grimm, former Marine, former FBI agent, accountant and attorney, was poised for success as a small business owner. Instead, as alleged, Grimm made the choice to go from upholding the law to breaking it. In so doing he turned his back on every oath he had ever taken. Even after his return to public service, when called to account for his actions and questioned under oath Grimm went for the cover up, and lied about his role in his own business,” stated United States Attorney Lynch. “The obligation to deal honestly and testify truthfully is shared by everyone in our society. We will continue to work with our law enforcement partners to enforce our laws across the board.”
“As a former FBI agent, Representative Grimm should understand the motto: fidelity, bravery, and integrity. Yet he broke our credo at nearly every turn. In this twenty-count indictment, Representative Grimm lived by a new motto: fraud, perjury, and obstruction. We demand the best from our political leaders. Yet today, we again find ourselves expecting and rightfully wanting more. And as citizens of this great nation we rightfully demand it,” stated FBI Assistant Director-in-Charge Venizelos.
“While occupying a position of trust in the community, Mr. Grimm is alleged to have committed a multitude of criminal violations,” said Chief, IRS Criminal Investigation Weber. “No matter your political position, how much power you have, how much money you make, or who you know, IRS-CI investigates all allegations of tax fraud. The American public expects and deserves the equitable enforcement of our tax laws.”
I. Background
As alleged in the indictment, Grimm was one of the owners and the managing member of “Healthalicious,” a fast food restaurant located in Manhattan. From 2007 through 2010, Grimm oversaw the day-to-day operations of the restaurant, which included the reporting and distribution of the restaurant’s payroll. Specifically, Grimm set the employees’ rates of pay, reported their pay-rates and hours worked to the companies that Healthalicious retained to manage its payroll and withhold taxes due and owing to the federal and New York State governments (the “Payroll Processing Companies”), and distributed wages to employees. When Grimm was not present at the restaurant to perform these tasks himself, he delegated those responsibilities to managers under his supervision and control.
Grimm is charged with engaging in schemes to fraudulently under-report the wages he paid his workers – many of whom did not have legal status in the United States – and fraudulently under-report the true amount of money the restaurant earned to both federal and New York State tax and insurance authorities. Specifically, Grimm paid a large portion of Healthalicious’ employees’ wages in cash and did not report those cash wages to federal and state authorities, thereby lowering the restaurant’s payroll tax costs. Grimm also under-reported the true amount of Healthalicious’ payroll to the New York State Insurance Fund (“NYSIF”), allowing him to receive lower monthly workers’ compensation premiums. In addition, Grimm substantially under-reported the amount of gross receipts Healthalicious earned to both the federal and New York State governments, thereby dramatically lowering the federal and state tax the restaurant owed and paid. In total, Grimm concealed over $1 million in Healthalicious sales and wages, fraudulently depriving the federal and state governments of sales, income, and payroll taxes. Further, when Grimm was deposed by an attorney representing a former Healthalicious employee in 2013 as part of a federal lawsuit, Grimm lied under oath about his business practices, including falsely denying that he paid workers cash wages.
II. The Scheme to Fraudulently Under-Report Healthalicious’ Payroll
As alleged in the indictment, Grimm paid a significant portion of Healthalicious’ employees’ wages in cash. Many employees received approximately half of their weekly pay in cash and the other half by check or through direct deposit into a bank account, while others received their entire weekly pay in cash. Grimm handed out cash payments to his employees on numerous occasions, and those cash payments were taken from the daily cash receipts of Healthalicious. Further, Grimm hired and continued to employ workers who did not have legal status and accordingly did not have valid authorization to work inside the United States.
To execute his scheme, Grimm lied, or directed others to lie, to the Payroll Processing Companies by concealing the cash wages paid to the Healthalicious employees. The Payroll Processing Companies had no record of those employees who received the entirety of their pay in cash, or the amounts of pay those employees had received. By under-reporting employee hours and concealing the existence of some employees, Grimm ensured that the Payroll Processing Companies – which were responsible for filing numerous state and federal tax returns on behalf of the restaurant – calculated and then reported less than half of the wages actually paid to the employees. To further his scheme, Grimm maintained electronic spreadsheets detailing the true payroll information pertaining to Healthalicious, which included cash wages paid to Healthalicious employees, and concealed them from the Payroll Processing Companies, among others.
By concealing the off-the-books wages from the Payroll Processing Companies and from an accountant Grimm retained to file other state and federal tax returns for the restaurant (the “Healthalicious Accountant”), Grimm caused a number of false filings to occur, resulting the in underpayment of state and federal taxes as well as an artificially-reduced monthly workers’ compensation insurance premium. Those false filings and misrepresentations included:
1) Federal quarterly payroll tax returns that did not report the true wages Healthalicious employees earned and that did not withhold the proper amount of Federal Insurance Contributions Act (“FICA”) taxes due and owing to the federal government;
2) Federal partnership tax returns filed with the IRS for tax years 2008, 2009, and 2010 that did not accurately report the correct total wages Grimm paid his employees; and
3) False payroll statements submitted to NYSIF by the Payroll Processing Companies and the Healthalicious Accountant during audits conducted by NYSIF that fraudulently lowered the monthly workers’ compensation premiums paid by Healthalicious.
III. The Scheme to Fraudulently Under-Report Healthalicious’ Gross Sales
Grimm also fraudulently concealed from the Healthalicious Accountant a significant amount of the cash sales that the restaurant generated from April 2007 through August 2010. As a result, Grimm filed numerous false tax returns with the federal government and the State of New York through the Healthalicious Accountant. These false filings, among other things, concealed over $1 million of income that Healthalicious earned but did not report to New York State, causing a substantial sales tax loss to the state.
Specifically, those false tax returns included:
1) New York State Form ST-100 quarterly sales tax returns filed with the New York State Tax Department from June 2007 through August 2010; and
2) Federal partnership tax returns for Healthalicious for tax years 2008, 2009, and 2010. Each false return did not report the true amount of Healthalicious’ gross receipts for each tax year. As a result of Grimm’s fraudulent concealment of the restaurant’s income, Healthalicious’ true earnings were not reported on those tax returns. Consequently, those earnings did not flow through to the partners of the business and were not reflected on the personal income tax returns of the partners, including Grimm.
IV. Perjury and Obstruction of Justice
Two former Healthalicious employees filed a federal civil lawsuit against Grimm in the Southern District of New York, alleging that he did not pay them the minimum wage or overtime pay pursuant to the Fair Labor Standards Act and the New York Labor Laws. In January 2013, an attorney representing a plaintiff deposed Grimm, who answered questions under oath relating to his ownership and operation of the restaurant. Specifically, during the deposition, Grimm was questioned concerning his ownership of Healthalicious, what duties he performed there, how he paid and set the hours and rates of pay for his employees, and whether he maintained emails or other records pertaining to those issues, among other things. To conceal his illegal actions, Grimm allegedly lied about several material matters in connection with the lawsuit such as: (a) whether he paid his employees in cash; (b) whether he had interacted with the Payroll Processing Companies; (c) whether he corresponded regarding Healthalicious business through email; and (d) whether he still had access to such an email account.
