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Tuesday 11 March 2014
Erie County Man Charged with Possession of Child PornographyRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The one-count indictment named William Jay Blazes, 46, as the sole defendant.
According to the indictment presented to the court, Blazes possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Corry Police Department, the Erie County District Attorney’s Office and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Eagle Butte Woman Sentenced for Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman convicted of Theft From an Indian Tribal Organization was sentenced on March 10, 2014, by U.S. District Judge Roberto A. Lange.
Kristi Lynn Lawrence, age 41, was sentenced to 3 months in custody and 6 months of home confinement, 3 years of supervised release with conditions, $87,809.18 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Lawrence was indicted for Theft From an Indian Tribal Organization and Tampering with Documents by a federal grand jury on August 13, 2013. She pled guilty to Theft From an Indian Tribal Organization on December 18, 2013.
The conviction arose from incidents that occurred between October 1, 2010, and October 15, 2012, when Lawrence was an employee of the Cheyenne River Sioux Tribe Police Department. During that time, Lawrence manipulated her time sheets, after her supervisor signed them and before she personally delivered them to the payroll department, to include several hours of unauthorized overtime pay. She was paid for such unauthorized and unworked overtime hours and used the funds for her own purposes.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann Hoffman prosecuted the case.
Lawrence was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Pleads Guilty to Unlawful Possession of A Firearm by A FelonRead the Press Release
A man who shot someone in a bar fight pled guilty today in federal court in Cedar Rapids to unlawful possession of a firearm.
Tyrone Clifton, age 27, from Dubuque, Iowa, was convicted of one count of possession of a firearm by a felon.
In a plea agreement, Clifton admitted that on the morning of November 22, 2013, he was involved in an altercation in a Dubuque bar and shot someone. Clifton fled before the police arrived but was apprehended later that day in a car with a loaded 9mm pistol. Clifton had previously been convicted in Cook County, Illinois, of possession of a controlled substance with intent to deliver in 2005, possession of a controlled substance in 2006, delivery of a controlled substance in 2008, escape in 2008, and aggravated unlawful use of a weapon by a felon in 2011, all felony offenses.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Clifton remains in custody of the United States Marshal pending sentencing. Clifton faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-1003.
Dominican National Sentenced to Serve 61 Months in Prison<br /> for Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A Dominican national was sentenced today for his leading role in trafficking the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Deputy Director Daniel Ragsdale 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.
Wilfredo Blanco-Diaz, 40, formerly of Caguas, Puerto Rico, was sentenced to serve 61 months in prison and three years of supervised release by U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico. Blanco-Diaz was also ordered to forfeit $422,793 in proceeds and to be removed from the United States after the completion of his sentence.
On Sept. 24, 2013, Blanco-Diaz pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit human smuggling for financial gain and one count 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 42 defendants have been sentenced.
According to court documents, individuals located in the Savarona area of Caguas 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.
Blanco-Diaz was a supplier of Puerto Rican identity documents who operated in Caguas and provided Puerto Rican identities to brokers in Florida, Nebraska, North Carolina and Virginia, knowing that the identities would be sold to undocumented aliens who would then pose as U.S. citizens. Blanco-Diaz admitted that he 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 .Deported Alien Charged with Re-entering U.S. IllegallyRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Alfredo Ramos-Gallegos, 40, as the sole defendant. According to the indictment presented to the court, on or about February 8, 014, Ramos-Gallegos was found to be unlawfully present within the United States. Ramos-Gallegos had been previously deported and removed from the United States on May 8, 2000. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of either the Attorney General of the United States or the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Mentor Police Department and the Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Man Charged with Passing Counterfeit $100 BillsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging William Powell, 23, of Wilmington, Delaware, with passing counterfeit United States currency.
The indictment alleges that Powell passed counterfeit $100 Federal Reserve Notes.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Gregory C. Sasse, following investigation by agents of the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Dayton Sex Offender Sentenced for Illegal Re-entry into U.S.Read the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Fausto Osuna-Cruz Jr., 27, was sentenced to a total of 88 months in prison for illegal reentry into the United States following deportation, and for violating supervised release for a prior conviction of illegal reentry. Cruz is also a convicted sex offender.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Field Office Director Rebecca Adducci, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) announced the sentence imposed today by U.S. District Judge Timothy Black.
According to court documents, on August 28, 2013, HSI agents found Cruz in the Montgomery County Jail. Cruz was in the jail because he had been arrested on local charges stemming from an altercation. Cruz is a citizen of Mexico. Cruz had been previously deported and removed by immigration authorities from the United States on or about January 28, 2009 and again on February 6, 2012. Furthermore, as of August 28, 2013, Cruz had not obtained permission from either the United States Attorney General or the Secretary for Homeland Security to reapply for readmission to the United States following his deportation and removal.
Prior to his deportations and removals, Cruz was convicted of aggravated felony offenses punishable by greater than a year imprisonment, specifically on or about July 22, 2008 for unlawful sexual conduct with a minor in Clinton County, Ohio and again on or about September 17, 2010 for illegal reentry of removed alien-removal subsequent to conviction for commission of aggravated felony in federal court. He was sentenced then to serve 24 months imprisonment for the 2010 federal illegal reentry offense, and he was released in 2012 and deported to Mexico, after which he promptly returned illegally. Today’s sentence includes 70 months imprisonment on the new illegal reentry charge, followed by 18 months imprisonment for violating the terms of his supervised release stemming from his prior federal illegal reentry conviction.
U.S. Attorney Stewart acknowledged the investigation by ERO, as well as Assistant U.S. Attorneys Andrew Hunt and Vipal Patel, who prosecuted the case.
# # #Corpus Christi Man Sentenced in Child Pornography CaseRead the Press Release
CORPUS CHRISTI, Texas – Jose Gutierrez III, 21, has been ordered to prison following his conviction of possession of child pornography, announced United States Attorney Kenneth Magidson. Gutierrez pleaded guilty Nov. 8, 2013.
Today, Senior United States District Judge Janis Graham Jack considered the very low rate of successful treatment for individuals who are sexually attracted to children and subsequently handed him a total of 80 months in federal prison. He will also have to pay a $5,000 fine to a known victim of the child pornography series he possessed. In handing down the sentence, Judge Jack noted that Gutierrez has been interested in child pornography since he was 15 years old, accounting for most of his teenage and adult life. Gutierrez was further ordered to serve the rest of his life on supervised release following completion of his prison term and he will be ordered to register as a sex offender.
On Nov. 3, 2012, Homeland Security Investigations (HSI) identified a user on the Internet that was making files of suspected child pornography available to other users. That person was ultimately identified as Gutierrez who lives in Corpus Christi.
Agents and officers executed a federal search warrant on his home, at which time he admitted to using the Internet to acquire images of child pornography. Gutierrez stated that his interest in child pornography had begun several years prior and that he had continued to engage in this behavior despite knowing it was illegal. Several computers and other electronic storage devices were seized from Gutierrez which were later found to contain numerous images of child pornography.
Previously released on bond, Gutierrezwas taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI with the assistance and support of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant United States Attorney Lance Duke is prosecuting.
The 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."
Conway Businessman Pleads Guilty to Bank Fraud and Tax EvasionRead the Press Release
BOSTON – A Conway, Massachusetts businessman pleaded guilty today in U.S. District Court in Springfield for using $2.6 million of company funds to pay for personal expenses.
George J. Rosa III pleaded guilty before U.S. District Judge Michael A. Ponsor to bank fraud and tax evasion. Sentencing is scheduled for May 29, 2014.
As the owner and president of the Hallmark Institute of Photography, Rosa spent approximately $2.6 million of company funds for his own purposes, such as construction at his personal residence, gambling, and approximately $55,000 on clothing, footwear, and accessories. Rosa disguised these expenses by reconfiguring them on the company’s books as proper business expenses. In doing so, Rosa defrauded the People’s United Bank in connection with a series of corporate loans, two of which were guaranteed by the Small Business Administration, by submitting the altered books to the bank. Rosa also used the company’s altered books as a basis to file false income tax returns for himself and the company.
Rosa faces a maximum of 30 years in prison on the charge of bank fraud and five years of in prison on the charge of tax fraud, five years of supervised release, and a $1 million fine or twice the gross gain or loss of his crime.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, and Daniel J. O’Rourke, Assistant Inspector General of the Small Business Administration, Office of Inspector General, Investigations Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Clarks Summit Man Pleads Guilty to Threatening to Kill the PresidentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 42-year-old Clarks Summit man pleaded guilty yesterday before Senior U.S. District Court Judge James M. Munley to posting a threat to kill the President of the United States on the White House website.
