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25 April 2014
Suburban Investment Advisor Indicted for Allegedly Defrauding at Least 10 Investors of $2.9 MillionRead the Press Release
CHICAGO — A west suburban investment advisor was indicted on federal charges alleging that he fraudulently obtained approximately $2.9 million from at least 10 investors and misused the funds in a Ponzi-type scheme. The defendant, JOSEPH HENNESSY, co-owned and co-operated the now-defunct Resource Planning Group, Inc., formerly a registered investment advisor with the U.S. Securities and Exchange Commission.
Hennessy, 53, of Western Springs, was charged with seven counts of wire fraud in an indictment returned by a federal grand jury on Wednesday and announced today. He is scheduled to be arraigned next Wednesday in U.S. District Court in Chicago.
The indictment also seeks forfeiture of at least $2.9 million in alleged fraud proceeds.
According to the indictment, Hennessy and Resource Planning Group formed and operated the Midwest Opportunity Fund, a private equity fund that purported to invest in small to medium-sized companies based in the Midwest. Between 2007 and 2012, Hennessy allegedly made false statements to investors and used their investments to return principal and pay interest to earlier investors, all of which he concealed and intentionally failed to disclose to both new and existing investors. In fraudulently obtaining and retaining these funds, Hennessy falsely represented the use of the funds, the repayment of the investors’ principal, the expected return on investments ―which he claimed would yield between 10 and 15 percent a year ― the risks involved in the investment, and the status of the investments, the indictment adds.
Hennessy also falsely represented that he personally guaranteed investments in the fund, knowing that he did not have sufficient assets to repay investors, and he misappropriated funds from the individual retirement accounts of certain clients to pay existing investors in the Midwest Opportunity Fund, the indictment alleges.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. They thanked the U.S. Securities and Exchange Commission for its assistance. The government is being represented by Assistant U.S. Attorney Sunil Harjani.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Rochester Man Arrested for Bank RobberyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Thomas A. Visconte, 58, of Rochester, N.Y., was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, on April 22, 2014, the defendant robbed the Chase Bank at 520 Portland Avenue in Rochester. The complaint states that Visconte entered the bank and handed a teller a note that read, “This is a robbery, gimme all of the $100s, $50s, $20s, and $10s, I have a gun.” As the teller complied and began to hand the defendant money from her drawer, Visconte stated, “Gimme more, hurry up.” After taking the money, the defendant took back the demand note, left the bank and fled the scene in a car.
Visconte made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson. He is due back in court May 27, 2014, at 9:00 a.m.
The charges are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Robert Mericle Sentenced to One Year in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Mericle was sentenced to one year in prison by Senior District Judge Edwin M. Kosik. Judge Kosik also ordered Mericle to pay a $250,000 fine and to report to the Federal Bureau of Prisons on May 14, 2014.
Mericle was charged with misprison of a felony in August 2009 as part of a then-ongoing investigation of judicial corruption in Luzerne County. Mericle later entered into a plea agreement with the government which was amended prior to today’s sentencing.
Mericle testified as a principal government witness in the trial of former Luzerne County Court of Common Pleas Judge Mark Ciavarella in February 2011.
The government, as part of the plea agreement, recommended a downward departure from the Sentencing Guidelines based on Mericle’s cooperation during the long investigation. The defense argued for a greater downward departure. The Court today ruled in favor of the government in regard to the downward departure.
At today’s hearing Judge Kosik considered the extent to which the Court should vary from the Guidelines based on factors listed under the governing federal statute in sentencing Mericle. Major factors in this case were the nature and circumstances of the offense and Mericle’s role in the offense. The Court stated that, based on those factors, it was varying upward and sentenced Mericle to the one year prison term.
The government’s seven year investigation of judicial corruption in Luzerne County was led by the trial team of Assistant U.S. Attorneys Gordon A. Zubrod, Michael A. Consiglio and William S. Houser and agents of the FBI and IRS-Criminal Investigation offices in Scranton.
United States Attorney Peter Smith stated that the sentence was appropriate in view of the factors considered by the Court and that Judge Kosik was in the best position to make the appropriate determination having heard the evidence of the seriousness of the offense during the Ciavarella trial and having the benefit of the sentencing memoranda submitted to him by the government and the defense and Mericle’s own statement to the Court.
Repeat Offender Sentenced to 14 Years in Prison for Gun Battle Involving Marijuana DistributionRead the Press Release
A federal felon who was still under court supervision when he committed an armed robbery of a marijuana distributor was sentenced today to 14 years in prison, announced U.S. Attorney Jenny A. Durkan. MELVIN CHARLES SLAUGHTER, 31, was on supervision for a bank fraud conviction in August 2013, when he robbed a Maple Valley, Washington marijuana trafficker. After robbing the marijuana dealer at gunpoint, two of SLAUGHTER’s cohorts were shot by the dealer as they tried to flee. At sentencing U.S. District Judge Robert S. Lasnik noted that federal prosecution of the case was fully appropriate.
“A neighborhood became a shooting range because this defendant and his drug trafficker brought their violent business into its quiet streets,” said U.S. Attorney Jenny A. Durkan. “This is the fourth case we have charged in less than a year that involved gunfire used in connection with a marijuana business. Guns and drugs do not mix. Those who put lives and community safety at risk will be held accountable.”
On August 13, 2014, SLAUGHTER and three cohorts drove in two cars to the Maple Valley home of a person they knew distributed marijuana. One of the people with SLAUGHTER waited in the car thinking the other three were simply purchasing drugs. In fact, SLAUGHTER and another man robbed the drug trafficker of marijuana and numerous firearms at gunpoint, tying his hands with zip ties. As SLAUGHTER and two others left the house, the trafficker was able to free himself, grab a firearm he had hidden under the mattress of his bed, and started shooting. The woman who waited in the car was hit, as was SLAUGHTER’s co-defendant Ferdinand Clay. Clay was shot in the face, neck and hip but recovered from his wounds. Clay pleaded guilty to robbery and brandishing a firearm during a drug trafficking crime and faces a mandatory minimum seven years in prison when sentenced on June 6, 2014.
After shots were fired the robbery team sped away tossing bloodied items from the car, including some of the stolen firearms. They were recovered by police along the highway. The two who were injured went to different hospitals for treatment. SLAUGHTER and the other female member of the robbery crew turned themselves in to police.
The marijuana dealer has also been charged. Jason Loken has pleaded guilty to drug and firearms charges and will be sentenced for his criminal conduct on May 27, 2014.The case was investigated by the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney Vince Lombardi.
Polk Co. Couple Sentenced for False Tax Refund ConspiracyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced a Polk Co. couple to prison on Thursday, April 24, 2014, for filing over 1,000 false tax returns and collecting more than $3.5 million in fraudulent tax refunds, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Tompkins in making today’s announcement.
Senita Birt Dill, 46, and Ronald Jeremy Knowles, 42, both of Mill Spring, N.C. were sentenced to 324 and 70 months in prison, respectively. In addition to the prison terms, Judge Reidinger ordered the defendants to serve three years under court supervision and to pay $3,978,211 as restitution to IRS. Dill ato nd Knowles pleaded guilty in October 2012 false claims conspiracy and access device fraud. Dill also pleaded guilty to aggravated identity theft.
According to filed court documents and yesterday’s sentencing hearings, from 2009 to 2012, Dill and Knowles used fraudulently-obtained personal identification information (including names, dates of birth and social security numbers) to file false tax returns claiming tax refunds. Court documents indicate that the pair used tax preparation software programs to file and submit these fraudulent federal and state tax returns. According to court records, the tax returns contained fictitious information, such as the filer’s income and the amount of federal tax withheld. Court records show that the defendants were careful to use fictitious figures that maximized the amount of the claimed refund, while minimizing the risk of detection.
According to court records, the pairs’ elaborate tax scheme included renting a property on a lake which was surrounded by numerous vacation homes in the neighborhood. Court records show that Dill and Knowles used the neighboring addresses to fill out the fraudulent tax returns, and since the neighboring homes were not occupied daily, the couple was able to check the homes’ mailboxes frequently and retrieve the fraudulent refund checks upon delivery. According to court records, in addition to the addresses of lake homes, the defendants also used addresses in Greenville and Greer, S.C. on the fictitious tax returns, which is where Knowles’ business is located. Court records indicate that once they retrieved the refunds, the defendants deposited the refund checks directly into their bank accounts. On some occasions, the defendants received tax refunds in the form of pre-paid debit cards, court records show.
According to court records, Dill and Knowles filed over 1,000 false tax returns using the fraudulently obtained personal identification information. They also made fraudulent tax refund claims in excess of $5 million and actually received tax refunds totaling over $3.5 million.
The defendants have been in federal custody since October 2012. They will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of the case was handled by IRS and USPIS, with the assistance of the Polk County Sheriff’s Office. The prosecution of the case is handled by Assistant U.S. Attorney Don Gast of U.S. Attorney’s Office in Asheville.
Pennsylvania Man Sentenced for Producing Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Randall Lose, 37, of Howard, Pennsylvania, who was convicted of production of child pornography, was sentenced to 20 years in prison and 10 years supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti and Maura O’Donnell, who handled the case, stated that the City of Tonawanda Police Department received a complaint from the parent of a thirteen year old and notified the Federal Bureau of Investigation. The defendant, who resided in Pennsylvania, used the Internet to communicate with and obtain sexual explicit videos of a minor female living in Western New York.
Knowing that the victim was thirteen years old, Lose represented himself as a fellow teenager, claiming that he was 14 years old. The defendant convinced the victim to take her clothes off and to engage in graphic sexual activity as he watched over Skype from his residence in Pennsylvania. As he watched and recorded, Lose gave the victim instructions about what conduct to engage in. The defendant also tried to get the victim to give him information about her friends so he could communicate with them as well.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the City of Tonawanda Police Department, under the direction of Chief William Strassburg and the Cheektowaga Police Department, under the direction of David Zak.
Orlando Rapper “Fella” Sentenced to 35 Years in Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – Senior U.S. District Judge John Antoon, II today sentenced Dewarren Antoine Lewis, a/k/a “Fella,” (28, Orlando) to 35 years in federal prison for two counts of bank robbery with assault, and two counts of using and carrying a firearm during and in relation to a crime of violence. The court also ordered Lewis to serve a 3-year term of supervision, following his prison sentence, and to forfeit a Jimenez Arms .380 pistol and six rounds of ammunition, which were used in the commission of the crimes. A federal jury found Lewis guilty on January 14, 2014.
