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Tuesday 4 March 2014
Butler County Man Pleads GuiltyTo Producing Child PornographyRead the Press Release
TKANSAS CITY, KAN. - An Augusta, Kan., man pleaded guilty Monday to a charge of producing child pornography, U.S. Attorney Barry Grissom said.
Kristopher K. Sims, 30, Augusta, Kan., pleaded guilty to one count of producing child pornography. In his plea, Sims admitted that on Nov. 20, 2012, he made a recording of a 12-year-old girl engaging in a sexual act. Sims was in Kansas and the girl was in New York. He used his computer and a video-chat service to engage in a video chat with her, which he recorded.
Grissom commended the Augusta Police Department, the Wichita Police Department’s Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Sims first met the victim when she was 11 years old via Facebook. He posed as a boy who was 15 or 16 years old. Over a period of months, he communicated with her in chats and video messaging. He persuaded her to engage in sexual acts, which he captured in live video feeds from her computer.
Sentencing is set for June 2. He faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000.Businessman Sentenced to 17 Years, 8 Months in Prison for Bankruptcy Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Steven K. Zinnel, 50, of Gold River, was sentenced today by United States District Judge Troy L. Nunley to 17 years and eight months in prison and a $500,000 fine, for 15 counts of bankruptcy fraud and money laundering, United States Attorney Benjamin B. Wagner announced. Judge Nunley also ordered Zinnel to forfeit to the United States real estate and corporate interests worth over $2.8 million.
U.S. Attorney Wagner stated: “Mr. Zinnel attempted to escape his financial responsibilities through the fraudulent misuse of the Bankruptcy Court. Today’s sentence, believed to be the longest prison sentence ever imposed in a bankruptcy fraud case in this district, holds him responsible for his crimes and helps protect the integrity of the federal bankruptcy process.”
“Zinnel knowingly broke laws in a spiteful attempt to deprive his former spouse and children of his support,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Today he is seeing the cost of his creative scheme to intentionally conceal his assets.”
“Today’s sentencing sends a clear message to those who use the bankruptcy system to evade their debt obligations to the government and their creditors,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “This was a serious, long-running crime committed by a man who gave it a lot of thought and purpose. Mr. Zinnel’s crimes were filled with fraud and deceit, and he deserves the punishment handed down
today.”Trial testimony established that Zinnel concealed assets from the bankruptcy court by putting his property in other people’s names. One of the things that Zinnel hid from the bankruptcy court was an investment in an electrical infrastructure company in which he had invested as a “silent partner.” Zinnel invested hundreds of thousands of dollars and prepared the corporate filings, but his name did not appear in any public filing of this company. For years, the company paid distributions to Zinnel as an owner, but those distributions were disguised as payments to a shell company, Done Deal, Inc., held in the name of co-defendant Derian Eidson. The court noted that the purpose of establishing Done Deal was to “raid the coffers” of the electrical infrastructure company without being identified anywhere. The court ordered Zinnel’s interest in that company forfeited, and the government is to receive $2.8 million from its sale to its records owner.
After the successful concealment of the property and the discharge of Zinnel’s bankruptcy, Zinnel laundered funds back to himself through attorney Derian Eidson’s company, Done Deal Inc., her attorney-client trust account, and her personal bank account. Zinnel throughout this time used several different corporations registered in others’ names, including one registered with a forged signature, to disguise his control of property and to direct the disposition of money. Eidson gave Zinnel signature authority over her company’s bank account, which he used for his personal expenses.
At today’s sentencing hearing, Zinnel’s ex-wife explained how the investigation of Steven Zinnel began with Zinnel’s call to the FBI asking that the FBI investigate her. According to papers on file with the court, when agents followed up on Zinnel’s call to the FBI, his own bankruptcy crimes were discovered.
Calling Zinnel “narcissistic,” Judge Nunley cited Zinnel’s repeated deception of the bankruptcy court, the bankruptcy trustee, and family court as evidence of Zinnel’s culpability in the complex bankruptcy fraud and money laundering scheme. Even after the bankruptcy, Zinnel laundered his money through shell corporations in order to disguise income that otherwise would have affected his child support obligations.
“You don’t lie before a court of law,” Judge Nunley admonished Zinnel. “You don’t continue to lie, which is what you did.” Judge Nunley found that Zinnel’s gifts of being articulate and charismatic were used toward promoting Zinnel’s “own selfish ends.”
This case is the product of an investigation by the FBI and IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Audrey B. Hemesath prosecuted the case. The Office of the U.S. Trustee provided important support and expertise in the course of the prosecution.
Zinnel’s restitution hearing is set for March 31, 2014, at 9:00 a.m. At that time, Judge Nunley will also sentence Zinnel’s co-defendant, attorney Derian Eidson, for her role in Zinnel’s scheme.
Broward County Man Sentenced to Four Years for Stolen Identity Refund FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Patrick Robinson to 2 years in federal prison for possession of 15 or more unauthorized access devices, and a consecutive 2 years for aggravated identity theft. Robinson pleaded guilty on September 25, 2013.
According to court documents, on February 28, 2012, Robinson was stopped for speeding in a vehicle, in Lee County, Florida. A subsequent search of his vehicle recovered two laptop computers, a thumb drive, numerous Wal-Mart Money Cards, and a Green Dot debit card. Each card was wrapped in a piece of paper that had a name, routing number, account number, and tax refund amount handwritten on it. Approximately 232 separate identities were found on the thumb drive.
Robinson admitted that he had been committing tax refund fraud for approximately six months. He also admitted to using the stolen victim identifiers contained on the thumb drive to file fraudulent tax returns, using an online tax program. Robinson requested the tax return refund money from the fraudulent returns to be placed on the purchased Wal-Mart Money and Green Dot cards.
This case was investigated by United States Secret Service, Lee County Sheriff’s Office, and Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Boise Woman Sentenced to 84 Months in Federal Prison for Meth TraffickingRead the Press Release
Defendant One of Eleven Indicted in Gun and Drug Trafficking Case
BOISE – Bobbi Eileen Woolsey, 36, of Boise, Idaho, was sentenced today in United States District Court to 84 months in prison for conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Woolsey to serve five years of supervised release. She pleaded guilty to the charge on December 2, 2013.
According to information presented in court, Woolsey admitted to conspiring with co-defendants to distribute methamphetamine. Woolsey has two prior felony convictions for possession of methamphetamine and accessory to a felony. She was on probation for those crimes at the time she committed the drug trafficking offenses in this case.
Woolsey’s co-defendants, Jeramie Ethan Mahler of Star, Idaho, and Carlos Eberardo Tovar of Nampa, Idaho, pleaded guilty yesterday to related drug trafficking charges. Mahler also pleaded guilty to discharging a firearm in furtherance of a drug trafficking crime. A federal grand jury indicted Woolsey, Mahler, Tovar and eight other defendants on July 9, 2013. The indictment alleges that the defendants conspired together to distribute methamphetamine. It also contains additional charges alleging distribution of methamphetamine, distribution of cocaine, and unlawful possession of a firearm. All of the defendants have pleaded guilty; nine are awaiting sentencing.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. Since 2007, over 255 defendants have been prosecuted in Federal Court through the Gang SAUSA program. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Berwick Resident Pleads Guilty to Armed Bank Robbery and Firearms ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Phillip
G. Gage, 46, of Berwick, Maine, pled guilty in U.S. District Court in Portland to armed bank
robbery and firearms charges. The charges arise from the August 21, 2013 armed bank robbery
of Citizen’s Bank, in Somersworth, New Hampshire; the October 7, 2013 armed bank robbery of
Peoples United Bank, in Exeter, New Hampshire; the October 19, 2013 armed bank robbery of
Kennebunk Savings in Eliot, Maine; and the October 26, 2013 armed bank robbery of the Ocean
Communities Federal Credit Union in Sanford, Maine. Gage also pled guilty to being a felon in
possession of a firearm and using a firearm during the commission of a crime of violence, that is,
armed bank robbery.According to court records, during the Citizen’s Bank robbery, Gage displayed a demand
note that read in part: “I have a bomb and a gun if you say a word you will die” and absconded
with $3,132.80. In the People’s United robbery, Gage’s demand note read in part: "There's a
bomb in the trash can, keep it quiet" and absconded with $1,451. During the Kennebunk Savings
robbery, Gage pointed a Ruger Red Hawk .44 Magnum revolver at tellers while, an associate,
Daniel Barry, vaulted over the teller counter and took $7,896 from the teller drawers. During
the Ocean Communities Federal Credit Union robbery, Gage pointed a Dan Wesson .22 caliber
revolver at tellers and absconded with $8,574.
Gage was convicted of the following felonies: robbery in Florida in 1986, assault in
Maine in 1999, possession of a firearm by a felon in Maine in 1999 and attempting to commit a
Class B crime in Maine in 2002.Gage faces up to 25 years in prison and a $250,000 fine, or both, on each armed bank
robbery charge; a mandatory minimum of 15 years and up to life in prison on the firearm
possession charge; and a consecutive mandatory minimum sentence of seven years and up to life
in prison for using a firearm during the commission of an armed bank robbery. He will be
sentenced after the completion of a presentence investigation report by the United States
Probation Office.This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton
and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the
cooperation among these law enforcement agencies noting that “these armed bank robberies
were quickly solved because local, state, county and federal law enforcement agencies across
two states worked closely together.”Bank Teller Sentenced to over 5 Years in Prison in Fraud SchemeRead the Press Release
Used Her Position as a Bank Teller to Pass On Seven Bank Account Holders’ Information to Conspirators Who Used the Information to Steal Money
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, today to 64 months in prison followed by three years of supervised release for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the four day trial, in 2012 Conteh, a bank teller, looked up bank account holder information on the computer system without authorization. Conteh disclosed that information to her co-conspirators who ordered checks on account holders’ accounts and cashed checks totaling over $30,000 on the account of one account holder. At least seven bank account holders’ accounts were improperly accessed. The Court determined that as a result of the scheme, Conteh is responsible for over $120,000 in intended losses.
Co-defendant Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson previously pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.
Bank Robber Sentenced to 262 MonthsRead the Press Release
NORFOLK, Va. – Phillip D. Bosket, 47, of New York, was sentenced yesterday to 262 months in prison for bank robbery and brandishing a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing made the announcement after sentencing by United States District Judge Robert G. Doumar.
