Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 April 2014
Colombian Man Pleads Guilty to International Money Laundering ConspiracyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Luis Alberto Marulanda-Cardona (54, Colombia) today pleaded guilty to conspiracy to commit money laundering. Marulanda faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning in February 2009, Marulanda had a contract with a Colombian drug trafficking organization, where Marulanda’s associates picked up bulk cash in the amount of 100,000€ (Euros) a week, in the Netherlands. Two months later, a DEA confidential source met with Marulanda in Madrid, Spain. Marulanda advised the confidential source that two small shipments of cocaine had been seized in Portugal, by Portuguese authorities, and that one of his main associates had been arrested. Marulanda stated that as a result of the seizure and arrests, his operations had been suspended in Spain and Portugal. DEA’s Madrid Country Office confirmed that Portuguese authorities had seized several shipments of cocaine, in the amounts and on the dates consistent with those mentioned by Marulanda. Marulanda then moved his operations to Italy. He told the confidential source that his organization sent cocaine to Rome every week aboard commercial planes and that he would return to Rome where he would pick up a large amount of currency. Marulanda requested that the confidential source meet him in Rome, at which time Marulanda would give the source 650,000€ to be laundered. As part of the conspiracy, Marulanda requested assistance to move the narcotics proceeds, in bulk, through New York City, Atlanta, and Orlando into Hong Kong banks and Panama City, Panama. The total amount of funds that Marulanda attempted to launder is $2,973,285.
This case was investigated by the DEA’s Orlando District Office, with assistance from DEA’s Rome Country Office, Madrid Country Office, Lisbon Country Office, Bogota Country Office, Hong Kong Country Office and Panama Country Office. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
Coal Miner Charged with Falsifying Safety RecordsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A coal miner who claimed to be foreman has been charged with falsifying safety records at an Ohio County, West Virginia coal mine.
United States Attorney William J. Ihlenfeld, II, announced that SEAN A. CHASE, 31 years old, of Spencer, West Virginia, was indicted by a federal grand jury on 29 counts of making false representations and certifications in mine safety records. Specifically, it is alleged that CHASE, while working at the Tunnel Ridge Mine in Ohio County, claimed to be a mine foreman and to be qualified to perform mine safety exams when in fact he holds no such certification. CHASE is also charged with making false statements to a federal agent, and claiming that he took the mine foreman examination and was issued a foreman card and foreman number.
The matter came to the attention of law enforcement when the certification numbers all foremen at Tunnel Ridge were submitted and reviewed for the purpose of continuing education requirements. It is alleged that the certification number submitted for CHASE had never actually been issued by the West Virginia Office of Mine, Health, Safety and Training, and thus an investigation was opened.
CHASE faces up to five years in prison on each of the thirty charges, and a fine of up to $10,000. The matter was investigated by the U.S. Department of Labor, Mine Safety and Health Administration, and the West Virginia Office of Mine, Health, Safety and Training. The case is being prosecuted by Assistant United States Attorney David J. Perri.
Clinton Township Resident Pleads Guilty to Tax ChargeRead the Press Release
Lamarjorie Pharr, 33, formerly of Clinton Township, Michigan, pleaded guilty to one count of filing false claims against the United States, U.S. Attorney Barbara L. McQuade announced today.
Ms. McQuade was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation.
According to court records, from September 2009 to March 2012, Pharr prepared and electronically filed more than 250 federal income tax returns. Pharr filed the returns electronically from, among other places, hotels in Detroit, Miami Beach and Atlanta. The tax returns were filed in the names of individuals, both living and deceased, whose personal information Pharr had obtained without the knowledge of those individuals or their survivors or estates. The tax returns claimed refunds of approximately $1.4 million. The refunds were based on false information in the returns relating to dependents, various tax credits (e.g., earned income credit), and tax withholdings. Pharr received more than $962,000 in refunds, which were deposited into bank accounts that he controlled.
Pharr entered the guilty plea in United States District Court before Chief U.S. District Judge Gerald Rosen.
A sentencing hearing was set by Judge Rosen for July 7 at 2 pm. The maximum penalty for filing false claims against the U.S. is imprisonment of not more than five years and a $250,000 fine.The investigation of this case was conducted by Special Agents of the IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
City Woman Pleads Guilty to Defrauding Her Employer and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – CASEY LYNN PEYTON, 41, from Oklahoma City, pled guilty today before United States District Court Judge David Russell to defrauding her employer in a wire fraud scheme and to committing tax fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Peyton was the bookkeeper for Metropolitan Air Conditioning Service Company ("Metropolitan") in Oklahoma City. As part of her job, she prepared job cost reports, handled accounts payable and receivable, paid payroll and bills, and managed insurance and benefits for the company. According to the Information filed in the case, from January 22, 2009, through November 30, 2012, Peyton defrauded her employer by committing wire fraud. Specifically, on November 30, 2009, she wire transferred $1,835 from Metropolitan’s bank account to American Express to cover her personal credit card expenses. In addition, Peyton was charged with filing a fraudulent tax return for 2011 by intentionally failing to report her entire income for the tax year.
Peyton pled guilty to the Information today and admitting that she defrauded her employer and that she filed a fraudulent tax return. In the plea agreement, Peyton admitted that the loss to Metropolitan from 2009 through 2012 was between $200,000 and $400,000 and that the tax loss to the Internal Revenue Service for 2009 through 2011 was between $30,000 and $70,000.
At sentencing, Peyton faces up to 20 years in prison and a $250,000 fine on the wire fraud scheme and up to three years and a $100,000 fine on the tax charge. As part of a plea agreement, Peyton agreed to pay full restitution to Metropolitan and to the IRS. A sentencing hearing will be set by the court in approximately 90 days.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kerry A. Kelly.
Choctaw Woman Pleads Guilty to Embezzling Money from Credit Union AccountsRead the Press Release
Oklahoma City, Oklahoma – STEPHANY DENLER MORENO, 31, from Choctaw, pled guilty today before United States District Court Judge Robin Cauthron to embezzling money from credit union member accounts and to making false statements in the records of a credit union, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Moreno was a teller for Communication Federal Credit Union (“CFCU”) in Oklahoma City. According to the Indictment filed in the case, on nine different dates from July 2011 through December 2012, Moreno made unauthorized cash withdrawals on various accounts of credit union member B.L. and used the money for her own purposes. In addition, Moreno forged signatures on three cash withdrawal receipts in order to make unauthorized withdrawals from B.L.'s accounts. The unauthorized cash withdrawals from B.L.'s accounts totaled $39,100.
Moreno pled guilty to the twelve-count Indictment today and admitted that she embezzled the funds from B.L.'s accounts and that she forged signatures on the cash withdrawal receipts.
At sentencing, Moreno faces up to 30 years in prison and a $1,000,000 fine on the embezzlement and the false statement charges, and she will be required to pay restitution. A sentencing hearing will be set by the court in approximately 90 days.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Amanda Maxfield Green.
Charleston Woman Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
Defendant has prior conviction for first degree robbery
CHARLESTON, W.Va. – A Charleston woman who pawned her ex-husband’s pistol pleaded guilty today to a federal firearm charge, announced U.S. Attorney Booth Goodwin. Kristie Dorado, 29, also known as Kristie Jo Carter, pleaded guilty in federal court in Charleston to being a felon in possession of a firearm.
On October 8, 2013, Ms. Dorado pawned a Glock, Model 23, .40 caliber semi-automatic pistol at a Charleston pawn shop. Dorado was prohibited from possessing the gun following her conviction for first degree robbery in February of 2009 in Kanawha County Circuit Court. Dorado faces up to 10 years in federal prison when she is sentenced on July 16, 2014.
The Marmet Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Barboursville Man Sentenced to Federal Prison for Distributing HeroinRead the Press Release
HUNTINGTON, W.Va. – A Barboursville man who admitted he distributed heroin was sentenced in federal court today, U.S. Attorney Booth Goodwin announced. DeMarco D. Calvin, 31, of Barboursville, West Virginia, previously pleaded guilty in December of 2013 to heroin distribution. Calvin admitted that he sold several hundred grams of heroin in the Barboursville area over the past few years. At today’s hearing, Chief United States District Judge Robert C. Chambers sentenced Calvin to 63months of federal imprisonment to be followed by three years of supervised release.
This case was investigated by the Huntington Violent Crime/Drug Task Force, which is comprised of officers from the FBI, Cabell County Sheriff’s Department, and the Huntington and Barboursville Police Departments. Special Assistant United States Attorney Sharon M. Frazier handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Barboursville Man Pleads Guilty to Role in Marijuana ConspiracyRead the Press Release
DRUGS, GUN AND SCALES SEIZED FROM HUNTINGTON RESIDENCE
HUNTINGTON, W.Va. – A Barboursville man who participated in a marijuana conspiracy from 2012 to the summer of 2013, pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Brandon L. Madden, 33, pleaded guilty in federal court in Huntington to conspiracy to distribute marijuana. In July of 2013, United States Postal Inspectors intercepted a package containing controlled substances that was to be delivered to Madden. When confronted by Inspectors, Madden admitted his role in a drug conspiracy in the Cabell County area. In addition to pleading guilty, Madden will forfeit $16,640.00 in cash, and a 2013 Dodge Durango seized by the Postal Service in connection with this case.
Madden faces up to 10 years in federal prison when he is sentenced on July 24, 2013.
This case was investigated by the United States Postal Inspector with the assistance of the Huntington Violent Crime/Drug Task Force which is coordinated by the FBI. The prosecution is being handled by Special Assistant United States Attorney Sharon M. Frazier.
As Tax Filing Deadline Nears, Attorney General Holder Calls Stolen Identity Refund Fraud ‘Rising Threat,’ Vows Aggressive Enforcement Against ScamsRead the Press Release
As the April 15 tax filing deadline approaches, Attorney General Eric Holder warned U.S. tax filers to beware a “rising threat” of scammers seeking fraudulent refunds based on stolen identities, and vowed aggressive enforcement against the practice. Speaking in a recorded video message released on the Justice Department’s website, Attorney General Holder explained that a growing pool of criminals are engaged in the activity, including gangs and drug sellers seeking quick access to cash.
The Justice Department’s Tax Division, in conjunction with the Internal Revenue Service and U.S. Attorneys’ Offices nationwide, have prioritized the investigation and prosecution of individuals who engage in stolen identity refund fraud. In the last year alone, the Department charged more than 880 defendants involved in stolen identity refund fraud, and the IRS reports that it resolved or closed approximately 963,000 cases involving identity theft victims.
“This is an increasingly urgent problem,” said Attorney General Holder. “Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft. And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.”
The Attorney General urged Americans to protect themselves by reporting suspicious activity and learning more at the IRS website, the Justice Department’s Tax Division website, and STOPFRAUD.GOV. Noting that anyone can be a target of these scams, Attorney General Holder shared his own recent experience with tax refund fraud after two individuals in Georgia attempted to obtain a fraudulent refund using his personal information.
The complete text of the Attorney General’s video message is below: “With the time to file taxes just around the corner, we at the Justice Department want to warn you about a rising threat facing law-abiding taxpayers.