If convicted, Grimm faces a term of imprisonment of up to 20 years for each mail and wire fraud charge and for the obstruction charge, up to 10 years of imprisonment for the health care fraud charge, and up to five years of imprisonment for the charge of conspiring to defraud the United States and for each perjury charge. Grimm further faces a term of imprisonment of up to three years for each charge of aiding and assisting in the preparation of a false and fraudulent tax return and for the charge of obstructing and impeding the due administration of the Internal Revenue Laws. Finally, Grimm faces up to six months of imprisonment for engaging in a pattern or practice of hiring and continuing to employ unauthorized aliens, as well as forfeiture, restitution, and fines.
Ms. Lynch expressed her appreciation to the Public Integrity Section of Department of Justice, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, the New York State Department of Taxation and Finance, New York State Insurance Fund and the New York State Department of Labor, for their assistance in the investigation.
The government’s case is being prosecuted by Assistant United States Attorneys Anthony M. Capozzolo, Todd D. Kaminsky, and Nathan Reilly.
The Defendant:
MICHAEL GRIMM
Age: 44
Staten Island, New York
E.D.N.Y. Criminal Docket No. 14-248
____________________________________________________________________________
1 The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Grimm Indictment 14-CR-248
Columbia Man Sentenced to 15 Years for Distribution of Sexually Explicit Images of ChildrenRead the Press Release
Scott E. Rouse, 37, of Columbia, Tennessee was sentenced on April 25, 2014, to 15 years in prison by U.S, District Judge Kevin Sharp, for distribution of child pornography, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The prison term will be followed by 10 years of supervised release, during which time Rouse will be required to remain on the sex offender registry and participate in sex offender treatment, among other conditions.
According to the plea agreement, in March and April of 2012, Rouse was found to be using his email to send and receive images and video of pre-teen girls being exploited sexually, including some that involved penetration.
A computer forensic examiner subsequently discovered over 400 images and 38 videos of children engaged in sexually explicit conduct in Rouse’s email and on his electronic devices. The examiner further discovered that Rouse had been engaged in this kind of behavior since on or before January 1, 2010.
Prior to this conviction, Rouse had been convicted in 2004 of aggravated sexual exploitation of a minor in Hickman County, Tennessee; and in March 2008, Rouse was convicted of sexual exploitation of a minor and violation of the sexual offender registry in Maury County, Tennessee.
This matter was investigated by the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the United States Attorney’s Offices for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Carrie Daughtrey.
Colombo Family Soldier Sentenced to 50 Years in PrisonRead the Press Release
Earlier today, Dino Saracino, a soldier in the Colombo organized crime family of La Cosa Nostra (the “Colombo Family”), was sentenced to 50 years in prison at the United States Courthouse in Brooklyn, New York. In May 2012, a jury convicted Saracino of racketeering conspiracy spanning nearly two decades including two murder conspiracies, the extortionate extension and collection of credit, and witness tampering as predicate racketeering acts. The jury also convicted Saracino of conspiring to make extortionate extensions of credit, witness tampering, and obstructing an official proceeding.1
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
United States Attorney Lynch stated, “Dino Saracino was a member of one of the most lethal and feared crews of criminals in La Cosa Nostra. His ruthless adherence to the mafia’s code of violence may have earned him a position as a soldier in the Colombo Family but today’s sentence ensures that he will pay for his crimes with years in prison.” Ms. Lynch praised the FBI and the New York City Police Department for their partnership in the government’s investigation and prosecution and also thanked the Nassau County District Attorney’s Office, the New York County District Attorney’s Office, and the Nassau County Police Department for their assistance.
The evidence at trial established Saracino’s involvement in a racketeering conspiracy that spanned from 1991 through 2008. The jury found that between 1991 and 1993, Saracino – as part of a faction of the Colombo Family that was loyal to jailed boss Carmine Persico – conspired to kill members of a faction loyal to then acting family boss Victor Orena. The two factions were engaged in a bloody struggle, known as the Colombo Family War, for control of the criminal enterprise. The jury also found that Saracino plotted to kill Michael Burnside, who Saracino and others believed was responsible for Saracino’s brother’s death in 1998. In addition, the jury found that Saracino violently attempted to collect a loanshark debt owed by an individual known as “Peter Risk,” conspired to extend extortionate credit himself, and attempted to obstruct the government’s investigation into his activities and the other members of his criminal crew in 2008 through witness tampering, all as part of the racketeering conspiracy. The jury further convicted Saracino of substantive counts of conspiring to make extortionate extensions of credit, preventing testimony, withholding testimony and records from the grand jury, and obstructing an official proceeding, specifically, the grand jury’s investigation of Saracino and his crew.
Today’s sentencing signifies the culmination of a lengthy investigation and prosecution by the U.S. Attorney’s Office and the FBI. Since Saracino’s arrest with Colombo Family street boss Thomas Gioeli and others in June 2008, over 70 members and associates of the Colombo Family, including its leadership, have been arrested, prosecuted, and convicted.
The sentencing proceeding was held before the Honorable Brian M. Cogan, United States District Judge for the Eastern District of New York. During the sentencing proceeding, Judge Cogan found that, in addition to the crimes found proved by the trial jury, the government had proved by clear and convincing evidence that Saracino had participated in the 1995 murder of Richard Greaves, a Colombo Family associate, the 1997 murder of New York City Police Officer Ralph Dols, and the 1999 murder of Colombo Family underboss William “Wild Bill” Cutolo.
The government’s case was prosecuted by Assistant United States Attorneys Elizabeth A. Geddes, James D. Gatta and Cristina M. Posa.
The Defendant:
DINO SARACINO
Age: 41
____________________________________________________________________________
1 Saracino’s co-defendant, Colombo Family street boss Thomas Gioeli, was also convicted at trial of racketeering conspiracy, including three murder conspiracies. On March 19, 2014, Gioeli was sentenced to 224 months in prison.
Coeur D´Alene Man Sentenced for Possessing Sexually Explicit Images of MinorsRead the Press Release
COEUR D’ALENE – Loren Stanley Hall, 70, of Coeur d’Alene, Idaho, was sentenced today in United States District Court to 70 months in prison, followed by 5 years of supervised release for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Hall to pay $5,000 in restitution to a victim, and a $100 special assessment fee. Hall pleaded guilty to the charge on January 30, 2014.
According to the plea agreement, in June 2012, a police officer, working with the Idaho Internet Crimes Against Children Task Force, discovered that a computer in Coeur d’Alene was making child pornography available on the Internet. The officer was able to download the file from a publicly available Internet network. He observed that the file contained a video of minors involved in sexually explicit conduct with an adult. Using digital information the officer obtained when downloading the file, the officer was able to determine that the video was being made available from Hall’s residence in Coeur d’Alene.
In October 2012, a federal search warrant was served on Hall’s residence. According to the plea agreement, Hall told officers that he had been downloading pornography involving “younger girls.” A forensic examiner with the United States Secret Service examined Hall’s computer, and other digital storage devices found in his home, and found that Hall had at least 50 movies depicting minors engaged in sexual explicit conduct. The examiner determined that Hall had used search terms such as “underage,” “pre-teen,” “kiddy,” “man boy love,” and other search terms to find his child pornography. Law enforcement officers were able to determine that the videos in Hall’s collection involved children from Washington, Texas, New Hampshire, Michigan, Pennsylvania, Georgia, and a number of foreign countries.