Bosketpleaded guilty on December 3, 2013. According to court documents, Bosket attempted to rob a Credit Union and robbed a bank. The defendant entered a Langley Federal Credit Union on Granby Street in Norfolk with a knit hat covering his whole face. Bosket saw a security guard come around the corner so he took off running. As he ran he discarded his firearm and his knit hat. His DNA was on the hat. A few weeks later he robbed a Wells Fargo Bank on High Street in Portsmouth. He entered the bank with a knit hat covering his face. He brandished a firearm at the teller and made off with over $4000. The police quickly located the defendant resulting in a high speed chase. As defendant was fleeing he threw out the bag of money, his gun and his knit hat. The police followed him on a high speed chase from Portsmouth to Virginia Beach. The chase ended when the defendant crashed his van into a building.
This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office. Assistant United States Attorney William Muhr prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Attorney General Holder Announces President Obama’s Budget Proposes $173 Million for Criminal Justice ReformRead the Press Release
Attorney General Eric Holder announced today that President Obama’s FY 2015 Budget proposal for the Department of Justice calls for $173 million in targeted investments for criminal justice reform efforts.
These investments—such as increased funding for state and local prisoner reentry initiatives—are among the key highlights in the president’s overall $27.4 billion budget request for the Justice Department. The FY 2015 request, which represents a $122 million increase over the FY 2014 enacted level, supports a range of federal law enforcement priorities, as well as the criminal justice priorities of state, local and tribal law enforcement partners.
“Each dollar spent on prevention and reentry has the potential to save several dollars in incarceration costs,” said Attorney General Eric Holder. “These wise investments can help make our criminal justice system more effective and efficient. Overall, this budget request shows our strong commitment to building upon the record of progress we have established in fulfilling the Justice Department’s most critical missions.”
In August 2013, the Attorney General introduced the “Smart on Crime” initiative—a package of reforms to the criminal justice system to help ensure that federal laws are enforced more fairly and more efficiently. Among other reforms, the effort promotes diversion courts and other alternatives to incarceration for low-level drug offenders, and urges investment in reentry programs in order to reduce recidivism among formerly incarcerated individuals.The President’s budget request seeks to put critical resources behind this effort. Specifically, in addition to funds routinely provided for federal prisoner reentry efforts, the FY 2015 request:
• Requests $15 million for U.S. Attorneys, including prosecution prioritization, prevention and reentry work and promoting alternatives to incarceration such as the establishment of drug courts and veteran courts;
• Sustains $15 million for the Bureau of Prisons to expand the Residential Drug Abuse Program at the federal level and $14 million provided in the FY 2014 appropriation to assist inmates with reentering society and reducing the population of individuals who return to prison after being released;
• Requests $14 million in the Office of Justice Programs to expand the Residential Substance Abuse Treatment program at the state and local level; and
• Requests $115 million for the Second Chance Act Grant program, through state and local assistance programs, to reduce recidivism and help ex-offenders return to productive lives.Beyond criminal justice reform, the Department of Justice’s other key funding priorities include:
• $273 million to help meet the nation’s civil rights challenges--including an $8 million program increase;
• $4 billion for national security--including a $15 million program increase;
• $1.1 billion to protect Americans from gun violence--including $182 million to support the president’s “Now is the Time” gun safety initiative;
• $722 million for cyber security--including $8 million in program increases;
• $44 million for Mutual Legal Assistance Treaty responsibilities--including $24 million in increases to reform the process;
• $681 million for financial fraud law enforcement-to maintain our current efforts;
• $2.9 billion to support immigration law enforcement--including a $23 million program increase;
• $8.5 billion to maintain and secure federal prisons and detention facilities;
• $3 billion in mandatory and discretionary funds to maintain assistance to state, local and tribal law enforcement; and
• $1.2 billion in federal program offsets and rescissions.In addition, the FY 2015 President’s Budget proposes additional discretionary investments for the department as part of the Administration’s Opportunity, Growth and Security Initiative. The initiative includes targeted investments for state and local justice assistance grants, with additional resources for the Comprehensive School Safety Program, COPS Hiring Program, and new youth investments; funding for the Bureau of Prisons (BOP) to continue the process of bringing on-line newly completed and acquired prisons; and funding for improved capacity for financial fraud enforcement.
Below is an explanation of a few of the key highlights from President Obama’s FY 2015 budget request for the Department of Justice:
CIVIL RIGHTSThe department’s mission includes upholding the civil and constitutional rights of all Americans, particularly the most vulnerable members of our society. Accomplishing this requires necessary resources both to investigate and to litigate. The department maintains substantial responsibilities with respect to enforcing the nation’s civil rights laws and protecting vulnerable populations. The FY 2015 budget will support the department’s vigorous enforcement of federal civil rights laws – including those pertaining to human trafficking, hate crimes, police misconduct, fair housing, fair lending, disability rights and voting. As such, the department’s FY 2015 budget requests $273 million to help meet the nation’s civil rights challenges. The request includes $7.6 million in program increases for the Civil Rights Division and Community Relations Service.
For more information, view the Civil Rights Fact Sheet at www.justice.gov/jmd/2015factsheets/.
NATIONAL SECURITY
Defending our nation’s security from both internal and external threats remains the department’s highest priority. The FY 2015 budget request provides a total of $4 billion to maintain critical counterterrorism and counterintelligence programs, and sustains recent increases for intelligence gathering and surveillance capabilities.
The Administration supports critical national security programs within the department, including those led by the FBI and the National Security Division (NSD). In FY 2013, the FBI dedicated 4,500 agents to investigate more than 18,000 national security cases. NSD has continued to carry out its primary functions to prevent acts of terrorism and espionage in the United States and to facilitate the collection of information regarding the activities of foreign agents and powers.
In FY 2015, the department is investing an additional $15 million to fund the annual costs of the FBI’s new Terrorist Explosive Device Analytical Center (TEDAC) at Redstone Arsenal in Huntsville, Ala. TEDAC is a forensic and technical laboratory dedicated to the mitigation and prevention of improvised explosive device attacks in the United States and abroad. It has provided critical assistance to domestic and international cases, including last year’s Boston Marathon bombing.
For more information, view the National Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
GUN SAFETY
Gun violence has touched every state, county, city and town in America. In 2013 the President introduced the “Now is the Time” initiative, which laid out a comprehensive plan to reduce gun violence and save lives. The department is working to implement a number of these actions and requests a total of $1.1 billion in FY 2015 to address violent gun crimes, including $182 million to sustain the new investments provided in FY 2014.
Specifically, the request provides $35 million in new resources in support of the president’s plan to ensure that those who are not eligible to purchase or possess guns are prevented from doing so. This includes $13 million for the FBI to maintain improvements made in FY 2014 to the National Instant Criminal Background Check System (NICS) aimed at addressing the increasing volume of firearm background checks. We are also taking a thorough look at our federal laws and our enforcement priorities to ensure that we are doing everything possible at the federal level to keep firearms away from traffickers and others prohibited by law from possessing firearms. To this end, $22 million is also included for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to sustain critical firearms enforcement efforts funded in FY 2014.
And while most of the department’s efforts will be focused on keeping guns out of the wrong hands, we also want to help those on the ground prevent and mitigate violent situations when they do occur. To this end, the grant program requests a total of $147 million including $55 million to incentivize states to provide criminal history and mental health records to the NICS; $75 million to continue the Comprehensive School Safety program, which provides critical resources for research and for pilot programs to augment school safety personnel and to determine the effectiveness of various school safety measures; $2 million to encourage the development of innovative gun safety technology; and $15 million for the VALOR Initiative, including training for active shooter situations.
For more information, view Gun Safety Fact Sheet at www.justice.gov/jmd/2015factsheets/.
CYBERSECURITY
Investigating cybercrime and protecting our nation’s critical network infrastructure is a top priority of the department in an era when cyber-attacks and crimes are increasingly common, sophisticated, and dangerous. The FY 2015 budget request provides a total of $722 million for the department’s cyber enforcement efforts and maintains recent increases for the National Security Division’s (NSD) prosecutorial efforts and the FBI’s Next Generation Cyber Initiative, which enhanced capabilities to combat cyber threats from individuals, organized groups and rogue actors. The request also includes an increase of $3 million for the Criminal Division to enhance its investigative and prosecutorial capabilities; and $5 million to provide grants related to cybercrime and intellectual property enforcement.
The department has a unique and critical role in cyber security that emphasizes domestic mitigation of threats and involves countering these threats by investigating and prosecuting intrusion cases, gathering intelligence and providing legal and policy support to other departments. The department is also responsible for establishing effective internal network defense and serving as a model for other departments and agencies.
We are committed to carrying out our role consistent with the Administration’s Executive Order 13636 on Improving Critical Infrastructure Cyber Security, which emphasizes intelligence and information sharing as well as the preservation of privacy, data confidentiality and civil liberties. As part of this effort, the department continues to maintain and strengthen its cyber security environment to counter cyber threats, including insider threats, and to ensure personnel have unimpeded access to the IT systems, networks and data necessary to achieve their missions.
For more information, view the Cyber Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
MUTUAL LEGAL ASSISTANCE TREATY (MLAT) REFORM
The department is leading an effort to update, improve and accelerate the processing of requests from foreign governments for evidence requested pursuant to Mutual Legal Assistance Treaties (MLAT). Delays and difficulties in obtaining evidentiary records through the MLAT process is increasingly becoming a source of frustration for many of our foreign country partners. The department is committed to honoring its obligations under these treaties, and as a result the FY 2015 budget request includes a total of $44 million to support MLAT responsibilities, including an increase of $24 million to centralize and improve the MLAT request process.
Over the past decade, the number of requests for assistance from foreign authorities handled by the Criminal Division’s (CRM) Office of International Affairs (OIA) has increased nearly 60 percent, and the number of requests for computer records has increased ten-fold. While the workload has increased dramatically, U.S. Government resources, including personnel and technology, have not kept pace with this increased demand. This MLAT reform is a cross-agency effort involving the Departments of Justice, State and Commerce. Funds identified in the FY 2015 President’s Budget for improvements to the MLAT program will be coordinated across these departments and agencies as well as the commercial sector. With these additional resources, the department will centralize the processing system and reduce its backlog and response time by half by the end of 2015.These resources are critical to supporting the President’s National Security Strategy, which recognizes the centrality of international mutual cooperation in criminal justice and counterterrorism matters, by building the “new framework for international cooperation” envisioned by that strategy.