According to United States Attorney Peter J. Smith, the defendant Nicholas Savino admitted to sending a threat on August 16, 2013, that read: “President Obama the Anti-Christ. As a result of breaking the constitution you will stand down or be shot dead.”
Savino was indicted by a federal grand jury in September 2013, as a result of an investigation by the United States Secret Service and Clarks Summit Police.
Under the terms of the plea agreement, Savino will forfeit to the United States three firearms and approximately 11,000 rounds of ammunition seized by agents from his apartment and vehicle during the investigation.
Judge Munley scheduled sentencing for June 11, 2014. Savino remains detained in prison pending sentencing. He faces up to five years in prison and a $250,000 fine.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Clarks Summit Man Charged with Producing Child Pornography and Online Enticement of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Clarks Summit man was indicted today by a federal grand jury in Scranton on charges of producing child pornography and online enticement of a minor.
According to United States Attorney Peter J. Smith, the grand jury alleges that Taylor Bzdyr, age 20, used a computer and a cell phone to persuade a 13-year-old female to engage in sexual acts which were transmitted live via Skype. The indictment alleges that Bzdry engaged in such conduct between October 2012 and March 5, 2014.
The charges stem from an investigation by the Federal Bureau of Investigation, Border Patrol Agents in California, and the New Westminster Police Department in British Columbia, Canada.
If convicted, Bzdyr faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the child pornography charge; and faces a 10-year mandatory minimum sentence and a possible life sentence if he is convicted of online enticement of a minor.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Cincinnati Man Pleads Guilty to Producing Child Porn Victimizing A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Caleb Zachary Storey, 30, Cincinnati, pleaded guilty in U.S. District Court to producing sexually explicit photographs of a child he was babysitting in the family’s home, and trading child pornography through an email account. Under terms of the plea agreement, he will spend 32 years in prison and will be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, FBI Cincinnati, Cincinnati Police Chief Jeffrey Blackwell, Hamilton County Sheriff Jim Neil and members of the Greater Cincinnati Internet Crimes Against Children Task Force (ICAC) announced the pleas entered today before Senior U.S. District Judge Sandra Beckwith.
Storey pleaded guilty to one count of production of child pornography, which is punishable by at least 15 years and up to 30 years in prison, and one count of possession of child pornography. That crime carries a maximum sentence of ten years in prison.
According to court documents, FBI agents and members of the FBI Violent Crimes Against Children Section, Major Case Coordination Unit, investigating a case in Savannah, Georgia found a sexually explicit image of a child and traced it to an address in Cincinnati. Further investigation determined that the photo was taken at the family’s home. The child’s parents identified Storey as their in-home child care provider when the photograph was taken.
On January 8, investigators searched Storey’s residence and found evidence that he had been trading child pornographic images using an email account and a photograph-sharing website. Preliminary forensic examination of computer and storage media seized from his residence have identified at least four other boys, all less than eight years old, pictured in pornographic images taken by Storey. The FBI arrested Storey on January 8 based on a criminal complaint. He has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The FBI Child Exploitation Task Force includes the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office and the Cincinnati Police Department. Other agencies participating in the Greater Cincinnati ICAC include Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, and the police departments in Amberley Village, Blue Ash, and West Chester.
U.S. Attorney Stewart commended the FBI agents and task force officers who are investigating the case, as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
Charleroi Man Found Guilty of Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – On Feb. 28, 2014, after deliberating approximately one hour, a federal jury of nine men and three women found Thomas David Steiner guilty of one count of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Steiner, 39, formerly of Charleroi, Pa., was tried before Chief United States District Judge Joy Flowers Conti in Pittsburgh, Pa.
According to Assistant United States Attorney Jessica Lieber Smolar, who prosecuted the case, the evidence presented at trial established that in and around August of 2007, Steiner, a convicted felon, possessed assorted ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm or ammunition.
Judge Conti scheduled sentencing for June 26, 2014, at 3:30 p.m. The law provides for a total sentence of not less than 15 years in prison, to a maximum of life, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation that led to the prosecution of Steiner.
Charge Filed Against Federal Prison InmateRead the Press Release
Shamarr Joel Pitts, 25, of Philadelphia, Pennsylvania, was charged by indictment with one count of possession of contraband in prison, on or about November 14, 2013, in the Federal Detention Center in Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger. The indictment charges that Pitts possessed a sharp metal object with a handle made of cloth wrapped with a shoelace that was an object designed or intended to be used as a weapon.
If convicted of all counts, Pitts faces a maximum sentence of five years imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Broward County Tax Preparer Pleads Guilty to Contempt of CourtRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, pled guilty today before U.S. District Judge James I. Cohn to a one-count Information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.
According to the factual proffer filed in court, Guevara had worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice’s Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara had filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court had entered its order. Audits by the IRS found that many of these returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Brooklyn, N.Y., Brothers Admit Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A pair of Brooklyn brothers have admitted on consecutive days to crossing state lines as part of a plan to violently coerce an unwilling husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Avrohom Goldstein, 34, pleaded guilty today to an information charging him with traveling in interstate commerce to commit extortion. Moshe Goldstein, 31, entered his guilty plea March 10, 2014, to the same charge. Both brothers entered their guilty pleas before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein, Avrohom Goldstein and a group of conspirators – including David Hellman, 31, their father, Jay Goldstein, 59, Simcha Bulmash, 30, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish husband to give his wife a "get," a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During their guilty plea proceedings, Moshe and Avrohom admitted that when they arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. The brothers admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
Hellman, the first defendant to plead guilty, admitted the same conduct in Trenton federal court on March 6, 2014; the charges against the alleged conspirators remain pending.
Moshe and Avrohom Goldstein also admitted that on Aug. 22, 2011, they and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 16, 2014, for Moshe Goldstein and June 20, 2014, for Avrohom Goldstein. Each brother is bailed on a $500,000 bond and subject to GPS monitoring.
The brothers each face a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to the guilty pleas. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
14-082
Defense counsel:
Moshe Goldstein: Roger Stavis Esq., New York
Avrohom Goldstein: Charles Waldron Esq., Lawrenceville, N.J.Goldstein, Avrohom Information
Goldstein, Moshe InformationBellevue Man Attempted to Possess Controlled SubstanceRead the Press Release
PITTSBURGH – An Allegheny County resident guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Lee Michael, 25, waived prosecution by indictment and pleaded guilty to a one-count information before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about March 6, 2013, Michael attempted to possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methylone, a Schedule I controlled substance.
Judge Hornak scheduled sentencing for July 30, 2014, at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Troy Rivetti are prosecuting this case on behalf of the government.
Homeland Security Investigations, the United States Postal Inspection Service, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Lee Michael.
Barksdale Resident Pleads Guilty to Receiving Child PornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Isaac Boger, 22, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks to receiving child pornography.
According to evidence presented at the guilty plea, law enforcement authorities detected multiple files containing child pornography being downloaded at a residence on Barksdale Air Force Base. Boger’s home and computer were searched on January 10, 2013 and more than 9,000 files of child pornography, many containing hard core sex involving children, were found on his computer. Boger was an active duty member of the U.S. Air Force when arrested.
Boger faces five to 20 years in prison, a lifetime of supervised release, and up to a $250,000 fine for one count of receiving child pornography. A sentencing date of June 26, 2014 was set. Immigrations and Customs Enforcement-Homeland Security Investigations, U.S. Air Force – Office of Special Investigations, Louisiana State Police, and Bossier City Marshals Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Armored Car Employee Charged with Theft and Tax EvasionRead the Press Release
Tanika Victoria Little, 35, of Philadelphia, PA, was charged today in a superseding indictment with two counts of bank theft and one count of tax evasion. Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. The indictment alleges that Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts in $20 denominations. It is further alleged that Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little allegedly purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little allegedly reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
The indictment alleges that when Little’s 2011 federal income tax return was filed, she evaded taxes by falsely reporting that her total gross income was $28,870, when her true gross income was approximately $138,870, as demonstrated by her alleged acquisition of the missing money, her deposits and expenditures.
If convicted, Little faces a maximum possible sentence of 65 years imprisonment, a five-year term of supervised release, a fine of up to $2.1 million, and a $300 special assessment.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
Monday 10 March 2014
Wichita Store Owner SentencedFor Trafficking Counterfeit Designer GoodsRead the Press Release
WICHITA, KAN. - A woman who owns a retail store in Wichita was ordered to pay $25,000 and placed on five years federal probation for trafficking in counterfeit designer goods, U.S. Attorney Barry Grissom said. She also forfeited all the counterfeit goods that investigators seized from her store.