The case was investigated by the Kootenai County Prosecutor’s Office, Federal Bureau of Investigation, U.S. Marshals Service, Coeur d’Alene Police Department, Idaho Attorney General’s Office, Meridian Police Department, and United States Secret Service, all members of the Idaho Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Charleston Man Sentenced to Five Years for Illegal Possession of Stolen FirearmRead the Press Release
Charleston, W. Va. - United States Attorney Booth Goodwin announced that Brian M. Smith, 31, of Charleston was sentenced to five years in federal prison for the unlawful possession of a stolen firearm. Smith previously plead guilty in August of 2013.
In December of 2009, Smith was approached on the front porch of his Charleston West Side residence and offered a handgun for sale. Smith was familiar with two men peddling the gun and knew that they frequently dealt in stolen merchandise and drugs. Smith was able to negotiate with the men and purchase the gun for less than $100. The day after the purchase, Smith was stopped by Charleston police officers in the parking lot of the Charleston West Side Auto Zone. The officers, who were investigating a shoplifting complaint, discovered the stolen gun in Smith’s jacket. Smith, who had been previously convicted of felony burglary in 2005, knew he could not lawfully possess any gun.
The Charleston Police Department conducted the investigation, assisted by the federal Bureau of Alcohol, Firearms, Tobacco and Explosives. Assistant United States Attorney Erik S. Goes prosecuted the matter on behalf of the United States.
Chamberlain Man Charged with Burglary of A United States Post Office, Theft of Mail, and Theft of Postal Money OrderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury for Burglary of a United States Post Office, Theft of Mail, and Theft of Postal Money Order.
James Short Bear, age 19, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 23, 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 between March 2 and March 3, 2014, Short Bear broke into the Chamberlain Post Office and stole mail, as well as a check written to AT&T, and tried to convert it to his own use.
The charges are merely accusations and Short Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Short Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Caribou Man Sentenced to 20 Years for Transportation of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Christopher Hitchcock, 26, of Caribou, Maine, was sentenced today in U.S. District Court by
Chief Judge John A. Woodcock., Jr. to 20 years in prison, to be followed by 20 years of supervised release, for transportation of child pornography. Hitchcock pled guilty on November
13, 2013.According to court documents, Hitchcock emailed images of child pornography to several individuals from his parent’s residence in Fort Fairfield, Maine. In imposing the sentence, Judge Woodcock noted Hitchcock’s lengthy criminal record, including convictions for assault and domestic violence, and unrelated charges pending against him in state court in
Aroostook County for attempted gross sexual assault and visual sexual aggression against a child.The investigation was conducted by the Federal Bureau of Investigation and the Presque
Isle Police Department.Bismarck Man Sentenced for Coercion & Enticement of a MinorRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 28, 2014, Shane M. Walter, 40, Bismarck N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of coercion & enticement of a minor. Walter pleaded guilty to the charge on Jan. 30, 2014.
Judge Hovland sentenced Walter to serve 14 years and seven months in federal prison, to be followed by five years of supervised release. Walter was ordered to pay restitution of $3342.90 and to pay a $100 special assessment to the Crime Victim’s Fund.
From January 2012 until April 2013 Walter communicated with a juvenile by text message and through the Internet. The messages were used to persuade the juvenile to engage in sexual activity.
The case was investigated by the Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Bangor Resident Pleads Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel
Hines, 38, of Bangor pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. Prior to October 21, 2011, MDPV was classified as a controlled substance analogue. On that date, it was reclassified as a
Schedule I controlled substance. The defendant obtained MDPV from other members of the conspiracy and traded, sold or otherwise distributed it. In November 2011, following a search of a co-conspirator’s residence and the seizure of a large amount of MDPV, the defendant and another person removed MDPV that the police did not find during their search. That MDPV was later seized by police from another individual.
The defendant faces up to 20 year in prison, a $1,000,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Hines is one of five defendants charged as part of the conspiracy. Co-defendants Jessica
Bryden, 22, of Greenbush, Maine; Matthew Tardiff, 27, of Old Town, Maine; and Adam
Hathorn, 36 and Tina Keaton, a/k/a “Fumble,” 32, both of Bangor, previously pled guilty to the conspiracy charge and await sentencing.
The case was investigated by the Bangor Police Department and the Maine Drug
Enforcement Agency with assistance from the U.S. Drug Enforcement Administration.Bakersfield Methamphetamine Trafficking Brothers Sentenced to Federal PrisonRead the Press Release
FRESNO, Calif. — Two brothers from Bakersfield were sentenced today for methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced. Ulisses Lopez, 23, was sentenced to seven years and eight months in prison, and Erik Lopez was sentenced to four years and two months in prison.
According to court documents, on October 23, 2012, the brothers delivered approximately one pound of methamphetamine to an informant.On February 3, 2014, both defendants pleaded guilty to conspiracy to distribute and possess with the intent to distribute methamphetamine.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force, and the Bakersfield Police Department. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorney Kevin Rooney prosecuted the case.
Bakersfield Drug Dealer Sentenced to 8 Years in PrisonRead the Press Release
FRESNO, Calif. —Miguel Sanchez-Mendoza (Sanchez), 46, of Mexico, was sentenced today to eight years in prison for conspiring to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sanchez and a co-defendant maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, a half-pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, cutting agents, a kilogram press, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking. Sanchez is subject to deportation following the completion of the prison term.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Attorney General Holder: Justice Dept. to Collect Data on Stops, Arrests as Part of Effort to Curb Racial Bias in Criminal Justice SystemRead the Press Release
Noting that African-American and Hispanic males are arrested at disproportionately high rates, U.S. Attorney General Eric Holder said Monday that the Justice Department will seek to collect data about stops, searches and arrests as part of a larger effort to analyze and reduce the possible effect of bias within the criminal justice system.
Attorney General Holder said the project grew out of President Obama’s call, issued last July following the verdict in the Trayvon Martin case, for the Justice Department to seek to reduce tensions between law enforcement and minority communities.
“Racial disparities contribute to tension in our nation generally and within communities of color specifically, and tend to breed resentment towards law enforcement that is counterproductive to the goal of reducing crime,” Attorney General Holder said. “Of course, to be successful in reducing both the experience and the perception of bias, we must have verifiable data about the problem. As a key part of this initiative, we will work with grant recipients and local law enforcement to collect data about stops and searches, arrests, and case outcomes in order to help assess the impact of possible bias.”
The data collection is one part of the Department’s new National Center for Building Community Trust and Justice. It will be funded through $4.75 million in competitively awarded grants. The grant recipients will be named later this year.
The complete text of the Attorney General’s video message is below:“A recent study reported that half of African-American men have been arrested at least once by age 23. Overall, black men were 6 times, and Latino men were 2.5 times, more likely to be imprisoned than white men in 2012.
“This overrepresentation of young men of color in our criminal justice system is a problem we must confront—not only as an issue of individual responsibility but also as one of fundamental fairness, and as an issue of effective law enforcement. Racial disparities contribute to tension in our nation generally and within communities of color specifically, and tend to breed resentment towards law enforcement that is counterproductive to the goal of reducing crime.
“We know – from research and from experience – that when people are treated fairly by police and other justice system agencies they are more likely to accept decisions by the authorities and obey the law in the future, even when they are penalized by criminal sanctions.