For more information, view the Mutual Legal Assistance Treaty Fact Sheet at www.justice.gov/jmd/2015factsheets/.
FINANCIAL FRAUD
Investigating and prosecuting financial fraud continues to be a priority for the Obama Administration. The FY 2015 budget request provides a total of $681 million for financial fraud enforcement and continues efforts to strengthen the department’s ability to pursue large-scale financial fraud investigations in order to ensure that Americans, their investments and our financial markets are protected. The Administration’s Opportunity, Growth and Security Initiative includes additional resources for the department’s critical economic fraud enforcement efforts focused on financial institutions and the mortgage industry.
Ongoing efforts by the President’s Financial Fraud Enforcement Task Force (FFETF) are included in the department’s request. Since its inception in FY 2010, FFETF has facilitated increased investigations and prosecution of financial fraud relating to the financial crisis and economic recovery efforts. This includes securities and commodities fraud, investment scams and mortgage foreclosure schemes and a broad range of financial crimes, including cases being investigated and brought by the FFETF’s Residential Mortgage-Backed Securities Working Group.
For more information, view the Financial Fraud Fact Sheet at www.justice.gov/jmd/2015factsheets/.
IMMIGRATION
The department maintains substantial responsibilities with respect to immigration, including enforcement, detention, judicial functions, administrative hearings and litigation. The department’s Executive Office for Immigration Review (EOIR) maintains a nationwide presence overseeing the immigration court and appeals process. Combined with the Civil Division’s Office of Immigration Litigation, the department has a wide and important role in immigration enforcement.
EOIR receives cases directly from the Department of Homeland Security (DHS) enforcement personnel, and EOIR’s caseload is increasing at unsustainable levels. For example, EOIR’s immigration court caseload has continued to outpace department resources, increasing by 56 percent, from 229,000 to 358,000, between FY 2009 and FY 2013.
The FY 2015 budget request includes a $23 million investment to support immigration courts. The budget supports an additional 35 Immigration Judge Teams and 15 Board of Immigration Appeals attorneys. This will allow EOIR to address caseload increases emanating from DHS programs. The additional funding will also enable EOIR to expand a pilot program initially funded in FY 2014 that provides counsel to vulnerable populations, such as unaccompanied alien children, and to expand the Legal Orientation Program that improves efficiencies in immigration court proceedings for detained aliens.
For more information, view the Immigration Fact Sheet at www.justice.gov/jmd/2015factsheets/.
PRISONS AND DETENTION
The department continues to prioritize the maintenance of secure, controlled detention and prison facilities, as well as investment in programs that can reduce recidivism. The FY 2015 budget request provides $8.5 billion for prisons and detention. Of this amount, $6.9 billion is requested for the Bureau of Prisons (BOP) and $1.6 billion is for the Federal Prisoner Detention (FPD) appropriation. As part of the Opportunity, Growth and Security Initiative, the FY 2015 request also includes targeted investments to reduce prison overcrowding by providing the Bureau of Prisons resources to bring on-line newly completed or acquired prisons.
Additionally, the budget request includes funding to support the Attorney General Holder’s Smart on Crime Initiative, which is intended to promote fundamental reforms to the criminal justice system that will ensure the fair enforcement of federal laws, improve public safety, reduce recidivism and successfully prepare inmates for their reentry into society. Included are funds to sustain the investments made in FY 2014 for BOP’s reentry programs including the Residential Drug Abuse Program, Residential Reentry Centers and reentry-specific education programs.
For more information, view the Prisons and Detention Fact Sheet at www.justice.gov/jmd/2015factsheets/.
STATE, LOCAL AND TRIBAL LAW ENFORCEMENT
In total, the FY 2015 budget requests $3 billion in mandatory and discretionary funds for state, local and tribal law enforcement assistance. These funds will allow the department to continue to support our state, local and tribal partners who fight violent crime, combat violence against women and support victim programs. The FY 2015 request will bolster the department’s efforts to ensure that federal grant funding flows to evidence-based purposes and helps to advance knowledge of what works in state and local criminal justice.
The department is requesting $1.5 billion for the Office of Justice Programs’ (OJP) discretionary grants. The request increases funding for an evaluation clearinghouse, an indigent defense initiative, and evidence-based competitive programs. Funding is included to establish the Byrne Incentive Grants and Juvenile Justice Realignment Incentive grants; these programs will provide supplementary awards to states and localities using formula grant funds for evidence-based purposes. The request also includes funding to address school safety and gun violence with resources to improve criminal history records information and to fund the comprehensive school safety program, which received funding initially in FY 2014.
The FY 2015 budget request includes a total of $423 million for the Office on Violence Against Women (OVW), and continues the Administration’s strong commitment to providing federal leadership in developing the nation’s capacity to combat sexual assault and violence against women. The request includes an increase of $9 million for Legal Assistance to Victims Programs, Campus Violence, Grants to Support Families in the Justice System and the Transitional Housing program. These programs fund both proven and cutting-edge interventions to save lives, hold abusers accountable and rebuild families and communities.The request includes $274 million for Community Oriented Policing Services (COPS), which supports an increase of $71 million increase for COPS hiring and Tribal Law Enforcement programs. These resources will fund officers and thereby support the efforts of state, local and tribal law enforcement agencies in meeting the challenge of keeping their communities safe.
For more information, view the State, Local and Tribal Law Enforcement Fact Sheet at www.justice.gov/jmd/2015factsheets/
'Real Housewives of New Jersey’ Stars Plead Guilty to Conspiracy, Bankruptcy Fraud and Tax OffensesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo TV television show “The Real Housewives of New Jersey” today admitted committing a string of crimes as part of a long-running financial fraud conspiracy, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 41, and Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to several counts of the superseding indictment returned against them in July 2013. The Giudices each pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations. Giuseppe Giudice also pleaded guilty to one count of failure to file a tax return.
“Teresa and Giuseppe Giudice used deception and fraud to cheat banks, bankruptcy court and the IRS,” said U.S. Attorney Fishman. “With their guilty pleas, they admitted the schemes with which they were charged. Having now confessed their wrongdoing, the Giudices face the real cost of their criminal conduct.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to join our law enforcement colleagues in announcing these guilty pleas today,” A. Derek Evans, Special Agent in Charge of FDIC-OIG, New York Region, said. “We are committed to combating bank fraud and bringing to justice those who engage in criminal conduct that undermines the integrity of our nation's financial institutions.”
“Tax violations have been erroneously referred to as victimless crimes, which is a far cry from reality,” Acting Special Agent in Charge Jonathan D. Larsen, IRS-Criminal Investigation, Newark Field office, said. “Every time someone in America cheats on their taxes there are over 300 million victims. Tax fraud and bankruptcy fraud are real crimes with serious consequences as evidenced today by the guilty pleas of Giuseppe and Teresa Giudice.”
According to documents filed in this case and statements made in court:
From September 2001 through September 2008, Giuseppe and Teresa Giudice engaged in a mail and wire fraud conspiracy in which they submitted fraudulent applications and supporting documents to lenders in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when they were either not employed or not receiving such salaries.
In September 2001 Teresa Giudice applied for a $121,500 mortgage loan for which she submitted a loan application falsely claiming she was employed as an executive assistant. She also submitted fake W-2 forms and fake pay stubs purportedly issued by her employer. For a $361,250 mortgage loan that Teresa Giudice obtained in July 2005, she and Giuseppe Giudice prepared a loan application which falsely stated she was employed as a realtor and that she made a monthly salary of $15,000. In reality, Teresa Giudice was not employed at the time.
The Giudices also admitted they committed bank fraud and loan application fraud in the course of obtaining loans from several banks. On Oct. 29, 2009, they filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee their assets, liabilities, income and any anticipated increase in income. The Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming second season of the show.
Giuseppe Giudice also admitted that during tax years 2004 through 2008, he received income totaling $996,459 but did not file tax returns for those years.
The conspiracy to commit mail and wire fraud count to which the Giudices each pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Each of the bankruptcy fraud counts carries a maximum potential penalty of five years in prison and a $250,000 fine. Teresa Giudice’s plea agreement requires her to pay $200,000 to the government at the time of sentencing, which is scheduled for July 8, 2014.
The plea agreements also require the Giudices to forfeit money which they obtained via conspiracy to commit mail and wire fraud and bankruptcy fraud, in an amount to be determined by the court at sentencing.
U.S. Attorney Fishman credited special agents of the FDIC-OIG New York, under the direction of SAC Evans; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen; and Region 3 U.S. Trustee Roberta A. DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the office’s Criminal Division, and Counsel to the U.S. Attorney Rachael A. Honig, in Newark.
13-073
Defense counsel:
Teresa Giudice: Henry E. Klingeman Esq., Newark
Giuseppe Giudice: Miles Feinstein Esq., Clifton, N.J.Giudice, Giuseppe and Teresa Superseding Indictment
Giudice, Giuseppe Plea Agreement
Giudice, Teresa Plea Agreement
Monday 3 March 2014
Woman Who Threatened Violent Attack at Gateway Community College Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that AMANDA C. BOWDEN, 21, formerly of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to approximately 10 months of imprisonment, time already served, followed by three years of supervised release, for threatening to carry out a violent attack at Gateway Community College in New Haven.
According to court documents and statements made in court, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN was arrested on February 19, 2013. On that date, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices were found during the search.
On April 25, 2013, BOWDEN pleaded guilty to one count of false information and hoaxes.
BOWDEN was detained after her arrest until May 14, 2013, when she was released on bond into a Salvation Army program in Hartford that included mental health treatment. She was returned to federal custody on July 11, 2013, for violating the conditions of her release.
Upon her release from federal custody today, BOWDEN was transferred to a State of Connecticut inpatient mental health facility for further treatment. BOWDEN’s internet usage will be monitored by the U.S. Probation Office during her term of supervised release.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Wanblee Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Bad Cob was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 6, 2014.
Tyson Bad Cob, age 20, was indicted on February 19, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bad Cob engaging in sexual contact with a child who had not attained the age of twelve, between 2011 and 2014 at Wanblee.