Glenda Sue Morgan, 55, Wichita, Kan., pleaded guilty to one count of trafficking in goods bearing counterfeit trademarks. In her plea, she admitted selling the counterfeit goods as “replicas” at her business, The Fabulous Store at 9131 E. 37th North in Wichita. On April 2, 2013, undercover law enforcement officers bought about $500 worth of such items including a “Chanel” bracelet and sunglasses, a “Michael Kors” purse and a “Prada” purse. When investigators served a search warrant they seized 400 replica items with a retail value of about $14,000.
In June 2009, more than $1 million in counterfeit goods was seized by Homeland Security Investigations from the same location. At the time, Morgan forfeited ownership of the items and they were destroyed, but she was not charged criminally.
Grissom commended Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.Wichita Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Amel Kevin Loop, 54, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that in November 2012 an FBI agent used the Internet to download images of child pornography from Loop’s computer. The images were transferred using an encrypted peer-to-peer network. The images included sexually explicit photos of a child no more than two years old.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.U.S. Attorney's Office Announces A Federal Forfeiture Action Against A Marijuana Warehouse and Related Marijuana FundsRead the Press Release
DENVER -- Colorado U.S. Attorney John Walsh announced today that his office has filed in United States District Court in Denver a civil forfeiture complaint seeking forfeiture of a Denver area marijuana warehouse and illegally connected funds. The forfeiture case stems from a criminal case indicted by a state-wide grand jury that returned indictments that were ultimately prosecuted in Jefferson County.
As revealed by the Verified Complaint, in the Summer of 2012, the Criminal Tax Enforcement Section of the Colorado Department of Revenue, subsequently joined by the Drug Enforcement Administration (DEA), initiated an investigation into an illegal marijuana growing and distribution operation based in a warehouse at 5105 East 39th Avenue in Denver. Investigators determined that the Warehouse produced hundreds of pounds of processed marijuana, and then illegally distributed the drugs to several retail marijuana stores in the metropolitan area in violation of Colorado and Federal law.
The investigation resulted in a Colorado State Grand Jury Indictment charging numerous individuals and entities with 71 counts of drug, tax, and fraud violations of Colorado state law; 8 guilty pleas have been entered, and several cases remain pending in the Jefferson County, Colorado District Court. The individuals involved in the Drug Trafficking Organization utilized various Limited Liability Companies to hold ownership of the assets, and utilized various bank accounts to buy and equip the Warehouse, fund the operations, and receive the illegal proceeds. In addition to the warehouse, the Complaint seeks forfeiture of over $850,000 in seized funds that are the proceeds of the illegal operation, which were used to promote the illegal operation, and which were involved in money laundering.
According to the indictment referred to above, and other information from state authorities, the underlying case involves out of state diversion of marijuana, fraud on investors, false reporting to state law enforcement and regulatory authorities, filing of false and incomplete tax returns, and other broad-scale criminal activity that necessitated action to protect and enforce federal priorities as outlined in the Department of Justice’s marijuana enforcement guidance published on August 29, 2013.
“The U.S. Attorney’s Office continues to engage in focused enforcement of violations of federal law as it pertains to marijuana, and to work closely with our local and state law enforcement partners,” said U.S. Attorney John Walsh. “In this case, the warehouse and money that is the subject of this forfeiture action were proceeds of an illegal scheme perpetrated by certain individuals who were not only violating federal law, they were violating Colorado state law, as is demonstrated by the guilty pleas obtained in Jefferson County.”
Click here for the Verified Complaint for Forfeiture.
Two Former Officers at Roxbury Correctional Institution Sentenced for Conspiring to Assault an InmateRead the Press Release
Lanny Harris, a former sergeant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and Philip Mayo, a former correctional officer at RCI, were sentenced today for conspiring with other RCI officers on March 8-9, 2008, to assault an inmate at the prison, identified as K.D.
Both Mayo and Harris previously pleaded guilty to conspiring to assault K.D. during the midnight shift (11 p.m. to 7 a.m.). Mayo and Harris cooperated with authorities during the federal investigation and testified for the prosecution at the trial of former RCI officer James Kalbflesh, who was convicted for his role in the assaults on K.D. and the subsequent coverup. U.S. District Judge James K. Bredar sentenced Harris and Mayo to each serve 30 months in prison.
During their testimony at Kalbflesh’s trial and in court documents filed in connection with their respective guilty pleas, Harris and Mayo each admitted that they met with other officers at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Harris, Mayo and two other correctional officers entered K.D.’s cell in order to assault the inmate, and the officers then went through with their plan and assaulted K.D.
“Every person in America has the right to be free from cruel and unusual punishment,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “To ensure that this right is protected, the Justice Department will continue to vigorously prosecute correctional officers who violate the rights of inmates.”
To date, 16 current or former officers at RCI have been convicted in connection with a series of assaults that K.D. suffered on March 8-9, 2008. There are 12 former RCI officers still awaiting sentencing before Judge Bredar, and two who were convicted in state court have already been sentenced.
The case was investigated by the FBI’s Frederick Resident Agency and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the help of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Two District Men Sentenced to More Than 20 Years in Prison for Armed Kidnapping and Other Charges in Attack-Defendants Bound Victim and His Friend, Held Them for Hours-Read the Press Release
WASHINGTON - Aaron Thorpe, 33, and Melvin Knight, 36, both of Washington, D.C., were sentenced today to more than two decades in prison on armed kidnapping and other charges stemming from an attack in which they held a man and woman for hours while searching a house for illegal drugs and cash, U.S. Attorney Ronald C. Machen Jr. announced.
The defendants were found guilty in July 2013, following a trial in the U.S. District Court for the District of Columbia, of armed kidnapping, armed burglary, a weapons offense, and related charges. They were sentenced by the Honorable Richard J. Leon.
Thorpe was sentenced to 25 years in prison, and Knight was sentenced to more than 22 years of incarceration.
According to the government’s evidence, early Jan. 28, 2013, Thorpe and Knight lay in wait outside the home of the victim, who lived in the 6400 block of Kansas Avenue NW. They were armed with handguns and wearing ski masks and dark clothing. When the victim and his female friend approached the home, Thorpe and Knight emerged from behind a car, forced the victim and his friend against the wall of the home at gunpoint, and handcuffed them.
In the course of trying to handcuff the victim, who was resisting restraint, Knight discharged his firearm. A neighbor, hearing the gunshot, looked out a window and saw three men – the victim, Thorpe, and Knight. The neighbor described Thorpe and Knight as two men in masks and in all black, one with a shirt that had the word “POLICE” written across it. The neighbor saw the men force the victim into his home and clearly saw one of them holding a gun.
After the neighbor’s call to police, the Metropolitan Police Department (MPD) arrived on the scene and knocked on the door; no one responded. More units responded over the next few hours, including the department’s Emergency Response Team.
Meanwhile, once inside, Thorpe and Knight had forced the victim and his friend to the floor. The two defendants then bound their legs and mouths with duct tape, and began searching through the home for illegal narcotics and cash. They demanded that the victim tell them where to look, and threatened him and his friend, stating, “We’re not leaving any witnesses.”
While lying face down on the floor, fearing for his life and that of his friend, the victim saw one of the defendants’ guns on the floor. He was able to break his hands free and attempted to reach for the gun. At that point, one of the assailants jumped on him, beat him severely in the head and face with another gun, and threatened to kill the victim’s friend if he did not relent. The male victim complied and the two defendants bound his hands with flexi-cuffs again.
The defendants later hid and/or attempted to destroy evidence of their crimes, unbound the victims, and threatened them to tell a false story to police about what had happened inside the home. Finally, at about 3:40 a.m., Thorpe and both victims walked out of the home; police officers then went in and located Knight upstairs. Both defendants were placed under arrest.
In announcing the sentences, U.S. Attorney Machen commended the actions of the Metropolitan Police Department officers, detectives, and others who worked on the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle and Debra McPherson, Legal Assistant Tammy Scott, Intelligence Specialists Francis Morgan and Sharon Johnson, and intern Christopher Kaltsas. Finally, he commended the efforts of Assistant U.S. Attorneys Emory V. Cole and Brittain Shaw, who investigated and prosecuted the case.