“Last July, following the verdict in the case involving the shooting death of Trayvon Martin, President Obama spoke out about the need to promote better understanding between law enforcement and young men of color. He specifically directed the Justice Department to work closely with state and local law enforcement agencies to develop training and other innovative tools that can help to reduce discord and restore trust.
“We are heeding the President’s call. This month, the Justice Department is launching a new initiative – the National Center for Building Community Trust and Justice – to analyze and reduce the effect of racial bias within the criminal justice system. The Center will be funded through an initial competitive grant award totaling $4.75 million and is jointly supported by the Justice Department’s Office of Justice Programs, the COPS Office, the Civil Rights Division, the Office on Violence Against Women, and the Community Relations Service. This effort will encompass a broad range of areas in which fairness and trust can come into question–from stops and searches to wrongful convictions.
“Of course, to be successful in reducing both the experience and the perception of bias, we must have verifiable data about the problem. As a key part of this initiative, we will work with grant recipients and local law enforcement to collect data about stops and searches, arrests, and case outcomes in order to help assess the impact of possible bias. We will conduct this research while simultaneously implementing strategies in five initial pilot sites with the goal of reducing the role of bias and building confidence in the justice system among young people of color. This work will likely include anti-gang and mentoring projects intended to empower young African-American and Latino males and break the vicious cycle of poverty, incarceration, and crime that destroys too many promising futures each and every day.
“Through partnerships with community organizations and local agencies, the Center will build on the work of the Department’s Smart on Crime initiative to help expand opportunity in neighborhoods that are too often characterized by distress and distrust; to reduce bias and discord; and – ultimately – to relegate the era of animosity and suspicion to the past.
“Of course, I realize that progress will not come easily, and the changes we seek will not take hold overnight. But the Justice Department is firmly committed to the goal of opening doors to cooperation and trust that will ultimately lead to safer and healthier communities.
“The Department of Justice is integrally involved in the President’s initiative, “My Brother’s Keeper,” a plan to make sure that every young man of color who is willing to work hard and play by the rules has the chance to reach his full potential. By creating more opportunities for young men of color we can send the message that our country is stronger when all Americans are doing well.
“As our nation’s Attorney General, and as a father of three, I am personally dedicated to doing everything possible to reduce crime, to strengthen our communities, and to provide the support and assistance that all of our young people need – and that they deserve.”The full video message is available at http://www.justice.gov/agwa.php.
Army National Guard Soldier Pleads Guilty <br /> to Defrauding the U.S. National Guard BureauRead the Press Release
A soldier in the Texas Army National Guard pleaded guilty today for his role in a bribery and fraud scheme that caused more than $30,000 in losses to the U.S. National Guard Bureau, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Sergeant First Class Zaunmine O. Duncan, 38, formerly of Austin, Texas, pleaded guilty to one count of conspiracy, one count of bribery and one count of aggravated identity theft. The case against Duncan arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 23 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak), to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Duncan admitted that between approximately February 2008 and August 2010, while he was a recruiter for the National Guard, he obtained the names and Social Security numbers of potential soldiers and provided them to recruiting assistants, including co-conspirators Elisha Ceja, Annika Chambers, Kimberly Hartgraves and Lashae Hawkins, so that these recruiting assistants could use the information to obtain fraudulent recruiting bonuses by falsely claiming that they were responsible for referring these potential soldiers to join the Army National Guard, when they were not. In exchange for the information, Duncan admitted that he personally received a total of at least approximately $24,500 in payments from Ceja, Chambers, Hartgraves and Hawkins.
Duncan is scheduled to be sentenced on Aug. 28, 2014, before U.S. District Judge Lee H. Rosenthal in Houston.
Co-conspirators Ceja, Chambers, Hartgraves and Hawkins have all pleaded guilty to conspiracy and bribery in connection to this scheme. Hartgraves is scheduled to be sentenced on June 24, 2014. Ceja, Chambers and Hawkins are each scheduled to be sentenced on June 26, 2014. All of these sentencing hearings are set before U.S. District Judge Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army CID’s Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.April Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 36 indictments charging 41 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Salomon Acevedo-Sanchez, age 55, of Omaha, is charged with illegal reentry into the United States on or about March 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Cecilio Aguilera-Villafana, age 32, of Omaha, is charged with illegal reentry into the United States on or about March 30, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Brigido A. Angeles, age 59, of Springlake, Minnesota, is charged with possession with intent to distribute a mixture or substance containing methamphetamine on or about February 7, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Braulio Arizmendiz-Contreras, a/k/a Carlos Arizmendiz-Salido, a/k/a Miguel Rivera, age 42, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with illegal reentry into the United States on or about April 9, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Arizmendiz-Contreras with possession with a firearm by a prohibited person on or about April 9, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with alien in possession of a firearm on or about April 9, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 years term of supervised release, and a $100 special assessment.
* Jesus Avalos-Colimote, age 38, of Lexington, Nebraska, is charged with illegal reentry into the United States on or about April 5, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Esteban Barajas-Medina, age 27, of Omaha, is charged with illegal reentry into the United States on or about February 2, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Quantal Blake, age 27, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with bank robbery of Bank of the West, on or about February 4, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Blake with attempting to enter Premier Bank with the intent to commit a bank robbery on or about March 20, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with bank robbery of First Westroads Bank, on or about March 20, 2014. The maximum penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Alfonso Camarena-Soriano, age 43, of Lincoln, is charged with illegal reentry into the United States on or about February 11, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose L. Castillo-Mendez, age 33, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with assaulting two officers with U.S. Immigration and Customs Enforcement on or about March 20, 2014. If convicted, he faces a maximum imprisonment of 20 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Melissa S. Clinton, age 35, of McCook, Nebraska, is charged with possession with intent to distribute methamphetamine on or about April 1, 2014. The maximum possible penalty if convicted is 20 years imprisonment , a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leonardo De La Rosa, age 32, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with illegal reentry into the United States on or about April 6, 2013, following deportation. The maximum possible penalty if convicted is 2 years imprisonment , a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges De La Rosa with illegal alien in possession of a firearm on or about April 6, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alberto Favila-Cervantes, age 31; Uriel Ivan Iribe-Ortiz, age 30; Ivan Trujillo-Cruz, age 24; and David Acosta, age 35, are charged in a three-count Indictment. Count I of the Indictment charges the defendants conspired together and with others to distribute and possession with intent to distribute a mixture or substance containing methamphetamine beginning on or about March 27, 2014 and continuing to on or about April 22, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Acosta with distributing a mixture or substance containing methamphetamine on or about April 22, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Favila-Cervantes, Iribe-Ortiz and Trujillo-Cruz with possession with intent to distribute a mixture or substance containing methamphetamine on or about April 22, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Amy N. Fisher, age 41, of Papillion, Nebraska, is charged with embezzlement from the Bank of the West. Between on or about September 4, 2012 and continuing to on or about March 26, 2014, the defendant allegedly embezzled approximately $136,000 for her own personal benefit. The maximum possible penalty if convicted is 30 years imprisonment, a fine of $1,000,000, a 5 year term of supervised release, and a special assessment of $100.* Alejandro Garcia De Jesus, age 28, of Omaha, is charged with illegal reentry into the United States on or about April 8, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ricardo Garcia De Jesus, age 30, of Bellevue, is charged with illegal reentry into the United States on or about April 8, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Antonio Garcia, age 25, of Palmdale, California, is charged with conspiracy to distribute and possess with intent to distribute a mixture or substance containing methamphetamine beginning on or about April 3, 2014 and continuing to on or about April 22, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Juan Carlos Garcia-Gamino, age 26, of Lincoln, is charged in a four-count Indictment. Counts I thru III of the Indictment charge the defendant with distribution of a mixture or substance containing methamphetamine on or about December 27, 2013, on or about January 7, 2014 and on or about January 31, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count IV of the Indictment charges Garcia Gamino with possession with intent to distribute a mixture or substance containing methamphetamine on or about April 4, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,00 fine, a 5 year team of supervised release, and a $100 special assessment.