According to testimony and evidence presented at trial, on January 9, 2013, Lewis robbed the Wells Fargo Bank in Orlando, at gunpoint, before fleeing with over $9,000. On March 20, 2013, Lewis robbed the Regions Bank in Orlando. As he did in the Wells Fargo robbery, Lewis rushed into the bank, covered from head to toe, wearing a stocking over his face. He then pointed his gun at bank employees, forced his way behind the teller line, and filled his bag with the bank’s money. After fleeing the bank, a witness saw Lewis take off his disguise and drive away from the scene. Lewis then led police on a high speed chase through the streets of Orlando, before bailing out of his car and running away on foot. When Orange County Deputy Sheriffs finally apprehended him, Lewis was carrying a bag filled with over $23,000 that he’d just stolen from the Regions Bank.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Orange County Gang Members Charged with Sex Trafficking of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that on April 23, 2014, a federal Grand Jury returned an indictment charging Xavier Francisco Villanueva, a/k/a “X,” Keith E. Romby II, a/k/a “P” and “PJ,” Jose Carmona, a/k/a “Hood,” and Ashley Nicole Barnett, a/k/a “Snow,” with the sex trafficking of a minor. If convicted, each faces a mandatory minimum sentence of 15 years, up to life in prison.
The indictment alleges that from on or about January 17, 2013, to on or about January 25, 2013, the above-named individuals conspired to engage a minor in a commercial sex act, and aided and abetted each other to engage a minor in a commercial sex act. According to court records, Villanueva and Barnett were part of the “Blood” street gang and gave the minor drugs, and used threats of violence, to coerce the minor into prostitution for their own financial gain and benefit. On January 25, 2013, the minor was able to escape and was rescued by a deputy from the Orange County Sheriff’s Office.
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 is being investigated by the Federal Bureau of Investigations, with the assistance of the Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Karen Gable and Ilianys Rivera Miranda.
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 (CEOS), 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.projectsafechildhood.gov.
Old Forge Pharmacist Pleads Guilty to Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that an Old Forge pharmacist pleaded guilty in Scranton today to Health Care Fraud charges before the U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter Smith, a criminal information was filed in January 2014 charging Peter Capitano with engaging in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania and Medicaid for the period beginning January 2007 through August 2013.
The charges stem from an investigation initiated in February of 2011 by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. Capitano pled guilty pursuant to a plea agreement with the government.
The information filed against Capitano alleges that he engaged in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania and Medicare by submitting claims or causing claims to be submitted to those health benefit providers for drugs allegedly prescribed when the prescriptions did not exist and for drugs not actually dispensed. Capitano will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
Office on Violence Against Women Announces Two New Grants to Support Prosecutorial and Victim Services in Rural and Tribal Communities in the Bakken RegionRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced the release of two grant solicitations to launch a new $3 million special initiative for the Bakken Region. Located in western North Dakota and eastern Montana, the Bakken region has experienced rapid growth in oil and gas production in recent years. It has also seen increases in population and crime. OVW’s Bakken Region Initiative will support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes.
“Over the past five years, we have made great strides in protecting women from violence in Indian country,” said Associate Attorney General Tony West. “We will continue to partner with tribal and local law enforcement and service providers, and together we will help strengthen public safety in the Bakken communities with resources like these grants.”
Supported by funding from OVW’s Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Assistance Program (Rural Program), the OVW Bakken Region Initiative will support projects that are designed to address the unique challenges faced by victims, responders and service providers within this rural region. The Bakken Region Initiative was developed through a collaborative process resulting from OVW’s July 2013 fact-finding trip to the region, during which OVW leadership met with local and tribal advocates and law enforcement, tribal leaders, the U.S. Attorney, FBI agents and victim service staff. In response, OVW developed two solicitations, the Violence Against Women Bakken Region Initiative: Tribal Special Assistant U.S. Attorney (Bakken Region Tribal SAUSA Initiative) and the Violence Against Women Bakken Region Initiative: Enhanced Response to Victims (Bakken Region Enhanced Response to Victims Initiative). Together, these grants will create dedicated resources to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking.
“Local and tribal victim service providers have been overwhelmed with the increase in domestic violence and sexual assault victims coming forward and needing help,” said Bea Hanson, OVW’s Principal Deputy Director. “These targeted funds will enable the community to assist more victims and support the growing population in the Bakken Region.”The Bakken Region Tribal SAUSA Initiative will support the salary, travel and training costs of a Tribal SAUSA for the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation in Montana and a Tribal SAUSA for the Three Affiliated Tribes of the Fort Berthold Indian Reservation in North Dakota. The Tribal SAUSAs, who will be cross-designated to bring cases in both tribal and federal courts, will work in collaboration with the U.S. Attorneys’ Offices in the Districts of Montana and North Dakota. These prosecutors will maintain an active violence against women crimes caseload in tribal and federal courts, while also helping to promote higher quality investigations, improved training and better inter-governmental communication.
The Bakken Region Enhanced Response to Victims Initiative will fund state domestic violence and sexual assault coalitions, as well as local and tribal victim service providers responding to the increased demand for domestic violence and sexual assault victim services. Funding and technical assistance will also help those working to prevent violence and support survivors of sexual assault, domestic violence, dating violence and stalking.
The solicitations are non-competitive special initiative announcements, and applications for both solicitations are due by May 28, 2014.
Nurse/Home Healthcare Provider Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – A registered nurse employed by two home healthcare providers that provides mental health and medical care for children and adolescents has been charged with federal child pornography offenses.
John Jaramillo, 44, of Albuquerque, N.M., was arrested yesterday by special agents of Homeland Security Investigations (HSI) on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Jaramillo made his initial appearance in federal court this morning and remains in federal custody pending a detention hearing scheduled for April 28, 2014.
According to the criminal complaint, the investigation leading to Jaramillo’s arrest began in Nov. 2013, when a special agent with the New Mexico State Police identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to the address for Jaramillo’s residence in west side of Albuquerque.The criminal complaint states that on April 24, 2014, HSI, the New Mexico State Police, the Bernalillo County Sheriff’s Office, and the Albuquerque Police Department, agencies that participate in the New Mexico Internet Crimes Against Children (ICAC) Task Force, executed a federal search warrant at the residence and seized a computer and computer-related media allegedly used only by Jaramillo. A preliminary forensic examination of the computer taken from a room identified as Jaramillo’s office allegedly recovered more than 250 images and videos consistent with child pornography.
If convicted of the charges in the criminal complaint, Jaramillo faces a federal prison sentence of not less than five years and not more than 20 years. If convicted, Jaramillo also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Sexual Predator Exploitation and Enforcement Detail (SPEED) of HSI in Albuquerque, the NMAGO and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Murphysboro, Il Woman Indicted on Bank Embezzlement ChargesRead the Press Release
Follow @SDILNewsBuffy A. Bastien, 41, of Murphysboro, IL, was indicted on April 8, 2014, on bank embezzlement charges in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Bastien was charged in a one count indictment which charges that from about 2010, to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds intrusted to the custody or care of The Bank of Carbondale.
Bastien faces a possible penalty of up to 30 years imprisonment, up to $1,000,000 fine, and supervised release of up to 5 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Federal Bureau of Investigation.
The case is being handled by Assistant United States Attorney George Norwood.
Mills County Resident Sentenced to 5 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 25, 2014, Heather Jean Reekers, a 38 year-old resident of Glenwood, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to 60 months in prison, and five years of supervised release, following the period of imprisonment, for conspiracy to distribute methamphetamine. On January 3, 2014, Reekers pled guilty to the charge, which resulted from an investigation conducted by the Drug Enforcement Administration into the distribution of methamphetamine from the Southwestern United States into Eastern Nebraska and Western Iowa.
Reekers’ co-defendant, Jose Raul Guevara, was sentenced previously by Senior Judge Robert Pratt to ten years in prison.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Mills County Sheriff’s Office, Glenwood, Iowa, Police Department, Council Bluffs, Iowa, Police Department and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Man Convicted of Two Attempted Armed Robberies Faces Minimum of 47 Years in Federal PrisonRead the Press Release
Memphis, TN – Robert Drew, 57, of Oakland, TN, was convicted yesterday by a federal jury on two counts of robbery of a business engaged in interstate commerce (Hobbs Act robbery), two counts of using a firearm during a crime of violence; and one count of being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III and ATF Nashville Field Division Special Agent in Charge Jeffrey L. Fulton.
According to the facts alleged in the indictment and revealed during the four-day trial, on December 7, 2012 Drew used a Rossi .38 caliber revolver in an attempt to rob the KFC restaurant located at 8995 Highway 64, Memphis, TN. He was wearing a blue ski mask and a blue flannel-style jacket. When the cashier ran to the back of the store, Drew left the restaurant empty-handed.
Later that evening, Drew walked into the Hickory Center Market located at 3305 Highway 64, Eads, TN. Wearing the same blue ski mask and blue flannel-style jacket, he pointed the Rossi .38 caliber revolver at the clerk and demanded money. The frightened clerk ran to the back of the store and locked himself in an office. Drew left empty-handed and was apprehended minutes later by officers with the Oakland Police Department hiding in a wooded area within 2000 feet of the store, wearing the same blue mask and jacket.
During a search of the area where the defendant was found, Oakland police recovered the Rossi .38 caliber revolver used during the attempted robberies. Both the clerk at the Hickory Center Market and the cashier from KFC testified that Drew was wearing the same clothing as the robber, and video surveillance footage from both stores confirmed that to be the case.
The jury deliberated approximately two hours before reaching a unanimous verdict. Drew is scheduled to be sentenced on July 24, 2014 at 10 a.m. before U.S. District Judge John T. Fowlkes. He faces a minimum of 47 years in prison. There is no parole in the federal system.
“Any individual brazen enough to enter a business and threaten the lives of innocent people with a firearm is a clear and present danger to our community,” said U.S. Attorney Stanton. “Today, a jury of Mr. Drew’s peers sent an unequivocal message that this conduct will not be tolerated.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Fulton. “This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering. ATF’s Frontline strategy utilizes every available resource to make our communities a safer place to live.”