14-060Tacoma, Wash. Man Pleads Guilty to Trafficking Oxycodone and Making Illegal Cash DepositsRead the Press Release
FRESNO, Calif. —David Ruem, 32, of Tacoma, Wash., pleaded guilty today to one count of conspiring to distribute oxycodone and hydrocodone, one count of conspiring to structure cash deposits, and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ruem’s co-conspirators obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, Calif., filled those prescriptions at pharmacies in Modesto, and then transported and mailed the pills to Washington for distribution on the black market. Ruem illegally sold the oxycodone and hydrocodone and then deposited the cash proceeds of those sales into bank accounts held by co-conspirators in California. He made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on his cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
Ruem is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Ruem faces up to 20 years in prison and a $1 million fine for conspiring to distribute oxycodone, up to five years in prison and a $250,000 fine for conspiring to structure, and up to 10 years in prison and a $500,000 fine for aggravated structuring. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act. This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multijurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Squaw Valley Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Bounseuth Thourakhone, 54, of Laos, was sentenced to three years and three months in prison and Bounhome Singharath, 63, of Las Vegas, entered a guilty plea today for their involvement in a marijuana cultivation operation in Squaw Valley in eastern Fresno County, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement officers found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley. Singharath was leaving the grow site in knee high rubber boots and camouflage pants and Thourakhone was hiding in the bathroom of a trailer on the property. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. Thourakhone also admitted to growing marijuana there.
Singharath is scheduled for sentencing on May 19, 2014. He faces a mandatory minimum prison term of 10 years, a maximum prison term of life and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
San Joaquin County Law Enforcement Dog Trainer Sentenced to 15 Months in Prison for Perjury and Making False Statements to Law EnforcementRead the Press Release
FRESNO, Calif. — Stephen J. Johnson, 66, of Linden, was sentenced today by United States District Judge Lawrence J. O'Neill to 15 months in prison for committing perjury before a federal grand jury and making false statements to the FBI United States Attorney Benjamin B. Wagner announced.
According to court documents, Johnson, a law enforcement dog trainer who worked in the Central Valley, was charged with conspiring to obstruct an FBI investigation into Bob Holloway, former owner of Road Dog Cycle in Denair, along with Holloway, retired Stanislaus County Deputy Sheriff Dave Swanson, and Gary Ermoian, a private investigator from Stanislaus County. Johnson was also charged with two counts of making false statements to the FBI and six counts of perjury before a federal grand jury.
At trial, the wiretap evidence revealed that in September 2007, Ermoian, acting on confidential law enforcement information received from Swanson, alerted Holloway that search warrants might be executed at Holloway's residence and business. Thereafter, Ermoian and Holloway discussed how to hide evidence from law enforcement, and, along with Johnson, discussed possible law enforcement surveillance activity at Road Dog Cycle. However, when interviewed by the FBI in 2008, Johnson denied assisting Holloway in hiding evidence and informing Holloway about law enforcement surveillance. Johnson then testified under oath before a federal grand jury later in 2008 and further denied assisting Holloway.
Ermoian and Johnson were convicted at trial on all charges, but Swanson was acquitted. Holloway had pleaded guilty to racketeering charges prior to trial. Last year, the Ninth Circuit Court of Appeals reversed the obstruction of justice count against Ermoian and Johnson. Johnson therefore had to be re-sentenced on the perjury and false statement counts of which he was convicted.
This case was the product of an investigation by the Central Valley Gang Impact Task Force, a task force composed of state and federal law enforcement agencies, including the Modesto Police Department, the Stanislaus County Sheriff's Department, the Stanislaus County District Attorney's Office and the FBI. Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya prosecuted the case.Owner of Cosmetology Schools Reaches $50,000 Settlement Regarding Submission of False Department of Education Tuition ClaimsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the Department of Education announce the settlement of a civil lawsuit brought by the United States of America, acting on behalf of the U.S. Department of Education, against Shirley Zey Smith, a cosmetology school owner.
Ms. Smith was the owner, manager and operator of cosmetology schools located in Oklahoma, Arkansas, and Texas, including the School of Hair Design, Poteau Beauty College, Texarkana Cosmetology Careers, Sherman Cosmetology College, and Mena Cosmetology College. Both School of Hair Design and Poteau Beauty College were approved by the Department of Education to participate in the “Title IV Funding” program, which provides assistance to students for their tuition and fees through grant money and student loans. The other three schools were not approved to participate in “Title IV Funding”.
The lawsuit alleged Shirley Zey Smith and her staff caused students attending her three unapproved schools to submit false claims to the Department of Education, by applying for federal financial aid using the federal school code assigned to the two approved schools.
Pursuant to the settlement agreement, Smith will pay $50,000.00 in penalties and damages.
The case was investigated by the United States Department of Education Regional Inspector General’s Office located in Dallas, Texas. Assistant United States Attorney Robert Gay Guthrie represented the United States in the United States District Court for the Eastern District of Oklahoma, located in Muskogee, Oklahoma.
Ohio Couple Sentenced for Attempting to Defraud Creditors and Fraudulently Obtaining Tax Refund MoneyRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Stephen Richnafsky (38, North Royalton, OH) to 20 months in federal prison for mail fraud and obstruction of Internal Revenue laws. The court also ordered Richnafsky to make full restitution to the Internal Revenue Service (IRS) in the amount of $42,021.88. Additionally, Richnafsky's domestic partner, Scylina Spikes (40, North Royalton, Ohio), was sentenced to two years of probation for her role in the mail fraud scheme. Richnafsky and Spikes both pleaded guilty on November 19, 2013.
According to court documents, between July 2009 and August 2010, Richnafsky and Spikes conspired to evade their debts by mailing fraudulent documents, through the U.S. Mail, to their creditors. These documents included letters disguised as official documents, fraudulent promissory notes, and other documents directing creditors to collect funds from fictitious "treasury accounts." The documents also included bills and account statements which were stamped or handwritten with statements such as "accepted for value and returned for value," and IRS Forms that were fraudulently presented as forms of payment. When creditors refused to accept these documents in satisfaction of Richnafsky’s and Spikes's debts, Richnafsky and Spikes would attempt to file personal liens against the employees, executives, and attorneys of the creditors. Richnafsky also filed four fraudulent tax returns, which falsely claimed taxes withheld from interest income from financial institutions. For tax years 2005-2008, Richnafsky claimed that the IRS had withheld more than $181,000 in interest income, when in fact no such income had ever been withheld. As a result of these filings, the IRS issued a refund of $42,021.88 to Richnafsky.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Nampa Man Sentenced for His Role in Drug and Gun CaseRead the Press Release
BOISE –Nearia “Nick” William Pinnell, 42, of Nampa, Idaho, was sentenced today to thirty-three months in prison for conspiracy to distribute methamphetamine and possession of a fully-automatic machine gun, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Pinnell to serve three years of supervised release. He pleaded guilty to the charges on December 17, 2013.
According to court documents and Pinnell’s admission in court, he entered into a conspiracy with others to distribute methamphetamine. Other co-conspirators were already distributing methamphetamine when Pinnell became involved in approximately February 2013. Pinnell continued to sell small amounts of methamphetamine until approximately April 2013. Judge Lodge recognized that Pinnell was less involved in the drug conspiracy than the many of the other co-conspirators. In June 2013, law enforcement agents recovered a firearm from Pinnell. Approximately one month later, in July 2013, agents executed a search warrant at Pinnell’s residence and recovered additional firearms, including a fully-automatic machine gun. Pinnell had not registered the automatic firearm as required under the National Firearms Act.
Pinnell is one of eleven defendants indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. All eleven defendants have pleaded guilty, including defendant Jeramie Mahler, who pleaded guilty last week to conspiracy to distribute methamphetamine and discharging a firearm in furtherance of a drug trafficking crime. Pinnell is the third defendant to be sentenced; co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced previously to 84 months in prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, with assistance from the Nampa Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monessen Woman Pleads Guilty in Credit Card SchemeRead the Press Release
PITTSBURGH - A Westmoreland County resident has pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Lashara Martia Holmes, 28, of Monessen, Pa., pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, Holmes conspired with other persons to use an unauthorized credit card at a retail store in Pittsburgh, Pa.
Judge Diamond scheduled sentencing for July 8, 2014, at 12 p.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Holmes. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Man Sentenced to Almost Five Years in Prison for Las Vegas, Nev. Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man has been sentenced to 57 months in prison and ordered to pay $834,000 in restitution for his role in a mortgage fraud scheme that caused over $1 million in losses to federally insured financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Lance Kellow, 37, was sentenced on Friday, March 7, 2014, by U.S. District Judge Gloria M. Navarro. Kellow was convicted by a jury in March 2013 of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and one count of bank fraud.
“Hundreds of persons have now been convicted and sentenced to prison for committing fraud in the lending and housing industries in southern Nevada,” said U.S. Attorney Bogden. “Since 2008, we have worked diligently with our federal, state and local law enforcement partners to prosecute federally the most egregious cases of this type of fraud.”