* William L. Gienger, age 48, of Omaha, is charged with possession with intent to distribute methamphetamine on or about March 31, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Severo Hernandez-Hernandez, age 30, of Omaha, is charged with illegal reentry into the United States on or about April 14, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Aaron James Jackson, age 28, of Lincoln, is charged with harboring a fugitive on or between March 20, 2014 and April 4, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Ricardo Losada-Hernandez, age 38, of Fremont, is charged with illegal reentry into the United States on or about April 15, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Fernando Martinez, also known as Silent, age 26, is charged with possession with intent to distribute a mixture or substance containing methamphetamine on or about March 11, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Alejandro Memije-Fuentes, also known as Hilario Leandro Memije-Fuentes, age 33, of Santa Anna, California; Javier Gomez Zambrano, age 20, of Santa Anna, California, and Miguel Davalos Gomez, age 22, of Costa Mesa, California, are charged with conspiracy to distribute and possess with intent to distribute a mixture or substance containing methamphetamine between on or about April 3, 2014 and on or about April 22, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Luis Armando Morena-Ayala, also known as Ramon Lopez-Rocha, also known as Cho Cho, age 34, of Omaha, is charged in Count I of the indictment with receipt and attempted receipt of child pornography from on and before September 30, 2014. If convicted, the maximum possible penalty is imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. The defendant is charged in Count II of the Indictment with possession of child pornography on or about February 11, 2014. The maximum possible penalty for this count is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Luis Armando Moreno-Ayala, also known as Ramon Lopez-Rocha, also known as Cho Cho, age 34, of Omaha, is charged with illegal reentry into the United States on or about November 6, 2013, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Antonia Noyola-Diaz, age 22, is charged in a four-count Indictment. Counts I of the Indictment charges the defendant with misuse of a Social Security Number on or about July 8, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with illegal reentry into the United States on or about March 26, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges on or about July 8, 2013, Noyola-Diaz made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges that on or about July 8, 2013, the defendant misused a Social Security Card and a State of Nebraska Operator’s License knowing that said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment , a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shannon Pohlmeier, age 43, is charged in a four-count Indictment. Counts I thru III of the Indictment charge the defendant with distribution of a mixture or substance containing methamphetamine on or about January 22, 2014, on or about January 27, 2014 and on or about March 6, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count IV of the Indictment charges Pohlmeier with possession with intent to distribute a mixture or substance containing methamphetamine on or about March 6, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 5 year team of supervised release, and a $100 special assessment.
* Jose Ponce-Ramos, age 27, of Omaha, is charged with illegal reentry into the United States on or about April 8, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Esteban Riveros-Morgado, age 35, is charged with misuse of a social security card knowing that said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Bacilio Rodriguez-Tapia, age 45, of Omaha, is charged with illegal reentry into the United States on or about April 1, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Levi Sanderson, age 25, of Kearney, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with manufacturing a controlled substance which created a substantial risk of harm to human life on or about December 13, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Sanderson with possession and distribution of pseudoephedrine, a listed chemical, knowing or having reasonable cause to believe it would be used to manufacture methamphetamine on or about December 31, 2013. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ottoniel Silva-Avalos, age 25, of Omaha, is charged with illegal reentry into the United States on or about March 28, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 1 year team of supervised release, and a $100 special assessment.
* Joshua Carl Lee Suggs, age 23, of Sacramento, California, is charged with interference with a flight crew member on or about April 13, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Victor Tercero-Jacinto, age 31, of Omaha, is charged with illegal reentry into the United States on or about March 28, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year team of supervised release, and a $100 special assessment.
* Alfonso Vargas-Zacarias, age 22, of Omaha, is charged with illegal reentry into the United States on or about March 19, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year team of supervised release, and a $100 special assessment.
* Agnes Wood, age 56, of Omaha, is charged with embezzlement of funds from the Winnebago Tribe of Nebraska on or about October 7, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.Anderson County Man Sentenced for Sexual Exploitation of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — U.S. Attorney John M. Bales announced today that an Anderson County man has been sentenced for the sexual exploitation of children in the Eastern District of Texas.
Robbie Newby, 46, of Grapeland, Texas, was indicted by a federal grand jury on April 17, 2013, and pleaded guilty on January 9, 2014, to sexual exploitation of children. Newby was sentenced on April 23, 2014, to 30 years in federal prison by United States District Judge Leonard E. Davis.
According to the information provided in court, on or about March 14, 2012, Newby knowingly used and coerced a minor under the age of sixteen to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
This case is being investigated by the United States Department of Homeland Security - Homeland Security Investigations (DHS-HSI) and the Anderson County Sheriff's Office (ACSO). The case is being prosecuted by Assistant United States Attorney Nathaniel Kummerfeld.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
####Alleged Human Smuggler Extradited <br /> to Face Charges in Washington, D.C.Read the Press Release
Habtom Merhay, a national of Eritrea and a citizen of the United Kingdom, made his initial appearance today in Washington, D.C., federal court to face human smuggling charges for his role in smuggling primarily Eritrean and Ethiopian undocumented migrants from Dubai, United Arab Emirates, through South and Central America and Mexico into the United States.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia and Acting Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.
Merhay, 47, arrived in the United States on April 25, 2014, and made his initial appearance today before U.S. Magistrate Judge Deborah A. Robinson in the District of Columbia. He was indicted under seal in the District of Columbia in 2012, and the charges were unsealed today. Merhay has been in the custody of Moroccan authorities pending extradition since his arrest in Marrakech, Morocco, in August 2013.
The indictment charges Merhay with one count of conspiracy to bring undocumented migrants to the United States for profit and 15 counts of unlawfully bringing an undocumented migrant to the United States for profit. Court documents allege that Merhay operated with a network of smugglers in Africa, the United Arab Emirates, South and Central America, Mexico and elsewhere to coordinate and implement arrangements, including providing fraudulent identity and travel documents, for undocumented migrants to travel through Latin America and ultimately into the United States without authorization. For up to $15,000, Merhay arranged for individual undocumented migrants to travel from points in Africa to a house or apartment in Dubai, where he provided travel documents, tickets and instructions for meeting other smugglers while on the way to the United States. Merhay coordinated the migrants’ air travel to South America, where they would meet with Merhay’s associates, who would direct or guide them across the various country borders. The undocumented migrants then met with other smugglers associated with Merhay and were further guided north to Mexico and then into the United States, sometimes by crossing the Rio Grande River by raft.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and ICE-HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by HSI Washington. This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Accountant from Rio Arriba County Arraigned on Federal Conspiracy, Mail Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Jasonn Gonzales, 41, an accountant from Velarde, N.M., was arraigned today on a federal indictment alleging conspiracy, mail fraud and aggravated identity theft charges arising out of a scheme to defraud the federal and state unemployment insurance system. Gonzales, who was arrested on April 24, 2014, entered a not guilty plea to the indictment and remains in custody pending a detention hearing scheduled for May 2, 2014.