This case was investigated by the ATF, the Oakland Police Department, and the Memphis Police Department. Assistant U.S. Attorney David Biggers and Special Assistant U.S. Attorney Sam Stringfellow represented the government.Luzerne County Man Charged with Heroin ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a West Pittston resident with participating in a conspiracy to distribute heroin during 2013 and early 2014.
According to United States Attorney Peter Smith, the Information alleges that Michael Romasiewicz, age 21, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere during January 2013 through February 24, 2014.
The charge stems from an investigation by special agents of the Federal Bureau of Investigation.
Romasiewicz faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge. The Information also seeks the forfeiture to the United States of two firearms seized during the investigation.
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.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Longtime Gang Member Sentenced to 24 Years in Federal Prison for Supervising Sales of 39 Kilos of Heroin on City’s West SideRead the Press Release
CHICAGO ― A longtime member of the Traveling Vice Lords street gang who managed a heroin distribution spot between 2008 and 2010 at the corner of North St. Louis Avenue and West Ohio Street on the city’s west side was sentenced to 24 years in federal prison, federal law enforcement officials announced today. The defendant, TIMOTHY ALLISON, was responsible for supervising the distribution of 39 kilograms of heroin, a federal judge determined before imposing the sentence.
Allison, also known as “Shaw,” 34, pleaded guilty to conspiracy to distribute heroin in March 2012, and he has seven prior felony convictions, including aggravated unlawful use of a weapon. U.S. District Judge John W. Darrah imposed the 24-year sentence on Wednesday.
According to court documents, Allison was involved in around-the-clock retail sales of heroin averaging around $10,000 a day, both at St. Louis and Ohio, as well as at a second corner nearby at West Chicago and North Christiana avenues.
Allison was among 31 federal and 65 state defendants who were arrested in November 2010 following a Chicago Police and FBI investigation, code-named Operation Blue Knight, of drug trafficking by TVL members and associates in the area of Kedzie Avenue and Ohio Street, known as “KO.” A lead defendant in a related federal case, Jason Austin, also known as “J Rock,” is scheduled to be sentenced on June 10.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Chicago Police Superintendent Garry F. McCarthy. The investigation was led by the FBI-Chicago Police Joint Task Force on Gangs and the Chicago Police Department’s Gang Investigations Division, and was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF). The Cook County State’s Attorney’s Office, the U.S. Marshals Service, and the High Intensity Drug Trafficking Area Task Force (HIDTA) also participated in the investigation.
The government is being represented by Assistant United States Attorneys Maribel Fernandez-Harvath and Matthew Madden.
Local Man, Frank Mike, Jr., Charged with Interstate Transportation of Vehicle Stolen from Murdered New Orleans Area CoupleRead the Press Release
FRANK MIKE, JR., age 45, of New Orleans, was indicted today by a federal grand jury and charged with Interstate Transportation of a Stolen Motor Vehicle, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, MIKE transported a stolen 2010 Dodge Caravan from the State of Louisiana to the State of Georgia. A criminal complaint filed earlier this week stated that on February 19, 2014, family members reported to the St. John the Baptist Parish Sheriff’s Department that Kenneth and Lakeitha Joseph of Reserve, Louisiana were missing. A relative also indicated that she loaned her 2010 Dodge Grand Caravan to the Josephs but that the van had not been returned. On February 27, 2014, the missing 2010 Dodge Grand Caravan was recovered by the Fulton County Police Department in College Park, Georgia in an apartment complex. Later, video surveillance showed that the van had been parked at the Travelodge Hotel located in College Park. It also showed that MIKE drove the van into the hotel parking lot on February 21, 2014.
On March 10, 2014, the New Orleans Police Department discovered the body of Lakeitha Joseph, bound with rope, in the Intercoastal Waterway in New Orleans East. On March 22, 2014, the New Orleans Police Department discovered the body of Kenneth Joseph, also bound with rope, in the Intercoastal Waterway. The New Orleans Parish Coroner ruled the cause of death in both cases as drowning. Later, forensic testing revealed that blood samples taken from the stolen van matched the DNA of both Josephs.
The defendant appeared on the complaint before U.S. Magistrate Judge Karen Wells Roby on April 22, 2014. The following day, April 23, 2014, Judge Roby ordered the defendant detained without bond pending the resolution of this charge.
MIKE faces a maximum penalty of ten years imprisonment and a fine of up to $250,000 for this charge.
United States Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case has been investigated jointly by the Federal Bureau of Investigation, Drug Enforcement Administration, the New Orleans Police Department, the St. John the Baptist Parish Sheriff’s Office, the Fulton County, Georgia Police Department, the Orleans Parish District Attorney’s Office and the St. John the Baptist Parish District Attorney’s Office and will be prosecuted by Special Assistant United States Attorney Michael Redmann, who is assigned to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office, and Assistant United States Attorney Mark Miller.
(Download Indictment )
Leader of “Revolution Muslim” Websites Sentenced for Using Internet to Threaten Jewish OrganizationsRead the Press Release
ALEXANDRIA, Va. – Yousef Mohamid Al-Khattab (a.k.a. Joseph Cohen), 45, of Atlantic City, New Jersey, was sentenced today to 30 months in prison for using his position as a leader of the “Revolution Muslim” websites to use the Internet to place others in fear of serious bodily injury.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and William J. Bratton, New York City Police Commissioner, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
According to court records, Al-Khattab and his colleague, Jesse Curtis Morton (a.k.a. Younus Abdullah Muhammad), founded the Revolution Muslim organization in December 2007 to operate Internet platforms and websites to encourage Muslims to support Usama bin Laden, Anwar Al Awlaki, al Qaida, the Taliban and others engaged in or espousing violent jihad.
On Jan. 8, 2009, Al-Khattab posted to the Revolution Muslim website a video encouraging viewers upset about the conflict in Gaza to seek out the leaders of Jewish Federation chapters in the U.S. and “deal with them directly at their homes.” Al-Khattab gave the names and addresses of synagogues in New York and another Jewish organization in Brooklyn.
On Jan. 20, 2009, Al-Khattab posted a video and photo of the headquarters of the Jewish organization in Brooklyn, with a map and directions to specific facilities. Al-Khattab also posted a link to “The Anarchist Cookbook,” which is a manual for (among other things) constructing and using explosive devices. On Jan. 23, 2009, Al-Khattab posted to the Revolution Muslim website a video accusing the Jewish organization of funding terrorism, and urging viewers to find the leaders of Jewish organizations and “hold them responsible.”
As part of the statement of facts accompanying his plea agreement, Al-Khattab admitted that he knew some viewers of the Revolution Muslim websites were inclined to violence, and by making the posts involving Jewish organizations in 2009, Al-Khattab was trying to frighten Jews and Jewish organizations.
On June 22, 2012, Revolution Muslim founder Jesse Morton was sentenced to 138 months in prison. On Feb. 24, 2011, Revolution Muslim administrator Zachary Chesser was sentenced to 25 years in prison.
This investigation was conducted by the FBI’s Washington Field Office and the New York City Police Department’s Intelligence Bureau. Assistant U.S. Attorney Gordon D. Kromberg and Special Assistant U.S. Attorney Allison Ickovic of the U.S. Attorney’s Office for the Eastern District of Virginia, along with Trial Attorney John T. Gibbs of the Justice Department’s Counterterrorism Section in the National Security Division, are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Kodiak Man Convicted for Murder of Coast Guard Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, after deliberating for 6 hours, a jury of 6 women and 6 men, found James Michael Wells guilty of the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working as a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 62, of Kodiak, was tried before Chief District Court Judge Ralph R. Beistline in Anchorage.
Wells was arrested on February 15, 2013 under a federal arrest warrant based on a criminal complaint, and was indicted on February 19, 2013. Wells was convicted on all six counts of the indictment: two counts of murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.
According to Ms. Loeffler, the evidence established that on April 12, 2012, at approximately 7:15 a.m., U.S. Coast Guard Petty Officer First Class James Hopkins and U.S. Coast Guard civilian employee Richard Belisle were shot and killed while working at their duty stations in the Rigger Shop at U.S. Coast Guard Communications Station Kodiak. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing.
A third employee in the Rigger Shop, James Wells, was not present and had left two phone messages stating he was running late due to a flat tire. U.S. Coast Guard (USCG) security video captured a small blue SUV entering the back of the Rigger Shop parking lot just before the murders and leaving just afterwards. Later that day, investigators discovered a blue car consistent with the car in the video in the parking lot of the Kodiak Airport. The car was owned by James Wells and had been left there by Wells’ wife, who was in Anchorage.
Additional USCG security video showed James Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m.
The afternoon of the murders, Wells was interviewed and stated that he had left for work in his truck that morning, but discovered a low tire after passing the Base Main Gate near the Kodiak Airport and went back home to change it. Wells had a tire with a nail in it in the bed of his truck and produced it for investigators.
The day after the murders, Mrs. Wells returned to Kodiak from Anchorage. Investigators then learned that the blue car she had left at the airport parking lot had been moved from where she originally parked it when she left for her trip.
In a second interview, James Wells told investigators that he only took a couple of minutes to inspect the low tire at the airport. However, when asked about the 34 minute time gap shown by the Main Gate video, Wells stated “I don’t have a reasonable explanation for it.” Investigators determined that the times on the videos and voice mail messages matched almost exactly to the time it would have taken Wells to drive his white truck from his residence to the airport, change into his wife’s blue car, drive to the Rigger Shop, murder both men, come back to the airport, change back to his truck and return home.
The murder weapon, a .44 revolver, was never found. The evidence at trial showed that, a number of years prior to the murders, Wells had taken a similar weapon from an acquaintance’s gun safe and never returned it.
Judge Beistline scheduled sentencing for July 8, 2014. The law provides for a mandatory sentence of life in prison. Wells will remain in custody pending sentencing.
Ms. Loeffler stated that, “This was a long road to justice for the families of Richard Belisle and James Hopkins, the United States Coast Guard community and the citizens of Kodiak. The guilty verdicts were the result of the superb investigative effort of the FBI and Coast Guard Investigative Service, and I am very proud of the work of the members of the United States Attorney’s Office for the District of Alaska, and our Special Assistant U.S. Attorney from the U.S. Coast Guard Judge Advocate General who, with professionalism and dedication, worked to present that investigation to the jury and convict the man responsible for brutally murdering two innocent men while they were at work serving their country and their community.”