“Over the last several years, stolen identity refund fraud has affected hundreds of thousands of Americans, victimizing honest citizens and draining billions of taxpayer dollars from the U.S. Treasury. In fact, the IRS reported that last year they resolved and closed approximately 963,000 cases involving identity theft victims. Criminals who perpetrate these schemes use stolen personal identifying information – such as Social Security numbers – to file false tax returns with the IRS in order to steal fraudulent tax refunds.
“These scams are no longer just about white-collar criminals. They are carried out by a variety of actors – from greedy tax return preparers to identity brokers who profit from the sale of personal information – to gangs and drug rings looking for easy access to cash. And these criminal enterprises disproportionately target the most vulnerable members of society – including low-income families, the elderly, Medicaid recipients, and those who have lost loved ones – including children.
“This is an increasingly urgent problem. Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft. And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.
“Fortunately, our knowledge of these crimes – and our ability to stop them – has grown as well. Last year alone, the Justice Department charged more than 880 defendants for their involvement in stolen identity refund fraud. Over the last few years – in some instances – those convicted of these crimes have faced sentences totaling upwards of ten years in prison. These sentences match the seriousness of these crimes. And they demonstrate our steadfast commitment to investigating and prosecuting tax refund fraud that involves identity theft.
“Particularly as we approach April 15th – as millions of Americans prepare and file this year’s tax returns – the Justice Department and its partners are stepping up our enforcement efforts. And we’re taking aggressive action to stop stolen identity refund fraud in its tracks whenever and wherever it occurs.
“The Justice Department will use every tool at its disposal to go after these scammers. And we’ll keep working with the IRS, the FBI, the Secret Service, the Postal Inspection Service, and other federal law enforcement agencies – as well as state and local law authorities – to combat these crimes. But we need members of the public to do their part by staying vigilant. After all, identity thieves can target anyone – something I saw firsthand last year, when two people attempted to get a fraudulent tax refund using my personal information.
“So I urge all of you to help my colleagues and I raise awareness about this growing threat. Protect yourself by reporting suspicious activity and filing your taxes as early as possible. And keep yourself from becoming a target by learning more about fraud and identity theft on the IRS website – or by visiting STOPFRAUD.GOV.”
The full video is available at http://www.justice.gov/agwa.php.
Arrests Dismantle North Little Rock Cocaine RingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Michael A. Davis, Acting Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), and North Little Rock Police Department (NLRPD) Chief Mike Davis announced the arrests today of multiple individuals related to a federal indictment focused on cocaine and crack cocaine distribution in the North Little Rock, Little Rock, and Saline County areas. The organization at the center of the investigation is alleged to have been responsible for the distribution of hundreds of kilograms of cocaine during the time period of November 2011 through March 2014.
“My office will continue to dismantle these drug operations in our neighborhoods,” stated Thyer. “Getting the career criminals off the streets is one of the highest priorities in this office. We will prosecute these cases to the fullest extent of the law to take back our neighborhoods for the law abiding citizens.”
“This case started in January of 2013 after complaints were received of drug sales occurring in several locations in the area around 16th-18th Street West of Pike Avenue,” stated Chief Davis. “ Our narcotics division began working on the issue and were able to gather information and make several controlled drug sales of crack cocaine. Investigators reached out to the Drug Enforcement Administration who began working with us as the case began to reach out to other communities. Now that these subjects have been apprehended we will continue to work in this area and encourage citizens to call in with any additional complaints of drug sales. This will make a difference.”
In the Spring of 2013, NLRPD and the DEA began a joint investigation of a cocaine and crack cocaine distribution organization operating out of North Little Rock. The investigation revealed that since late 2011, a cocaine distribution cell linked to McAllen, Texas was operating from a location in rural Saline County. The investigation revealed that the head of the cell was an individual from the Mc Allen area named Hector Delgado. Delgado, along with his associate Wilmer Geovani Fuentes-Ramos imported multiple kilograms of cocaine from the McAllen, Texas area, which they distributed through two individualsJustice123! in the Little Rock area, Roosevelt Martin and Robert Young, Jr. Martin and Young distributed kilogram quantities to several individuals, including Tellys Clemmons, Mantrel Young, Ivory Johnson, and Harold Allen, Jr. Allen, a resident of North Little Rock, distributed cocaine to Tyrone Washington, who converted the cocaine to crack cocaine and distributed crack cocaine from a house located in the Vestal Park area of North Little Rock. Over the course of 2012 and 2013, the drug trafficking organization was responsible for distributing 8-10 kilograms of cocaine per week in the Little Rock area with a street value of $248,000 to $310,000.
The investigation culminated with an April 2, 2014 indictment of Delgado, Fuentes-Ramos and 21 associates for drug and weapons charges. The investigation has thus far resulted in the seizure of over $142,000 cash and other assets valued at approximately $11,000; over 10 kilograms of cocaine; approximately 11 ounces of crack cocaine with a street value of $13,200; 11 vehicles, and 11 firearms.
This case was investigated by the North Little Rock Police Department in cooperation with the Drug Enforcement Administration – Little Rock HIDTA Group 62 composed of officers from the North Little Rock Police Department, the Pulaski County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Benton Police Department and the Arkansas State Police. Also involved in the investigation were the United States Marshal’s Service; Bureau of Alcohol, Tobacco Firearms and Explosives; Arkansas National Guard; Little Rock Police Department; Bryant Police Department; Jacksonville Police Department; and the Saline County Sheriff’s Department.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Antlers Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TROY LYNN HUGHES, age 54, of Antlers, Oklahoma, pled guilty to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(l).
The charge is a result of an investigation by the District 17 District Attorney’s Drug Task Force, Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in November, 2013.
The Indictment alleged that on or about September 13, 2012, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, and/or up to a $250,000 fine.
Assistant United States Attorney Kyle Waters represented the United States.
***media Advisory***Read the Press Release
ALBUQUERQUE – In November 2012, the Department of Justice opened a civil investigation to determine whether the Albuquerque Police Department (ADP) engages in a pattern or practice of use of excessive force, including use of unreasonable deadly force, in violation of the Constitution and federal law. The Department has concluded its investigation, and will announce the results of the investigation at a press conference to be held at 10:00 a.m. MDT, on Thursday, April 10, 2014, at the Albuquerque office of the U.S. Attorney for the District of New Mexico.
Following the announcement, representatives of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office will meet with City officials, APD officials, officials of the Albuquerque Police Officers Association, community advocates and other stakeholders, to discuss the results of the investigation. No further information will be released until the press conference.
WHO: Acting Assistant Attorney General Jocelyn Samuels, Civil Rights DivisionActing U.S. Attorney Damon P. Martinez for the District of New Mexico WHAT: Press conference to announce results of the Justice Department’s investigation into the Albuquerque Police Department THURSDAY, APRIL 10, 2014, 10:00 a.m. MDT WHERE:U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 9:30 a.m. Press inquiries regarding logistics should be directed to Jessica Masoner at 505-224-1448.
6 April 2014
Second Defendant Charged in Connectionwith Cross-Border TunnelRead the Press Release
SAN DIEGO, CA – A second defendant was charged today in connection with a sophisticated cross-border tunnel discovered by the San Diego Tunnel Task force last week.
Gilberto Quezada-Madrid made his first appearance in federal court this morning on tunnel-related charges, including Use of Cross-Border Tunnel and Conspiracy to Maintain a Drug Involved Premises. The government moved for detention based on risk of flight, and U.S. Magistrate Judge David Bartick set a detention hearing for Thursday, April 10, at 9:30 AM.
According to the complaint, agents with Homeland Security Investigations, who are part of the task force, connected Quezada-Madrid with suspected tunnel locations in San Diego and Tijuana, including numerous sightings during surveillance dating back to 2013.
Most recently, on March 31, 2014, agents observed as the defendant arrived at the San Diego location - a warehouse at 10145 Via de la Amistad. The next day, on April 1, agents found a concealed cross-border narcotics tunnel inside the Via de la Amistad warehouse and learned that the entry point was inside a mini-storage facility named Mini Bodegas de la Frontera in Tijuana, about 800 feet south of the international border.
Two days later, members of the Tunnel Task Force, in collaboration with enforcement counterparts in Mexico, uncovered a second sophisticated smuggling tunnel connecting a commercial building in San Diego's Otay Mesa industrial park with a warehouse in Tijuana.
The first tunnel, approximately 600 yards in length, was discovered Tuesday evening based on evidence developed during a five-month probe by the task force. The passageway – equipped with lighting, a crude rail system and wooden trusses – exited inside the Via de la Amistad warehouse. The entrance was accessed down a 70-foot shaft secured by a cement cover. The builders had installed a pulley system at the tunnel's U.S. entrance to hoist contraband up into the warehouse. The warehouse itself was filled with a variety of children's toys, including plastic three-wheelers, and boxes of televisions, similar to the merchandise found in the warehouse linked to the smuggling tunnel uncovered locally in October 2013.
Task force investigators arrested a 73-year-old Chula Vista woman for allegedly overseeing the logistics at the Via de la Amistad warehouse. She is charged in a criminal complaint with conspiring with others to maintain a drug involved premises.
The second tunnel was detected Thursday morning as investigators from Mexico, in close coordination with special agents from U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), tracked leads related to the passageway uncovered Tuesday. The second passageway, which originated inside a warehouse located at 10005 Marconi Drive, was the more sophisticated of the two. Stretching for more than 700 yards, it was equipped with a multi-tiered electric rail system and an array of ventilation equipment.
The two tunnels are the sixth and seventh cross-border passageways discovered in the San Diego area in less than four years. If laid end-to-end, the seven tunnels would extend a distance of nearly two miles.
The ongoing investigations into the two tunnels are being conducted by the agencies that make up the San Diego Tunnel Task Force, including HSI; U.S. Customs and Border Protection (CBP) - Border Patrol; the DEA; and the U.S. Attorney's Office. Additional support for this investigation has been provided by CBP's Office of Field Operations.
DEFENDANT Case Number: 14mj1274 Gilberto Quezada-Madrid Age: 26 City: Tijuana CHARGESUse of a Cross Border Tunnel in violation of 21 U.S.C. Sections 555 and 2 Maximum Penalties: 20 years in prison.
Conspiracy to Maintain A Drug Involved Premises in violation of 21 U.S.C. Sections 856 (a)(1) and 846 Maximum Penalties: 20 years in prison.
INVESTIGATING AGENCYSan Diego Tunnel Task Force
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
4 April 2014
Yonkers Gang Defendant Sentenced in Manhattan Federal Court to 188 Months in Prison After Perjuring Himself at the Trial of A Rival Gang MemberRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSE CRUZ, a/k/a “Chili,” a member of the violent Yonkers street gang known as the “Strip Boyz,” was sentenced yesterday in Manhattan federal court to 188 months of imprisonment by United States District Judge Edgardo Ramos.
In May 2013, CRUZ pled guilty to participating in the Strip Boyz narcotics conspiracy. One month later, in June 2013, CRUZ testified at the trial of Steven Knowles, the leader of a rival gang known as the “Elm Street Wolves.” At that trial, which was held before United States District Judge Kenneth M. Karas, CRUZ denied conducting crack sales with the Strip Boyz. He also retracted prior statements he had made to Yonkers Police Department officers after he was shot multiple times in April 2010 – statements that supported the Government’s evidence that Knowles was his shooter.