Lance Kellow, an experienced loan officer and licensed mortgage broker in southern Nevada, used his experience and knowledge to commit mortgage fraud for profit. On four different occasions, Lance Kellow and his brothers, Jason and Vince Kellow, lied to mortgage lenders in order to get real estate and money for their own use.
Beginning in January 2007, the brothers conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. The brothers placed false information about their cousin’s employment and finances in mortgage loan applications, and helped him qualify for the loans by depositing cash in his bank account and omitting and paying down his debt, all without informing the lenders. As a result of the false statements in the loan applications, the lenders made loans to the cousin that they would not have otherwise made. Using this scheme, the Kellow brothers received over $500,000 in cash from these sales. The cousin then defaulted on the mortgages, causing losses to the banks in excess of $1 million.
Lance Kellow was permitted to self-report to federal prison by June 5, 2014.
Jason Kellow pleaded guilty to conspiracy to commit bank fraud, and was sentenced in March 2013 to 33 months in prison and ordered to pay $1 million in restitution. Vinson Kellow pleaded guilty to wire fraud and was sentenced in April 2013 to seven months in prison.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Christina Brown.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Man Charged with Murder on the Meskwaki Nation SettlementRead the Press Release
Gordon Lasley, Jr., 25, from the Meskwaki Nation Settlement, Iowa, has been charged with murder in “Indian country.” The charge is contained in a Complaint filed on March 7, 2014, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about February 5, 2014, Lasley murdered two people at their home on the Meskwaki Nation Settlement near Tama, Iowa.If convicted, Lasley faces a possible maximum sentence of life imprisonment, a $250,000 fine, and a $100 special assessment.
Lasley appeared today in federal court in Cedar Rapids and was held without bond. Lasley’s next appearance for preliminary and detention hearings is set for March 13, 2014, at 12:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
In 2010, the Department of Justice launched an initiative making public safety in tribal communities a top priority. The goal of the initiative is to help tribes build and sustain safe and secure communities across the country. Information about the initiative is available at http://www.justice.gov/tribal.
The case is being prosecuted by Assistant United States Attorneys C.J. Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-mj-00065.Local Businessman Sentenced on Fraud, Bankruptcy ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A local businessman and former commercial real estate agent, who pled guilty last year to a variety of federal fraud charges, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.
Michael Wayne Harding, 59, of Keswick, Va., previously waived his right to be indicted and entered a plea of guilty to one count of wire fraud and one count of bankruptcy fraud. Today in District Court, Harding was sentenced to 30 months of federal incarceration. In addition, the defendant was ordered to pay more than $2,019,403 million in restitution.
According to a statement of facts agreed to by the defendant and admitted to the Court at a previous hearing, Harding was the president and sole employee of a company called HMC Holdings. On numerous occasions, Harding attempted to secure mortgages for properties HMC Holdings owned based on improvements that had been made to those properties. However, in order to secure the mortgages, Harding was required to provide the mortgage companies with proof that work had been done to the properties. Harding is alleged to have created fake invoices in order to secure the mortgages.
Harding also admitted that after being issued checks by the mortgage companies intended for the contractors, Harding took those checks to local businesses and had the funds converted for his own personal use.
In April 2011, Harding filed bankruptcy. The defendant admitted today that during his bankruptcy proceedings he filed false Monthly Operating Reports, failed to deposit all income into his Debtor-in-Possession account, which is required by the Court, and lied about forging signatures on releases, liens and deeds of trust. The defendant also admitted to lying about his relationship with a business partner in connection with a proposed sale of property during his corporate bankruptcy.
The investigation of the case was conducted by the Albemarle County Commonwealth Attorney's Office, the Virginia State Police, the Federal Bureau of Investigation, IRS Criminal Investigation and the Office of the United States Trustee. Special Assistant United States Attorneys Matt Quatrara, Elliott Casey and Assistant United States Attorney Ronald Huber are prosecuted the case for the United States.
Lawsuit Recovers $15,000 in Damages to Chickasaw National Recreation AreaRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the National Park Service announce the settlement of a civil lawsuit brought by the United States of America, acting on behalf of the National Park Service, against William T. Jester, a previous owner of land which is adjacent to Chickasaw National Recreation Area.
William T. Jester owned a vacant lot adjacent to the Chickasaw National Recreation Area overlooking the lake. The lawsuit alleged that Mr. Jester destroyed mature trees on government land adjacent to his property to improve his view of the lake.
The Government and Defendant have settled the case. Mr. Jester has paid $15,000.00 in damages to compensate the United States. The National Park Service reminds the public, that any modification to vegetation, or the terrain in general, on government property without a proper permit issued by the National Park Service, is a violation of the law.
Assistant United States Attorney Robert Gay Guthrie represented the United States.
Lawsuit Recovers $10,000 in Damages to Eufaula Lake AreaRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the Tulsa District United States Army Corps of Engineers announce the settlement of a civil lawsuit between the United States of America, acting on behalf of the U.S. Army Corps of Engineers, and a landowner of River Oaks Estates at Eufaula Lake in Pittsburg County, Oklahoma.
The lawsuit alleged that Jeromy Hudson, of Edmond, Oklahoma trespassed, destroyed trees and installed a building on government lakefront property adjoining his property at Eufaula Lake without authorization.
Pursuant to the settlement agreement, Hudson will pay $10,000.00 in damages. The Corps of Engineers reminds the public that any modification to vegetation or the terrain itself on government property without a proper permit issued by the Corps of Engineers is a violation of the law.
Although tree cutting is not permitted, the modification of vegetation may be permitted, by written permit issued by the United States Army Corps of Engineers on a case-by-case basis, in accordance with Eufaula Lake's Shoreline Management Plan and applicable regulations. Any person desiring such a permit should contact the United States Army Corps of Engineers Office at Eufaula Lake before altering government property.
Assistant United States Attorney Robert Gay Guthrie represented the United States.
Laser Striker Sentenced to 14 Years in Prison, Believed to Be the Longest Sentence in A Laser-Strike CaseRead the Press Release
FRESNO, Calif. — Sergio Patrick Rodriguez, 26, of Clovis, Calif., was sentenced today to 14 years in prison for aiming a laser pointer at Fresno police helicopter Air 1, and attempting to interfere with its operation, United States Attorney Benjamin B. Wagner announced. Calling him a “walking crime spree,” United States District Judge Lawrence J. O'Neill said the crime was serious with potentially deadly consequences.
Rodriguez and his girlfriend, Jennifer Lorraine Coleman, 23, were both convicted by a federal jury after a three–day trial in Fresno in December 2013.
According to evidence presented at trial, Rodriguez and Coleman used a high-powered green laser pointer to repeatedly strike the cockpit of Air 1 during a clear summer night in 2012. Air 1 had responded to the apartment complex where Rodriguez and Coleman resided near the Fresno Yosemite International Airport to investigate the report of laser strikes on Air George, an emergency transport helicopter for Children’s Hospital of Central California. The laser pointer that Rodriguez and Coleman used was 13 times more powerful than the permissible power emission level for hand-held laser devices. The crew members of both Air 1 and Air George testified that the laser strikes caused significant visual interference.
In imposing the sentence, Judge O’Neill considered not only the severity of the offenses but Rodriguez’s significant criminal history, numerous probation violations, and Bulldog gang affiliation. In addition, Dr. Leon McLin, a Senior Research Optometrist for the Air Force Research Laboratory who testified at trial, indicated at sentencing that the laser pointer that Rodriguez used was an instrument capable of inflicting serious bodily injury and, indirectly, death due to a high potential for crash caused by visual interference.
“We in federal law enforcement understand the dangers posed by laser strikes on aircraft,” U.S. Attorney Wagner stated. “This is not a game. It is dangerous, and it is a felony. Those who aim lasers at aircraft should know that we will seek to convict them, and we will seek to send them to prison. The safety of aircraft and the people in them demands no less.”
“Lasing aircraft is not a joke or a casual prank. It is reckless behavior that can have fatal consequences for air crew, passengers and the public on the ground,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Rodriguez’s sentence clearly demonstrates the seriousness of his actions and that the FBI will work with its law enforcement partners to locate and arrest those who engage in dangerous, improper use of hand-held lasers that puts us all at risk.”
“Deliberately pointing a laser at an aircraft is a criminal act with serious safety repercussions,” said FAA Administrator Michael Huerta. “We applaud law enforcement agencies and the U.S. Attorney's Office for their efforts to combat this serious problem.”