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska said, “The FBI would like to thank the Alaska State Troopers, Coast Guard Investigative Service, and the U.S. Attorney’s Office for their partnership and cooperation on this case. We are pleased that the lengthy and meticulous investigation of this brutal crime has resulted in the conviction of the person responsible. We continue to express our condolences to the Hopkins and Belisle families.”
Ms. Loeffler notes that the conviction comes after an extensive investigation led by the FBI, with support from the U.S. Coast Guard Investigative Service, and the Alaska State Troopers.
“We commend the Department of Justice and our partner law enforcement agencies for ensuring justice was served and James Wells was held accountable for these murders,” said Vice Adm. Charles W. Ray, Commander, Coast Guard Pacific Area. “We hope this verdict brings closure to this chapter of tragedy in the lives of the Belisle and Hopkins families, our Coast Guard men and women, and the people of Kodiak.”Justice Department Statement on U.S. District Court Finding That Department’s Settlement with US Airways/American Airlines is in the Public InterestRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division made the following statement today after the U.S. District Court for the District of Columbia found the department’s settlement involving US Airways Group Inc. and American Airlines’ parent corporation, AMR Corp., to be in the public interest:
“We’re pleased that the court agreed that the department’s remedy will enhance system-wide competition in the airline industry. By increasing the presence of low cost carriers at key constrained airports across the country–through significant divestitures of slots at Ronald Reagan Washington National and New York LaGuardia International and gates at five other important airports–consumers will have more choices to fly at more competitive airfares. History has shown that when low cost carriers have entered the market, consumers benefit. With the settlement, the department is requiring an unprecedented number of divestitures in this industry that will provide enhanced competition across the nation.”
Background
On Aug. 13, 2013, the department, six state attorneys general and the District of Columbia filed an antitrust lawsuit against US Airways and American alleging that US Airway’s $11 billion acquisition of American would have substantially lessened competition for commercial air travel in local markets throughout the United States. The department alleged that the transaction would result in passengers paying higher airfares and receiving less service. In addition, the department alleged that the transaction would entrench the merged airline as the dominant carrier at Reagan National, where it would control 69 percent of take-off and landing slots, thus effectively foreclosing entry or expansion by competing airlines.
On Nov. 12, 2013, the department announced its settlement requiring US Airways and American’s parent corporation, AMR Corp. to divest slots and gates at key constrained airports across the country to low cost carrier airlines (LCCs) in order to enhance system-wide competition in the airline industry.The settlement requires US Airways and American to divest slots, gates and ground facilities at key airports around the country. Specifically, the settlement requires the companies to divest or transfer to low cost carrier purchasers approved by the department:
- All 104 air carrier slots (i.e. slots not reserved for use only by smaller, commuter planes) at Reagan National and rights and interest in other facilities at the airport necessary to support the use of the slots;
- Thirty-four slots at LaGuardia and rights and interest in other facilities at the airport necessary to support the use of the slots; and
- Rights and interests to two airport gates and associated ground facilities at each of Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami International.
Thus far, slots at Reagan National were divested to Southwest Airlines, JetBlue and Virgin America. At LaGuardia, slots were divested to Southwest Airlines and Virgin America. The divestiture process for the gates at the other airports is ongoing.
Jewett City Man Sentenced to 41 Months in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON MOORE, also known as “Natural Perfection Be-Allah,” 36, of Jewett City, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. MOORE was identified as a heroin customer of Emmanuel Blanco Balbuena, who regularly obtained distribution quantities of heroin from Capellan Maldonado.
On January 24, 2013, members of the Norwich Police Department arranged to make a controlled purchase of heroin from MOORE at a Goodwill Store in Norwich. After entering the store, MOORE apparently identified officers and quickly discarded a plastic bag onto one of the shelves in the store. Using the store’s video surveillance system, officers were able to find the plastic bag, which contained approximately 24 grams of heroin packaging material. A subsequent search of MOORE vehicle revealed $20,020 in cash that had been hidden in a computer tower in the car.
MOORE has been detained since his arrest. On January 6, 2014, he pleaded guilty to one count of possession with intent to distribute heroin.
MOORE’s criminal history includes multiple drug-related convictions, and convictions for robbery and assault.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
Capellan Maldonado and Balbuena have pleaded guilty. On April 23, 2014, Balbuena was sentenced to 30 months of imprisonment. Capellan Maldonado awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Jacksonville Man Pleads Guilty to Child Sex TraffickingRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Clive S. Nelson (23, Jacksonville) today pleaded guilty to child sex trafficking. Nelson faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Nelson enticed and recruited a 15-year-old female to engage in commercial sex acts for him. Nelson advised the child that she could earn up to $600 per day working for him, if she would permit him to advertise her on the Internet. Nelson then took photos of the child wearing lingerie and posing provocatively. He used these photos to compile advertisements for sex with the child on various Internet advertising sites. Nelson also rented local hotel rooms in Jacksonville and transported the child to these hotels. She engaged in commercial sex acts, at the hotels, with customers who responded to the ads and were willing to pay money to have sex with the child. When potential customers arrived to have sex with the child, Nelson would engage in surveillance from the hotel parking lot, to ensure that the offenders were not the police. Once the offender and the child completed the commercial sex act, Nelson would collect the money from the child.
Nelson prostituted the child in this fashion from November 29, 2013 through December 15, 2013, when police officers from a specialized patrol unit of the Jacksonville Sheriff’s Office located Nelson and the child in a hotel parking lot.
This case was investigated by a joint task force of investigators with the Jacksonville Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
Investment Manager Principal of WG Trading Company, LP and WG Trading Investors Pleads Guilty in Manhattan Federal Court to Several-Hundred-Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEPHEN WALSH, an investment manager and principal of WG Trading Company, LP (“WG Trading Company”) and WG Trading Investors, pled guilty today in Manhattan federal court to securities fraud. WALSH and his partner Paul Greenwood ran a fraudulent commodities trading and investment advisory scheme that raised billions of dollars, misappropriated hundreds of millions of those dollars for their own personal benefit, and then created false promissory notes and account statements to conceal their theft. WALSH was originally charged in February 2009, and he pled guilty today before United States Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara said: “Stephen Walsh and his partner Paul Greenwood ran an investment operation that was a veritable money-making machine – for them. Their purported investing strategy wasn’t nearly as effective as their fraudulent sales pitch to investors. Walsh personally pocketed tens of millions in stolen investor dollars. He will soon surrender his money and himself to answer for this fraud.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least 1996 through February 2009, WALSH and Greenwood solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called “equity index arbitrage,” which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than 10 years. As a result, several institutional investors – including charitable and university foundations, and retirement and pension plans – invested billions of dollars. Investors either became limited partners in WG Trading Company or received promissory notes issued by WG Trading Investors that WALSH and Greenwood represented would pay interest at a rate equal to the investment returns earned by a limited partner of WG Trading Company.
Contrary to their representations to investors, WALSH and Greenwood misappropriated hundreds of millions of dollars in investor funds for their own personal use, and to satisfy obligations on investments that were unrelated to the “equity index arbitrage” trading business. Among other things, WALSH used the funds to finance his lifestyle, to make payments to his ex-wife totaling millions of dollars pursuant to their divorce settlement, and to finance business ventures of his children.
WALSH and Greenwood executed promissory notes in favor of WG Trading Investors, partly to conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, of which approximately $261 million were payable by WALSH to WG Trading Investors. These notes materially misstated the financial condition of WG Trading Company and misled investors. WALSH and Greenwood also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
WALSH, 69, of Sands Point, New York, pled guilty to Count Two of the Indictment, which charges him with securities fraud. This charge carries a maximum penalty of 20 years in prison. Pursuant to a plea agreement, WALSH agreed to entry of a forfeiture order in the amount of $50,743,779, which represents the amount of funds that WALSH misappropriated and by which he personally profited from the fraud. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
On July 21, 2009, Deborah Duffy, the former Chief Compliance Office of WG Trading Company, pled guilty to conspiracy, securities fraud, and money laundering for her role in the fraud scheme. On July 28, 2010, Greenwood, a managing general partner of WG Trading Company, pled guilty to conspiracy, securities fraud, commodities fraud, wire fraud, and money laundering for his role in the fraud scheme. Sentencing dates for Duffy and Greenwood have not yet been set.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell, Jessica A. Masella, and Benjamin A. Naftalis are in charge of the prosecution.
U.S. v. Stephen Walsh & Paul Greenwood Indictment
International Competition Network Adopts Recommended Practices <br /> for Predatory Pricing Analysis and Advances Convergence on <br /> Confidentiality ProtectionsRead the Press Release
The International Competition Network (ICN) adopted new recommended practices for predatory pricing analysis and competition assessment, and approved new work product on international merger enforcement cooperation, confidentiality protections during investigations, leniency policy and digital evidence gathering, the Department of Justice announced today.
The 13th annual ICN conference, hosted by the Moroccan Competition Council, was held on April 23-25, 2014, in Marrakesh, Morocco. More than 500 delegates from 90 jurisdictions participated, including competition experts from international organizations and the legal, business, consumer and academic communities. Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division and Federal Trade Commission (FTC) Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on cartels, competition advocacy, competition agency effectiveness, mergers and unilateral conduct.
The Department of Justice co-chairs the Cartel Working Group, which addressed the challenges of cartel enforcement, including prevention, detection, investigation and sanctioning of cartel conduct. The working group showcased revised work product focusing on the implementation of effective leniency policy and digital evidence gathering. Assistant Attorney General Baer spoke on a panel about effective cartel enforcement, highlighting the Antitrust Division’s digital evidence gathering techniques.
“Gathering the world’s antitrust enforcers together to discuss and share ideas on the most effective ways to combat cartel and civil anticompetitive behavior is critical to ensuring that the global marketplace remains open and competitive benefiting consumers and businesses,” said Assistant Attorney General Baer. “It is important to stay nimble and take advantage of new technology, such as the digital evidence gathering tools being used by many antitrust enforcement agencies.”FTC Chairwoman Ramirez participated in the Merger Working Group’s plenary discussion of international cooperation in merger cases, the subject of a multi-year study by the working group. The Chairwoman highlighted that, “Our experience demonstrates that international cooperation is essential to ensure effective and consistent merger review. The ICN is a uniquely valuable forum in which to advance the coordination and sound analysis of the increasing volume of cross-border transactions.”