The charge is merely an accusation and Bad Cob is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Waipahu Man Sentenced to over 15 Years Imprisonment for Federal Drug OffensesRead the Press Release
HONOLULU – Mario Cesar Torres, age 57, of Waipahu, was sentenced today by United States District Judge J. Michael Seabright to 188 months imprisonment for conspiring to distribute and possess with intent to distribute, 50 grams or more of methamphetamine as well as three additional counts of distributing 50 grams or more of methamphetamine. A federal jury found Torres guilty of the four drug offenses in February 2013.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Torres was found to be responsible for distributing 1,285 grams of actual methamphetamine from August 2010 through January 2011. According to evidence produced during the trial, during that time period, Torres delivered approximately one pound quantities of methamphetamine on two occasions and was the driver on a third transaction in which a passenger in his vehicle delivered approximately one pound of methamphetamine. Torres had faced a mandatory minimum sentence of ten years imprisonment on each count.
The case was the result of a joint investigation by Homeland Security Investigations, the Federal Bureau of Investigation and the Honolulu Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney John Walsh to Testify Before Congress Regarding Departrment of Justice's Marijuana Enforcement EffortsRead the Press Release
U.S. Attorney John Walsh, District of Colorado, and DEA Deputy Administrator Thomas Harrigan will testify before the House Committee on Oversight and Government Reform, Subcommittee on Government Operations, regarding the Department of Justice's marijuana enforcement policy. The testimony is scheduled for tomorrow, Tuesday, March 4th at 11:30 a.m. MST.
Tyler James Schaeffer Sentenced for Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Mar. 3, 2014, Tyler James Schaeffer, 22, of Seymour, Tenn., was sentenced to serve a total of 100 years in prison by the Honorable Thomas Varlan, U.S. District Judge.
In May 2013, a jury convicted Schaeffer of three counts of brandishing a firearm during and in relation to three robberies of businesses engaged in interstate commerce (Hobbs Act robbery) and possession of a firearm in furtherance of a methylone trafficking conspiracy.
Prior to his conviction at trial, in April 2013, Schaeffer pleaded guilty to a series of seven armed robberies, as well as the methylone trafficking conspiracy, that occurred between July 2010 and September 2012. Based on the proof available at the time of trial, the United States pursued firearms charges in connection with three of the seven robberies, as well as the methylone trafficking conspiracy. The jury convicted Schaeffer of each of those four firearms-related counts.
Jerel Bray-Sean Johnson, 20, of Knoxville, Tenn., and Rodney James Ruffin, 22, of Sevierville, Tenn., also pleaded guilty to related robbery, drug trafficking and firearms charges, and did not go to trial with Schaeffer. Sentencing for Johnson is scheduled for May 2, 2014. Ruffin is scheduled to be sentenced on Apr.16, 2014.
Law enforcement agencies participating in the joint investigation which led to indictment, conviction and today’s sentencing of Schaeffer included the FBI’s Safe Streets Task Force, KPD, Office of District Attorney General James B. Dunn, Tennessee Highway Patrol, Knox County Sheriff’s Office, Sevier County Sheriff’s Office, Sevierville Police Department, Blount County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Kelly A. Norris and Tracy L. Stone represented the United States at trial.
Schaeffer will be returned to Sevier County authorities to stand trial for a deadly automobile collision which occurred on September 16, 2012, as well as a burglary charge.
The United States Sues Sprint Communications, Inc. to Recover Overpayments for Wiretap Charges Under False Claims ActRead the Press Release
SAN FRANCISCO – The United States filed a civil complaint against Sprint Communications, Inc., formerly Sprint Nextel Corporation, under the False Claims Act, 31 U.S.C. §§ 3729-3733, announced United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General, Special Agent in Charge M. Elise Chawaga. The complaint seeks treble damages and civil penalties in connection with Sprint’s claims for reimbursement of the expenses it incurred in complying with court orders authorizing wiretaps, pen registers, and trap devices.
Like other telecommunications carriers, Sprint is authorized by statute to bill law enforcement agencies for the reasonable expenses it incurs in providing facilities or assistance to accomplish a court-ordered wiretap, pen register, or trap device. In 1994, Congress passed the Communications Assistance in Law Enforcement Act (“CALEA”), which required telecommunications carriers to upgrade their equipment, facilities, or services to ensure they were capable of enabling the government, pursuant to a court order, to intercept and deliver communications and call-identifying information. In 2006, the Federal Communications Commission ruled that carriers were prohibited passing on the costs of its CALEA upgrades to law enforcement agencies in its intercept bills. From 2007 to 2010, in violation of the FCC’s ruling, Sprint included in its intercept charges the hidden costs of financing its CALEA upgrades.
The complaint alleges that Sprint unlawfully inflated its charges by approximately 58%, causing federal law enforcement agencies to pay over $21 million in unallowable costs from January 1, 2007 to July 31, 2010.
“As alleged, Sprint overbilled law enforcement agencies for carrying out court-ordered intercepts, causing a significant loss to the government’s limited resources,” U.S. Attorney Melinda Haag said. “This office will use all available tools to protect the public fisc, and we will continue to hold those who present false claims to the government accountable.”
Steven J. Saltiel is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Kathy Terry. The prosecution is the result of an investigation by the Department of Justice Office of Inspector General.
The claims asserted against Sprint are allegations only, and there has been no determination of liability.
(Sprint complaint )
Stevie Marie Anne Vigil Sentenced to Federal Prison for Purchasing Firearm for Evan EbelRead the Press Release
Click here for the government's sentencing statement regarding the Stevie Vigil case
DENVER -- Stevie Marie Anne Vigil, of Commerce City, Colorado, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 27 months in federal prison for knowingly transferring a firearm to a convicted felon. Following her prison term, Vigil was ordered to serve 3 years on supervised release. At the conclusion of the sentencing hearing Vigil was remanded into federal custody. Today’s sentencing was announced by United States Attorney John Walsh, 18th Judicial District Attorney George Brauchler and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Luke Franey, and Colorado Bureau of Investigations Director Ron Sloan.
Vigil was indicted by a federal grand jury in Denver on August 8, 2013. She pled guilty before Judge Arguello on October 22, 2013. Vigil was sentenced today, Monday, March 3, 2014.
According to the indictment, and other court documents, on March 8, 2013, Vigil knowingly disposed of and transferred a firearm to Evan Ebel, knowing and having reasonable cause to believe that Evan Ebel had been convicted of a crime punishable by imprisonment for a term exceeding one year. Ebel used the firearm he received from Vigil to murder Colorado Department of Corrections Executive Director Tom Clements and a hard working family man named Nathan Leon. It was also used to shoot a Texas law enforcement officer in the chest and head during a routine traffic stop. Finally, Ebel fired the weapon out the window at law enforcement officers while engaged in a high speed pursuit that reached speeds of over 120 miles per hour.
“Today’s sentence was just,” said U.S. Attorney John Walsh. “Defendant Vigil unlawfully bought a gun for Evan Ebel, knowing he was a felon, and knowing that he was capable of violence. Today’s sentence cannot restore Tom Clements or Nate Leon to their families, or undo the damage done by Ebel with that weapon. But it sends a clear message of the determination of local, state and federal law enforcement in Colorado to work together to ensure the safety of the public, and to bring wrongdoers to justice.”
“Today, Stevie Vigil lost her freedom for giving a handgun to a known felon,” said George H. Brauchler, District Attorney for the 18th Judicial District. “Her reckless disregard for the law resulted in the cold-blooded murder of two good men-- two good fathers, husbands, and sons. The cooperative efforts of Assistant District Attorney Mark Hurlbert and the U.S. Attorney’s Office in the pursuit of justice are the reasons Ms. Vigil received the sentence that she did. We will continue to vigorously enforce laws that seek to keep guns out of the hands of convicted violent felons. Those who would wantonly provide a gun to a convicted felon should note that their treatment by the justice system will be a direct reflection of the worst outcome of that felon’s use of the gun.”
“We know that gun crime in Colorado is fueled by weapons that have been trafficked into the wrong hands,” said Denver ATF Special Agent in Charge Luke Franey. “Unfortunately, this case is an example of the destruction and violence that is inflicted on our communities and is the direct result of straw purchasing. ATF is committed to reducing gun violence by continuing to investigate and arresting those who illegally supply firearms to prohibited individuals.”
“The investigation involving Stevie Vigil was a collaborative effort of the local, state and federal public safety community, and it was the tireless work by the investigative and prosecution teams that yielded the results of today's sentencing,” said Colorado Bureau of Investigation Director Ron Sloan. “However, as law enforcement spent countless hours on this case, the families of the victims remained in the forefront with all of us. Their journey this past year is difficult to comprehend, and it is the hope that Vigil's sentencing brings some solace to the families of Tom Clements, Nathan Leon and to Deputy James Boyd."
The prosecution of this case is a result of a joint federal and state investigation involving multiple agencies, including: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Colorado Bureau of Investigation (CBI), the 18th Judicial District Attorney’s Office, the Denver Police Department, the Federal Bureau of Investigation (FBI), the Englewood Police Department, the El Paso County Sheriff?s Office, the Texas Rangers, the Wise County, Texas Sheriff’s Department, the Texas Department of Public Safety, and the Colorado Department of Corrections.
Vigil was prosecuted by Assistant U.S. Attorney Richard Hosley, Chief of the U.S. Attorney’s Major Crimes Section, and Special Assistant U.S. Attorney Mark Hurlbert, Assistant District Attorney for the 18th Judicial District.
Six Indicted in Fraudulent Tax Refund SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that six individuals have been indicted by a federal grand jury for Conspiracy to Defraud the United States and Aggravated Identity Theft.
Donta J. Moore, age 28, of Kansas City, MO; Timothy L. Brister, Jr., age 29, of Tampa, FL; Undra Stewart Franks, age 27, of Little Rock, AR; Jennifer Robinson, age 25, of Fargo, ND; Shawnte Washington, age 31, of Tampa, FL; and Anna Weber, age 27, of West Fargo, ND, were indicted on February 4, 2014.
Franks appeared before U.S. Magistrate John E. Simko on February 12, 2014, and pled not guilty to the Indictment. The others have been arrested and will make their first court appearance in Sioux Falls in early March.
The maximum penalty upon conviction of the conspiracy offense is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The aggravated identity theft offense carries a mandatory sentence upon conviction of 2 years in custody consecutive to any other sentence.