Although the jury convicted Knowles of the majority of counts against him, including the murder of another Strip Boyz member, Knowles was found not guilty of the attempted murder of CRUZ. At yesterday’s sentencing, Judge Ramos found that CRUZ’s testimony about his crack sales at Knowles’s trial was false and an obstruction of justice. In summary, Judge Ramos stated: “Make no mistake, Mr. Cruz. You substantially increased the amount of time you will spend in prison by your decision to testify falsely” at Knowles’s trial.
Manhattan U.S. Attorney Preet Bharara stated: “If there was ever any doubt that lying under oath was a foolish and costly decision, then Jose Cruz joins the long list of incarcerated defendants who should dispel that doubt. It may be a peculiar badge of honor among gangs to perjure yourself, but in the end you will lie your way into being locked up.”
According to the statements made at sentencing and documents filed in the case:
The case arises out of an investigation, which began in 2010 by the United States Attorney’s Office, the Federal Bureau of Investigation, and the Yonkers Police Department, of narcotics trafficking and gang violence in a part of southwest Yonkers known as Nodine Hill. The Strip Boyz, in particular, was a street gang operating in and around Yonkers between 2000 and June 2012. The Strip Boyz and their affiliates sold crack cocaine and marijuana in and around the Schlobohm Housing Project on Schroeder Street—a major hub of Yonkers crack distribution.
They would, among other things, prohibit outsiders from selling drugs in their territory, share crack sales so that multiple members of the Organization could profit from a particular sale, package and store drugs together in common spaces, use shared suppliers as the source for their narcotics, and alert each other to the presence of nearby law enforcement. During that same time period, members and associates of the Strip Boyz – including JOSE CRUZ – sold thousands of grams of crack cocaine and marijuana. Certain members of the Strip Boyz – again, including CRUZ – also maintained firearms for use by members and associates of the Strip Boyz. Members of the Strip Boyz would often pool their money to purchase firearms, which would then be stored in hidden but easily accessible locations known only to members. When a firearm was needed to protect the Strip Boyz’s territory from encroachment by a rival gang, such as the Elm Street Wolves, one member of the Strip Boyz could utilize the firearms maintained by other members of the gang.
In August 2011, 66 Yonkers gang members – including 47 members and associates of the Elm Street Wolves – were arrested and charged with narcotics, firearm, robbery and murder offenses. The Elm Street Wolves were a violent street gang that operated on and around Elm Street and Oak Street, just minutes from the Scholobohm Housing Project, and a chief rival to the Strip Boyz. To date, all defendants in that case have been convicted, and the majority has been sentenced to between 10 and 17 years of imprisonment. This includes Knowles, the leader of the Elm Street Wolves, who was convicted in July 2013 of various racketeering charges, murder, conspiracy to murder, attempted murder, narcotics conspiracy, and firearms offenses following a four-week jury trial before Judge Karas in White Plains. Knowles, who faces a mandatory sentence of life in prison plus 35 years, is set to be sentenced on May 29, 2014.
In June 2012, 23 Yonkers gang members – including 20 members and associates of the Strip Boyz – were arrested and charged with narcotics trafficking and firearm offenses. To date, all defendants in that case have also been convicted, most of whom await sentencing. This includes CRUZ, who pled guilty on May 7, 2013, before Judge Ramos to conspiring to sell crack cocaine in violation of Title 21, United States Code, Section 846. During his plea, CRUZ admitted, among other things, to conspiring to distribute crack cocaine with others in the Schlobohm Housing Project. Based on his original plea agreement with the Government, which included both an enhancement for CRUZ’s usage of firearms in furtherance of his crack sales and a reduction for his timely acceptance of responsibility, CRUZ faced an advisory United States Sentencing Guidelines (the “Guidelines”) range of 108 to 135 months of imprisonment. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
At yesterday’s sentencing, Judge Ramos found that CRUZ willfully and knowingly committed perjury by lying, under oath, at Knowles’s trial by denying that he sold crack cocaine with the Strip Boyz. As such, Judge Ramos applied a Guidelines enhancement for CRUZ’s obstruction of justice. Judge Ramos also found that CRUZ was not entitled to a Guidelines reduction for acceptance of responsibility, holding that his testimony demonstrated that he did not satisfactorily accept responsibility for the crime – conspiracy to distribute crack cocaine with others – which he was convicted of. Judge Ramos calculated CRUZ’s advisory Guidelines range, as modified after his false testimony, as 188 to 235 months of imprisonment. Judge Ramos then imposed a sentence of 188 months of imprisonment, at the low-end of the Guidelines range. In so doing, Judge Ramos made clear that CRUZ’s sentenced was significantly increased because of his decision to lie on the witness stand on behalf of Knowles.
This case is being prosecuted by the White Plains Office and the Violent Crimes Unit. Assistant United States Attorneys Ilan Graff and Andrew Bauer are in charge of the prosecution.
White Earth Felon Sentenced for Domestic Assault, Possession of A Short-barreled ShotgunRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 24-year-old felon was sentenced for assaulting a White Earth woman as well as possessing a short-barreled shotgun. United States District Judge John R. Tunheim sentenced Michael James Deegan to 92 months and 60 months (concurrent) in federal prison on one count of possession of an unregistered firearm and one count of assault resulting in substantial bodily injury. Deegan, who was indicted on September 24, 2013, pleaded guilty on December 16, 2013.
In his plea agreement, Deegan admitted that on June 4, 2013, he assaulted a woman on the White Earth Indian Reservation by punching her in the head and body. This resulted in substantial bodily injury to the victim. Deegan also admitted to possessing a short-barreled shotgun at the time of his arrest.
This was the first case accepted from White Earth under an assumption of concurrent jurisdiction that commenced on June 1, 2013. This case was a result of an investigation by the Federal Bureau of Investigation, the White Earth Tribal Police Department, and the Mahnomen County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.Because the White Earth Indian Reservation is a concurrent jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the White Earth Tribal Police Department and local County Sheriff’s Offices. Those cases are prosecuted by the U.S. Attorney’s Office.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Christopher A. Nuechterlein:)
Marcelino Ruiz-Robles, 37, of South Bend, Indiana, pled guilty to the felony offense of knowingly or intentionally distributing a mixture or substance containing cocaine. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 7/3/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Patrick Condon, Jr., 41, of South Bend, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 7/10/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Tiffany J. Miller, 28, of Cromwell, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 7/10/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Devon Stewart, 40, of South Bend, Indiana, Indiana pled guilty to the felony offenses of possession of crack with the intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 7/3/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
DISPOSITIONS (before District Judge Jon E. DeGuilio:)
Areryaunna Parahams, 21, of South Bend, Indiana was sentenced to 3 years supervised probation, 8 months location monitoring on home detention and ordered to pay $32,629.16 in restitution after pleading guilty to the felony offense of conspiracy to defraud the United States Department of the Treasury.According to documents filed in this case, Parahams participated with others in a false tax return preparation and filing scheme in South Bend, Indiana.At least two U.S. Individual Income Tax Returns, with false or inflated W-2 forms were submitted in Parahams’ name to obtain refunds. Within the scheme, over 1,000 tax returns were submitted for tax years 2008, 2009, and 2010 requesting improper tax refunds. Parahams opened and controlled bank accounts, where some of these false tax returns were deposited.She also shared in the funds received from the fraudulent tax returns. This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Department.The case was prosecuted by Assistant United States Attorney Frank Schaffer.
Demonte Brantley, 19, of South Bend, Indiana was sentenced to 37 months imprisonment with 3 years on supervised release, after pleading guilty to the felony offense of possessing a firearm with an obliterated serial number.According to documents filed in this case, law enforcement officers became aware of Brantley, his possession of a firearm and his plan to commit a robbery. Law enforcement officers were able to identify this person as Brantley and steered him into a controlled operation.While traveling to commit a robbery under the sting, Brantley was stopped by police officers directed by federal agents.Brantley attempted to discard a loaded Intratec 9mm handgun, but the weapon was recovered by federal agents.When Brantley initially took possession of the firearm, prior to the time of the planned robbery, the serial numbers of the firearm had been already been scratched off and Brantley was aware of the alteration to the serial number. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.The case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Ronier Scott, 42, of Gary, Indiana, a Gary City Councilman, was sentenced by Magistrate Judge John Martin to 3 months imprisonment and 1 year of supervised release after pleading guilty to two counts of willful failure to file a federal tax return for the tax years 2008 and 2009.Scott was also ordered to perform 400 hours of community service to be completed within 10 months after release from the Bureau of Prisons.According to documents filed in this case, in addition to not filing tax returns for 2008 and 2009, he also chose not to file for the years 2000, 2001, 2002, and 2003. For 2004, Scott filed a joint return and collected a refund. For 2005, Scott filed a joint tax return and expected to receive a refund, but it was applied to the 2003 debt. For 2006, Scott did not file his tax return until 2011, after he had been contacted by criminal investigators. For 2007, Scott filed a separate return and under-reported his income. This case was a result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Turrell Anderson, 41, of East Chicago, Indiana, was sentenced by Chief Judge Philip Simon to 42 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. Anderson has a prior conviction for possession of a firearm by a felon. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Willie Harris, 24, of Atlanta, Georgia, was sentenced by Chief Judge Philip Simon to 156 months imprisonment, 3 years of supervised release and ordered to pay $299,298.67 in restitution after being found guilty at trial to the felony offenses of conspiracy to commit fraud with identification documents, fraud with identification documents, trafficking in counterfeit devices and aggravated identity theft.According to documents filed in this case, Harris obtained the account and personal information of individuals in over 21 states and fraudulently added their names to the victims’ accounts in an account takeover scheme.Harris and his co-conspirators either utilized their own names or utilized aliases with the accounts which had been taken over.They would purchase gift cards, Postal money orders, and make numerous retail purchases with the fraudulently obtained credit cards throughout Indiana, Illinois, Wisconsin, and Georgia.They also made cash withdrawals on the accounts and utilized the convenience checks associated with the accounts at various financial institutions located in Indiana, Illinois, Wisconsin, and Georgia.Throughout the course of this criminal conduct, they would also mail gift cards, Postal money orders, and U.S. currency from Indiana and Wisconsin to Georgia. This case was a result of an investigation by the United States Postal Inspection Service.This case was prosecuted by Assistant United States Attorney Toi Houston.
Virginia Man Arrested for Interference with Flight Crew Members and AttendantsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hopewell, Virginia, man has been indicted by a federal grand jury for Interference with Flight Crew Members and Attendants.
Kennedy Runner, age 68, was arrested on March 28, 2014, pursuant to a federal Criminal Complaint. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 1, 2014, and requested a preliminary hearing on the Complaint.
The maximum penalty upon conviction is 20 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 charge relates to an incident on March 28, 2014, at Rapid City Regional Airport, when Runner interfered with the performance of the duties of a flight crew member and flight attendant on United Airlines Flight 6089 by threatening to kill passengers on the aircraft.
The charge is merely an accusation and Runner is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Runner was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 3, 2014.