Count 1 of the six-count indictment, which was filed on March 26, 2014, charges Gonzales and co-defendant Gerald Archuleta, 43, of Ojo Caliente, N.M., with conspiracy to commit mail fraud in furtherance of a scheme to defraud the federal and state Unemployment Insurance System in New Mexico, Texas and Colorado of money by false and fraudulent pretenses. Counts 2 through 5 of the indictment charge the two men with mail fraud, and Count 6 charges Gonzales alone with aggravated identity theft.
According to the indictment, the federal and state Unemployment Insurance System seeks to lessen the effects of unemployment through payments made to claimants (laid-off workers) on a weekly basis while the claimants seek employment. The unemployment insurance program is administered on behalf of the federal government by state workforce agencies in each state. The indictment alleges that between 2009 and 2012, Gonzales and Archuleta schemed to defraud the New Mexico Department of Workforce Solutions, the Texas Workforce Commission and the Colorado Department of Labor and Employment of more than $1,356,000 by making false and fraudulently claims for unemployment benefits in the names of real people.
The indictment alleges that Gonzales and Archuleta perpetuated their unlawful scheme by fraudulently registering numerous non-existent companies with the three state workforce agencies and filing false quarterly reports for the fictitious companies which identified claimed employees. The two men allegedly provided the names, dates of birth and social security numbers of the claimed employees to the state agencies without the knowledge or authorization of the claimed employees, who were real people. Gonzales and Archuleta then allegedly made false and fraudulent claims for unemployment benefit claims on behalf of the claimed employees of the fictitious companies. The two men allegedly opened post office boxes in New Mexico, Texas and Colorado, which they provided to the three state workforce agencies as mailing addresses for the claimed employees. The state agencies mailed debit cards to the claimed employees at the post office boxes and the defendants allegedly used the debit cards to withdraw the fraudulently obtained benefits. During the life of the conspiracy, Gonzales and Archuleta allegedly submitted fraudulent claims for unemployment benefits in the aggregate amount of $1,356,461, and defrauded the three state workforce agencies of approximately $801,848, in total.
The indictment includes forfeiture provisions seeking a money judgment in the amount of $801,848 as well as the forfeiture of assets and property which constitute or are derived from proceeds traceable to the criminal activity alleged in the indictment.
If convicted, Gonzales and Archuleta each face a statutory maximum penalty of 20 years in federal prison on the conspiracy charge and each of the five mail fraud charges. If convicted on the aggravated identity fraud charge, Gonzales faces a two-year mandatory prison sentence to be served consecutive to any sentence imposed on the conspiracy and mail fraud charges.
Archuleta has yet to be arrested and is considered a fugitive.
This case was investigated by the Department of Labor Office of Inspector General, Office of Labor Racketeering and Frauds Investigations, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
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Gonzales Indictment
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27 April 2014
Omaha Man Sentenced for Bank Robberies Committed While on Furlough from PrisonRead the Press Release
United States Attorney Deborah R. Gilg announced that Albert Dansby, 59, was sentenced in the United States District Court in Omaha, Nebraska for two bank robberies. The Honorable Joseph F. Bataillon sentenced Dansby to an 84 month term of imprisonment for each robbery. The terms were ordered to run concurrently. Upon his release from prison Dansby will serve a 3 year term of supervised release. Dansby was ordered to pay restitution totaling $5,417.50.
Dansby was serving a 100 month sentence for four bank robberies in July 2013. The Bureau of Prisons placed Dansby on furlough and put him on a bus to transport him from a federal facility in Texas to a half-way house in Hastings, Nebraska. Dansby left the bus in Omaha and robbed the US Bank, 1700 Farnam, of $1,914 on July 24, 2013. On August 9, 2013, he robbed the Bank of the West, 1921 Harney Street of $3,502. Both robberies were done by presenting a demand note requesting the teller’s cash.
Dansby was arrested by the Omaha Police Department on August 11, 2013. He admitted to both robberies and indicated that the robberies were done to buy crack cocaine.
25 April 2014
Windsor Man Admits Making and Selling Bootlegged Dvds and Cds for More Than A DecadeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN W. RICE, 40, of Windsor, pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of criminal copyright infringement and one count of money laundering related to his production and sale of thousands of pirated CDs and DVDs.
According to court documents and statements made in court, between 2000 and 2013, doing business as “Dr. Jay’s Entertainment,” RICE manufactured copies of motion pictures, television shows, and music that were copyrighted works, using recordable blank DVDs and CDs. RICE also produced labels for the discs and paper inserts for the cases in which the pirated works were sold. RICE set up tables in various locations on which he displayed and sold the bootlegged merchandise, and also advertised and sold the materials over the Internet through Facebook.
The government has seized a total of 8,913 DVDs and 11,410 CDs from RICE and Dr. Jay’s Entertainment.
For the past 13 years, the sale of counterfeit media has constituted RICE’s only source of income, and RICE has admitted that he could make up to $300,000 annually from the illegal sales.
RICE also structured cash deposits into his bank account. In addition, in November 2012, RICE withdrew from his account $39,237.23 in cash derived from his criminal activity in order to purchase a cashier’s check payable to BMW of West Springfield.
RICE is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on July 25, 2014, at which time he faces a maximum term of imprisonment of 15 years and a fine of up to $500,000. RICE also has agreed to forfeit $48,195.42 seized from his bank account, as well as a 2005 Chevrolet Corvette and a 2012 BMW 650i that he had purchased, but had registered in the names of third parties.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]White County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsLuke L. Burnett, 30, of Crossville, IL, was indicted on April 8, 2014, on methamphetamine related charges in a one count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that on March 7, 2014, in White County, Burnett knowingly and intentionally possessed with the intent to distribute a mixture or substance containing methamphetamine.
With respect to Count 1, Burnett faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Illinois State Police and the Indiana State Police.
The case is being handled by Assistant United States Attorney George Norwood.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS before Magistrate Judge Christopher A. Nuechterlein:
David Perry, 55, of South Bend, Indiana, pled guilty to the felony offense of possession of a firearm by a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 7/30/14.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Demarcus Bowling, 21, of South Bend, Indiana pled guilty to the felony offense of possession of a firearm by a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 7/30/14.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Christopher Simmons, 43, of Goshen, Indiana was sentenced by United States Magistrate Judge Christopher Nuechterlein to 1 year on probation and ordered to pay a $1,000 fine, after pleading guilty to the felony offense of taking, killing, or possessing migratory birds.According to documents filed in this case, in March 2012, Simmons illegally killed and took migratory birds native to the United States, specifically, great horned owls and red tailed hawks. This case was the result of an investigation by the Department of Fish and Wildlife Services.This case was prosecuted by Assistant United States Attorney Donald Schmid .