The Merger Working Group presented a report detailing agencies’ experiences with international enforcement cooperation that will inform the development of ICN guidance on effective cooperation. This initiative furthers the working group’s mission to promote the adoption of best practices in the design and operation of merger review laws.
To further the Unilateral Conduct Working Group’s mission to promote convergence toward sound enforcement of laws governing conduct by firms with substantial market power, the working group presented new recommended practices for predatory pricing investigations at the conference. Deputy Assistant Attorney General Renata B. Hesse of the department’s Antitrust Division participated in the working group’s plenary discussion of how agencies characterize and pursue unilateral conduct enforcement.
The Agency Effectiveness Working Group, co-chaired by the FTC, addresses competition agency strategy, planning, operations, and investigative tools and procedures. An ongoing working group project on agency investigative process aims to identify investigative procedures that promote fair and informed enforcement actions. Paul O’Brien, International Counsel at the FTC, moderated a plenary session on agency procedures focused on investigative transparency and engagement. This year, the working group also produced a report on confidentiality protections that underscored common approaches to these practices.
The Advocacy Working Group presented a set of recommended practices on competition assessment, the exercise of evaluating the effects on competition of a proposed or existing law, regulation or policy. The ICN recommendations extend and complement work by the Organisation for Economic Co-operation and Development (OECD) in its Competition Assessment Toolkit, and advance the working group’s goal to promote the development of practical tools and guidance to improve the effectiveness of competition agencies’ competition advocacy activities.
The Moroccan Competition Council led a special project devoted to the treatment of state-owned enterprises under competition law.
The ICN was created in October 2001, when the Department of Justice and the FTC joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now comprises 128 member agencies from 115 jurisdictions.
More resources are available on the ICN website.Illegal Alien Receives Time-Served SentenceRead the Press Release
On April 22, 2014, in federal court in Williamsport, Juan Bartolome Mora, age 34, a Mexican citizen arrested in Montour County in January 2014 and charged with illegal re-entry into the United States in February 2014 and held in custody for 102 days, was sentenced to time-served by U.S. District Court Judge Matthew W. Brann.
The case was prosecuted by Assistant U.S. Attorney William C. Simmers.
Heroin Dealer Endangering Children Sentenced to an Additional 3 Years in PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II today sentenced Damion Rashaad Carder (36, Cocoa) to 3 years in federal prison for violating his supervised release. Carder was under supervision of the court as a result of a cocaine conviction in 2006. Carder was found guilty of violating his supervised release on March 11, 2014. On April 17, 2014, U.S. District Judge Charlene Edwards Honeywell sentenced Carder in another federal drug case. He was sentenced to 18 years and 9 months in federal prison for possession with the intent to distribute and distribution of heroin. Judge Antoon ordered that the 3-year sentence be served consecutive to the 18-year sentence.
According to court documents and statements made during the sentencing hearing, Carder was on supervised release as a result of his 2006 conviction in federal court for possession with the intent to distribute cocaine. Despite being under supervision, Carder sold heroin from his home, which was approximately one block away from the Joe Lee Smith Park and Recreation Center, which has a children’s playground, baseball field, basketball court, gymnasium, and community center. Carder would deal heroin when the Center was open. After thinking he was going to be arrested by law enforcement, Carder placed two firearms and ammunition in a car with two children, approximately 8 and 10 years old, and told the driver to leave the area. Law enforcement stopped the driver and recovered the firearms shortly before arresting Carder with more than 200 grams of heroin.
This case was investigated by the Drug Enforcement Administration and Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Vincent A. Citro.
Hartford Crack Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEROME WILLINGHAM, 32, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 70 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in the summer of 2012, in response to a series of shootings in the area of Bond Street and Franklin Avenue in Hartford, the FBI’s Northern Connecticut Violent Crimes Task Force began an investigation targeting gang and narcotics activity in that area. In October 2012, investigators began to make controlled purchases of multi-gram quantities of crack cocaine from Joshua Suarez, also known as “Tizzo.” WILLINGHAM was subsequently identified as Suarez’s source for crack cocaine.
WILLINGHAM has been detained since his arrest on April 28, 2013. On December 16, 2013, he pleaded guilty to one count of conspiracy to distribute cocaine base (“crack cocaine”).
WILLINGHAM has prior felony convictions, and previously served more than seven years in state custody for criminal possession of a firearm.
The sentence in this case was enhanced after Judge Shea found that WILLINGHAM, in advance of his sentencing, had submitted a forged letter to the U.S. Probation Office purporting to confirm his participation in an apprenticeship program. The letter was submitted to corroborate WILLINGHAM’s assertion that he sold drugs because he had three children and needed to support them, and that he was involved in an ironworker’s apprenticeship program for which he was not receiving compensation. WILLINGHAM never participated in the apprenticeship program.
Suarez has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Gibsonton Woman Pleads Guilty to Aggravated Identity Theft Relating to Fraudulent Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Bernadette Demps today pleaded guilty to aggravated identity theft. She faces a mandatory minimum of two years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in 2011, Demps received more than $43,000 in income tax refund checks into a business bank account which she controlled. All of these deposits were in the names of other individuals. The direct deposits were all the result of fraudulent tax returns, which had been filed a short time earlier with the IRS, using the names and personal identification information related to those persons. Demps withdrew the funds from her account almost immediately, either via ATM cash withdrawals or other means.
This case was investigated by the Internal Revenue Service-Criminal Investigation, with the assistance of the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
German Company Ordered to Pay $1.25 Million After Failing to Report Hazardous Condition on A Cargo Ship in the Port of Long BeachRead the Press Release
LOS ANGELES – A German company has been sentenced to pay a $1 million fine and another $250,000 to support environmental causes after pleading guilty to two felony environmental charges related to a cargo ship that entered the Port of Long Beach last year with an open crack in its hull that may have caused oil to leak into the port.
The company – Herm. Dauelsberg GmbH & Co. KG – pleaded guilty yesterday morning and was sentenced immediately by United States District Judge George H. Wu. The company pleaded guilty to a felony count of failing to maintain accurate records relating to the overboard disposal of fuel oil and to a felony count of failing to report a hazardous condition aboard the M/V Bellavia to the United States Coast Guard.
This case was initiated after four members of the M/V Bellavia crew provided significant information to the United States Coast Guard, including pictures and videos of discharges from a fuel tank into the ocean. Using a federal law that allows a federal judge to award up to half of any criminal fine to “whistleblowers” who provide information concerning certain environmental crimes aboard vessels, Judge Wu ordered that the four crewmembers receive a total of $500,000 from the fine amount.
The M/V Bellavia is a 960-foot-long, Panamax-size ship that normally transports cargo between European, Central American and North American ports. In 2011, the M/V Bellavia sustained cracks in the ship’s hull while transiting through the Panama Canal. On an unknown number of occasions over the past three years, the hull cracks opened to such an extent that seawater could enter one of the ship’s fuel tanks. As a result of the damage, bunker fuel – a heavy, thick fuel oil – could have been released from the fuel tank into the sea.
Herm. Dauelsberg admitted that the M/V Bellavia hit the side of the Panama Canal again last September and sustained a crack that passed through the ship’s hull into a fuel tank. The company also admitted that, after sustaining the crack, the ship’s crew used one of the ship’s pumps to discharge nearly 120,000 gallons of oil-contaminated seawater from the ship’s fuel tank directly into the ocean. That discharge was not done using the ship’s oil-water separator, which is supposed to be used to filter oil out of water that is pumped overboard. The ship’s crew then failed to properly record the discharge in the ship’s records and did not disclose it to the Coast Guard, both of which are required by federal law, when the ship arrived in the Port of Long Beach in October 2013. In addition, the company admitted that it failed to notify the Coast Guard about the hazardous condition aboard the M/V Bellavia, namely, the crack that passed through the ship’s hull into the fuel tank.
After accepting the guilty pleas, Judge Wu sentenced the company to the statutory maximum fine of $1 million and ordered the company to make an additional community service payment of $250,000 to the Channel Islands Natural Resources Protection Fund, which is administered by the National Park Foundation. The community service payment will be used to fund environmental projects, enforcement efforts, and initiatives designed for the enforcement of environmental and public safety regulations.
This case is the result of an investigation by the United States Coast Guard’s Marine Safety Office, the Coast Guard Investigative Service, and the United States Environmental Protection Agency’s Criminal Investigation Division.
Release No. 14-052
Four Defendants Charged in Wire Fraud ConspiracyRead the Press Release
ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been indicted by a federal grand jury on charges of defrauding and conspiring to defraud Home Depot.
“These defendants are charged with participating in a scheme to defraud Home Depot over a period of several years, in ten states that span as far north as Kentucky and North Carolina, all the way south to Florida and west to Texas,” said United States Attorney Sally Quillian Yates.
“The Secret Service has established a long history of protecting the American consumer and private industry from various types of prepaid and credit card fraud. This case illustrates not just the significance of an aggressive and cutting edge approach to combat this type of fraud, but also illustrates the importance of partnerships with state and local law enforcement agencies in protecting our nation’s electronic financial payment systems,” said Reginald Moore, Special Agent in Charge of the United States Secret Service in Atlanta.
According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected items for purchase. Prior to purchasing the items, they covered the UPC labels on high-priced merchandise with UPC labels they removed from lower-priced merchandise, a practice known as “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price.
After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label. Hatcher, Lynch, and Oliver then returned the fraudulently purchased merchandise to Home Depot without a receipt, in order to obtain refund credit cards in the amount of the actual, and higher, retail price of the merchandise. Hatcher, Lynch, and Oliver then sold the refund credit cards to Freeman in exchange for cash in an amount less than the face value of the refund credit cards. Defendant Freeman used the fraudulently obtained refund credit cards to purchase merchandise from Home Depot, which he used to stock inventory in two retail stores that he owns and operates in Atlanta, Ga., known as “Bargain Wholesale.”