Vero Beach Resident Charged in Series of Armed RobberiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Deryl Loar, Indian River County Sheriff, and Ric Bradshaw, Palm Beach County Sheriff’s Office, announce that Glenn Thomas Carvajal, 34, of Vero Beach, has been charged in an indictment for two armed robberies of Treasure Coast GameStop stores. Carvajal was arraigned today before U.S. Magistrate Judge Frank J. Lynch Jr. in Ft. Pierce and is being detained, pending trial, as a risk of flight and danger to the community.
Carvajal was charged with two counts of interfering with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Section 1951(a), and two counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of interfering with commerce by threats or violence (robbery), the defendant faces a possible statutory maximum sentence of up to 20 years in prison. If convicted of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces a consecutive seven year term in prison. If convicted of the second count of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces another consecutive 25 year term in prison.
According to documents filed in the case, Carvajal, a former GameStop manager, robbed a total of three GameStop stores, in less than two weeks. This robbery spree, which spanned three Florida counties, began on October 8, 2013, at the GameStop store located in Brevard County. On October 10, 2013, Carvajal robbed the Game Stop store located in Indian River County. Carvajal’s spree ended after the October 17, 2013 armed robbery of the GameStop store located in Palm Beach County. During each of the robberies, Carvajal wore a baseball cap and sunglasses, and handed the store clerks a note, as he brandished a handgun in his waistband. Carvajal would instruct the employees to set the store safe timer, and used a number of GameStop terms, used primarily by GameStop employees.
This case is a result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of ATF, the Indian River County Sheriff’s Office, the Palm Beach County Sherriff’s Office and the Melbourne Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Venice Man Sentenced for "Crack” Cocaine DistributionRead the Press Release
Follow @SDILNewsNathan V. Young, 23, from Venice, Illinois, was sentenced on April 3, 2014, in federal district court, in East St. Louis, Illinois, on one count of cocaine distribution in the form of “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Young was sentenced to 63 months in prison, three years of supervised release, fined $600, and ordered to pay $100 special assessment. Court proceedings revealed that Young sold over 5 grams of cocaine base in the form of “crack” on June 13, 2013, to a confidential informant in Venice, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
U.S. Attorney's Office, Caddo District Attorney's Office, Caddo Parish Sheriff’s Office Celebrate the 30th Anniversary of Victims Crime Act with Blood DriveRead the Press Release
SHREVEPORT, La. –U.S. Attorney Stephanie A. Finley, along with Caddo Parish District Attorney Charles Rex Scott and Caddo Parish Sheriff Steve Prator, are sponsoring a blood drive during National Crime Victims’ Rights Week, which starts April 6.
The Blood Drive will be held Monday, April 7, 2014 from 12:30 p.m. to 4:30 p.m. at the Caddo Parish Courthouse, 501 Texas St., Shreveport. This gives the community an opportunity to honor someone they know who has been a victim of a crime by donating a pint of blood in their honor or memory. This year’s theme - 30 Years: Restoring the Balance of Justice - presents an opportunity to remind us of how far we have come in aiding crime victims, but also of how much work is yet to be done.
“National Crimes Victims’ Rights Week will be held April 6 through April 12 in communities throughout the nation, including our very own,” Finley stated. “We hope that the public can come out and support this chance to save a life and honor a loved one. I want to thank the Caddo Parish Sheriff’s Office and District Attorney for co-sponsoring this event.”
“Crime victimization really knows no boundaries, and chances are you know someone who has been impacted,” said Caddo Parish Sheriff Steve Prator. “You can show your support by giving blood in their name and help save a life in the process.”
“We stand with victims of crime every day,” said Caddo Parish District Attorney Charles Rex Scott. “Participate in the blood drive and honor the victims of crime and their families in this special way.”
Just 30 years ago, crime victims had virtually no rights and no assistance. The criminal justice system often seemed indifferent to their needs. Victims were commonly excluded from courtrooms and denied the chance to speak at sentencing. They had no access to victim compensation or services to help rebuild their lives. There were few avenues to deal with their emotional and physical wounds. Victims were on their own to recover their health, security, and dignity.
Today, the nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Financed not by taxpayers but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out-of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.
For more information on National Crime Victims’ Rights Week, visit the Department of Justice’s web page on the subject at ovc.ncjrs.gov/ncvrw.
U.S. Attorney Goodwin and State Advocates Join Monday to Commemorate Crime Victims' Rights WeekRead the Press Release
***MEDIA ADVISORY***
Commissioner Jim Rubenstein and Others will be Recognized for Assistance to Victims
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia, along with various federal, state and local crime victim advocates, will host prelude events in recognition of National Crime Victims’ Rights Week on MONDAY, APRIL 7, 2014. West Virginia Division of Corrections Commissioner Jim Rubenstein and others will be recognized for their efforts to assist victims of crime. This event is being held in conjunction with the nationwide observance honoring National Crime Victims’ Rights Week (NCVRW), which begins on April 6. Monday’s ceremony also marks the 14th Annual Operation Reach Out. Operation Reach Out is a collaborative group of federal, state and local organizations that was formed to raise awareness for NCVRW in West Virginia. This year’s theme is “30 Years: Restoring the Balance of Justice.”WHO: U.S. Attorney Booth Goodwin
Operation Reach Out committee members
Representatives of local and statewide advocacy programs
Survivors of crime
Various federal, state and local officialsAwards Recipients: Jim Rubenstein, WV Division of Corrections Commissioner
Dave Ballard, Mt. Olive Correctional Complex Warden
West Virginia Correctional Industries
Joyce Yedlosky, Team Coordinator for the West Virginia Coalition Against Domestic Violence
The Counseling ConnectionWHERE: Robert C. Byrd United States Courthouse
300 Virginia Street, East
Fifth FloorCharleston, WVWHEN: MONDAY, April 7, 2014
TIME: A brief reception at NOON, will precede the ceremony and awards presentations. The media is invited and encouraged to attend.Two Men Sentenced to Decades in Prison for Killing A Man During 2009 Kidnapping and Robbery-Second Victim Was Shot and Wounded-Read the Press Release
WASHINGTON –Keith Logan, 51, was sentenced today to life in prison with no possibility of release, and Paul Ashby, also 51, was sentenced today to a 90-year prison term on charges stemming from the 2009 killing of a man during a kidnapping and robbery, U.S. Attorney Ronald C. Machen Jr. announced.
Logan, Ashby, and a third defendant - Merle Watson, Jr., 57 - were found guilty by a jury in August 2013 of first-degree murder while armed, with aggravating circumstances, conspiracy, kidnapping while armed, armed robbery, and weapons offenses. Logan also was found guilty of assault with intent to kill while armed, aggravated assault while armed, and mayhem while armed, for shooting a potential witness on the night of the murder. The verdicts followed several weeks of trial in the Superior Court of the District of Columbia.
The Honorable Herbert B. Dixon, Jr. sentenced Logan and Ashby today. Watson is to be sentenced May 16, 2014. All three defendants are from Washington, D.C.
According to the government’s evidence, Logan, Ashby, and Watson conspired to kidnap and rob Carnell Bolden, 36. They lured Mr. Bolden into Logan’s residence in the unit block of W Street NW during the early evening hours of Dec. 30, 2009. After beating him unconscious and tying him up, the defendants then went to get Mr. Bolden’s car, which was parked on the block.
Logan, Ashby, and Watson then discovered that Mr. Bolden’s girlfriend was sitting in the car. Fearing she would be a witness against them because she might know where Mr. Bolden was going when he left the car, they then decided to kill both of them.
Ashby drove Mr. Bolden, tied up and unconscious, to the 3000 block of Park Drive SE, where he dragged him into a wooded area adjacent to that block. He then shot Mr. Bolden twice at close range with a .38 or .357-caliber handgun, killing him.
While Ashby was on the way to Southeast Washington with Mr. Bolden, Logan approached Mr. Bolden’s girlfriend as she sat in her car. He stood outside the driver’s window and shot her four times with a nine-millimeter handgun. She was rushed to Washington Hospital Center and survived the attack.
In announcing the sentences, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD), the District of Columbia Department of Forensic Sciences, and the FBI Laboratory in Quantico, Va.
He also thanked those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates and Specialists Marcia Rinker, La June Thames, Katina Adams-Washington, and Michael Hailey; Paralegal Specialists Sandra Lane, Kendra Johnson, Kwasi Fields, Anthony Griffith, and Antoinette Sakamsa; Litigation Technology Specialists Paul Howell, William Henderson, and Anisha Bhatia; Law Clerks Lauren Sparks and Ryan Lipes, and Criminal Investigators Derek Starliper, Mark Crawford, Nelson Rhone, Chris Brophy, and Melissa Matthews. In addition, he acknowledged the work of Assistant U.S. Attorneys Alessio Evangelista, who led the grand jury investigation, and Reagan Taylor, who helped prepare the case for trial. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Michael C. Liebman and Erik Kenerson, who tried the case.
14-079Two Men Sentenced to Decades in Prison for Killing A Man During 2009 Kidnapping and Robbery-Second Victim Was Shot and Wounded-Read the Press Release
WASHINGTON –Keith Logan, 51, was sentenced today to life in prison with no possibility of release, and Paul Ashby, also 51, was sentenced today to a 90-year prison term on charges stemming from the 2009 killing of a man during a kidnapping and robbery, U.S. Attorney Ronald C. Machen Jr. announced.
Logan, Ashby, and a third defendant - Merle Watson, Jr., 57 - were found guilty by a jury in August 2013 of first-degree murder while armed, with aggravating circumstances, conspiracy, kidnapping while armed, armed robbery, and weapons offenses. Logan also was found guilty of assault with intent to kill while armed, aggravated assault while armed, and mayhem while armed, for shooting a potential witness on the night of the murder. The verdicts followed several weeks of trial in the Superior Court of the District of Columbia.
The Honorable Herbert B. Dixon, Jr. sentenced Logan and Ashby today. Watson is to be sentenced May 16, 2014. All three defendants are from Washington, D.C.
According to the government’s evidence, Logan, Ashby, and Watson conspired to kidnap and rob Carnell Bolden, 36. They lured Mr. Bolden into Logan’s residence in the unit block of W Street NW during the early evening hours of Dec. 30, 2009. After beating him unconscious and tying him up, the defendants then went to get Mr. Bolden’s car, which was parked on the block.
Logan, Ashby, and Watson then discovered that Mr. Bolden’s girlfriend was sitting in the car. Fearing she would be a witness against them because she might know where Mr. Bolden was going when he left the car, they then decided to kill both of them.
Ashby drove Mr. Bolden, tied up and unconscious, to the 3000 block of Park Drive SE, where he dragged him into a wooded area adjacent to that block. He then shot Mr. Bolden twice at close range with a .38 or .357-caliber handgun, killing him.
While Ashby was on the way to Southeast Washington with Mr. Bolden, Logan approached Mr. Bolden’s girlfriend as she sat in her car. He stood outside the driver’s window and shot her four times with a nine-millimeter handgun. She was rushed to Washington Hospital Center and survived the attack.
In announcing the sentences, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD), the District of Columbia Department of Forensic Sciences, and the FBI Laboratory in Quantico, Va.