Silvino Alonso-Pineda, 37, of South Bend, Indiana was sentenced by District Judge Robert Miller, Jr. to 30 months of imprisonment and 3 years of supervised release after pleading guilty to two (2) felony offenses: illegally re-entering the United States after being deported and having a prior aggravated felony conviction; and possessing cocaine with intent to distribute.According to documents filed in this case, in October 2013, law enforcement officers met with a confidential informant for the purpose of making a purchase of cocaine from Alonso-Pineda. When Alonso-Pineda arrived at a predetermined location, he was apprehended with 14.7 grams of cocaine and $766.00 in his possession. In April 1999, Alonso-Pineda, a Mexican citizen, was charged in California with possession of heroin and cocaine with the intent to distribute.He later pled guilty and was ordered removed back to Mexico at the Calexico Port of Entry. At no time thereafter was Alonso-Pineda given permission to lawfully re-enter the United States. This case was the result of an investigation by the United States Citizenship and Immigration Services.This case was prosecuted by Assistant United States Attorney Donald Schmid .
Adam Shetler, 33, of Goshen, Indiana was sentenced by District Judge Jon DeGuilio to five years of supervised probation, after pleading guilty to the felony offense of theft of government property. Shetler was also ordered to pay $32,689.50 in restitution. According to documents filed in this case, from approximately January 2009 through December 2010, Shetler applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development. He submitted weekly vouchers to IDWD and intentionally answered "No" to the question as to whether he was working.In truth, Shetler was employed.This case was the result of an investigation by the United States Department of Labor .This case was prosecuted by Assistant United States Attorney Barbara Brook.
Lashaun Murry, 33, of Michigan City, Indiana was sentenced by District Judge Jon DeGuilio to 70 months of imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, in October 2013, Murry possessed a Smith & Wesson handgun. Previously, Murry had been convicted in 2011 of a felony in the LaPorte County Superior Court. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Charles Douglas, 34, of South Bend, Indiana was sentenced by District Judge Jon DeGuilio to 110 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Douglas possessed in October 2012, a shotgun at 1407 Fremont Street in South Bend, Indiana. At the time he possessed the shotgun, Douglas was a convicted felon, having been convicted of several felony crimes including: dealing cocaine, criminal confinement, residential entry, and battery. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid .
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS before US Magistrate Judge Roger Cosbey:
Augustine Luna, 26, of Fort Wayne, Indiana pled guilty to the felony offense of knowingly conspiring to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Nathan Hasty, 36, of Huntington, Indiana pled guilty to the felony offense of sexual exploitation of children. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Edward Williams, 32, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS before United States District Judge Theresa L. Springmann:
Ryan Lasuer, 27, of Warsaw, Indiana, who has been detained since his arrest in 2011, was sentenced to time served and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute a controlled substance and with being a felon in possession of a firearm.According to documents filed in this case, Lasuer maintained a drug relationship with Jonathan Aramburo and obtained marijuana from Aramburo for distribution. Lasuer recruited Whitney Sparkman to transport marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Whitley County Sheriff's Department.This case was prosecuted by Assistant United States Attorney Anthony Geller .
Christine Hagan, 33, of Fort Wayne, IN was sentenced to 2 years of probation after pleading guilty to the felony offense of conspiracy to distribute a controlled substance.According to documents filed in this case, Hagan was involved in the transport of marijuana for Jonathan Aramburo. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Whitley County Sheriff's Department.This case was prosecuted by Assistant United States Attorney Anthony Geller .
Week in Review - HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
John Michael Johnson, 44, of Michigan City, Indiana, was sentenced by Senior District Judge Rudy Lozano to 24 months of probation, to include 12 months of home detention, after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Johnson has a prior conviction for battery. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Vermont Man Convicted of Wire FraudRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Craig
Sanborn, age 64, of Maidstone, Vermont, was found guilty today of wire fraud in U.S. District
Court after a week-long jury trial in Bangor.In 2005, Sanborn received a $300,000 federally-funded Community Development Block
Grant to renovate the former rail terminal in Brownville, Maine, into a facility to manufacture ammunition for black powder rifles. The grant entitled him to reimbursement for machinery purchases and certain other expenses, provided he had invested $300,000 of his own funds towards the project. The indictment against him, returned in December 2012, charged him with submitting false invoices to the Town of Brownville and receiving funds to which he was not entitled.Sanborn faces up to 20 years prison and a $250,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. He was returned to the custody of the State of New Hampshire, where he is serving a sentence for manslaughter associated with a fatal explosion at a Colebrook ammunition-making facility in
May 2010.The investigation was conducted by the U.S. Housing and Urban Development Office of
Inspector General, the Occupational Safety and Health Administration, and the Brownville
Police Department.V-not Gang Member Sentenced to Prison TermRead the Press Release
Habakkuk Nickens -240 Month Sentence
SYRACUSE, NEW YORK –
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces the sentencing of HABAKKUK NICKENS, age 28, of Syracuse, NY, an admitted member of the V-NOT Gang. NICKENS previously pled guilty to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, drug trafficking, and robbery. NICKENS was sentenced today to 240 months in prison.
NICKENS, who was known on the street as “HB,” previously admitted his involvement in many acts, including being present when brother and co-defendant TITUS NICKENS possessed a gun; assaulting and stealing a .50 caliber handgun from a victim along with co-defendants RIADDA TRAVET and CHRISTOPHER MIKE; possessing a .38 caliber handgun; firing a handgun in the vicinity of West Brighton Avenue; participating, along with co-defendants CHRISTOPHER MIKE, JEFFREY POWELL, KAHARI SMITH, TITUS NICKENS, KENNETH JACKSON, DWAYNE HESTER, and others, in a gang fight against Bricktown Gang members on October 23, 2010; and being the driver of a vehicle at the time passenger and co-defendant KAHARI SMITH fired several shots into a rival gang member’s car, with others present including co-defendants JEFFREY POWELL, WILLIE SANDERS and one other person, which resulted in the death of Kihary Blue and the wounding of Bricktown Gang member Jarrell Williams.
All the other indicted V-NOT members previously pled guilty and have been sentenced.
The Indictment to which NICKENS pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, the United States Marshals Service and the United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office). The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, Carla Freedman, who is handling the case, at (315) 448-0672.
Two Mt. Vernon, Il Residents Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsMonty D. Hamson, 44, and Denise A. Huston, 40, both of Mt. Vernon, IL, were indicted on April 8, 2014, on methamphetamine related charges in a four count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from May 2010, until on or about February 19, 2014, in Jefferson County, Hamson and Huston conspired to knowingly and intentionally manufacture methamphetamine.
Count 2 charges that on February 19, 2014, in Jefferson County, Hamson and Huston knowingly and intentionally possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
Count 3 charges that on February 4, 2014, in Jefferson County, Huston knowingly and intentionally distributed methamphetamine.
Count 4 charges that from March 2010, to February 11, 2014, in Jefferson County, Huston knowingly and intentionally possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
With respect to Count 1, each defendant faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years.
With respect to Count 2, each defendant faces up to 10 years imprisonment, up to $250,000 fine, and supervised release of up to 3 years.
With respect to Count 3, Huston faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years.
