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Tuesday 18 February 2014
Huntington Men Sent to Federal Prison for Trafficking Detroit HeroinRead the Press Release
Huntington, W.Va. – Zachary Merritt and Keith Wood were sentenced to 11 years and six months and four years and two months imprisonment, respectively, for their roles in a heroin distribution ring, United States Attorney Booth Goodwin announced today. Merritt and Wood had previously pleaded guilty to distribution of heroin in November of 2013.
Merritt admitted that between September of 2012 and June of 2013 he sent heroin from Detroit, Michigan to Huntington, West Virginia to be sold by others. Drug dealers deposited money from the heroin sales in Merritt’s account at Chase Bank in Huntington. Merritt withdrew the money from a Chase Bank branch in Detroit. A total of $38,250 in deposits were identified as drug money. Merritt also received at least $7,000 in drug money delivered by courier from Huntington to Detroit.
On November 18, 2012, Merritt also provided heroin to Lindsey Thacker, who, along with Wood and others, trafficked heroin from Detroit to Huntington. Thacker and Wood provided housing to a drug dealer also engaged in the heroin trafficking. In return, Thacker and Wood received heroin for personal use.
In June of 2013, two homes in Detroit owned by Merritt were searched. Agents located 2 packages of what was later determined to be a cutting agent for heroin, along with other items consistent with drug trafficking, and a loaded Glock handgun.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Humane Society of the United States Give Five Law Enforcement Officials an AwardRead the Press Release
Montgomery, Alabama - The Humane Society of the United States is presenting its 2014 Humane Law Enforcement Awards to law enforcement in the Middle District of Alabama who are responsible for taking down the second largest dog fighting organization in the country. Two FBI Agents; one Auburn Police Detective; Keith Baker, a former FBI agent; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Clark Morris, Assistant U.S. Attorney for the Middle District of Alabama all received this award.
On Friday, August 23, 2013, agents executed 13 search warrants, 11 in Alabama and two in Georgia. Agents have seized approximately 458 pit bull terriers, guns, illegal narcotics, drugs used to treat and train dogs, and other evidence indicative of dog fighting. During the course of this investigation, agents have further seized over $500,000 from dog fighters involved in this organization. As a result of this investigation 14 people were indicted and are awaiting trial scheduled for May 8, 2014.
While only the lead agents and prosecutors received this award, the success of this investigation is a result multiple law enforcement agencies including the Alabama Alcoholic Beverage Control Board; the Coffee County Sheriff’s Office; Alabama State Troopers; the Lee County District Attorney’s Office; the Alabama Department of Public Safety; Bainbridge, Georgia Department of Public Safety; the United States Marshal’s Service; the Lee County Sheriff’s Office; the Houston County Sheriff’s Office; the Opelika Police Department; the Georgia Highway Patrol; the Georgia Bureau of Investigation; the Mississippi Bureau of Investigation; the Pensacola, Florida and Columbus, Georgia offices of the Drug Enforcement Administration; and Taylor Crossing Animal Hospital.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hobbs Man Sentenced to Ninety-Six Months in Federal Prison for Methampethamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Curtis Lee Alemany, 28, of Hobbs, N.M., was sentenced this morning to 96 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Commander Mike Wilson of the Lea County Drug Task Force (LCDTF).
Alemany was arrested on July 17, 2013, on a criminal complaint alleging federal methamphetamine trafficking and firearms charges. He has been in federal custody since that time. According to the criminal complaint, on June 5, 2013, officers of the LCDTF executed a state search warrant at Alemany’s residence in Hobbs. In the master bedroom of the residence, the officers seized a plastic bag containing approximately 66 grams of methamphetamine which was concealed in a “Comet” brand scrubbing cleanser can. The officers also seized two semi-automatic handguns that contained chambered rounds and loaded magazines, digital weight scales and $12,265 in cash concealed in a “Crown Royal” bag.
On Sept. 5, 2013, Alemany entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Alemany admitted that when the officers executed a search warrant at his residence on June 5, 2013, they found methamphetamine and two handguns concealed in a hollowed out space in the wall of the master bedroom. Alemany further admitted that he intended to sell the methamphetamine found in his residence.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Fresno Man Sentenced to 8 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Albert Hood, 49, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to eight years in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
Hood was found guilty by a jury on October 17, 2013. At trial, the government introduced evidence that on December 4, 2011, a Fresno police officer stopped Hood after seeing him commit a traffic violation. Hood ran from the officer, and the officer saw and heard the defendant drop an object that turned out to be a loaded Ruger, Model Vaquero, .44-caliber revolver. According to court documents, Hood has felony convictions for vehicle theft, felony domestic violence, and assault with a deadly weapon not a firearm and felon in possession of a firearm.