The indictment charges that the defendants conspired to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth, stolen from others to file fraudulent income tax returns which claimed false income tax refunds. The indictment also charges Moore, Brister, Franks, Robinson, and Washington with one count each of transferring, using or possessing the name, date of birth or Social Security number of other persons in relation to stealing or embezzling money from the United States government.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service – Criminal Investigation. The Moorhead, MN, police department and the U.S. Secret Service also aided in the investigation. Assistant U.S. Attorney John E. Haak is prosecuting the case.
Franks was released pending trial. A trial date has not been set.
Real Estate Professional Pleads Guilty to Federal Bank Fraud Charges for Illegally Flipping Central Coast Residential PropertiesRead the Press Release
LOS ANGELES – A former San Luis Obispo real estate broker pleaded guilty today to orchestrating a property “flipping” scheme in which he purchased houses in short sales at artificially low prices and immediately resold the properties at their true market value.
Timothy William Barnes, 37, who now resides in San Francisco, pleaded guilty to one count of bank fraud, a federal offense that carries a statutory maximum penalty of 30 years in federal prison.
Barnes owned and operated Apex Properties Real Estate Brokerage, Inc. in San Luis Obispo. Between January 2010 and September 2012, Barnes purchased properties after banks gave approval for short sales. In short sales, banks agree to accept less money than the outstanding balance on a mortgage, usually because the property is “under water,” meaning that the value of the property has fallen below the amount remaining on the mortgage. The lenders authorized the short sales after Barnes minimized the value of the houses and concealed higher offers he had already received. To carry out his scheme, Barnes made false statements about the fair market value of the properties in the documents he submitted to the banks.
Barnes admitted that, in many cases, he had already negotiated the resale at the higher price while he was simultaneously negotiating the short sale of the property at the lower price.
Barnes used this scheme to flip properties in San Luis Obispo, Paso Robles, Pismo Beach and other cities on the Central Coast, earning profits of more than $500,000.
Barnes is scheduled to be sentenced by United States District Judge Stephen V. Wilson on June 16.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General.
Release No. 14-029
Porcupine Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on February 27, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Leo Kills Back, age 32, was sentenced to one year in custody, one year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Kills Back was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on September 24, 2013. He pled guilty to Assault by Striking, Beating, or Wounding on December 12, 2013.
The conviction relates to Kills Back hitting his sister several times on the head with a shovel on July 20, 2013, at Evergreen.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Kills Back was immediately turned over to the custody of the U.S. Marshals Service.
Payette Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
BOISE – David Everett McAllister, 30, of Payette, Idaho, pleaded guilty today to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. McAllister was indicted by a federal grand Jury in Boise on November 13, 2013.
According to the plea agreement, McAllister admitted that on October 15, 2013, he possessed three firearms, including a 9-millimeter pistol, a .30-06 rifle, and .22 rifle. At the time McAllister was in possession of the firearms, he had previously been convicted of a crime punishable by more than one year in prison. McAllister was previously convicted of statutory rape in Canyon County, Idaho.
The charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 19, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the High Desert Task Force, Payette County Sheriff’s Office, and the Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
New York Residents Charged with Sex Trafficking of MinorsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in New Haven has returned an indictment charging EDWARD THOMAS, also known as “Fire,” 39, and KAYLA WALTERS, 22, both of New York, with offenses related to the sex trafficking of minors.
The indictment alleges that, between September 2012 and August 2013, THOMAS and WALTERS conspired to recruit, harbor and transport a minor to engage in commercial acts. The indictment further alleges that THOMAS also recruited, harbored and transported a second minor to engage in commercial sex acts.
The indictment was returned under seal on February 24, 2014, and THOMAS and WALTERS were arrested on February 28 at a hotel in Milford, Conn. They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were ordered detained.
THOMAS and WALTERS are charged with one count of conspiracy to commit sex trafficking of a minor, and THOMAS is charged with two counts and WALTERS with one count of sex trafficking of a minor. If convicted of the charges, both defendants face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments have assisted the investigation.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Murphysboro Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 28, 2014, Michael R. Jines, a/k/a “Mikey,” “Pill Mike,” 33, of Murphysboro, Illinois, was sentenced in United States District Court in Benton on a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Jines, who had previously pled guilty to the methamphetamine offense, was sentenced to 96 months in prison, to be followed by 5 years of supervised release, and fined $400. The offense occurred between January 2013 and June 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Jines was involved with others in the manufacture of methamphetamine. Jines recruited others to purchase pseudoephedrine for use in the manufacture of methamphetamine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
More Guilty Pleas in Federal Case Involving Drug and Gun CrimesRead the Press Release
Star Man Admits Shooting Person in Furtherance of the Drug Trafficking Crime
BOISE – Jeramie Ethan Mahler, 27, of Star, Idaho, pleaded guilty today in United States District Court to one count of conspiring to distribute methamphetamine and another count that he discharged a firearm in furtherance of the drug trafficking crime, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement and information presented in court, Mahler admitted that he and other co-defendants agreed to distribute methamphetamine beginning in approximately January 2013. Mahler and others continued to distribute methamphetamine for several months. Mahler admitted that on March 25, 2013, he shot another person during a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Mahler and two co-defendants fled the scene leaving the injured man behind. Eight days later, on April 2, a Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving. Mahler was arrested and the vehicle was searched. Inside, deputies found two handguns and approximately one-quarter pound of methamphetamine. A forensic examination later confirmed that one of the handguns located in the vehicle was the same gun used in the shooting on March 25.
The charge of conspiring to distribute methamphetamine is punishable by a minimum term of ten years and a maximum of life in prison, a maximum fine of $10 million, and at least five years of supervised release. Discharging a firearm in furtherance of a drug trafficking crime is punishable by a minimum term of ten years up to life in prison and must be imposed consecutively to the other sentence, a maximum fine of $250,000, and up to five years of supervised release.
Co-defendant Carlos Eberardo Tovar, 29, of Nampa, also pleaded guilty today to two counts of distributing methamphetamine. Tovar admitted that he sold methamphetamine to an undercover police officer on several occasions. The charge of distributing methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Mahler and Tovar are scheduled to be sentenced on May 20, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
A federal grand jury indicted Mahler, Tovar and nine other defendants on July 9, 2013. The indictment alleges that the defendants conspired together to distribute methamphetamine. It also contains additional charges alleging distribution of methamphetamine, distribution of cocaine, and unlawful possession of a firearm. All eleven defendants have pleaded guilty.
Co-defendant Bobbi Eileen Woolsey, 36, of Boise, is set for sentencing tomorrow for conspiring to distribute methamphetamine. She pleaded guilty to the charge on December 2, 2013.
Olson noted that when Mahler is sentenced in May, he will be at least the ninth person to be sentenced in the District of Idaho on both drug and gun charges this year. “Drugs and guns are a dangerous combination,” said Olson. “In Idaho, federal law enforcement officers in conjunction with their state and local partners, vigorously investigate dangerous persons who use and possess firearms in violation of federal gun laws. Our goal is simple: to keep guns away from violent individuals and to keep our community safe.”
Olson also stated that so far in 2014, five other persons had been sentenced for or pleaded guilty to federal statutes that prohibit possession of a firearm by a convicted felon or possession of an unlawful firearm such as a sawed-off shotgun. In 2013, seven defendants were sentenced in Idaho federal courts on both drug and gun charges; nineteen for being prohibited persons in possession of a firearm; eight for possessing unlawful and unregistered weapons; eight for using firearms in crimes of violence; and one for stealing firearms. In 2012, ten defendants were sentenced in Idaho federal courts on both drug and gun charges; twenty-four for being prohibited persons in possession of a firearm; five for possessing unlawful and unregistered weapons; ten for using firearms in crimes of violence; and two for stealing firearms. According to Olson, all of these cases involved either the joint investigative efforts of federal and state or tribal law enforcement or the investigative efforts of federally sponsored task forces that include state, local and tribal law enforcement officers.
“The coordination and cooperation of federal, state and local law enforcement officers is critical to proper and effective enforcement of laws that keep bad guys off of ours streets, and guns and drugs out of their hands,” said Olson. “I commend in this case the outstanding work of the Treasure Valley Metro Violent Crimes Task Force and Special Assistant United States Attorney Chris Atwood.”
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. Since 2007, over 255 defendants have been prosecuted in Federal Court through the Gang SAUSA program. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Modesto Man Sentenced to Prison for Counterfeit Media ConspiracyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Leonel Martinez Caballero, 31, of Modesto, today to four years in prison, United States Attorney Benjamin B. Wagner announced. Caballero pleaded guilty on November 25, 2013 to conspiracy to commit criminal copyright infringement and traffic in counterfeit labels and counterfeit documentation and packaging.
According to court documents, from April 2011 to July 25, 2011, Caballero was involved in an extensive scheme with others to store and distribute counterfeit DVD movies and audio CDs. Caballero managed a warehouse in Modesto that served as a distribution point for counterfeit music CDs and counterfeit movie DVDs. On July 25, 2011, the warehouse was found to contain over 100,000 counterfeit CDs and DVDs.
This case is the product of a joint investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, with assistance from the Stanislaus County Sheriff’s Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Manhattan U.S. Attorney Sues Owner and Operator of Public Water System for Violations of Safe Drinking Water ActRead the Press Release
Part of Broader U.S. Attorney’s Office and EPA Effort to Ensure Safe Drinking Water Act Compliance
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, the Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced the filing and settlement of a case in which the United States sued defendants EDWARD A. EHERTS (“Eherts”) and the PAINTED APRON WATER COMPANY, INC. (“Painted Apron”), for violations of the Safe Drinking Water Act (“SDWA”). The Court approved the settlement today.
Manhattan U.S. Attorney Preet Bharara stated: “Those in the business of providing drinking water to the public have a special responsibility to comply with water safety laws. Through this settlement, defendants have been called to account for longstanding violations of the Safe Drinking Water Act. This settlement also caps the efforts of our Office and EPA to ensure that the residents of the Painted Apron community in Orange County have access to water that complies with the law.”
EPA Regional Administrator Judith A. Enck stated: “Everyone has the right to clean drinking water, including customers of private water companies. This legal case will protect people’s health and remind all operators of private water companies that they must comply with the Safe Drinking Water Act.”
Defendant Painted Apron owned, and defendant Eherts operated, a public water system serving the Painted Apron development in the town of Deerpark in Orange County. As part of the settlement of this case, defendants “admit that they violated the SDWA, its implementing regulations and an administrative order issued by the EPA, by failing to monitor and treat water, make reports, take corrective action, and maintain a certified operator as required by applicable requirements of the SDWA and the administrative order.”