He also thanked those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates and Specialists Marcia Rinker, La June Thames, Katina Adams-Washington, and Michael Hailey; Paralegal Specialists Sandra Lane, Kendra Johnson, Kwasi Fields, Anthony Griffith, and Antoinette Sakamsa; Litigation Technology Specialists Paul Howell, William Henderson, and Anisha Bhatia; Law Clerks Lauren Sparks and Ryan Lipes, and Criminal Investigators Derek Starliper, Mark Crawford, Nelson Rhone, Chris Brophy, and Melissa Matthews. In addition, he acknowledged the work of Assistant U.S. Attorneys Alessio Evangelista, who led the grand jury investigation, and Reagan Taylor, who helped prepare the case for trial. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Michael C. Liebman and Erik Kenerson, who tried the case.
14-079Two El Dorado Hills Women Indicted for Preparing Bogus Tax Returns and Receiving Illegitimate RefundsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 28-count indictment today against Barbara Antonucci, 49, and Sherry Taggart, 54, both residents of El Dorado Hills, California, charging them with conspiracy to file false claims, filing false claims, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in March 2008 and continuing through March 2014, Antonucci and Taggart obtained the names, social security numbers and other personal identifying information of other persons. The defendants used this personal information to complete federal tax returns in the names of themselves and other taxpayers. The federal tax returns contained false and fraudulent representations, including false statements regarding wages earned, occupations, and dependents. The defendants filed the false federal tax returns with the IRS through the US Mail and via the internet from Sacramento, Yuba and Placer Counties. Antonucci and Taggart requested that the IRS issue the false and fraudulent income tax refunds in the names of themselves and other taxpayers, from which the defendants took money.
This case was the product of an investigation by the Internal Revenue Service, United States Postal Service, and the Sacramento County Sheriff’s Department. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Antonucci and Taggart were arrested and made their initial appearances in federal court today, April 4, 2014. Both were ordered temporarily detained pending further detention hearing on Monday, April 7, 2014. A status conference before the District Court was set for May 14, 2014.
If convicted of conspiracy to file false claims, Antonucci and Taggart face a maximum statutory penalty of up to 10 years in prison and a $250,000 fine. If convicted of filing false claims, Antonucci and Taggart face a maximum statutory penalty of up to 5 years in prison and a $250,000 fine. Finally, if convicted of aggravated identity theft, Antonucci and Taggart are required to serve a two-year sentence that would be consecutive to any other sentences imposed. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Men Sentenced to Federal Prison for Credit Card Fraud ConspiracyRead the Press Release
Orlando, Florida – U.S. District Judge Anne C. Conway yesterday sentenced Nicholas Aaron Brown (19, Queens, NY), Donald Napoleon (21, Winter Haven), and Renington Javier Noa (26, Orlando) for their roles in an access device fraud conspiracy. Brown and Napoleon were both sentenced to 2 years in federal prison. Noa was sentenced to 4 years in federal prison. The court also ordered each to serve a 2-year term of supervised release, following incarceration, and to pay restitution to the victims of this conspiracy. All three individuals pleaded guilty in December 2013.
According to court documents and evidence presented at the sentencing hearing, Brown, Napoleon, and Noa participated in a conspiracy that involved the production of counterfeit credit or debit cards using account numbers belonging to other individuals, which were obtained online. A separately indicted co-conspirator, Andre Aldain Flemming, was the leader of the conspiracy. Flemming obtained the compromised account numbers online from individuals overseas. Members of the conspiracy, including Brown, wired money to individuals overseas to pay for these account numbers. Once Flemming acquired the account numbers, he produced the counterfeit credit or debit cards and provided them to Brown, Napoleon, Noa, and other co-conspirators. The individuals then used the cards to make fraudulent purchases at retail stores. The co-conspirators provided the fraudulently purchased merchandise to Flemming. Flemming paid them a fee and then sold the merchandise on the street for a profit.
Flemming was indicted with additional co-conspirators in a separate case. He pleaded guilty to access device fraud conspiracy and aggravated identity theft on January 9, 2014. His sentencing hearing is scheduled on April 10, 2014.
This case was investigated by the United States Secret Service, with assistance from the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Three Individuals Indicted for CounterfeitingRead the Press Release
United States Attorney Brendan V. Johnson announced that two women and a man, all from western South Dakota, have been indicted by a federal grand jury for various charges including Counterfeiting and Forging United States Currency.
Gertrude Bearing, age 39, of Rapid City; Craig Janis, age 29, of Kyle; and Tina Brewer, age 37, of Sturgis, were indicted on March 18, 2014. They appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20 and 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 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 charges relate to Bearing, Janis, and Brewer, counterfeiting and/or passing $20 and $100 Federal Reserve Notes in Rapid City on March 1-2, 2014.
The charges are merely accusations and all three are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department and the U.S. Secret Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Bearing, Janis, and Brewer were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 27, 2014.
Three Charged in Sex Trafficking and Transportation CaseRead the Press Release
ROCHESTER, N.Y.—Jodia Campbell, 32, Laree Greggs, 37, and Jennifer Miller, 26, all of Rochester, New York, were charged with various felonies including the transportation of a minor in interstate commerce to engage in prostitution and sex trafficking of a minor, United States Attorney William J. Hochul, Jr. of the Western District of New York announced today. Sex trafficking of a minor and the transportation of a minor in interstate commerce to engage in prostitution each carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment and a fine of $250,000. The transportation of individuals in interstate commerce to engage in prostitution carries a maximum of penalty of 10 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaints, in April 2013, Rochester Police began investigating the alleged prostitution of a 16 year old female from Rochester, NY, using the name “Cherry Red” on backpage.com in Pennsylvania. According to the complaint, the 16-year-old alleged that she was recruited by Miller and taken to New Jersey and Pennsylvania to engage in prostitution by Miller, Campbell and Greggs. Other adult individuals also alleged having been transported by Greggs, Miller and Campbell at various times, out of state, to prostitute. Investigators reviewed backpage.com ads and found contact information associated with Miller, Campbell and Greggs.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint was the culmination of an investigation on the part of the FBI's Cyber Task Force, which includes the Rochester Police Department under the direction of Chief , the Monroe County Sheriff’s Office under the direction of Chief Patrick O’Flynn and Special Agents of the Federal Bureau of Investigation, under the direction of Brian Boetig, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Thirteen Arrested Wednesday in Operation Targeting Methamphetamine and Heroin Distribution in UtahRead the Press Release
SALT LAKE CITY - Thirteen arrests were made Wednesday as a part of a federal Organized Crime Drug Enforcement Task Force case targeting the distribution of methamphetamine and heroin in Utah by alleged members of the La Raza gang and their associates.
The individuals are charged in two indictments unsealed Wednesday and Thursday with distribution of methamphetamine and heroin; conspiracy to distribute methamphetamine and heroin; possession of methamphetamine and heroin with intent to distribute; and money laundering.
During the execution of the arrests and searches Wednesday, law enforcement officers seized approximately 10 pounds of methamphetamine and heroin, seven firearms, eight vehicles, and approximately $175,000 in cash.
Several local and state agencies contributed to the joint operation including the FBI’s Safe Streets Task Force, IRS Criminal Investigation, Salt Lake City, West Valley, Sandy, and West Jordan police departments, the U.S. Marshals Service, the Unified Police Department, the Metro Gang Unit, and the Utah Department of Public Safety. Several other agencies assisted in executing arrest and search warrants Wednesday in the Salt Lake metro area, Richfield, and St. George, including the Utah County Sheriff’s Office, the Utah County Major Crimes Task Force, Utah and Sevier County Sheriffs’ Offices, St. George, Spanish Fork and Richfield police departments, the Utah Highway Patrol, the Washington County Drug Task Force, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Law enforcement officers and prosecutors involved in this case say it is part of a coordinated effort to combat an increasing threat to the safety of Utah communities from the involvement of gangs in drug trafficking. Gang involvement in the retail drug trade poses a risk to communities because distribution activities are routinely associated with violence as disputes over control of drug territory and enforcement of drug debts occurs.
Juan Lazareno, age 30, of Santa Clara, and an individual identified as FNU LNU (first name unknown – last name unknown) are charged with distribution of methamphetamine in an indictment unsealed in St. George Wednesday. Lazareno was arrested Wednesday and appeared before U.S. Magistrate Judge Robert Braithwaite. He is being detained pending a detention hearing to be scheduled later. The potential maximum penalty for the charge is life in prison with a 10-year minimum mandatory sentence.
Thirteen individuals are charged in the second indictment, unsealed Thursday morning in federal court in Salt Lake City. They are Wayne LeRoy Burr aka Miclo, age 30, of Draper; Samuel Covarrubias-Velazquez aka Pollo, age 36, of West Valley City; Javier Corrales, age 34, of Provo; Juan Reveles, age 35, of Richfield; David Miramontes, age 28, of West Valley City; Anthony Pedroza, age 26, of West Valley City; Carlos Tenengueno, age 24, of Sandy; Jose Munoz, age 26, of Salt Lake City; Beatriz Miramontes, age 56, of Richfield; Elisa Gallardo, age 27, of Draper; Guillermo Miramontes, age 22, of Salt Lake City; and William Reveles, age 34, of West Valley City. Alejandro Arciniega-Zetin, age 24, of Salt Lake City has not been arrested.
Burr and Covarrubias-Velazquez are charged in the first two counts of the indictment with conspiracy to distribute methamphetamine and heroin. The indictment alleges that beginning at least by May 1, 2013, and continuing until at least Jan. 21, 2014, the pair conspired to distribute 500 grams or more of a substance containing a detectable amount of methamphetamine and one kilogram or more of a substance containing a detectable amount of heroin. The majority of the 31-counts in the indictment charge defendants with distribution of methamphetamine; possession of methamphetamine with intent to distribute; distribution of heroin, possession of heroin with intent to distribute; and money laundering.
There are 25 drug trafficking counts in the indictment. Each of them, with the exception of counts 14, 15, 20 and 21, has a potential life sentence with a 10-year minimum mandatory sentence. Counts 14, 15, 20 and 21 have potential 40-year sentences with five-year minimum mandatory sentences.
Six money laundering counts in the indictment allege defendants purchased vehicles using cash derived from drug trafficking. The money laundering counts carry potential 10-year sentences.
Individuals charged in this indictment had initial appearances Thursday in federal court in Salt Lake City. Elisa Gallardo was released following her initial appearance. Detention hearings for the other defendants are under way Friday morning in U.S. Magistrate Judge Brooke Wells’ courtroom.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Texas Man Sentenced for Mailing Threatening CommunicationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Texas man convicted of Mailing Threatening Communications was sentenced on March 25, 2014, by Chief Judge Ralph R. Erickson, U.S. District Court in Fargo, North Dakota.
The charge to which Kidd pled showed that while incarcerated in the State of Texas, he mailed a letter via the U.S Postal Service to a U.S. District Judge in Bismarck, North Dakota, on October 28, 2010. The letter contained a threat to kill the judge and demanded a payment of $10,000 be issued to Kidd’s prison inmate account.