“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “ATF and our partners will not surrender to those criminals who are a threat to our communities and possess a firearm unlawfully.”
Fresno Police Chief Jerry Dyer stated: “This is yet another example of the strong partnership between the Fresno Police Department and the US Attorney's office toward prosecuting armed felons and removing firearms from the streets of Fresno.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department under the Project Safe Neighborhoods initiative bringing together local and federal law enforcement agencies to combat gun violence. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.
Four Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
On February 4, 2014, Gregory A. Emery, 47, Murphysboro, and Brandon K. Craig, 31, Tasha L. Craig, 30, and Rachel L. Simmerman, 41, all of Carbondale, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. The four co-defendants made their initial appearances in federal court on February 10, 2014. At February 14, 2014, detention hearings, Emery, Brandon Craig, and Tasha Craig were ordered held without bond pending an April 21, 2014, jury trial.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, the Murphysboro Police Department, the Carbondale Police Department, the Illinois State Police/Southern Illinois Drug Task Force, and the Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Former Virginia Subcontractor Pleads Guilty to BriberyRead the Press Release
Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to paying bribes to public officials.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS), Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.
Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials. Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014.
According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va., to provide support to the Military Sealift Command (MSC) on various telecommunications projects. Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation. From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes. During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company.
According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman. The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner. In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.
On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.
This case was investigated by Special Agents of the FBI, the Naval Criminal Investigative Service, and the Defense Criminal Investigative Service. Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie are prosecuting the case.Former Puerto Rico Correctional Officer Sentenced <br /> for Scheme to Smuggle Heroin into State PrisonRead the Press Release
A former correctional officer at the Puerto Rico Department of Corrections was sentenced to serve 37 months in prison for attempting to smuggle heroin into the prison where he worked, Bayamón State Penitentiary, in exchange for a $3,000 payment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.
Luis Lebron-Lebron, 38, of Maunabo, Puerto Rico, pleaded guilty on Oct. 29, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance. Lebron-Lebron was sentenced by U.S. District Judge José A. Fusté .
On Sept. 9 and 10, 2010, Lebron agreed to introduce 1/8 of a kilogram of heroin to an inmate at the Bayamón State Penitentiary, where Lebron worked as a correctional officer. Lebron was paid $3,000 to make that delivery. On Sept. 10, 2010, Lebron met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be 1/8 of a kilogram of heroin. He delivered the purported heroin to an inmate in the prison that same day.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico.Former Chief Executive Officer of Oil Services Company <br /> Pleads Guilty to Foreign Bribery ChargesRead the Press Release
The former chief executive officer of PetroTiger Ltd., a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey, pleaded guilty today for his role in a scheme to pay bribes to foreign government officials and to defraud PetroTiger.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.
Knut Hammarskjold, 42, of Greenville, S.C., the former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Josephy E. Irenas in Camden, N.J., to an information charging one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud and is scheduled for sentencing on May 16, 2014. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants allegedly first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of several of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013. Hammarskjold was arrested on Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold and Weisman were unsealed on Jan. 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost.
As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, and the Republic of Panama for their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Former Chesapeake, Virginia Subcontractor Pleads Guilty to BriberyRead the Press Release
NORFOLK, Va. – Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to charges of paying bribes to public officials.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS); Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Douglas E. Miller.
Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials. Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014.
According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va. to provide support to the Military Sealift Command (MSC) on various telecommunications projects. Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation. From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes. During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company.
According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman. The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner. In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.
On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.
This case was investigated by Special Agents of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the FBI Norfolk Field Office. Assistant United States Attorney Stephen W. Haynie and Trial Attorney Emily Rae Woods, of the Criminal Division’s Public Integrity Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Ceo of Oil Services Company Pleads Guilty to Foreign Bribery ChargesRead the Press Release
CAMDEN, N.J. - A former chief executive officer of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – today admitted his role in a scheme to pay bribes to foreign government officials and defraud PetroTiger.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division, made the announcement.Knut Hammarskjold, 42, of Greenville, S.C., a former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami, Fla., and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013. Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold, and Weisman were unsealed on January 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing for Hammarskjold is scheduled for May 16, 2014.