As alleged in the complaint, Eherts ignored repeated efforts by the EPA and state and local regulators to require him to bring this drinking water system into compliance. Rather than address the many violations, Eherts ultimately attempted to abandon the facility. “Defendants admit that “[a]s a result of” their “violations of the law, Defendants’ customers have been subjected to boil-water notices for multiple years.” These “boil-water” notices advised Painted Apron’s residents to boil their water before using it for human consumption or for food preparation. In addition to subjecting members of the community to these boil-water notices, Eherts’ violations also forced members of the community to spend their own time and money trying to keep the water system running as safely as possible.
In addition to admitting liability for these violations, the defendants have agreed to provide the Government with a lien on property in the amount of $50,000; to turn over all records relating to the water utility to new operators; and never again to serve as owners or operators of any public water system.
Beyond this settlement with the defendants, the U.S. Attorney’s Office and EPA have worked directly with the residents of the Painted Apron community to bring their drinking water into compliance with the SDWA. Through those efforts, a committee of residents was identified to replace Eherts as operator of the public water system and to bring the system into compliance. On July 22, 2013, the New York State Public Service Commission appointed this committee as the system’s temporary operator. As temporary operator, the committee is providing safe drinking water compliant with law, and the boil-water notices issued to these the residents have been lifted. Today’s settlement with Eherts and Painted Apron completes our Office’s efforts regarding the Painted Apron water system.
This Safe Drinking Water Act lawsuit follows a case brought by this Office and EPA in federal court against Westchester County earlier this year for Safe Drinking Water Act violations.
Mr. Bharara thanked EPA Region 2’s tireless efforts to work with this Office to restore safe drinking water to the Painted Apron community. Mr. Bharara also thanked the New York State Public Service Commission for its efforts to remedy the effects of defendants’ failure to comply with the law.
The case has been handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Ellen London is in charge of the case.
U.S. v. Edward A. Eherts et al Stipulation of Settlement and Judgment
U.S. v. Edward A. Eherts et al ComplaintLouisiana Man Charged with Abusive Sexual Contact of Sleeping Woman on Domestic Flight to New JerseyRead the Press Release
NEWARK, N.J. — A Louisiana man appeared in Newark federal court today to face a charge that he sexually touched a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 61, an Indian national who lives in Baton Rouge, was arrested on March 2, 2014 – the day his plane arrived in Newark – and was taken into federal custody by the FBI. He appeared this afternoon, to face a complaint charging him with one count of abusive sexual contact, before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court and was detained with the option to request a bail hearing.
According to the complaint filed today:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt. Singh was also touching his exposed penis.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
If convicted of the abusive sexual contact charge, Singh faces a maximum potential penalty of two years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to the charge.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-072
Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Singh Complaint
Kern and Tulare County Marijuana Cultivators Plead GultyRead the Press Release
FRESNO, Calif. — Noe Alvarez Ramirez (Alvarez), 28, and Carlos Adan Lupia-Lua, 26, both of Michoacàn, Mexico, entered guilty pleas today for their involvement in separate marijuana cultivation operations in Kern and Tulare Counties, according to U.S. Attorney Benjamin B. Wagner.
7,302 Marijuana Plants Seized from Sequoia National Forest (1:13CR172 AWI)
Alvarez pleaded guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana grown in the Gibboney Canyon area of the Sequoia National Forest in Kern County. The area is also within the federally designated Domeland Wilderness area. According to court documents, U.S. Forest Service agents seized 7,302 marijuana plants from the site and found 5,000 marijuana plant stalks consistent with a prior harvest in 2012. During the execution of a federal search warrant at the site, agents found Alvarez sleeping in a tent. In entering his guilty plea, Alvarez agreed to pay $2,675 in restitution to the U.S. Forest Service to pay for the negative environmental impact of the cultivation operation. Trash and fertilizer bags were scattered about the area and the ground was terraced after native vegetation, including oak trees, was cut down to make room for the marijuana plants. Trash was also found in the waterway of Gibboney Creek. Alvarez is subject to deportation to Mexico after he serves his sentence.
This case is the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, California Department of Fish and Wildlife, and Kern County Sheriff’s Office.
1,313 Marijuana Plants/Firearms Seized From Tulare County Ag Grow (1:12cr341 LJO)
Lupian-Lua pleaded guilty to cultivating marijuana on agricultural land in Terra Bella. According to court records, drug agents discovered the cultivation operation after following a supplier to the property. The supplier had previously delivered equipment and material for other marijuana cultivation operations on public lands in Ventura, San Luis Obispo, and Kern Counties. During the execution of a federal search warrant at the Terra Bella property, agents seized 1,313 marijuana plants, two firearms, and arrested six people, including Lupian-Lua. The marijuana had a wholesale value of $1.5 million.
The case is the product of an investigation by the U.S. Forest Service, Homeland Security Investigations (HSI) of Immigration and Customs Enforcement (ICE), and the sheriff’s offices of Tulare and Ventura Counties.
Alvarez is scheduled for sentencing on May 12, 2014, and Lupian-Lua is scheduled for sentencing on May 27, 2014. Both Alvarez and Lupian-Lua face a sentence of 10 years to life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant U.S. Attorney Karen A. Escobar is prosecuting the above cases.
Kent, Wash. Man Pleads Guilty to Structuring Cash Proceeds of Interstate Oxycodone and Hydrocodone TraffickingRead the Press Release
FRESNO, Calif. —Phary David Chim, 31, of Kent, Wash., pleaded guilty today to one count of conspiracy to structure cash transactions and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.
According to court documents, Chim’s co-conspirators obtained prescriptions for oxycodone and hydrocodone from pharmacies in Modesto, Calif. and then transported and mailed the pills to Washington for distribution on the black market. Chim deposited the cash proceeds of the oxycodone and hydrocodone sales into bank accounts held by co-conspirators in California. He made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on his cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transactions involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Chim is scheduled to be sentenced by Judge Anthony W. Ishii on May 12, 2014. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for structuring conspiracy, and a maximum statutory penalty of 10 years in prison and a $500,000 fine for aggravated structuring. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Inland Empire Attorney Pleads Guilty to Ripping Off Social SecurityRead the Press Release
RIVERSIDE, California – A deputy public defender for Riverside County pleaded guilty today to two felony counts of stealing social security benefits.
Audrey Owens, 60, of Upland, pleaded guilty to two counts of theft of government property before United States District Judge Virginia A. Phillips.
Owens pleaded guilty one week before she was scheduled to go on trial to two of the five counts contained in an indictment returned by a federal grand jury in July. There was no plea agreement in this case.
According to documents filed in United States District Court, Owens diverted social security benefits intended for her deceased grandmother, who died in May 2000. The scheme started soon after Owens’ grandmother died and continued until
August 2012.After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive social security payments intended for her grandmother. She transferred some of the social security payments into her own personal account to pay bills. She also used some of the social security payments to directly pay for her personal expenses, including contributions to the Riverside County Employee Campaign.
Owens illegally received more than $129,000 during the course of the scheme.
Judge Phillips scheduled a sentencing hearing for June 2. At that time, Owens will face a statutory maximum sentence of 20 years in federal prison.
The case against Owens was investigated by the Social Security Administration – Office of Inspector General.
Release No. 14-028
Indiana Man Charged with Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A criminal complaint charging Andrew Scott Boguslawski, 43, of Moores Hill, Indiana with possession of unregistered destructive devices has been filed in U.S. District Court in Columbus. The complaint alleges that Boguslawski illegally possessed 13 destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Fire Marshal Larry Flowers, Ohio State Highway Patrol Superintendent Paul Pride and Madison County Prosecuting Attorney Stephen J. Pronai announced the complaint which was filed Friday, February 28.
According to an affidavit supporting the complaint, Boguslawski was stopped for speeding. The complaint alleges that firearms, ammunition, explosives, detonators and other items related to manufacturing explosives were found in Boguslawski’s vehicle. Further investigation by ATF, the State Fire Marshal and the Columbus Fire Department Bomb Squad determined that the devices were capable of being detonated.
A destructive device is an explosive device that is capable of causing property damage and personal injury and/or death to persons near the explosion. Federal law requires that destructive devices be registered in the National Firearms Registration and Transfer Record. Possession of unregistered destructive devices is punishable by up to ten years in prison.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski will appear before U.S. Magistrate Judge Elizabeth Preston Deavers on the criminal complaint today at 2:30 p.m.
U.S. Attorney Stewart and Madison County Prosecuting attorney Pronai commended the cooperative investigation by ATF, the State Fire Marshal, the Ohio State Highway Patrol and the Columbus Bomb Squad, as well as the FBI Joint Terrorism Task Force, which participated in the investigation. Assistant U.S. Attorneys Dana Peters and Salvador Dominguez are prosecuting the case on behalf of the United States.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
# # #Heroin and Methamphetamine Traffickers ConvictedRead the Press Release
LAREDO, Texas - Edgar Loera and Miguel Angel Vives-Macias have been convicted by a federal jury of multiple counts in a drug trafficking conspiracy involving heroin and methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late today after a five-day trial and less than four hours of deliberation.
Loera, 31, of Mira Loma, Calif., and Vives-Macias, 34, of San Antonio, were convicted of conspiracy to import and possession with intent to distribute controlled substances as well as importation and possession with intent to distribute heroin.
Prior to trial, 10 others had pleaded guilty in relation to the conspiracy.
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois and Washington. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entry U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for June 2, 2014, at which time both face up to life in federal prison and a possible $10 million fine. They will remain in custody pending that hearing.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with the Drug Enforcement Administration, Homeland Security Investigations and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno prosecuted the case.Hamden Man Sentenced to 37 Months in Federal Prison for Cocaine TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYRELL GARY, also known as “T-Buggy,” 29, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
More than 100 individuals were charged as a result of the investigation.
The investigation revealed that GARY was purchasing distribution quantities of cocaine from Michael Smith, also known as “Smitty” and “Fingers.” On January 18, 2012, law enforcement officers attempted to stop GARY’s car after one such purchase. A motor vehicle chase ensued during which GARY attempted to discard the cocaine. GARY was eventually apprehended and officers were able to recover a quantity of cocaine.