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Clovis and Fresno Police Departments, the Federal Aviation Administration, and the National Institute of Standards and Technology of the U.S. Department of Commerce. Assistant United States Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting the case.
Sentencing for co-defendant Coleman is set for May 12, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. The Eastern District of California, which encompasses 34 counties in the eastern portion of California, reported 94 laser strikes, with the largest number of laser incidents reported by the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport. Law enforcement and emergency transport helicopters are particularly vulnerable, since they typically fly at lower altitudes. Their convex-shaped windows also cause greater refraction and visual interference when the beam of a laser strikes. Night-vision goggles can also amplify the beam and pose a greater threat of visual interference.
On February 11, 2014, in 12 cities, the FBI, in collaboration with the Air Line Pilots Association International and the FAA, announced the Laser Threat Awareness campaign, a nationwide effort to alert the public to the threat that aircraft laser illumination poses and the penalties for such activity. The FBI will offer up to $10,000 for information leading to the arrest of any individual who intentionally aims a laser at an aircraft. If you have information about a laser strike, contact your local FBI office. Tips can also be submitted online at https://tips.fbi.gov. If you see someone pointing a laser at an aircraft, call 911.
Lakeland Couple Charged with Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jovanna Deshawan Forte (39) and William Boyd Burns (44), both of Lakeland, with one count of conspiracy to commit bank fraud and fifteen separate counts of bank fraud. If convicted, Forte and Burns each face a maximum penalty of 30 years in federal prison on each count. The indictment also notifies the individuals that the United States is seeking a money judgment in the amount of the proceeds of the bank fraud. Forte and Burns were arrested and made their respective initial appearances on March 6, 2014 and March 7, 2014, before U.S. Magistrate Judge Thomas G. Wilson. They were both detained.
According to the indictment, Forte and Burns used other peoples’ accounts at local banks to deposit third party checks that were written to the account holders. The amounts of the checks ranged from $1,500 to $3,600, which are under the limits set by the Federal Deposit Insurance Corporation (FDIC) regulations, providing a lesser delay in the availability of the funds. These third party checks were fraudulent and false when they were deposited by Forte and Burns, because the checks were written on closed accounts and accounts that did not have sufficient funds to pay the amount of the checks. The fraudulent checks were deposited into these accounts by ATM, after the financial institution was closed. Forte and Burns then withdrew or attempted to withdraw funds, both in cash and through debit card purchases, which had been credited to the account from the fraudulent check deposit. They used the money for personal expenditures.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Postal Investigation Service, Florida Department of Law Enforcement and the Polk County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Justice Department Files Lawsuit to Shut Down Chicago Tax Preparation BusinessRead the Press Release
The United States has sued The Tax Helper Corp, a tax preparation business with a store located in Chicago, and seeks to permanently bar the company and its alleged co-owner, Johnnie Pernell Jr., from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Pernell Jr. prepared tax returns that falsely claimed deductions for fake business expenses and phony education expenses. One example described in the complaint details how Pernell Jr. allegedly prepared a tax return that improperly claimed a fake electrical business for one customer – reporting no income from the electrical business, but more than $24,000 in bogus losses. The customer, according to the complaint, informed the Internal Revenue Service (IRS) that he did not own an electrical business, had not provided any documents to Pernell Jr. to support the expenses that were claimed and had no idea how Pernell Jr. had determined the amount of expenses reported on his return.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Irondequoit Man of Possessing and Distributing Child Pornography, Making False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert Cavigliano, 56, of Irondequoit, N.Y., was convicted following a jury trial before U.S. District Judge Frank P. Geraci, Jr. of five counts of distributing child pornography, one count of possessing child pornography and one count of making a false statement to federal agents. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorneys Marisa J. Miller and Tiffany H. Lee, who handled the prosecution of the case, stated that in October and November 2011, undercover agents in both Rochester, N.Y. and Montana received child pornography from the defendant, through a peer-to-peer software program. Testimony at trial established that agents executed a search warrant at Cavigliano’s residence in January 2012, at which time they located items of digital media, including a laptop computer. That computer was later discovered to contain images and videos of child pornography. The defendant was also convicted of making a false statement to federal agents when he stated to members of the FBI that he did not own or possess any laptop computers, during an interview with agents prior to the execution of the warrant.
This case was brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The is the culmination of an investigation on the part of the Federal Bureau of Investigation’s Cyber Task Force, consisting of Special Agents of the Federal Bureau of Investigation, Deputies with the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, and Investigators with the Rochester Police Department, under the Direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 10, 2014, at 3:00 p.m. before Judge Geraci.Jeffrey E. Thompson Pleads Guilty to Conspiring to Violate District of Columbia and Federal Campaign Finance and Tax LawsBusinessman Admits Secretly Spending More Than $3.3 Million in Support of at Least Two Dozen CandidatesRead the Press Release
WASHINGTON - Jeffrey E. Thompson pled guilty today to felony charges stemming from a scheme in which he and his companies secretly channeled more than $3.3 million in illegal contributions to at least 28 political candidates and their campaigns, including people running for the offices of President of the United States and Mayor of the District of Columbia.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Thompson, 58, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia, to two conspiracy charges. One is a federal offense: conspiring to violate federal campaign finance laws and to submit false filings to the Internal Revenue Service. The other is a District of Columbia offense: conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance.
The guilty plea calls for Thompson to cooperate fully in an ongoing investigation. The plea is contingent upon the approval of the Honorable Colleen Kollar-Kotelly. A sentencing date has not yet been set.
In his guilty plea, Thompson admitted, among other things, to secretly channeling more than $668,800 to pay for campaign activities for a person identified in court documents as “Mayoral Candidate A,” a candidate in the 2010 mayoral race in the District of Columbia. He also admitted secretly channeling $608,750 to pay for efforts on behalf of a candidate in the 2008 presidential primary. In addition, he admitted secretly supporting others through illegal corporate contributions, excessive and unreported contributions, and conduit contributions.
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“Election after election, Jeff Thompson huddled behind closed doors with corrupt candidates, political operatives, and businessmen, devising schemes to funnel millions of dollars of corporate money into local and federal elections,” said U.S. Attorney Machen. “Today's guilty plea pulls back the curtain on years of widespread corruption. With Mr. Thompson's cooperation, we have the opportunity to hold many wrongdoers accountable and to usher in a new era of honesty, integrity, and transparency in D.C. politics.”
“Today, Mr. Thompson took responsibility for organizing a lengthy conspiracy that illegally channeled more than $3 million into federal and local campaigns dating back to the 2006 election cycle,” said Assistant Director in Charge Parlave. “The message we are sending today is clear. While the temptation to undermine the election process may be strong, you will not get away with it. Together with our law enforcement partners, the FBI will be unwavering in combating corruption in the District of Columbia.”
“Jeffrey Thompson engaged in behavior that blatantly ignored and directly circumvented clearly established campaign financing laws, but his egregious behavior did not stop there. Thompson then directed TCBA, a company under his control, to file false corporate income tax returns and submit false documents to the IRS to cover his misdeeds” said IRS-CI Chief Weber. “Today's actions involving Mr. Thompson serve as a strong reminder of the commitment of IRS Criminal Investigation and our law enforcement partners to aggressively pursue those attempting to undermine the public's trust.”
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Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea today, he admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012.
TCBA received millions of dollars under contracts with District of Columbia and federal government entities. DCHSI owned D.C. Chartered Health Plan, Inc. (Chartered), a corporation that contracted with the District of Columbia government to provide managed care services to a substantial number of District of Columbia residents. Chartered’s contract with the District of Columbia, paid primarily by the federal government, totaled about $300 million each year.
Five others have pled guilty since 2012 to charges involving Thompson’s illegal spending. They include Eugenia C. Harris, the owner of two businesses in the District of Columbia; Lee A. Calhoun, an executive for TCBA; Stanley Straughter, the owner of a business based in Philadelphia; Vernon Hawkins, who was a volunteer advisor in 2010 for “Mayoral Candidate A; and Troy White, the owner of a marketing company based in New York.
Two others have pled guilty in a related investigation involving the 2010 mayoral election: Howard L. Brooks and Thomas W. Gore. Both worked on “Mayoral Candidate A’s” campaign.
If accepted by the Court, Thompson’s plea calls for a sentence of up to 18 months in prison on the federal offense and a sentence of up to six months of incarceration for the District of Columbia offense. If the government determines at the time of sentencing that Thompson has complied with his obligations under the plea agreement, the U.S. Attorney’s Office will request that the Court dismiss the federal charge, leaving Thompson subject to up to six months in prison on the District of Columbia offense, to be followed by up to three years of supervised release.