Carlos Kidd, age 34, was sentenced to 60 months in custody to run concurrent with his Texas state sentence, but consecutive to his Texas federal sentence, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kidd was originally indicted by a federal grand jury on November 6, 2012, in the U.S. District Court for the District of North Dakota on two counts of Mailing Threatening Communications. He was later indicted on six additional counts of Mailing Threatening Communications to court personnel in different North Dakota counties. On February 11, 2014, Kidd pled guilty to one count of Mailing Threatening Communications.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Kidd was immediately turned over to the custody of the U.S. Marshals Service.
Superseding Indictment Returned Against Peter Hoffman, Michael Arata, and Susan Hoffman for Fraudulent Film Tax Credit SchemeRead the Press Release
PETER M. HOFFMAN, age 63, of Los Angeles, California; MICHAEL P. ARATA, age 47, of New Orleans, Louisiana; and SUSAN HOFFMAN, age 69, of New Orleans, Louisiana were charged yesterday in a twenty-two count Superseding Indictment by a Federal Grand Jury, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Superseding Indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits which were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the State for infrastructure tax credits were entitled to receive an amount equal to 40% of their qualified and audited infrastructure expenditures. Once this amount was certified by the State of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The Superseding Indictment adds co-defendant SUSAN HOFFMAN, a California film producer who relocated to the New Orleans area. SUSAN HOFFMAN and PETER HOFFMAN are married but have been legally separated since approximately 1998. SUSAN HOFFMAN owned and operated several companies including Leeway Properties, New Moon Pictures, LLC, and Seven Arts Pictures Louisiana, LLC. Through their respective companies, PETER HOFFMAN, MICHAEL ARATA, and SUSAN HOFFMAN were partners in different movie-industry business ventures.
The Superseding Indictment also expands the time frame of the offense conduct, to on or about February 3, 2010. Further, it adds four counts against MICHAEL ARATA for making false statements to a FBI Special Agent.U.S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys G. Dall Kammer and Jordan Ginsberg.
(Download Indictment )
Stolen Identity Refund Fraud Prosecutions on the RiseRead the Press Release
Jackson, Miss – Today U.S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation (IRS CI) announced the results of ongoing efforts in the Southern District of Mississippi to combat tax refund fraud involving identity theft. The U.S. Department of Justice has prioritized the investigation and prosecution of individuals who engage in stolen identity refund fraud (SIRF). IRS Criminal Investigation has increased its investigative efforts relating to SIRF and Questionable Refund/Return Preparer Fraud (QRP/RPP).
SIRF is the use of stolen or otherwise wrongfully acquired personal identification information to file a fraudulent claim with the IRS for a tax refund. These crimes occur when a social security number, or list of numbers, is stolen or bought; a false tax return showing a refund due is filed electronically, usually at the beginning of filing season before the legitimate taxpayer has filed for the year. The actual implementation of SIRF schemes is often complex to carry out. In an increasing number of cases, the identities are stolen or purchased from a single source, and the tax refunds obtained are directed to another location, with the connections being distant and difficult to trace.
Recent tax-related prosecutions originating in the Southern District of Mississippi are highlighted below:
Marietta Harris, 38, of Jackson, pled guilty to conspiracy to defraud the United States. Harris and her co-conspirators used personal identifying information, including names and social security numbers, which had been stolen from the Central Mississippi Correctional Facility in Rankin County, the University of Mississippi Medical Center and other locations. The information was used to file false tax returns with the IRS. Refunds were electronically deposited into various bank accounts in Mississippi belonging to Harris and her co-conspirators. She will be sentenced on May 15, 2014 and faces a maximum penalty of ten years in prison and a $250,000 fine.
Christopher Johnson, 33, of Hattiesburg, pled guilty to conspiracy to defraud the United States. Johnson and his co-conspirators obtained personal identification information from unwitting victims, had false income tax returns filed in their names and the refunds deposited into one of three bank accounts controlled by Johnson. During the course of the scheme, Johnson and his co-conspirators obtained $58,000 in stolen tax refunds from the IRS.
Kimberly Givens, 42, of Brandon, Nathaniel Cooper, 29, of Lena, and Latorra Gross, 29, of Morton, have been indicted for conspiracy and filing false tax returns with the IRS. They are scheduled for trial on June 2, 2014.
Flowers Curtis, 56, of Hermanville, has been indicted on 20 counts of filing false claims in connection with a false refund scheme executed in Claiborne and Franklin Counties. He is scheduled for trial during the term commencing June 2, 2014.
Pennie Frazier, 33, of Jackson, has been indicted for filing false claims, wire fraud, and aggravated identity theft. The indictment alleges that Frazier executed a scheme to file false tax returns with the IRS using the identities of others. She is scheduled for trial on May 6, 2014.
Timothy Benjamin Taylor, Verneshia Cody, Niki Antoinette Rivers, Cheryl Dominque Warren and Stephen Graham have been indicted for conspiracy to file false income tax returns. The indictment alleges they used the names and identifying information of patients at Emory Healthcare in Atlanta. The indictment also alleges that Cody, owner and operator of TDK Accounting and Tax Services in Hinds County, conspired to create and file false income tax returns with the IRS which requested the payment of fraudulent tax refunds. The indictment further alleges that Taylor and the other defendants created false driver's licenses, earnings statements, and other documents in the names of the victims to further support the information contained on the fraudulent income tax returns. This case is set for trial on May 6, 2014.The punishment for an identity theft related offense can reach a maximum of 30 years in federal prison, in addition to fines, restitution, and/or forfeiture of the property used to commit the offense.
Refund fraud poses a significant threat to our nation’s tax system, and diminishes taxpayer confidence. IRS – Criminal Investigation initiated over 1,400 investigations and recommended prosecution of over 1,250 individuals who were involved in identity theft crimes during the 2013 fiscal year. Those numbers represent significant increases from the prior fiscal year. 1
U.S. Attorney Davis has pledged his commitment and resources to helping the IRS combat refund fraud in the Southern District of Mississippi.
“Often the victims of identity theft are the most vulnerable members of our communities. When combined with income tax fraud, all honest taxpayers are victims when wrongful claims are paid out,” said Gregory Davis, U.S. Attorney for the Southern District of Mississippi. “This office is committed to constant vigilance along with our partners, the Internal Revenue Service Criminal Investigation, U.S. Secret Service, and U.S. Postal Inspection Service, in investigating and prosecuting those who cause harm to the U.S. taxpayers. ”
“Seeking out and prosecuting individuals who commit violations of the tax laws is the main focus of the work we do at IRS Criminal Investigation. We greatly appreciate the United States Attorney’s Office, and their commitment to the prosecution of these cases,” said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “It is my hope that these indictments, and other legal actions further assure the taxpaying citizens of our country that IRS – CI is fully engaged in the war against those who attempt to steal from the United States Treasury.”
Criminal cases related to Identity Theft are investigated by the Jackson ID Theft Task Force which includes IRS Criminal Investigation, U.S. Secret Service and U.S. Postal Inspection Service. They are handled by the Economic Crimes Unit of the United States Attorney’s Office.
If you believe that you or someone you know may have had a tax return filed under your name as the result of identity theft, please visit www.IRS.gov, call 1-800-829-1040 or visit your local IRS office for further information.
The public is reminded that the charges contained in an indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.1 Internal Revenue Service – Criminal Investigation Annual Business Report http://www.irs.gov/pub/foia/ig/ci/REPORT-fy2013-ci-annual-report-02-14-2014.pdf
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
St. Louis Man Sentenced to Federal Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Daron Whitt, 30, of St. Louis, Missouri, was sentenced in federal district court in East St. Louis for the crime of Possession of a Firearm by a Convicted Felon.
Whitt was sentenced to 51 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $500, following his plea of guilty, on November 18, 2013. The charges relate to an incident that occurred on March 17, 2013, in Brooklyn, Illinois, when Whitt, driving erratically, was stopped by a Brooklyn police officer, who then found a 9mm. Beretta pistol on Whitt’s person. Whitt was previously convicted of Possession of a Firearm by a Felon on April 24, 2007, in the United States District Court for the Eastern District of Missouri. The sentencing judge also ordered forfeiture of the firearm.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Spring Man Ordered to Prison for Two Charges Involving Child PornographyRead the Press Release
HOUSTON - Garrett Michael Chase, 38, has been sentenced to more than 11 years in federal prison for distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. He pleaded guilty Oct. 23, 2013.
Today, U.S. District Judge Gray Miller handed Chase a sentence of 135 months for the distribution charge and another 120 months for possession of child pornography. The sentences will be served concurrently. He was further ordered to serve 25 years on supervised release following completion of the prison term. He will also be required to register as a sex offender.
Chase was identified through an undercover operation in which he was linked to an IP address sharing 25 files of identified child pornography. One of those files was a 52-second video depicting a female child, approximately nine years of age, partially nude and sitting in the lap of an adult male. In the video, she is shown touching the male’s genitalia while he fondles her.
A search warrant was executed on his Spring residence which revealed computers and other electronic media. At that time, he admitted to downloading child pornography images and videos. He would save them to a shared folder making them available to others using peer-to-peer software. Chase admitted he had been viewing child pornography since high school and that he last viewed child pornography just two weeks prior to the execution of the warrant.
Chase further admitted to setting up a video camera to capture images/video of a 14-year-old who had stayed in his home. He continued to have thoughts of her and admitted to taking a video of her without her shirt. He instructed investigators where they could find the video on his computer.
Forensic examination of the computers revealed 57 videos containing child pornography.
Chase was permitted to remain on bind and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
Spokane Ponzi Scheme Operator Pleads Guilty to 110 Count Indictment on Eve of Jury TrialRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Doris E. Nelson, 55 of Colbert, Washington, entered guilty pleas to the 110 counts contained in a Superseding Indictment handed down in December 2013. The 110 counts related to charges of Wire Fraud, Mail Fraud, and International Money Laundering connected to a massive "Ponzi scheme" that Nelson operated. Senior United States District Court Judge Robert H. Whaley accepted each of Nelson's guilty pleas. Sentencing is scheduled for July 7, 2014.
By pleading guilty Nelson admitted the allegations set forth in the Superseding Indictment – that she ran a Ponzi scheme for over eight years and took in approximately $137 million from at least 650 investors worldwide. As alleged, Nelson operated an unprofitable payday and short-term lending business, known as the Little Loan Shoppe, which she began in British Columbia, Canada in approximately 1997 and which she continued in Spokane, Washington beginning in approximately 2001. Despite the Little Loan Shoppe's unprofitability, Nelson solicited hundreds of investors by leading them to believe, falsely, that her payday loan business was profitable and that her business profits allowed her to pay investors a 40% to 60% (and up to as much as 75%) annual return. Nelson claimed that these astronomical returns would be paid from the profits of the Little Loan Shoppe. Nelson also made numerous false and fraudulent statements about the Little Loan Shoppe in order to induce investors. She communicated with her investors in person, by telephone, by email, and through the mails. Nelson solicited investors who resided throughout the United States and in international locations, including Canada and Mexico.