As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
14-049
Defense counsel:
Hammarskjold: Kevin G. Walsh Esq., Newark
Sigelman: Andrew C. Lourie Esq., Washington, D.C., and William A. Burck Esq., Washington, D.C.Gregory Weisman: Michael A. Schwartz Esq., Philadelphia, Pa.
Hammarskjold, Knut Information
Former Alton Resident Pleads Guilty to Aiding and Abetting an Armed RobberyRead the Press Release
Case is one of many brought as a result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
A former Alton, Illinois, resident pled guilty in federal court on February 18, 2014, to a charge that she and her co-defendant, Ramone C. Cunningham, aided and abetted each other in the commission of an Armed Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Armed Robbery count is a federal “Hobbs Act Robbery.” “The Hobbs Act is just one of the federal tools I will use to keep the citizens of Southern Illinois safe.” said United States Attorney Wigginton. “As I noted when I rolled this initiative out, the Hobbs Act is a tough law which results in a tough sentence. I urge people to think before they risk their freedom for a few dollars.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois.
Taylor C. Harkey, 28, faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years at her sentencing. Sentencing is scheduled for May 30, 2014, in East St. Louis, Illinois.
According to facts revealed in court, the offense occurred on July 18, 2013, when Harkey and Cunningham were at her residence in Alton discussing ways in which to get “quick money.” At Cunningham’s suggestion, Harkey and Cunningham devised a plan to rob a cab driver. Harkey used another individual’s cellular telephone to call Comfort Cab to have a cab sent to a vacant residence in Alton. The two parked in an alley near the vacant house. Prior to committing the robbery, Cunningham provided Harkey with a small black Co2, .177 caliber BB gun that looked like a real gun.
Harkey got out of the car and approached the cab that was already at the residence. The cab driver, having noticed that the residence was vacant, notified his dispatcher who told him to wait while they tried to contact the original caller. While waiting for the dispatcher to call back, Harkey reached through the open rear driver’s side window and pointed the gun at the cab driver’s head, stating “Give me your money or I’ll blow your brains out.” Harkey also reached inside the cab and grabbed the cab driver’s company cellular telephone. The driver threw $36.00, consisting of cab fares, out of the window. As Harkey bent down to pick up the money, the cab driver drove away. He was able to contact Comfort Cab to report that he had just been robbed. Comfort Cab subsequently called the Alton Police Department. Using the original number that was used to call the cab, the officers were able to identify Harkey as a suspect. Both Harkey and Cunningham were subsequently arrested a short time later at Harkey’s residence. The BB gun given to Harkey to use during the robbery was recovered from under the mattress of one of her children’s bed. Both Cunningham and Harkey provided voluntary, videotaped statements to Alton police officers in which they both admitted their role in the robbery of the Comfort Cab driver.
The case was investigated by the Alton, Illinois, Police Department. The case is assigned to Assistant United States Attorney Angela Scott.
Falcon Drilling CEO Conspired to Embezzle $9M from CompanyRead the Press Release
PITTSBURGH – An Indiana, Pa., resident pleaded guilty in federal court to charges of conspiracy to commit mail fraud and forge checks, as well as charges of mail fraud and tax fraud, United States Attorney David J. Hickton announced today.
Larry Dean Winckler, 53, pleaded guilty to seven counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. The government represented to the court that Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors.
Judge McVerry scheduled sentencing for May 30, 2013, at 9:30 a.m. The law provides for a total sentence of 74 years in prison, a fine of $1,300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Winckler.
Elyria Man Convicted of Human Trafficking, Drug CrimesRead the Press Release
An Elyria man was convicted of human trafficking, drug crimes and obstruction of justice after forcing four females, including a 16-year-old girl, to have sex for money, law enforcement officials said.
Jeremy Mack, 38, of Elyria, was found guilty by a jury on all nine counts following a weeklong trial. U.S. District Court Judge Sara Lioi scheduled sentencing for May 29.
“With today's verdict, Jeremy Mack's time roaming our community and preying on the most vulnerable will finally come to an end,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“The FBI is pleased with the guilty verdict for the despicable acts committed by Jeremy Mack.,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Thankfully, Mr. Mack will not be able to prey on and victimize children from where he is -- behind bars.”
“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.
Ashley Onysko, 24, of Avon Lake, previously pleaded guilty to charges related to her role in the conspiracy.
Between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin or cocaine to four females and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs of the females on backpage.com on a user account that Mack and Onysko created, according to the indictment.