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According to a statement of offense signed by the government as well as the defendant, Thompson and others carried out a scheme to use TCBA and DCHSI to disburse excessive and unreported contributions to pay for campaign services and campaign materials in coordination with and in support of political candidates, such as get-out-the-vote efforts. The nature of these coordinated, or in-kind, contributions, also known as “shadow campaigns,” took several forms, including the distribution and dissemination of campaign materials in support of political candidates and their campaign committees.
Additionally, Thompson solicited individuals, including relatives, friends, employees, independent contractors, and the senior management of TCBA, to make conduit contributions in their names and the names of their relatives to campaign committees for federal and District of Columbia candidates, as well as a political action committee. He assured these individuals that he would arrange to pay for and otherwise reimburse the contributions. Thompson used personal and corporate money to advance funds and reimburse individuals for the political contributions that they made in their names and the names of their relatives.
In some cases, he authorized and directed TCBA to make payments variously designated as salary, bonus payments, advances on bonuses, and consultant fees, all designed to disguise the fact that the funds were actually reimbursements for contributions.
According to the statement of offense, Thompson and others took actions that caused TCBA to file false corporate income tax returns and submit false documents to the IRS. Thompson and a TCBA controller caused TCBA to wrongfully deduct TCBA's reimbursements to conduit contributors on tax returns for the years 2007 through 2010. Also, he and two TCBA officers knowingly executed false promissory notes to conceal TCBA's activities, and caused the false documents to be submitted to the IRS during an audit of the company.
District of Columbia Campaigns:
More than $2.29 millionAccording to the statement of offense, from 2006 until 2011, Thompson secretly provided more than $1.3 million for the off-the-books, or “shadow campaigns,” on behalf of seven candidates seeking office in the District of Columbia. He also secretly spent more than $130,000 for a voter registration drive on behalf of one candidate and agreed to pay another candidate $200,000 - along with other benefits - to withdraw from the 2006 mayoral race.
The largest such shadow campaign financed “Mayoral Candidate A” in the 2010 mayoral election. During the primary election cycle for Mayor of the District of Columbia, from May 2010 through September 2010, Thompson used TCBA and DCHSI to funnel over $668,800 to pay for campaign services and materials in support of a shadow campaign for “Mayoral Candidate A,” who was challenging the incumbent mayor. The money was channeled through Details International, Inc., and Belle International, Inc., companies owned by Eugenia C. Harris.
Most of this money went for a get-out-the-vote effort for the primary. For example, using funds provided by Thompson, and in consultation with Vernon Hawkins, individuals were paid to manage field operations and transportation related to the shadow campaign. Among other things, these individuals worked directly with, shared canvassing information with, shared workspace with, and coordinated operations with employees and agents of the official campaign for “Mayoral Candidate A,” including those managing get-out-the-vote efforts.
The money also paid for expenses such as the hiring of the candidate’s official campaign driver; the leasing of a luxury sport utility vehicle to take the candidate to campaign-related and other events; and the purchase of posters, yard signs, T-shirts, and other campaign materials.
In addition to the 2010 mayoral race, the statement of offense says that Thompson funded shadow campaigns for candidates running in the 2006 mayoral election; the 2007 special election for the Ward 4 seat on the Council of the District of Columbia; the 2008 election for an At-Large seat on the D.C. Council; the 2010 elections for Ward 1 and Ward 6 of the D.C. Council, and the 2011 special election for an At-Large seat on the D.C. Council.
According to the statement of offense, Thompson secretly spent about $278,000 for a shadow campaign for a person described as “Mayoral Candidate B,” a candidate in the 2006 mayoral primary. In that same race, according to the statement of offense, Thompson agreed to pay a competing candidate $200,000 to drop out and endorse “Mayoral Candidate B.” Thompson also entered into a $150,000 consulting agreement with the competing candidate on behalf of TCBA.
Also, between 2006 and 2011, Thompson utilized at least 75 conduits to make contributions to at least 15 mayoral and D.C. Council candidates in excess of $500,000.
Federal Campaigns:
More than $1 millionFrom February 2008 through May 2008, according to the statement of offense, Thompson used TCBA and DCHSI to funnel, through Harris’s Belle International, about $608,750 to fund a shadow campaign for a candidate running for President of the United States.
The money was used for, among other things, the hiring of a marketing services company owned by Troy White, as well as for street teams and canvassers who supplemented the campaign’s official activities in Texas, Pennsylvania, Indiana, North Carolina and Puerto Rico.
The services included assembling and organizing paid street teams and canvassers to disseminate and distribute campaign materials prepared by the presidential campaign, including posters, lawn signs, pamphlets and stickers. The agreed-upon goal of these efforts was to raise the campaign’s visibility during the 2008 presidential primary election cycle.
Thompson also secretly provided $50,000 to help a civic organization pay for a lawsuit in Texas challenging the two-step voting process in that state, in which voters were allowed to vote twice, once in a primary and once in a caucus. He also provided $150,000 for a political demonstration organized by the civic organization in Washington, D.C. The funds for the lawsuit and the demonstration were to assist the campaign of the preferred presidential candidate.
However, there is no indication that the presidential candidate was personally aware of Thompson’s illicit activities.
Also, between 2006 and 2012, Thompson utilized at least 32 conduits to make contributions to at least 13 federal candidates and a political action committee of at least $250,000.
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In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Weber commended the work of those who investigated the case from the FBI’s Washington Field Office and IRS-CI.
They also expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson, Loyaan A. Egal, Ellen Chubin Epstein, Lionel André, Jonathan P. Hooks, Ephraim “Fry” Wernick and Ted Radway, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting the case.
Finally, they acknowledged the efforts of others who worked on the case from the U.S. Attorney’s Office, including Deborah Connor, Chief of the Fraud and Public Corruption Section, and former Assistant U.S. Attorneys Jonathan W. Haray and Mary Chris Dobbie, as well as Criminal Investigators Matthew J. Kutz, Mark Crawford, Melissa Matthews, and Durand Odom; Forensic Accountants Crystal Boodoo and Maria Boodoo; Paralegal Specialists Krishawn Graham, Tasha Harris, Shanna Hays, Corrine Kleinman, and Nicole Wattelet; and Legal Assistant Angela Lawrence.
14-059Illinois Felon Sentenced to Six Years and Six Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Huntington, W.Va. – A Illinois felon who illegally possessed four firearms in February of 2013 was sentenced today to six years and six months in federal prison, U.S. Attorney Booth Goodwin announced. Thomas Ray III, 44, of Will County, Illinois, previously pleaded guilty in December 2013 to possessing a firearm after having been convicted of a felony offense.
On February 5, 2013, the United States Marshal Service C.U.F.F.E.D. Task Force in Huntington was contacted by the Great Lakes Regional Fugitive Task Force in Illinois to assist in locating Ray. Ray was wanted by the State of Illinois for a parole violation. Deputy Marshals found Ray at a residence in the 2100 block of 9th Avenue in Huntington. As Ray was approached, he fled and was apprehended a short time later. Deputy Marshals found Ray with a loaded Glock .40 caliber pistol concealed in the back of his waistband.
Deputy Marshals also conducted a search of the 9th Avenue residence and discovered three additional firearms: a loaded Mossberg 12 gauge shotgun, an AR-15 5.56mm assault rifle along with a 30 round magazine, and a GSG-5 .22 caliber rifle, also with a 30 round magazine. Ray admitted to possessing all the firearms seized.
Ray was prohibited from possessing a firearm based on prior felony convictions for Forcible Armed Detention and Giving a False Bomb/Gas Alarm.
The United States Marshal Service conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human SmugglingRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 10, 2014INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human Smuggling
WASHINGTON - INTERPOL Washington (U.S. National Central Bureau) and the U.S. Department of State, Bureau of International Narcotics and Law Enforcement (INL), will conduct a “Workshop on Investigations and Prosecutions of Human Smuggling in the Americas” March 11th through March 13th at the International Law Enforcement Academy in San Salvador.
Ambassador Adam Blackwell, the Secretary of Multidimensional Security at the Organization of American States (OAS) in Washington, D.C., will deliver the keynote address at the opening ceremony.
The two and one-half-day event aims to provide a venue for representatives from various agencies responsible for investigating and prosecuting the crime of human smuggling to network, share best practices, and discuss the related criminal justice gaps and capacity-building efforts in the Americas region.
Approximately 30 participants from 18 countries are expected to attend, to include senior law enforcement and prosecutorial officials responsible for migrant smuggling and human trafficking, international legal experts, along with representatives from INTERPOL Headquarters, the United Nations Office on Drugs and Crime, and the Organization of American States.