GARY has been detained since his federal arrest on May 22, 2012. On December 3, 2013, he pleaded guilty to one count of possession with intent to distribute cocaine.
GARY’s criminal history includes at least four felony convictions, including three drug-related offenses and a 2008 conviction for robbery in the State of Maine.
On January 13, 2014, a jury found Michael Smith guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Grand Jury Indicts Four Individuals for International Fraud Scheme Involving the Sale of GoldRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Naadir Cassim (38, Barcelona, Spain and Orlando, Florida), Jon Craig Nelson (67, Houston, Texas), Michael Skillern (47, Houston, Texas), and Adriana Maria Camargo, a/k/a Adriana Palomino (36, Barcelona, Spain) with conspiracy, money laundering conspiracy, mail fraud, wire fraud, and money laundering. If convicted, each faces a maximum penalty of 5 years in federal prison on the conspiracy count, 20 years’ imprisonment on the money laundering conspiracy count, 20 years in federal prison for each mail fraud and wire fraud count, and 10 years’ imprisonment for each money laundering count. The indictment also notifies the individuals that the United States intends to forfeit a bank account, a vehicle, and investments, which are alleged to be traceable to proceeds of the offense. As well, the United States is seeking a money judgment for the proceeds of the charged criminal conduct.
According to the indictment, from at least as early as August 2011, through at least February 2014, the above named individuals, and others, engaged in a fraud scheme, in which they directed and caused the sale of purported but nonexistent gold ore or gold doré from mines owned or controlled by them, through a company called OWN GOLD, LLC. The conspirators’ victims were located both inside and outside of the United States, including the United Kingdom. To facilitate the scheme, the conspirators recruited, instructed, supported and paid telemarketers to place unsolicited calls to potential and existing victims outside the United States, from boiler rooms. The telemarketers employed high-pressure and misleading sales techniques when promoting the nonexistent gold ore or gold doré. The indictment further alleges that Cassim, Nelson, Skillern, Camargo, and others then caused victims to wire their funds from the United Kingdom and elsewhere, to bank accounts controlled by the defendants. The conspirators used the victims' funds to perpetuate the scheme and for their own personal enrichment.
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.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Secret Service, the City of London Police and the Spanish National Police. It will be prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Sara C. Sweeney.
If you invested in gold ore or gold doré through a company called OWN GOLD LLC, you could be a victim. Please contact our office via email at the following email address: [email protected]. Please reference “Cassim” in the subject line.
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Glen Rock Man Charged with Defrauding 21 Investors of over $400,000Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Christopher A. Engel, 34, Glen Rock, Pennsylvania, was charged with wire fraud in connection with his operation of Pinnacle Forex Group ("PFG"), LLC, a currency trading firm that he operated from his home. A plea agreement was also filed indicating that Engel intends to plead guilty when he appears for his arraignment in federal court. Engel faces up to twenty years' imprisonment, restitution, and fines, if convicted.
According to U.S. Attorney Peter Smith, Engel created PFG in 2010 and advertised it on the internet as "a full scale currency investment firm" that was "in the top 1% of currency traders." Between June 2011 and October 2012, Engel allegedly received $411,500 from 21 investors throughout the United States that was supposed to be invested in the Foreign Exchange Market ("Forex"). The charges filed today indicate that Engel only invested $137,000 of the money into the Forex market and later withdrew those funds for personal expenses. The remaining funds were never invested and simply used by Engel for personal expenses.
The case was investigated by the FBI and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
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 of over $250,000. 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.
Former Woodward Police Officer Sentenced for Conspiracy to Commit Mail Fraud in Insurance ScamRead the Press Release
Oklahoma City, Oklahoma – CLINTON IVAN RUTLEDGE, 42, of Woodward, Oklahoma, was sentenced last week to serve ten days of weekend imprisonment and three years of supervised probation after pleading guilty to conspiracy to commit mail fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Rutledge was ordered to pay $21,163.63 in restitution to Farmers Insurance Group and serve 104 hours of community service.
On October 10, 2013, a federal grand jury indicted Rutledge and Christopher Dean Noreuil, 40, also from Woodward, charging them with conspiracy to commit mail fraud. Specifically, it was alleged that in January of 2013, Rutledge asked Noreuil to take and hide Rutledge’s 2004 Ford F-250 pickup truck and 1999 TexMex flatbed trailer to make it appear that the truck and trailer had been stolen. Rutledge then reported the truck and trailer as stolen to the police and filed a false and fraudulent insurance claim with his insurer, Farmers Insurance Group. As a result, Farmers Insurance paid out over $21,000 on the false claim. Rutledge is a former Woodward Police Department officer and a former reserve deputy for the Woodward County Sheriff’s Office.
On October 20, 2013, Rutledge pled guilty to knowingly conspiring with others to commit mail fraud. United States District Judge Joe Heaton sentenced Rutledge to serve ten days of weekend imprisonment, three years of probation supervised by the United States Probation Office, serve 104 hours of community service, and pay $21,163.63 in restitution to Farmers Insurance Group.
Noreuil pled guilty on November 19, 2013, and is awaiting sentencing.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former State Probation Officer Sentenced to Prison for Sexually Assaulting Woman Under his SupervisionRead the Press Release
ALBUQUERQUE – Gordon Chavez, 36, a former probation officer with the New Mexico Corrections Department’s Division of Probation and Parole, was sentenced today to 18 months in federal prison followed by three years of supervised release on charges related to the sexual assault of a probationer whom he supervised. Chavez previously pled guilty to one count of violating the victim’s right to bodily integrity when he touched her breasts against her will. Chavez also pled guilty to one count of making material false statements to the FBI when he denied both touching the breasts of females whom he supervised and asking for naked photos of them.
“Every person who interacts with the criminal justice system should feel safe in law enforcement custody,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously prosecute all law enforcement officers who abuse their authority by committing sexual assaults. We commend the victim for coming forward to report the defendant's criminal conduct.”
“Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system, and we will do everything we can to ensure that trust is not compromised,” said Acting U.S. Attorney Steven C. Yarbrough. “I commend the victim in this case for having the courage to step forward and assert her right to be free of sexual abuse, and for trusting the Department of Justice to protect her.”
“An assault on one person's civil rights is an assault on everyone's civil rights,” said FBI Special Agent in Charge Carol K.O. Lee. “When a law enforcement officer is the perpetrator, the crime is even worse. The FBI hopes this sentencing sends a message to all public servants: We will vigorously investigate those who use their authority to violate another person's rights, and you could face a stiff prison term.”
According to court documents, Chavez engaged in escalating sexually inappropriate behavior toward the victim, a woman under his supervision since May 2012. As part of her probation and parole, the victim was required to attend mandatory meetings at Chavez’s office. During one of those meetings on Nov. 26, 2012, Chavez fondled the victim’s breast through and underneath her shirt without the victim’s consent. Chavez was later captured on a recording apologizing for his actions.
During that same Nov. 26, 2012, meeting with victim, Chavez also instructed the victim to bring revealing photos of herself on her cellular phone to the next office visit scheduled for Nov. 30, 2012. When the victim brought clothed photos of herself, Chavez specifically asked her to bring naked photos. That conversation was also captured on a recording.
On Dec. 4, 2012, FBI agents conducted a recorded interview of Chavez during which he denied touching the breasts of any female under his supervision. He also denied asking any female under his supervision for naked photographs.
During his plea hearing on Sept. 3, 3013, Chavez acknowledged that his actions toward the victim were wrong and against the law. Chavez further admitted that he lied to the FBI when he was interviewed about his conduct toward females whom he supervised.
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
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 February 13, 2014:
Patrick J. Condon, Jr., 41, of South Bend, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits. Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
Tiffany J. Miller, 28, of Cromwell, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
John O. Williams, 43, of Osceola, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
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.
Fargo Man Sentenced to 17 ½ Years in Synthetic Drug ConspiracyRead the Press Release
FARGO – First Assistant U.S. Attorney Chris Myers announced that on March 3, 2014, Andrew Michael Spofford, 23, Fargo N.D., was sentenced before U.S. District Judge Ralph R. Erickson, to serve 17 ½ years in prison for his involvement in the drug conspiracy “Operation Stolen Youth.”
On Oct 29, 2012, Spofford pleaded guilty to one count each of; conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, possession of an analogue controlled substance with intent to distribute and distribution resulting in death, distribution of an analogue controlled substance resulting in serious bodily injury, possession of an analogue controlled substance with intent to distribute resulting in death, and causing the introduction into interstate commerce of a misbranded drug.
The conspiracy involved the distribution of an illegal substance through an online business called Motion Resources which imported the illegal psychedelic hallucinogen from several countries and sold them throughout the United States. Spofford helped distribute the hallucinogen in the Grand Forks N.D. area. Spofford and at least 12 others have been charged in connection with “Operation Stolen Youth.” Spofford is also ordered to pay $425 special assessment to the Crime Victims Fund in addition to his sentence.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, North Dakota Bureau of Criminal Investigations, and Grand Forks Police Department.
First Assistant U.S. Attorney Chris Myers prosecuted the cases.
El Paso Man Arrested on Federal Child Exploitation ChargesRead the Press Release
ALBUQUERQUE – Juan Carlos Hernandez, 44, of El Paso, Texas, made his initial appearance in Las Cruces federal court on a criminal complaint charging him with online enticement of a minor to engage in illicit sexual activity and interstate travel to meet a minor with the intent to engage in illicit sexual activity. Hernandez remains in custody pending a preliminary hearing and detention hearing, which have yet to be scheduled.
Hernandez was arrested on Feb. 28, 2014, by Homeland Security Investigations (HSI) on a criminal complaint alleging that he engaged in the online solicitation of a child under the age of 16 years between Sept. 2012 and June 2013. The criminal complaint also alleges that Hernandez traveled from El Paso to Anthony, N.M., in June 2013, with the intention of having illicit sexual contact with a child under the age of 16 years.
According to the criminal complaint, Hernandez met the child victim on an Internet social networking website in Sept. 2012, and the two began communicating regularly through text messaging on cellphones in May 2013. Hernandez was arrested on state charges in the early hours of June 22, 2013, after Deputies of the Doña Ana County Sheriff’s Office found him with the child victim at a park in Anthony, N.M.