Robert Lee Hatcher III, 31, of Atlanta, Ga., Willie Dewayne Lynch, 29, of Atlanta, Ga., have been arraigned before U.S. Magistrate Judge Justin S. Anand. Arthur James Freeman, 53, of Atlanta, Ga., is scheduled to be arraigned on Friday April 25, 2014, before Judge Anand. Andrew Oliver, 61, of Stone Mountain, Ga., is still at large.
This case is being investigated by Special Agents of the United States Secret Service, with the assistance of criminal investigators from the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, the Atlanta Police Department, and Corporate Investigators with The Home Depot, Inc.Assistant United States Attorneys Teresa D. Hoyt and Jeffrey W. Davis are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.Former Office Manager at Red Creek Municipal Utility District Is Sentenced to 21 Months in Federal Prison for Embezzling Funds from DistrictRead the Press Release
LUBBOCK, Texas — A San Angelo, Texas, woman, who worked for a water utility service company in unincorporated Tom Green County was sentenced for embezzling approximately $43,000 from her employer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Melissa Manda Herrera, 38, was sentenced yesterday by U.S. District Judge Sam R. Cummings to 21 months in federal prison and ordered to pay $85,790 in restitution, following her guilty plea in December 2013 to one count of theft concerning federally funded programs. Judge Cummings remanded her into the custody of the U.S. Marshal.
Herrera worked as the Office Manager of the Red Creek Municipal Utility District from April 2003 through February 2012. The District, which receives federal financial assistance from the U.S. Department of Agriculture, was established in 1992 to provide water utility services to its customers. It is overseen by an elected, uncompensated board of directors and it contracts with Concho Rural Water Corporation to manage the District’s water distribution system, conduct monthly readings of customers’ meters and maintain the District’s customer billing records, which includes preparing and mailing monthly bills and posting customer payments based on information provided by the District’s Office Manager. The District employs only one person – the part-time Office Manager.
As part of her duties, Herrera was responsible for establishing customer accounts, handling customer payment issues and collecting all customer payments. Herrera admitted that while she was Office Manager for the District, she did not include all customer payments in the daily deposits made at the bank, and in fact, kept customers’ cash payments for her own benefit.
The FBI, Tom Green County Sheriff’s Office and San Angelo Police Department investigated. Assistant U.S. Attorney Ann Roberts led the prosecution.
Former EBay Exec Charged with Insider TradingRead the Press Release
PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, was charged today by information with securities fraud, announced United States Attorney Zane David Memeger. According to the information, Saridakis, a senior executive at GSI Commerce, Inc. (“GSIC”), provided material, non-public information regarding eBay’s pending acquisition of GSIC.
It is further alleged that on March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to CW1 that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?” CW1 replied, “no, but it’s cheap.” This response led Saridakis to tell CW1 “you should.” CW1 responded with “ok,” to which Saridakis replied, “soon.” According to the information. on March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000. On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages. Saridakis allegedly also shared the same material non-public information with family members and his neighbor.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.
U.S. Attorney Memeger credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation. He also thanked Scott Friestad, an associate director in the U.S. Securities and Exchange Commission’s (“SEC”) Washington DC office. Saridakis and others have been charged in a parallel civil matter by the SEC.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
Click here to view the indictment
An Information 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, 215-861-8525Former Columbus Police Detective Sentenced to 57 Months in Prison for Drug CrimeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Former Columbus Police Detective Stevie Billups, 48, of Columbus was sentenced to serve 57 months in prison for crimes he committed through his involvement with a local drug dealer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Karen Huey, Director of Enforcement for the Ohio Casino Control Commission, and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Judge Graham also fined Billups $10,000 and ordered him to serve three years of supervised release after he completes his prison sentence.
Billups pleaded guilty on November 22, 2013 to one count of attempted possession with intent to distribute heroin. According to a document the government filed with the court prior to today’s sentencing, in 2013 Billups provided armed protection for two transactions involving drugs while he was a Columbus Police officer.
Billups began his relationship with a drug dealer when Billups began laundering money for the drug dealer by cashing in chips which helped the drug dealer avoid transaction reporting requirements at the Hollywood Casino in Columbus.
According to court documents, Billups asked the drug dealer to “get him in the game.” Billups’ query led to the June 28th and July 17th drug stings by the FBI, whereby Billups protected the drug dealer in the pickup of purported drug money. He later provided protection for the drug dealer during a transaction which Billups believed involved the distribution of heroin. Billups provided protection during the second transaction while he was on duty, armed with his service weapon, and in a Columbus Division of Police unmarked detective vehicle. Billups received a total of $5,000 in exchange for providing protection to the drug dealer during these transactions.
“Public confidence in our police to ‘do the right thing’ is undermined with each case of police corruption,” Assistant U.S. Attorney Doug Squires told the court. “It is a police officer’s duty to uphold the law and protect the public…. Billups’ intent to aid and further the problems that heroin has brought to our communities for his own profit indicates the serious nature of this offense.”
“Using a police officer’s badge and gun to commit crime is a particularly disturbing threat to the community,” stated SAC Kevin Cornelius. “This case highlights the fact that local, state, and federal agencies are working together to root out corruption and bring to justice those who betray the public’s trust.”
“Ohio Casino Control Commission and its gaming agents are committed to working with our federal and local law enforcement partners to investigate criminal activity occurring at the casinos,” said Karen Huey. “The Commission will not tolerate money laundering or drug dealing at any of Ohio’s casinos.”
U.S. Attorney Stewart praised the cooperative investigation by the Ohio Casino Control Commission and the FBI’s Central Ohio Public Corruption Task Force which includes agents from the FBI and the Ohio Bureau of Criminal Investigation (BCI).Mr. Stewart commended the Columbus Division of Police and Police Chief Kim Jacobs for the cooperation they provided during the course of this investigation and thanked the Homeland Security Investigations Bulk Cash Smuggling Task Force for helping initiate this investigation. The Bulk Cash Smuggling Task Force includes agents with Homeland Security Investigations and detectives with the Columbus Police Department, Franklin County Sheriff’s Office and the Ohio State Highway Patrol. Stewart also acknowledged Assistant United States Attorneys Doug Squires and David DeVillers, who prosecuted the case.
# # #Florida Woman Sentenced in $24 Million Dollar Mortgage Fraud CaseRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Elsy Alvarez, 64, of Miramar, Florida, who was convicted of wire fraud affecting a financial institution, was sentenced to 18 months in prison and ordered to pay restitution totaling $415,282.28 by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Alvarez was an employee of the Federal Guaranty Mortgage Company based in Florida, and was responsible for preparing loan packages and forwarding the documents to investor financial institutions. In legal transactions, financial institutions purchase loans originated by mortgage companies, allowing the mortgage company to receive immediate payment, and the financial institution the interest paid over time.
During the scheme, the defendant signed multiple loan documents using multiple names. Alvarez forwarded these documents to multiple investor financial institutions, one of which was M&T Bank. The defendant knew that by sending the loan documents to multiple financial institutions, a single property had multiple loans in the name of multiple persons, a fact which was not disclosed to the financial institutions. The proceeds of the fraudulent loans were subsequently wired into the account of a company associated with the Federal Guaranty Mortgage Company.
As a result of the defendant's actions, M&T Bank was one of nine financial institutions to suffer a loss. The parties estimated that the total fraud scheme amounted to approximately $24,000,000.
Frank Garcia, the owner of Federal Guaranty Mortgage Company, has also been convicted in this case and is awaiting sentencing.
This law enforcement action is part of President Barack Obama=s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Firearms Dealer Sentenced to 26 Months in Prison for Conspiracy and Tax EvasionRead the Press Release
On April 21, 2014, in federal court in Williamsport, Chief U.S. District Judge Christopher C. Conner sentenced Frank C. Lowe, age 57, a Williamsport resident, to 26 months in prison. Lowe pled guilty in April 2013 to conspiracy and tax evasion. Lowe’s co-conspirator, Christopher Haupt, pled guilty last week to a conspiracy charge.
Lowe was ordered to report to prison on May 28. The case was prosecuted by Assistant U.S. Attorney Wayne P. Samuelson. The investigation was conducted by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS-Criminal Investigations.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on April 9, 2014:
Kevin Becerril, 19, of South Bend, Indiana, was charged in a one count Indictment with felon in possession of a firearm.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Jerome White, 24, of South Bend, Indiana, was charged in a three count Indictment with one count of possession with intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of firearm(s).These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Employee Appears in Court After Being Indicted for Scheme to Defraud GovernmentRead the Press Release
DENVER – Jaycee L. Collier, age 29, of Aurora, Colorado, was indicted by a federal grand jury in Denver on April 8, 2014 on charges of wire fraud and bribery of a public official in connection with a military recruiting program. Collier received a summons to appear in U.S. District Court in Denver today, April 25, 2014. He made his initial appearance, where he was advised of his rights and the charges pending against him. He was then released on a $10,000 unsecured bond. He is scheduled to return to court on Wednesday, April 30, 2014 at 10:00 a.m. for arraignment.
According to the indictment, the United States Army Reserve (USAR), located at Fort Bragg, North Carolina, had a contract with Document & Packaging Brokers, Inc. (“Docupak”) to administer a program called the Army Reserve Recruiting Assistance Program (AR-RAP). The AR-RAP offered monetary incentives in the form of recruiting referral bonuses to Army Reserve soldiers, known as Recruiting Assistants (RAs), for encouraging others to join the Army Reserves. The recruiting assistants were required to enroll and complete an online training course. At the conclusion of the training, the RAs would establish an online account to record their nominations of others for enlistment. An RA could receive up to $2,000 for each successful nomination.
Collier was employed as a civilian employee with the Department of Defense at the Military Entrance Processing Station (MEPS) in Denver. In his position as a Lead Human Resources Division Assistant (HRA), Collier was responsible for handling enlistment packets for new recruits joining the USAR and processed through the Denver office. As such, Collier was ineligible to participate in the AR-RAP program.
Between March 10, 2009 and July 25, 2012, Collier knowingly devised a scheme to defraud the USAR by means of materially false and fraudulent pretenses. Specifically, he obtained or caused to be obtained the user names and passwords for eligible RAs so that Collier could enter nominations into those RAs accounts and share in the AR-RAP bonus money. Over the time period alleged, Collier was involved in the nomination of over 65 recruits into the AR-RAP Program.