As alleged, rather than paying her investors returns from a profitable business as Nelson had claimed, investors were paid "interest" with their own money or the money of other investors. In contrast to her consistent representations, Nelson was operating a massive Ponzi scheme where investors' individual returns were paid using their own investments or monies paid by other investors. Investor funds rarely, if ever, were used to fund new customer loans, as Nelson assured investors they would be, and the Little Loan Shoppe lending operations did not generate profits from which investor payments could be made. As Nelson developed a history of paying investors "lulling payments" from subsequent investments, her track record became the single most persuasive factor for additional investors. In this way, Nelson's scheme to defraud grew rapidly until it could no longer sustain itself. The scheme collapsed in 2008, when the flow of new funds could no longer support the payments required on the earlier investments and Nelson abruptly announced that all investments would be changed to a 10% interest rate. Nelson ended most payments to investors around this time, and by February 2009 she suspended all payments.
As alleged, Nelson's scheme resulted in personal withdraws of investor money of approximately $4.3 million. With these proceeds, she funded a lavish lifestyle for herself and her family. For example, Nelson spent approximately $223,000.00 in St. John Knits stores located in Las Vegas, Nevada, New York, Honolulu, and Beverly Hills as well as approximately $217,000.00 in purchases from Nordstrom. She also spent approximately $58,000.00 on art work while on a cruise in 2006. Nelson also incurred substantial gambling losses -- approximately $432,000.00 in 2008, and approximately $960,000 in 2007, at the MGM Grand Casinos in Las Vegas.
As Nelson's fraudulent scheme began to collapse in 2008, Nelson's investors forced the Little Loan Shoppe into bankruptcy in the summer of 2009. Shortly thereafter, the scheme was brought to the attention of IRS-CI, the FBI, and the United States Attorney's office. An investigation was commenced and in April, 2010, agents with the IRS-CI and the FBI seized, among other assets, cash, a Mercedes Benz, a Corvette, and jewelry from her residence.
Michael C. Ormsby said, "The resolution of these charges by Ms. Nelson's guilty pleas show the commitment of this office, the IRS Criminal Investigations, and the FBI to thoroughly investigate allegations of fraud and to bring those accused of defrauding others before the court so that they may fairly and justly be held to accountable for their criminal conduct. The dedication exhibited by the efforts of Federal law enforcement officers and the Assistant United States Attorneys involved in this case underscores their continuing commitment to investigate and prosecute "white collar" crimes in the Eastern District of Washington."
This case was investigated by the Internal Revenue Service-Criminal Investigations and the FBI. This case was prosecuted by K. Jill Bolton and Caitlin A. Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
11-CR-00159-RHW
Seat Pleasant Man Sentenced to 15 Years in Prison After Pleading Guilty to Armed CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Tyrone Collington, Jr., age 27, of Seat Pleasant, Maryland, today to 15 years in prison, followed by three years of supervised release, after Collington pleaded guilty to carjacking. Judge Motz ordered that the sentence be served concurrent with the seven year sentence imposed by U.S. District Court for the Eastern District of Virginia in U.S. v. Collington, Case No. AJT-11-CR-00027, for a carjacking that took place in Fairfax, VirginiaThe sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, on June 22, 2010, Collington approached a driver of a Honda Civic parked in the garage of the Westfield Wheaton Plaza Mall in Wheaton, Maryland. The driver was buckling the driver’s two children into their car seats when Collington pointed a semiautomatic gun at the driver and stated: “If you don’t want to be shot in front of your kids, give me your keys.” The driver complied and Collington drove off, after giving the driver sufficient time to remove the children from the car. Montgomery County Police responded to the scene, but did not locate Collington.
A couple days later on June 24, Collington approached a driver of a BMW convertible in the parking lot at the University Mall in Fairfax, Virginia. Collington pointed the same gun at the driver, racked the slide and demanded the car keys. The driver complied. After a couple minutes of trying to start the BMW and failing, Collington left and drove away with another passenger in the Honda Civic he had previously stolen.
The driver of the BMW pursued Collington. Shortly thereafter, the driver caught the attention of a Virginia State Trooper who joined the chase. Collington and his passenger eventually abandoned the Honda Civic and escaped on foot. A subsequent search of the Honda Civic revealed a cell phone, GPS devices, clothing and a Maryland driver’s license, all belonging to Collington. Montgomery County Police detectives also found latent fingerprints inside the car belonging to Collington.
Collington was arrested on July 1, 2010, at his residence. Officers seized the gun he used in both carjackings from his bedroom closet.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia for their assistance in the prosecution of the case. Mr. Rosenstein also thanked Assistant United States Attorney Kelly O’Connell Hayes and Special Assistant United States Attorney Paul Nitze, who prosecuted the case.
Russell Adler Pleads Guilty to Conspiracy to Violate the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Russell S. Adler, 52, of Ft. Lauderdale, pled guilty today before United States District Judge James I. Cohn to one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. The defendant was a shareholder of the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
Sentencing is scheduled for June 27, 2014 at 9:30 a.m. in Ft. Lauderdale. At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison.
In connection with his guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 31, 2014, by U.S. District Judge Roberto A. Lange.
Waldo Patrick War Bonnett, age 45, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
War Bonnett was indicted for Failure to Register as a Sex Offender by a federal grand jury on January 15, 2014. He pled guilty on February 10, 2014.
Between October 14, 2013, and January 9, 2014, War Bonnett, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration. On January 9, 2014, War Bonnett was apprehended on the Rosebud Sioux Indian Reservation.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
War Bonnett was immediately turned over to the custody of the U.S. Marshals Service.
Rochester Man Pleads Guilty to Drug ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Grimes, 29, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute crack cocaine. The charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both. The defendant, a convicted felon on federal supervised release, also pleaded guilty to violating the terms of his supervision. Under the terms of the plea agreement, Grimes will receive a sentence of 204-235 months in prison.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Grimes was arrested October 2, 2013 after U.S. Probation officers searched his residence at 7 Grace Street in Rochester. During the search, officers seized crack cocaine packaged for street sale, a loaded, Beretta .380 Auto caliber semiautomatic pistol, $220 in U.S. currency, and a digital scale all secreted in a women’s purse. Officers also seized additional drug trafficking paraphernalia, including packaging material in the residence.
The conviction is the culmination of an investigation on the part of the United States Probation Office for the Western District of New York, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for July 9, 2014 at 10:15 a.m. before Judge Siragusa.Rapid City Man Indicted for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Arnold Barton Johnston, age 54, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years and not more than 40 years in custody and/or a $5,000,000 fine, 4 years of supervised release, and $100 to the Federal Crime Victims Fund.
On March 8, 2014, Johnston possessed with the intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Johnston is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation and Meade County Sheriff’s Office. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Johnston was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pine Ridge Woman Sentenced for Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 24, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marlena Jo Pond, a/k/a Mar Pond, age 28, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pond was indicted on two counts of Conspiracy to Distribute Controlled Substances by a federal grand jury on September 24, 2013. She pled guilty to one count on November 20, 2013.
Beginning December 2010 until September 2013, Pond assisted in packaging cocaine, with persons known and unknown, for further distribution in South Dakota. More than 500 grams of cocaine would have been distributed during the course of the conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, which includes the following agencies: Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and the Fall River State’s Attorney’s Office. The U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) also assisted with the investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Pond was immediately turned over to the custody of the U.S. Marshals Service.
Parmalee Man Sentenced for Witness TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Witness Tampering and supervised release revocation was sentenced on March 31, 2014, by U.S. Judge Roberto A. Lange.
Ian James Burning Breast, age 21, was sentenced to 15 years in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Burning Breast was indicted for Witness Tampering by a federal grand jury on May 14, 2013. He pled guilty on January 13, 2014.
On November 12, 2012, Burning Breast was released from prison for a previous crime and began a term of court ordered supervision. He moved home to the Rosebud Sioux Indian Reservation, and did not comply with the terms of his release.
In January 2013, he sexually assaulted a relative. After the relative reported the abuse, Burning Breast was recorded on a phone call improperly pressuring the relative to withhold information from law enforcement investigators.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Parahams Sentenced, Time IncludesRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
Jonathan Parahams, Jr., 28, of South Bend, Indiana was sentenced to 92 months imprisonment, 3 years supervised release and to pay $2,572,350.52 in restitution after pleading guilty to the felony offense of conspiracy to defraud the United States Department of the Treasury.According to documents filed in this case, Parahams was arrested at a local hotel by SBPD on drug and gun charges. During this arrest, officers found a laptop computer in his hotel room.After his arrest, a local bank contacted the DEA with information about unusual activity on bank accounts associated with Parahams, including the withdrawing $450,000.00.A search warrant was procured for Parahams’ laptop and the search uncovered information relating to the tax scheme.
Since at least the beginning of 2009, Parahams and others associated with him, participated in a scheme to defraud by submitting fraudulent U.S. Individual Income Tax Returns, using false or inflated Forms W-2.This scheme resulted in the submission of 226 false tax returns for tax year 2008, 652 false returns for tax year 2009, and 311 false returns for tax year 2010.As a result of these false returns, Parahams and others obtained refunds Internal Revenue Service, via direct deposit, into multiple bank accounts owned by the conspirators or into bank accounts owned by other account holders but controlled by Parahams. Some of these account holders knowingly assisted in disbursing refunds at the direction of Parahams and his fellow conspirators.
Parahams obtained the information to submit false returns in several ways:some clients either sold their information for a fee, others sought out members of the conspiracy to have a tax return prepared, while others were recruited by Parahams. Clients who provided their information for a fee, gave personal identifiers such as their name and social security number in exchange for cash or a prepaid debit card that later came in the mail. Those clients that sought out the conspirators to have legitimate tax return preparation after being told larger refunds could be obtained using the services ofParahams’ associates.These larger refunds wereobtained by using false Form W-2information. Other persons were recruited to file a tax return with Parahams or another conspirator in order to obtain a tax refund even though the client had no intentions or duty to file otherwise.Parahams and his coconspirators recruited clients personally and/or paid others a referral fee for referring clients.
Parahams was incarcerated in St. Joseph County Jail in August of 2010. While incarcerated, Parahams made numerous phone calls to his co-conspirators which were openly recorded by the jail as a normal course of business. These recordings showed that Parahams was still actively involved with the scheme while incarcerated.
Parahams and others started the scheme in 2009 with the submission of false 2008 tax returns. The scheme continued with the submission of 2009 tax returns and then 2010 tax returns. The last tax return identified with the scheme was filed with the Internal Revenue Service in July 2011.
This case was handled by the Office of the U.S. Attorney for the Northern District of Indiana.Frank Schaffer, Assistant U.S. Attorney.This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Department.
Oxycodone Distribution Ring DismantledRead the Press Release
Seven defendants charged in federal court, over 20,000 pills distributed
ALEXANDRIA, Va. – An oxycodone distribution ring operating in northern Virginia has been dismantled as conspirators plead guilty and are sentenced.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement.
According to court documents, members of the conspiracy illegally produced fraudulent prescriptions for 30 mg oxycodone pills using a variety of sources in Fairfax, Loudoun and Prince William County. The conspirators supplied their own identities, and those of family members and others, to the leaders of the conspiracy to create fraudulent prescriptions. The leaders used those identities to create fraudulent prescriptions, and they paid individuals to act as runners to fill the false prescriptions at various pharmacies. Each runner subsequently returned the filled illegal prescriptions, usually containing 60 to 120 oxycodone pills, to the leaders for distribution.