In July 2013, HSI obtained federal search warrants for the cellphones seized from Hernandez and the child victim on June 22, 2013. Information obtained through the search warrants revealed that Hernandez allegedly engaged in sexually explicit communication with the child victim. It also allegedly revealed that Hernandez was aware that the child victim was under the age of 16 years and that prior to meeting the child victim, Hernandez told her that he was 17, 18 and 22 years old at various times.
If convicted on the online solicitation charge, Hernandez faces a mandatory minimum of ten years to life in prison. If convicted on the interstate travel charge, Hernandez faces a maximum penalty of 30 years in prison. The charges in the complaint are merely accusations and Hernandez is presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Las Cruces office of HSI, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga 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 case also was brought as part of the New Mexico Internet Crimes Against Children (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 74 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.
Eagle Pass Businessman Sentenced to Federal Prison in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio this afternoon, 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, was sentenced to 41 months in federal prison for his role in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Amaya pay $35,800 restitution to Maverick County. Judge Moses also ordered that Amaya be placed under supervised release for a period of three years and must complete 500 hours of community service after completing his prison term.
In October, Amaya pleaded guilty to a bribery charge. By pleading guilty, Amaya admitted that in May 2011, he submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. Amaya further admitted that he made cash payments to two Maverick County employees so that he could be paid in full for work he never performed.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.
Dustin Patrick Wilcox Sentenced to 270 Months on Oxycodone Trafficking and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – Dustin Patrick Wilcox, a.k.a. “Weiner”, 32, of Kingsport, Tenn., was sentenced on Mar. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 270 months in federal prison for his leadership role in oxycodone and money laundering conspiracies centered in and around the Sullivan County, Tenn., area.
This conspiracy included 17 indicted individuals and involved large scale oxycodone trafficking dating back to approximately May 2008. Many of the pills obtained and sold within this conspiracy were obtained from Michigan, Florida and Georgia and transported back to the Eastern District of Tennessee for resale. Wilcox stipulated that he conspired to distribute a conservative estimate of 14,000 (30 mg) oxycodone pills in the Eastern District of Tennessee. Many of these pills were sold from his residence in Kingsport, which was a well-known and commonly used location among other co-conspirators to sell, buy and use drugs. In fact, on two separate occasions in 2012 Wilcox sold a quantity of oxycodone to an individual working on behalf of law enforcement from this residence. Wilcox has agreed to forfeit his interest in this tract of real property as a result of the continued drug dealing that took place there.
Wilcox also sent numerous wire transfers and directed other individuals to send wire transfers to other co-conspirators in Detroit, Mich., to further and advance his oxycodone trafficking.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Wilcox include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department, and Bristol Tennessee Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “We are pleased with this significant sentence and it reflects the seriousness of the crimes committed. The price for trafficking in prescription pills in the federal system is high, as it should be.”
Cocaine Courier Sentenced to 20 Years in Prison for Role in Massive Drug ConspiracyRead the Press Release
PITTSBURGH - A California resident has been sentenced in federal court to 240 months imprisonment followed by 10 years supervised release on his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ruben Mitchell, 45, of Antioch, Calif.
The IRS Criminal Investigations section joined the Drug Enforcement Administration as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. In part, the investigation relied upon search warrants, court orders, consensually-recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010.
The investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy changed its common manner of doing business over time, as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients in Pittsburgh. Documents and evidence reveal the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for one of Mitchell’s co-defendants.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 100 flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On August 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.
The evidence revealed that Mitchell flew cocaine from California to Pennsylvania five times during 2007-2008 for this massive drug conspiracy. District Judge Cercone noted the connections between Mitchell and other defendants and held that Mitchell’s actions make him responsible for 69 kilograms of cocaine. Testimony from a narcotics expert has revealed that this much cocaine would be worth over $7 million on the street and results in over 350,000 doses of cocaine or crack. Judge Cercone held that Mitchell’s 20-year jail sentence and 10-year period of supervision was sufficient, but not greater than necessary given Mitchell’s prior felony cocaine conviction.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the IRS-CI, DEA, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Mitchell.
Cassville Man Charged with Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cassville, Mo., man was charged in federal court today with receiving and distributing child pornography over the Internet.
Matthew Casas, 25, of Cassville, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Casas remains in federal custody.
According to an affidavit filed in support of today’s federal criminal complaint, a business in Monett, Mo., contacted the local police department when a customer who rented a smart TV notified them he discovered child pornography stored on the device’s memory. Law enforcement officers reviewed the images on the set, which were created by a digital camera and appeared to be homemade pictures of an adult male performing sexual acts on a female no older than 12 to 18 months. It did not appear the images had been obtained from the Internet.
In February 2014, officers received several cybertips from the National Center for Missing and Exploited Children that a person was posting images of child pornography to online social media accounts. All of the images depicted children, from infancy to 10 years old, engaged in sexual poses or involved in sexual acts with an adult or each other. Several of the images from the TV were identical, or depicted other sex acts between the infant and adult male, with the images posted online. There were many more images posted online, including numerous images know to be commercially available and actively traded among child pornography collectors and viewers.
Investigators learned that those images were posted from a computer at Casas’s residence. Officers executed a search warrant at the residence on Feb. 28, 2014.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Monett, Mo., Police Department, the Cassville, Mo., Police Department and the Barry County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Carlos Altiery Sentenced to 144 Months for Distributing Heroin and OxycodoneRead the Press Release
GREENEVILLE, Tenn. – On Feb. 28, 2013, Carlos Altiery, of New York City, N.Y., was sentenced to serve a total of 144 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Altiery will also be subject to supervised release by the U.S. Probation Office for eight years.
Altiery pleaded guilty in October 2013 to conspiring to distribute heroin and oxycodone in Sullivan County, Tenn. Altiery brought heroin and oxycodone from New York to east Tennessee, traveling on commercial buses. An undercover investigation culminated with his March 2013 arrest at a local bus terminal. He was found to be transporting over 900 bindles of heroin and 100 oxycodone tablets.
U.S. Attorney, William C. Killian noted that law enforcement is seeing a resurgence of heroin and other opioids on the street. “The U.S. Attorney’s Office will continue to target and prosecute individuals involved in large scale drug distributions, especially those involving deadly and addictive heroin,” said U.S. Attorney Killian.
Law enforcement agencies participating in the joint investigation included the Sullivan County Sheriff’s Office, Bristol Tennessee Police Department, Second Judicial District Drug Task Force and Drug Enforcement Agency Task Force. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
California Man Sentenced for Defrauding Medicare of $400,000Read the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on March 3, 2014, Robert Olie, 66, Torrance Calif., was sentenced before U.S. District Judge Ralph R. Erickson, to 12 months of electronic home monitoring and three year’s supervised release for conspiracy to commit health care fraud. Olie was also ordered to pay $417,000 in restitution in addition to $100,000 in forfeiture of assets. Olie was ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.
Olie pleaded guilty on November 18, 2013, for operating Chikanel Medical Supplies in Long Beach Calif., between 2008 and 2009. Chikanel Medical Supplies was a fraudulent durable medical equipment supply company that submitted numerous claims for power wheelchairs that were either not provided to Medicare beneficiaries or were not medically necessary. Olie had submitted more than $1.2 million worth of claims to Medicare through its contractor, Noridian Healthcare Solutions, LLC, formally known as Noridian Administrative Services, a North Dakota based company. As part of its responsibilities to Medicare, Noridian Healthcare Solutions, LLC, processes and pays Medicare claims arising from durable equipment suppliers throughout California.
The case was investigated by Department Health and Human Services, Office of Inspector General, Office of Investigation, and the Federal Bureau of Investigation.
Special Assistant U.S. Attorney Matthew Greenley prosecuted the case.
California Man Sentenced for Transportation for ProstitutionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Los Angeles, California, man convicted of Transportation for Prostitution was sentenced on March 3, 2014, by U.S. District Judge Karen E. Schreier.
Joe Charles Becker, age 33, was sentenced to 15 months in custody. He will also be required to register as a sex offender and be on supervised release for 5 years.
Becker was indicted by a federal grand jury on August 13, 2013, for Transportation for Prostitution, Inducing Travel to Engage in Prostitution, and Sex Trafficking. He pled guilty to the charge of Transportation for Prostitution on November 26, 2013.
On August 3, 2013, the Sioux Falls Police Department learned that Becker was posting advertisements on the Internet for prostitution. Becker met the 20 year-old victim in Minneapolis, Minnesota, and paid for her bus ticket to Sioux Falls for the purpose of engaging in illegal commercial sex acts in Sioux Falls. The woman involved reported the prostitution activity to the police after she fled the hotel. When police went to Becker’s hotel, they found him with almost $7,000 in cash, and a computer and cell phone used to post the advertisements for prostitution.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Becker was immediately turned over to the custody of the U.S. Marshals Service.
Businessman Sentenced to 18 Months in Prison for Mail FraudRead the Press Release
PITTSBURGH – An Indiana resident has been sentenced in federal court to 18 months imprisonment, to be followed by three years supervised release, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Mark M. Palombaro, 55, of Carmel, Indiana.
According to information presented to the court, Palombaro was the Senior Vice President of Development at Simon Property Group, Inc., which had a principal place of business in Indianapolis, Indiana. Simon Property Group, Inc., entered into two contracts with R.E. Crawford Construction, Inc., located in Springdale, Pa., one in September of 2006 for the construction and redevelopment work on the Northgate Mall in Seattle, Washington, and one in November of 2007 for the construction and redevelopment work on the Laguna Hills Mall in Laguna Hills, Calif. Robert E. Crawford paid approximately $766,000 to Palombaro, who in turn used his authority and influence at Simon Property Group to select Crawford's company to be the general contractor for those jobs.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Palombaro.
Buffalo Man Sentenced on Fraud and Counterfeiting ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that John Tally, 52, of Buffalo, N.Y., who was convicted of fraud and making counterfeit money, was sentenced to 30 months in prison, and ordered to pay over $35,000 in restitution to the Internal Revenue Service by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Tally was involved in a conspiracy with Emma Mills to create false W-2 forms. The forms were created by obtaining identification information from other persons. The fabricated W-2’s were submitted to the IRS with false tax returns, on which undeserved refunds and tax credits were claimed. In addition, Tally produced counterfeit twenty and fifty dollar bills.
Emma Mills pleaded guilty to fraud in December 2013 and is scheduled for sentencing on April 14, 2014.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the United States Secret Service, under the direction of Special Agent-in-Charge Tracy Gast.