Houston Man Pleads Guilty to Role in the Deaths of Grand Forks Area TeenagersRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 10, 2014, Charles William Carlton, 29, Katy, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribution of controlled substances and analogues controlled substance resulting in serious bodily injury or death, introduction and delivery of a misbranded drug, and money laundering before U.S. District Judge Ralph R. Erickson.
The conspiracy involved the distribution of illegal analogue controlled substance through Motion Resources, an online business owned by Carlton. Motion Resources imported illegal analogue controlled substance including hallucinogens from several countries and then sold online throughout the United States. Carlton is the 15th defendant to be convicted as part of the investigation, prosecution and dismantling of this drug trafficking organization, an effort that has been dubbed “Operation Stolen Youth.”
Judge Erickson set sentencing for May 27, 2014, at 1:30 p.m. U.S. District Court.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, Food and Drug Administration, Internal Revenue Service, North Dakota Bureau of Criminal Investigations, and Grand Forks Police Department.
First Assistant U.S. Attorney Chris Myers is prosecuting the cases.
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 22-year-old Houston man will be spending the next 189 months in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Demontray Ward entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Justin Devon Hayes, 24, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Ward a sentence of 105 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes is set for sentencing May 5, 2014.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.Hogsett Announces Indictment of Putnam County Sheriff’s DeputyRead the Press Release
Deputy used excessive force on citizens on four occasions
TERRE HAUTE - U.S. Attorney Joseph H. Hogsett and the Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, Robert A. Jones, announced this afternoon the arrest and indictment of Terry Joe Smith, a/k/a T.J., age 37, of Greencastle, Indiana. Smith serves as a Deputy with the Putnam County Sheriff’s Department and is also a member of the Greencastle Common Council.
The federal indictment, which was unsealed this morning, charges Smith with four counts of federal civil rights violations. The indictment alleges that Smith used excessive force against citizens on four occasions in his capacity as a Putnam County Sheriff’s Deputy. These incidents occurred near Moore’s Bar in Greencastle, on West Stardust Road in Cloverdale, at the Lazy Acres trailer park in Greencastle, and at the Cloverdale Truck Stop.
The allegations contained in the indictment include Mr. Smith’s use of a Taser against an individual after that individual had already been restrained; punching another individual in the face after restraint; throwing yet another individual on the ground after the individual had been handcuffed, driving a knee into the person’s back while secured, remaining handcuffed and prone on the ground; and, finally, throwing a female to the floor and forcing her outside of a truck stop, placing her face down into lava rocks in below freezing temperatures without proper clothing and holding her down for an extended period of time.
Law enforcement officials are subject to criminal prosecution whenever evidence exists that they knowingly abused this authority and deprived individuals of their constitutional rights. Such acts of misconduct, known as acts committed under “color of law,” include allegations of excessive force.
"Our message has been consistent over the last year, but bears repeating today: it doesn't matter to me what your politics are or what position you hold in your community," Hogsett said. "If you violate the public trust, our Public Integrity Working Group will find you, will investigate you and the U.S. Attorney's Office will then prosecute you to the fullest extent of the law."
“There is no acceptable level of corruption or abuse of power. To this end, earlier this year, the FBI created a new Public Corruption and Civil Rights squad that will conduct more focused efforts on these violations,” stated FBI Special Agent in Charge Robert A. Jones.
Hogsett praised the outstanding law enforcement work by the Federal Bureau of Investigation. The FBI is a leading partner in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.
FBI Indianapolis Division Special Agent in Charge Robert A. Jones stated, “Of the over 300 violations of federal criminal law investigated by the FBI, few are more important than civil rights. Color of law violations are especially egregious because they erode the community’s trust. The vast majority of police officers are well-trained, professional and exceedingly careful with the use of force. Those few that violate their oath to protect and serve will be held accountable.”
According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who are prosecuting the case for the government, Smith could be sentenced to up to ten years in federal prison for each count, and could also face significant fines and federal supervision for up to three years once he has served his prison term.
Hogsett acknowledged the critical role that whistleblowers often play in prosecutions of public corruption. He urged anyone with information relating to alleged criminal activity to contact the U.S. Attorney's Office public corruption hotline at (317) 229-2443.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Greece Man Charged with Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joseph Cumbo, 34, of Greece, N.Y., was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank T. Pimintel, who is handling the case, stated that the defendant is accused of robbing the Bank of America branch at 5091 Broadway in Depew, N.Y., on February 18, 2014. According to the complaint, Cumbo handed a demand note to the teller stating, “I have a gun, count out $10,000 quickly.” Also according to the complaint, the defendant is suspected in two other bank robberies, one in Cheektowaga, N.Y. and one in Pittsford, N.Y.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy. Cumbo is being held pending a detention hearing on March 17, 2014 at 9:30 a.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, detectives with the Depew Police Department, under the direction of Chief Stan Carwile, detectives with the Cheektowaga Police Department, under the direction of Chief David Zack, the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick M. O’Flynn; and detectives with the Greece Police Department, under the direction of Chief Todd Baxter.
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.French Citizen Pleads Guilty to Obstructing Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in the Republic of GuineaRead the Press Release
Frederic Cilins, 51, a French citizen, pleaded guilty today in the Southern District of New York to obstructing a federal criminal investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
Cilins pleaded guilty to a one-count superseding information filed today, which alleges that Cilins agreed to pay money to induce a witness to destroy, or provide to him for destruction, documents sought by the FBI. According to the superseding information, those documents related to allegations concerning the payment of bribes to obtain mining concessions in the Simandou region of the Republic of Guinea.
According to publicly filed documents, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. Court documents state the federal grand jury was investigating whether a particular mining company and its affiliates – on whose behalf Cilins had been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. Court documents also allege that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
Court documents allege that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to court documents, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also agreed to give 5 percent of its ownership of particular mining areas in Guinea to the official’s wife.
The case is being investigated by the FBI. The case is being prosecuted by Trial Attorney Tarek Helou of the Criminal Division’s Fraud Section and Assistant United States Attorney Elisha J. Kobre of the Southern District of New York. The Justice Department’s Office of International Affairs and Office of Enforcement Operations also assisted in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .French Citizen Pleads Guilty in Manhattan Federal Court to Obstructing Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in GuineaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, announced today the guilty plea of FREDERIC CILINS, a French citizen, for obstructing a federal criminal investigation into allegations of bribes paid to secure certain valuable mining rights in the Republic of Guinea. CILINS was arrested in April 2013 and pled guilty today before United States District Judge William H. Pauley, III.
According to the allegations contained in the superseding information and other documents filed in Manhattan federal court:
CILINS sought to obstruct an investigation being conducted by a federal grand jury sitting in the Southern District of New York into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering. The investigation related to allegations that a mining company with which CILINS was affiliated paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. During monitored and recorded phone calls and face-to-face meetings, CILINS agreed to pay substantial sums of money to induce a witness to, among other things, destroy documents and turn over documents to Cilins for destruction, knowing that such documents were being sought by the Federal Bureau of Investigation (“FBI”) and were to be produced before a federal grand jury. Cilins sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury.
Cilins pled guilty to a one-count superseding information filed today, which alleges that Cilins sought to induce the witness to give him documents so that he could destroy them. According to the superseding information, those documents related to allegations concerning the payment of bribes to obtain mining concessions in the Simandou region of the Republic of Guinea and were sought by FBI agents. Cilins admitted as part of his guilty plea that he tried to induce the witness to leave the United States to avoid being questioned by the FBI about these allegations.
CILINS, 51, a resident of France, pled guilty to one count of obstructing a criminal investigation. He faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. CILINS is scheduled to be sentenced by Judge Pauley on June 27, 2014, at 2:00 p.m.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Elisha J. Kobre and Trial Attorney Tarek Helou of the Fraud Section of the Criminal Division are in charge of the prosecution.
US v. Frederic Cilins Superseding Info S2 13 Cr 315 (WHP)
Fort Hall Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
POCATELLO – Cody Preacher, 20, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assaulting a federal officer, U.S. Attorney Wendy J. Olson announced. He was indicted on October 22, 2013.
On July 17, 2013, Preacher was arrested on the Fort Hall Indian Reservation for intoxication and for an active arrest warrant from the Fort Hall Tribal Court. He was being placed in a police car for transport to the Fort Hall Jail when he kicked the arresting officer, Jeremy Ball of the Fort Hall Police Department, in the groin. Officer Ball was treated at the hospital.
The charge is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Preacher is set for sentencing on May 20, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.