With respect to Count 4, Huston faces up to 20 years imprisonment, up to $250,000 fine, and supervised release of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Two Heroin Smugglers Sentenced in OrlandoRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II today sentenced Jorge Luis Alomar-Baello (43, Orlando) to 15 years in federal prison for conspiracy to import heroin. Judge Antoon previously sentenced Alomar’s co-defendant, Carla Michelle Alvarado (34, Kissimmee), to serve 2 years in prison. As part of their sentences, the court also entered a money judgment against each, in the amount of $10,000, the proceeds of the heroin that they smuggled into the country. Alomar pleaded guilty on December 19, 2013 and Alvarado pleaded guilty on January 3, 2014.
According to court documents, Alomar paid Alvarado, a Jet Blue flight attendant, $10,000 to smuggle heroin, on Jet Blue flights, from Cali, Colombia. In September 2013, Alvarado was given a body suit containing one kilogram of heroin. She wore the suit under her uniform on a flight from Cali to Orlando. When Alvarado arrived in Orlando, she delivered the heroin to Alomar. Alomar then sold it to his customers on the streets.
Two weeks later, on September 27, 2013, after landing on a flight from Bogota, Alvarado was selected for inspection by officers with U.S. Customs and Border Patrol. The officers discovered the heroin hidden inside the body suit that Alvarado was wearing underneath her uniform. Agents identified Alomar as the intended recipient of the heroin. The next day, agents arranged a meeting with Alomar, who was arrested after taking possession of a bag he believed to contain the heroin.
This case was investigated by the Drug Enforcement Administration and U.S. Customs and Border Patrol. It was prosecuted by Assistant United States Attorney Bruce S Ambrose.
Two Broward County Sheriff’s Office Deputies Charged with Conspiracy in Connection with Rothstein InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the filing of charges against David Benjamin, 48, of Boca Raton, and Jeff Alan Poole, 47, of Weston, for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
In a criminal information filed earlier today, Benjamin was charged with conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. In a separate criminal information also filed today, Poole was charged with conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. The charges allege that, during the relevant time period, both defendants were employed by the Broward Sheriff’s Office. Benjamin was a Lieutenant and served as Executive Officer to then Sheriff Al Lamberti. Poole was a detective assigned to the Strategic Investigations Division.
The charging documents allege that both defendants agreed to utilize their respective positions within BSO unlawfully to further the interests of RRA, its Chairman and CEO, Scott W. Rothstein, and other persons associated with Rothstein. Specifically, the charging documents allege that Benjamin received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with Poole to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship which existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane which was used by Rothstein to flee to Morocco on October 27, 2009 as the Ponzi scheme being conducted through RRA was beginning to unravel.
U.S. Attorney Wifredo A. Ferrer stated, “David Benjamin and Jeff Poole used their official positions as law enforcement officers to commit civil rights abuses to further the interests of Scott Rothstein and others associated with Rothstein. When law enforcement officers betray the trust of the people, it strikes at the very core of our democracy. The informations filed today charging Benjamin and Poole should serve as a reminder that no one is above the law. When law enforcement officers violate the public’s trust, they will be held accountable. Benjamin and Poole are the nineteenth and twentieth accomplice, respectively, to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”
“When David Benjamin and Jeff Alan Poole began to use their official positions to further the illegal schemes of Rothstein and his cronies, they crossed a very bright line,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Their criminal misconduct undermined the public’s trust in law enforcement. As such, the FBI will continue to work with our partners to remove those law enforcement officers who violate the law. The FBI, in particular, would like to thank BSO for their close partnership investigating this matter.”
IRS-CI SAC José A. Gonzalez stated, “Law Enforcement Officers and individuals in positions of our citizens’ trust are held to an even higher standard than the general public. It’s a sad day when a lieutenant and a detective of the Broward County Sheriff’s Office who are sworn to uphold the law, allegedly misuse their positions by engaging in criminal acts. IRS-CI, together with its law enforcement partners, will continue to ensure that no one operates above the law and are held accountable for their actions.”
BSO Sheriff Scott Israel stated, “Every time a law enforcement officer is implicated in a crime, it’s a blow to our profession. This indictment tarnishes the image of honest, hard-working law enforcement officers everywhere. My immediate action after taking office was to suspend Deputy Poole and Lieutenant Benjamin based on an ongoing federal investigation. I applaud the diligence and professionalism displayed by our federal partners and we will continue working closely with them to ensure justice is served.”
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
David Benjamin - Information (PDF)
Jeff Alan Poole - Information (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tulsa Man Sentenced to Maximum 5 Year Prison Term for Tax EvasionRead the Press Release
TULSA, Okla. — A former controller of a trucking dealership was sentenced on Thursday to serve 60 months for more than $1.5 million in bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The 60 month sentence is the maximum prison term for the tax evasion charge.
James Lamar Gresham, 52, of Tulsa, was sentenced to serve 60 months in federal prison by U.S. District Judge James H. Payne for one count each of bank fraud and tax evasion. At the time of the scheme, Gresham worked as a controller for Frontier International Trucks where he had access to financial books and records, and was familiar with the company’s bank accounts.
“This sentencing should be a clear message to everyone that tax evasion is a serious offense and carries serious consequences. All tax payers must report all of their income and pay all of the taxes owed to the United States,” said U.S. Attorney Williams.
According to court documents, from July 30, 2007 to May 2011, as part of the scheme, Gresham would forge company checks made payable in his name, then deposit the checks into a personal bank account. Gresham forged more than 548 company checks and obtained $1,583,157.15 from the company’s bank accounts.
In addition, during the 2010 calendar year, Gresham failed to report the additional income gained from the scheme to the Internal Revenue Service. He evaded paying a total of $511,627 in taxes owed to the United States.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Jeffrey Gallant on behalf of the United States.
Third Defendant Sentenced to More Than 20 Years in Prison for Armed Robbery of Kankakee Credit UnionRead the Press Release
Urbana, Ill. – Today, Chief U.S. District Judge James E. Shadid sentenced Brian O. Williams, 37, of the 700 block of Webster Circle West, Kankakee, Ill., to prison for the June 2009 robbery of the Shapiro Developmental Center Employees Credit Union (SDCECU) in Kankakee. Judge Shadid ordered Williams to serve 20 years and 9 months in the federal Bureau of Prisons, followed by five years of supervised release. In addition, Williams was ordered to pay restitution to the bank in the amount of $284,218. Williams has remained in law enforcement custody since his arrest in September 2012 in Ohio.
Williams pled guilty on April 17, 2013, to one count of aggravated bank robbery and one count of brandishing a firearm during a crime of violence. Williams admitted that, on June 16, 2009, James Williams drove him and Frank C. Black to the credit union to commit the robbery. Brian Williams and Black entered the credit union wearing masks and gloves and armed with handguns. They jumped the counter, brandished their guns, threatened to shoot the credit union employees, and demanded access to the cash drawers and the credit union’s vault. The employees of the credit union complied with their demands. The men took $276,010 from the drawers and vaults, put it into bags they had brought with them, and left the credit union. The three men then got back into James Williams’ vehicle, drove to a residence, and split the money.
Brian Williams was ordered to serve 13 years and 9 months for the aggravated bank robbery, plus a consecutive seven-year sentence for brandishing a firearm during a crime of violence. U.S. District Judge Michael P. McCuskey previously sentenced Black to 70 months (5 years, 10 months) in prison for his role in the credit union robbery. James Williams was previously ordered to serve 87 months (7 years, 3 months) in prison.
The Kankakee Area Project Safe Neighborhoods Task Force, which includes the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Kankakee Police Department, conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
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