The leaders of the conspiracy typically gave the runners approximately ten to fifteen of the pills as payment, and the conspirators sold the remaining pills for approximately $30 to $45 per pill. The investigation has identified over 20,000 pills distributed through the conspiracy, and about a quarter of the prescriptions were paid for by privately or publicly funded insurance programs.
The following defendants have been charged in this matter:
- Mostaffa Mohamed Al Nimiry, 24, of Alexandria, Va., pleaded guilty on Jan. 22, 2014 to conspiracy to distribute oxycodone, a Schedule II controlled substance. Al Nimiry was sentenced today by U.S. District Judge Gerald Bruce Lee to four years in prison, followed by three years of supervised release.
- Jacqueline Alfaro, 22, of Fairfax, Va., pleaded guilty on January 16, 2014 to conspiracy to distribute oxycodone. Alfaro was sentenced today by U.S. District Judge Anthony J. Trenga to three years in prison, followed by three years of supervised release.
- Jennifer Hagerup, 29, of Great Falls, Va., pleaded guilty today before U.S. District Judge Liam O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on July 11, 2014.
- Christopher Bryant, 25, of Sterling, Va., pleaded guilty today before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on July 11, 2014.
- Olivia Lee, 22, of Herndon, Va., pleaded guilty on Jan. 9, 2014 before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on April 25, 2014.
- Hilina Damte, 25, of Alexandria, Va., pleaded guilty on Feb. 6, 2014 before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on May 2, 2014.
- Matias Garcia, 23, of Sterling, Va., has been charged with conspiracy to distribute oxycodone.
This case was investigated by the FBI’s Washington Field Office, the Loudoun County Sheriff’s Office and the Fairfax County Police Department, with assistance from the Alexandria City Police Department, Prince William County Police Department and Montgomery County Police Department. Special Assistant U.S. Attorneys Beth Groves and Whitney Russell prosecuted the cases on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Oakdale Inmate Sentenced to 96 Months in Prison for Cutting GuardRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Gary T. Butler, 48, an inmate at Oakdale Federal Correction Center, was sentenced by U.S. District Judge Patricia Minaldi to an additional 96 months in prison and three years of supervised release for attacking a correctional officer.
According to the evidence presented at the guilty plea on March 27, 2014, an officer at the Federal Correction Center in Oakdale, La., was collecting food trays on April 24, 2011 in a special housing unit. As the guard reached through an opening in the door to Butler’s unit to retrieve a food tray, Butler made a deep cut in the officer’s left forearm. The wound extended from approximately the officer’s elbow to his wrist, which required internal stitches to the muscle and 23 external staples to mend.
The Federal Bureau of Prisons and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
North Tonawanda Man and Woman Plead Guilty to Identity Theft and Bank Fraud ChargesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that David Johnson, 41, of North Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to aggravated identity theft. The charge carries a mandatory minimum of two years in prison and a fine of $250,000.
In addition, Calvina Myles, 27, also of North Tonawanda, pleaded guilty before Judge Arcara, to bank fraud. That charge carries a maximum sentence of 30 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between September 2012 and March 2013, Johnson and Myles used the names and personal identification information of two individuals to apply for two Capital One credit cards in those names. The defendants, and a third co-conspirator, Avery Gill, purchased merchandise and gift cards from retail stores using the credit cards. Johnson also accompanied Gill who made ATM withdrawals using the credit card. As a result of this conduct, Capital One suffered a loss of $29,429.16.
Charges are pending again defendant Gill. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the culmination of an investigation on the part of the U.S. Postal Inspection Service, Boston Division, currently under the direction of Acting Inspector in Charge, Shelly A. Binkowski.
Myles’ sentencing is scheduled for July 17 at 1:00 p.m. before Judge Arcara. Johnson will be sentenced on August 4, 2014, at 1:00 p.m., also before Judge Arcara.North Tonawanda Man Pleads Guilty to Criminal Charge Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Brian Scott, 33, of North Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to being an accessory after the fact to a false statement under the Clean Air Act. The charge carries a maximum penalty of one year in prison, a fine of $125,000 or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo. During the abatement process, co-defendant Rai Johnson created daily project logs to document the progress at Kensington Towers. The logs are documents required to be maintained under the Clean Air Act.
During the abatement for building A-1 by Johnson Contracting, Rai Johnson wrote in his daily project log that all floor tiles containing asbestos had been removed from the building, when in truth, all asbestos floor tiles had not been removed. Thereafter, on July 7, 2009, the defendant conducted a visual inspection of building A-1 for floor tile and issued a satisfactory visual inspection, when in truth, the defendant was aware that all asbestos-containing floor tiles had not been removed. In doing so, the defendant acted as an accessory after the fact to the false statement made by the Johnson defendants.
This is the third defendant to plead guilty as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other charged defendants include JMD project monitors Chris Coseglia, Henry Hawkins and Evan Harnden, and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are scheduled to go on trial May 13, 2014 before U.S. District Court Judge Richard J. Arcara. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencing is scheduled for August 8, 2014, 2014 at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation, Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, Bureau of Environmental Crimes Investigation, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.North Carolina Paving Contractor Sentenced to Prison for Tax and Bank FraudRead the Press Release
Tommy Edward Clack was sentenced today to serve 66 months in federal prison for tax and fraud crimes by U.S. District Judge Thomas D. Schroeder in Winston-Salem, N.C., the Justice Department and Internal Revenue Service (IRS) announced. Clack was also ordered to pay $1,350,597 in restitution to the IRS and $20,945 in restitution to a bank he defrauded, and to serve five years of supervised release. Clack previously pleaded guilty to one count of willfully filing a false federal income tax return for 2007 and one count of knowingly making a false statement to a federally insured bank in order to obtain a mortgage loan.
According to court documents, for approximately the past 10 years, Clack has been a traveling, self-employed paving contractor doing business in North Carolina, South Carolina, Maryland and Florida. Clack operated under several different business names and changed the names frequently in order to avoid scrutiny by state and federal law enforcement agencies. Over the years, Clack was charged with and convicted of multiple state criminal violations in Maryland, North Carolina, South Carolina and Florida as a result of his business practices. Since June 2010, Clack has been under an injunction banning him from operating as a driveway paving contractor in North Carolina. He is also subject to a cease-and-desist order in Maryland that bans him from various fraudulent practices.
According to court documents, Clack significantly underreported the income from his paving business on his tax returns. From 2004 to 2007, Clack earned gross income of over $5.7 million, but reported only a fraction of it to the IRS. In 2004, Clack underreported his income by approximately $294,829. In 2005, he underreported his income by approximately $1,178,822. In 2006, Clack underreported his income by approximately $1,868,556. And in 2007, Clack underreported his income by $2,428,710. Clack’s returns were prepared by a professional accountant, but Clack knowingly provided her with false information on which to base his returns, and he signed his returns knowing that they significantly understated his income. Altogether, as a result of these false returns Clack underpaid his taxes by $1,350,597 for the 2004 through 2007 tax years.
According to court documents, Clack employed a number of strategies to conceal his tax fraud. In addition to constantly changing the name of his paving company, Clack did not maintain books and records. He also dealt extensively in cash, paid his employees in cash, and structured currency transactions with his bank in amounts designed to evade the bank’s requirement to file Currency Transaction Reports with the U.S. Treasury.
Court documents also state that in December 2003, Clack submitted a mortgage loan application in the name of his then-wife to a bank in Greensboro, N.C. The application sought a $640,000 loan as financing for the purchase of a $1.2 million home. As part of the loan application, Clack provided the bank with a tax return in his wife’s name for the year 2002 that claimed married filing separate status, reported adjusted gross income of $372,748 and claimed total tax liability of $127,745. Clack claimed that this tax return had been filed with the IRS, when in fact Clack and his then-wife had filed a joint federal income tax return for 2002 that claimed that the couple had adjusted gross income of $17,656 and a total tax liability of $2,685. The bank would not have approved the loan if they knew about the discrepancy. Clack ultimately defaulted on the loan and the bank suffered a loss after foreclosing on the collateral.
The case was investigated by the IRS-Criminal Investigation, with assistance from the North Carolina State Bureau of Investigation. It was prosecuted by Trial Attorney Jonathan Marx of the Tax Division with assistance from the U.S. Attorney’s Office for the Middle District of North Carolina.
National Crime Victims’ Rights Week 2014 30 Years: Restoring the Balance of Justice the United States Attorney’s Office Participates in Candlelight Tribute for Crime SurvivorsRead the Press Release
San Diego, CA - April 6-12, 2014 is National Crime Victims’ Rights Week – a time for law enforcement, prosecutorial agencies, victim advocates and community members to come together and support victims of crime.
Enforcing victim’s rights protects victims, enhances public safety and fosters public confidence in our criminal justice system. Agencies that partake in this Tribute and those who attend will acknowledge and honor crime victims nationwide.
The Victim Assistance Coordinating Council (VACC) and the United States Attorney’s Office in San Diego, CA invite you to attend the 25th annual Candlelight Tribute for Crime Survivors on Monday, April 7, 2014 at 5:30 p.m.
The Tribute will be held at the San Diego Police Officers’ Association Hall, 8388 Vickers St., San Diego, CA 92111. The keynote speaker will be San Diego County District Attorney Bonnie M. Dumanis.
The Tribute is a time to memorialize victims and to hear inspirational words from local law enforcement agencies, victim advocates and personal stories from the victims themselves.
The Tribute is sponsored by the Victim Assistance Coordinating Council (VACC). VACC is comprised of the following agencies: Alliance for Community Empowerment, the Crime and Trauma Recovery Program, the District Attorney’s Victim Assistance Program, the Drug Enforcement Administration (DEA) Victim Witness Program, the Federal Bureau of Investigation (FBI) Victim Assistance Program, First Avenue Counseling Centre, the Jenna Druck Center, Mothers Against Drunk Driving (MADD), San Diego Police Department Crisis Intervention, San Diego County Sherriff’s Department, the San Diego Police Officers Association, San Diego Slide Shows, Therapy Changes, the United States Attorney’s Office Victim/ Witness Program, the U.S. Postal Inspection Service, and other victim advocates.
By providing a single, uniform message from these agencies and service providers, we can help increase awareness and improve the assistance provided to all crime victims.
To receive further information about National Crime Victims’ Rights Week, and ideas on how to serve victims in your community please visit www.ovc.gov or www.sdvacc.com or the U.S. Attorney's Office Southern District of California webpage.
Mission Man Charged with Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Illegal Reentry after Deportation.
Socorro Rigoberto Ortiz-Beltran, a/k/a Rigoberto Ortiz, a/k/a Rigo Ortiz, age 45, was indicted on March 11, 2014. He appeared before Mark A. Moreno on March 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 19, 2013, Ortiz-Beltran, having been previously deported from the United States on or about December 3, 2008, at Hidalgo, Texas, was found in the United States and had not obtained the consent of the Secretary of the U.S. Department of Homeland Security and the Attorney General of the United States.
The charge is merely an accusation and Ortiz-Beltran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Immigration and Customs Enforcement. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ortiz-Beltran was remanded to the custody of the U.S. Marshals Service pending trial which has been set for May 13, 2014.