Approximately $125,000 in fraudulent referral bonuses were wired from Docupak to the RAs’ bank accounts. In most instances, the RAs would pay Collier on average $500 as a kickback for each successful nomination. In total, the indictment alleges that Collier personally received over $28,000 in payments from the RAs for fraudulent nominations.Collier faces five counts of wire fraud. If convicted, he faces not more than 20 years in federal prison, and up to a $250,000 fine, per count. He also faces 13 counts of bribery of a public official. If convicted, he faces not more than 15 years in federal prison, and up to a $250,000 fine, or three times the monetary thing of value, whichever is greater, per count.
This case was investigated by the U.S. Army Criminal Investigation Division and the Defense Criminal Investigative Service.
Collier is being prosecuted by Assistant U.S. Attorney Martha Paluch.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Federal and Local Partners Announce Charges in Child Exploitation CaseRead the Press Release
NORRISTOWN – A fourth man was charged federally, yesterday, in a case involving sex with a minor who was exploited. Mark Wilczopolski, 22, of Birdsboro, PA, is one of four men charged federally and locally. Two additional men are charged by the Montgomery County District Attorney’s Office. In a joint press conference with Montgomery County District Attorney Risa Ferman, United States Attorney Zane David Memeger, today, announced the indictment against Wilczopolski, a/k/a “Wilco,” who is charged federally with using the Internet to entice a minor to engage in sexual conduct, receipt of child pornography and possession of child pornography. Wilczopolski will also be prosecuted, on local charges, by the Montgomery County District Attorney’s office. Wilczopolski is expected to make an initial appearance today in magistrate court.
Charged in related federal indictments are: Christopher Steele, a/k/a “Mike Dozor,” 33, of Newark, DE, who was indicted on March 6, 2014, for use of an internet to entice a minor to engage in sexual conduct, interstate travel with intent to engage in illicit sexual conduct with a minor, and receipt of child pornography; Matthew Krapf, 43, of Collegeville, PA, who was indicted on January 23, 2014, on 10 counts, each, of using or inducing a child to pose for child pornography, use of the Internet to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography; and Jason Scott Becktold, a/k/a “Scotty,” 42, of Oklahoma City, Oklahoma, who was indicted on January 23, 2014, on four counts, each, of using or inducing a child to pose for child pornography, and use of the internet to entice a minor to engage in sexual conduct. The four men, and two others, were initially charged by the Montgomery County District Attorney. The cases listed here were adopted for federal prosecution.
According to the indictments, each of the defendants had contact, via the Internet, with Minor #1 and enticed Minor #1 to engage in sexual conduct and transmit it over the Internet. Krapf also traveled to meet Minor #1 for the purpose of having sexual intercourse, and is charged with doing the same with four other minor boys. In one instance, defendant Krapf traveled to meet Minor #1 and brought Minor #2 with him for the purpose of all three having sexual intercourse, which defendant Krapf videotaped and photographed, and then transmitted to others over the Internet.
According to Becktold’s indictment, Becktold induced Minor #1 to engage in sexual activity with himself and with other Minors, record video of the activity and transmit the video to him via the Internet. Becktold also induced Minor #1 to place a concealed recording device in a locker room to record other minor boys in various states of dress and undress.
Defendant Steele, according to his indictment, traveled from the state of Delaware to Pennsylvania for the purpose of engaging in sex with Minor #1 and enticed Minor #1 to engage in sexual activity over the Internet.
“The internet continues to provide child predators with access to children who cannot appreciate the tremendous physical and mental dangers they face at the hands of criminals who prey on children for sex,” said Memeger. “In order to combat this far too common threat, federal, state and local law enforcement partners must work together to bring those who victimize our children to justice.”
“The greatest responsibility of law enforcement is to protect our most vulnerable citizens,” said Ferman. “Keeping children safe is our number one priority. This case highlights the dangers our children face when communicating with strangers online. An unfortunate reality of our world is there are adults willing to manipulate and exploit vulnerable youth for their own base motives. Working together, the Limerick Township Police Department, the Montgomery County District Attorney’s Office, and the Department of Homeland Security and the United States Attorney's Office for the Eastern District of Pennsylvania have taken six alleged child predators off the street. I commend and thank our law enforcement partners for the strong collaboration and cooperation that allowed us to stop these acts of abuse against vulnerable kids.”
“HSI hereby puts child predators on notice: there is no refuge for child sexual predators who believe they can pursue their perverse behavior with impunity online; they cannot escape justice and there will be serious consequences for their actions,” said HSI Philadelphia Assistant Special Agent- in-Charge William Walker. “HSI will continue to diligently work with our partners at the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Montgomery District Attorney’s Office and other local, state, federal and international law enforcement agencies to combat the sexual exploitation of children.”All four defendants are in federal custody. Matthew Krapf is scheduled for trial on May 19, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 15 years in prison with a maximum sentence of life.
Christopher Steele is scheduled for trial on June 2, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
Jason Scott Becktold is scheduled for trial on September 15, 2014. If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
Mark Wilczopolski is scheduled for an initial appearance this afternoon in federal court. If convicted of all charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.
The cases were investigated by the Limerick Township Police, Montgomery County Detectives, and Immigration and Customs Enforcement Homeland Security Investigations. The federal cases are being prosecuted by Assistant United States Attorney Michelle Rotella.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Facebook Fraudster SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Allen Weintraub, 48, of Boynton Beach, was sentenced yesterday by U.S. District Judge Donald Graham to 111 months in prison, three years of supervised release, ordered to forfeit $140,280.47, and pay the same amount in restitution to two victims of a scheme to sell Facebook shares.
In February 2014, Weintraub pled guilty to two counts of mail fraud. According to an agreed factual proffer, in February 2012, Weintraub, using an alias, steered potential investors seeking to purchase pre-IPO stock of Facebook, to the website of Private Stock Transfer, Inc. by posting a response on www.quora.com. In that post, Weintraub claimed that he had purchased Facebook stock from Private Stock Transfer, Inc. When victims went to the website and sought information on purchasing Facebook stock, Weintraub responded representing that Private Stock Transfer Inc. had thousands of Facebook shares available for purchase. He directed that various forms be completed which represented that victims were purchasing shares described as “Facebook Inc. by and through PST Investment III, Inc. Class A shares on a one for one conversion basis.” PST Investment III, Inc. was another company associated with Weintraub. After the victims sent payment to Weintraub’s bank accounts, Weintraub issued and mailed stock certificates for PST Investment III shares which would convert to Facebook shares on a one for one basis once Facebook went public. In reality, neither Weintraub nor Private Stock Transfer, Inc. had any Facebook shares. The two victims were defrauded a total of $414,000.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Elmira Man Indicted for Production of Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a four-count indictment charging Shannon Lewis, 40, of Elmira, N.Y., with producing images of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years, a fine of $250,000 or both.
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.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendant videotaped a child engaged in sexually explicit conduct. Specifically, Lewis is charged with filming the child while he and another adult male abused the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The indictment was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and Investigators with the Elmira Police Department, under the direction of Chief Michael Robertson.
East St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn April 23, 2014, Derek M. McCaster, a forty-six year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, Illinois, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. McCaster is scheduled for sentencing on August 8, 2014. He faces a term of imprisonment of up to ten (10) years, a fine up to $250,000, or both, and a term of supervised release up to (5) years, and a mandatory special assessment of $100.
The violation occurred between December 13, 2012 and December 27, 2013. McCaster was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA) because he was convicted of Sexual Assault in the Second Degree and Attempted Forcible Rape on February 6, 1995, in Cape Girardeau, Missouri. He last registered as a sex offender in Cuyahoga County, Ohio, on December 12, 2012. Shortly thereafter, he moved to Illinois. McCaster was arrested on December 27, 2013, in St. Clair County, Illinois, stemming from Burglary and Forgery charges of a check theft incident that occurred in October 2013. McCaster admitted to being aware of his requirements to register in Illinois and to update his registration in Ohio upon his move to Illinois in December 2012, but not having done either.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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 was investigated by the United States Marshals Service and the St. Clair County Sheriff’s Department. Assistant United States Attorney Daniel T. Kapsak prosecuted the case.
District Man Sentenced to 28 Years in Prison for Murder of Taxi Driver and Assault of Two Police OfficersDefendant Fired at Officers, Forcibly Entered Apartment in Hopes of Evading CaptureRead the Press Release
WASHINGTON – Ercell D. Overton, 33, of Washington, D.C., was sentenced today to 28 years in prison on charges stemming from the fatal shooting of a taxicab driver and a subsequent shoot-out with police, U.S. Attorney Ronald C. Machen Jr. announced.
Overton pled guilty in February 2014, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed for the slaying of Solomon J. Okoroh and two counts of felony assault on a police officer while armed. The plea agreement was approved by the Honorable Russell F. Canan, who sentenced Overton this morning. Upon completion of his prison term, Overton will be placed on five years of supervised release.
According to the government’s evidence, at approximately 3 a.m. on June 4, 2013, three officers from the Metropolitan Police Department (MPD) were in a police vehicle and on patrol in the Adams Morgan area of Northwest Washington when they heard the sound of a single gunshot. Moments later, the officers observed a speeding Ford Explorer, “Classic Cab” taxi pass their location. The taxicab headed south in the 2300 block of Ontario Road NW, where it crashed into a parked car. As the taxicab passed by the police vehicle, officers observed a muzzle flash and heard the sound of a second gunshot from inside the passenger compartment of the taxi.
Upon impact, officers observed an unarmed man flee from the rear passenger side of the taxi. Two of the officers exited the police vehicle and apprehended the fleeing man without incident after a brief pursuit by foot.
Overton, on foot, then appeared behind the police vehicle and pointed a pistol toward the third officer, who was at the driver’s wheel. That officer exited the vehicle and took cover. Overton then ran behind the fence line of a house in the 2300 block of Ontario Road NW and discharged his weapon in the direction of two of the three police officers, who returned fire. Overton then forcibly entered a basement apartment on the block in an attempt to evade capture. MPD officers subsequently gained entry into the apartment and apprehended Overton and recovered a semi-automatic pistol in close proximity to Overton.
The taxi driver was later identified as Mr. Okoroh, 59, of Glenarden, Md. Mr. Okoroh suffered two fatal gunshot wounds to his back. He was taken to a hospital, where he died about two hours after the shooting. Prior to his death, he provided detectives assigned to the case a physical description of his assailant, which matched that of Overton.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the MPD, including members of the Third District and Homicide Branch. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kwasi Fields. Finally, he commended the work of Assistant U.S Attorney George Pace, who prosecuted the matter.
14-099Department of Justice and the Office of the Director of National Intelligence Announce the Publication of Additional Foreign Intelligence Surveillance Court Filings, Opinions and Orders Regarding Collection Under Section 501 of the Foreign Intelligence...Read the Press Release
WASHINGTON—On January 3, 2014, the Director of National Intelligence declassified and disclosed publically that the U.S. government had filed an application with the Foreign Intelligence Surveillance Court seeking renewal of the authority to collect telephony metadata in bulk, and that, the FISC renewed that authority. The Office of the Director National Intelligence also announced that the Administration was undertaking a declassification review of the FISC's January 3 primary order. On February 12, 2014, and following a declassification review by the Executive Branch, the FISC released in redacted form the previously classified January 3 primary order it had issued in Docket Number BR 14-01, along with a number of other documents.
On January 22, 2014, following service of a Section 215 production order issued to it by the FISC in Docket Number BR 14-01, a provider petitioned the Court to "vacate, modify, or reaffirm" the production order in light of the Memorandum Opinion issued by the United States District Court for the District of Columbia in Klayman, et al., v. Obama, et al., No. 13-cv-0851 on December 16, 2013. That Memorandum Opinion held, in the context of ruling on a motion for preliminary injunction, that the plaintiffs were likely to succeed on their claim that the NSA Section 215 program authorized by orders of the FISC violated the Fourth Amendment.
On March 20, 2014, the FISC issued an Opinion and Order addressing the provider's petition. The FISC held that the district court's opinion in Klayman was unpersuasive, concluded that it provided no basis for vacating the production order, and held that Smith v. Maryland, 442 U.S. 735 (1979) is the controlling precedent. Accordingly, the FISC reaffirmed its production order and directed continued compliance on the part of the provider.
Following the completion of FISC-ordered declassification reviews by the Executive Branch, today the FISC released in redacted form the previously classified January 22, 2014, provider petition; a January 23, 2014, Scheduling Order; a February 12, 2014, Response of the United States to the provider petition; a March 20, 2014, Opinion and Order signed by the Honorable Rosemary M. Collyer, and an April 11, 2014, order. These documents are available at the FISC's website, www.uscourts.gov and on the Department of Justice’s website, www.justice.gov.
S, OPINIONS AND ORDERS REGARDING COLLECTION UNDER SECTION 501 OF THE FOREIGN INTELLIGENCE SURVEILLANCE ACTRelated Materials:
BR14-01 Opinion and Order
BR14-01 Order Regarding Unsealing
BR14-01 Order
BR14-01 Petition
BR14-01 Response
BR14-01 Scheduling OrderDelmar Drug Dealer Sentenced to Five Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Jesse Hotton, age 35, of Delmar, Maryland today to five years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and members of the Wicomico County Narcotics Task Force: Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Wicomico County Sheriff Michael A. Lewis, Salisbury Police Chief Barbara, Chief Michael Phillips of the Fruitland Police Department Department and Wicomico County State’s Attorney Matthew Maciarello..
According to his plea agreement, Hotton conspired with Ranson Chandler, Tyson Hobson and Floyd Sykes to distribute and possess with intent to distribute large quantities of crack and powder cocaine. During their investigation, DEA and the Wicomico County Narcotics Task Force overheard Hotton on many occasions transacting drug deals on his cell phone. For example, in September 2012, Hotton was overheard saying that he just got a kilogram of cocaine and was going to cook up half or so of the powder into crack. Also that month, Hotton was overheard agreeing to sell two ounces of cocaine for $3,000.Hotton admitted that it was foreseeable that he and his co-conspirators distributed more than 280 grams of crack cocaine and more than 500 grams of powder cocaine from June 2012 to November 28, 2012.
Maryland residents Ranson Chandler, Jr., age 37, of Salisbury; Tyson Gabriel Hobson, Sr., age 37, of Princess Anne; and Floyd Lee Sykes, age 35, of Quantico, previously pleaded guilty to their participation in the conspiracy. Judge Hollander sentenced Chandler to 123 months in prison and Sykes to 46 months in prison. Hobson awaits sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.Danville Resident Charged in Money Laundering SchemeRead the Press Release
OAKLAND – Anthony Keslinke was indicted by a federal grand jury yesterday and charged with money laundering, announced U.S. Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
The Indictment alleges that between August of 2013 and February of 2014, Keslinke met with an undercover agent on multiple occasions purporting to be a drug dealer. On five separate occasions, Keslinke accepted a total of $550,000 from the undercover agent. In an attempt to conceal the true source of the funds, Keslinke repeatedly deposited the money received from the undercover agent into business bank accounts under Keslinke's control. Keslinke then attempted to launder the money by wiring it from his business bank accounts to an account controlled by the undercover agent. During the investigation, Keslinke routinely kept 8-10% of the money provided to him from the undercover agent as a fee for his services.
Keslinke was arrested on Feb. 10, 2014, at his residence in Danville, Calif. According to the Indictment, that same day, agents seized over $320,000 in cash from Keslinke’s residence and approximately $1.4 million from bank accounts under his control. Keslinke is currently out of custody on a $450,000, bond pending trial. Keslinke’s next court appearance is on June 5, 2014, at 9:30 a.m. in front of the Honorable Kandis A. Westmore, Magistrate Court Judge in Oakland for arraignment on the Indictment.
The maximum statutory penalty for each count of money laundering alleged in the indictment is 20 years imprisonment.
Assistant U.S. Attorney Aaron Wegner is prosecuting the case with the assistance of Jeanne Carstensen. The prosecution is the result of an investigation by the Drug Enforcement Administration and Internal Revenue Service. The Contra Costa Sheriff’s Office and Livermore Police Department have also provided assistance during the investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Anthony Keslinke must be presumed innocent unless and until proven guilty.
(Keslinke indictment )
(Keslinke affidavit redacted )
Continuum Healthcare Executives and 8 Others Charged with Kickback ConspiracyRead the Press Release
HOUSTON – Jeffery Parsons, of Crockett, and David Edson, of Palm Harbor, Fla., have been charged in a 13-count indictment alleging a conspiracy to pay kickbacks to several area personal care home owners and patient advocates, announced United States Attorney Kenneth Magidson today. Edson, 65, and Parsons, 55, were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC.
The indictment also charges personal care home owners Aretha Johnson, 61, of Sweeny; Inger Michelle Pace, 51, James Bobino, 44, Mary Browning, 66, Cheryl Waller, 68, all of Houston; Deborah Davis, 51, of Atlanta, Ga.; and patient advocates Earnestine Johnson, 55, and Ronald Turner, 53, both also of Houston.
The indictment, returned under seal Thursday, April 17, 2014, was partially unsealed upon the arrest of Edson yesterday in Palm Harbor, Fla. He made his initial appearance before a U.S. magistrate Judge in Florida, while Davis made hers before a U.S. magistrate Judge in Georgia. Parsons and the remaining defendants were arrested yesterday and appeared before U.S. Magistrate Judge George Hanks in Houston. With the exception of Pace, who was temporarily ordered into custody pending a detention hearing set for Monday morning, all were released upon posting bond.
The indictment alleges Edson and Parsons ran Continuum, which owned and operated three community mental health centers in the greater Houston Area. They allegedly billed Medicare and Medicaid for mental health services which were unnecessary, and, in some cases, not even provided. According to the indictment, Edson and Parsons directed kickbacks to be paid to numerous area personal care home owners and patient advocates in exchange for the referral of Medicare patients to Continuum.
All defendants are charged with conspiring to solicit or receive kickbacks in connection with a federal benefit program.
Edson, Parsons and Aretha Johnson are also charged with money laundering for engaging in monetary transactions in criminally derived property greater than $10,000 from proceeds of the conspiracy to pay and receive kickbacks. According to the allegations in the indictment, Edson and Parsons caused Continuum to bill $173 million to the Medicare and Medicaid programs for patients obtained as the result of illegal kickbacks paid to the personal care home owners and patient advocates. Medicare and Medicaid paid Continuum a total of $69.4 million.
Conspiracy to solicit or receive kickbacks and soliciting or receiving kickbacks each carries a maximum penalty of five years in a federal prison, upon conviction, while money laundering carries a maximum penalty of 10 years. The convictions also carry as possible punishment a maximum $250,000 fine.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Department of Health and Human Services-Office of Inspector General, Texas Attorney General's Office - Medicaid Fraud Control Unit, Internal Revenue Service- Criminal Investigation and the Railroad Retirement Board-Office of Inspector General. This case will be prosecuted by Assistant United States Attorney (AUSA) Al Balboni and Special AUSA Adrienne Frazior.
A defendant is presumed innocent unless and until convicted through due process of law.Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsChristopher S. Brown, 32, of Xenia, IL, was indicted on April 8, 2014, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from August 2012, until on or about November 20, 2013, in Clay County, Brown conspired and agreed with others to knowingly and intentionally manufacture methamphetamine. Count 2 charges that from August 5, 2012, to on or about November 5, 2013, Brown knowingly and intentionally possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
With respect to Count 1, Brown faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years. With respect to Count 2, Brown faces up to 20 years imprisonment, up to $250,000 fine, and supervised release of up to 3 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Catholic Priest Sentenced to 3 Years in Prison for Possessing Pornographic Images of BoysRead the Press Release
PITTSBURGH - A Catholic priest has been sentenced in federal court to 36 months in prison, followed by 12 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on David Dzermejko, 65, of Braddock, Pa.
According to information presented to the court, Dzermejko, a Catholic priest, possessed on Jan. 11, 2013, in excess of 100 photographs in computer graphics files, depicting the sexual exploitation of pubescent and prepubescent boys. The child pornography was found on various computers and computer-related equipment taken from Dzermejko’s former residence in Pittsburgh, Pa., following the execution of a search warrant.
Dzermejko had been viewing child pornography for more than 10 years, had acquired the images on-line from various websites, and had traveled on numerous occasions to Thailand where he engaged in sexual encounters with teen boys, some of whom he thereafter maintained an on-line relationship.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Detectives of the Allegheny County District Attorney’s Office, and other officers of the Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Dzermejko.
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.