In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.
From March through April 9, 2013, Mack brandished a firearm in front of three of the females. He choked and threatened to kill one of the female victims, according to the indictment.
Count 1 charged Mack with conspiring with Onysko to force the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion
Counts 2 through 5 charged Mack with forcing each of the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion.
Count 6 and 7 charged Mack with distribution of heroin and cocaine, respectively.
Count 8 and 9 charged Mack with obstruction of justice. Count 8 charged Mack with advising his son, identified only as T.L., to “stick with the script” when testifying before the Federal Grand Jury. Count 9 charged Mack with providing money to Onysko in May 2013 to purchase personal items for Victim 4 and to advise the victim not to “flip”. He also told the victim not to speak with FBI agents attempting to contact her and advising her not to make incriminating statements against Mack, according to the indictment.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
Elkville Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
On February 13, 2014, Kenneth R. Tyner, 53, Elkville, Illinois, pled guilty to conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, between August 2011, and April 2012, Tyner was involved with others in the manufacture of methamphetamine in Alexander, Union, and Pulaski Counties. Tyner obtained and provided pseudoephedrine to others to use in the manufacture of methamphetamine. Tyner is currently being held without bond pending a May 16, 2014, sentencing date. The methamphetamine offense carries a penalty of up to 20 years in prison, followed by 3 years of supervised release, and up to a $1,000,000 fine.
The investigation was conducted by the Illinois State Police/Southern Illinois Drug Task Force. The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Crawford County Man Arrested on Federal Firearm ChargeRead the Press Release
WICHITA, KAN. - A man from Crawford County, Kan., was arrested Tuesday on federal firearm charges, U.S. Attorney Barry Grissom said.
James D. Russian, 56, Pittsburg, Kan., is charged in U.S. District Court in Wichita with one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Nov. 27, 2013, in Crawford County.
The indictment alleges Russian unlawfully possessed a 9 mm handgun, 82 rounds of 9 mm ammunition and eighteen 20 gauge shotgun cartridges.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge involving the handgun and a maximum penalty of five years and a fine up to $250,000 on the charge with the ammunition. The Crawford County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Couple Sentenced in Idaho Federal Court for Trafficking MethRead the Press Release
Defendants Admit Transporting More Than 50 Pounds of Meth from California to Minnesota
POCATELLO – Sergio Javier Varela-Vallecillo, 30, and his wife, Felicia Inez Varela, 29, of Navasota, Texas, were sentenced today in United States District Court for possession with intent to distribute more than 500 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendants appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
Varela-Vallecillo, a Honduran national, was sentenced to 70 months in prison; he will be deported following his release. Felicia Varela was sentenced to 30 months in prison followed by four years of supervised release. The defendants pleaded guilty to the one-count indictment on November 26, 2013. The government is seeking forfeiture of assets derived from the offense conduct.
According to plea agreements filed in the case, on March 9, 2013, the defendants were stopped by an Idaho State Police trooper while traveling in a U-Haul truck on U.S. Highway 20 in Idaho Falls. In the back of the truck, officers found approximately 50 pounds of methamphetamine and a large quantity of cocaine. The defendants admitted they knew the substance they were transporting was methamphetamine and they were transporting it from California to Minnesota with the intention of delivering it to another individual in Minnesota.
The case was investigated by Idaho State Police, the Federal Bureau of Investigation (FBI), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Corpus Christi Doctor Convicted in Connection with Fraudulent Health Care Billing SchemeRead the Press Release
CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 49, of Robstown, has entered a plea of guilty to mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
Ramirez, a licensed physician in Texas since 1997 and owner of Health Resolutions Inc., was indicted by a federal grand jury on Oct. 9, 2013, for a scheme to defraud Medicare and Medicaid through fraudulent billings. He was set for trial this morning, but opted to enter a guilty plea to one count of mail fraud for using the United States Postal Service (USPS) for the purpose executing his scheme. His medical office in Corpus Christi is now closed.
Ramirez admitted he knowingly and willfully engaged in a scheme to defraud Medicare and Texas Medicaid and submitted false and fraudulent billings for medical services he did not provide. He also admitted he committed mail fraud by using USPS to receive payment on the fraudulent bills.
Court documents indicated that Ramirez knowingly and willfully engaged in the scheme from May 2008 through December 2011 by submitting fraudulent billings for physician services he did not provide. Thousands of false and fraudulent bills were submitted, according to the charges. Ramirez billed for medical services he claimed he personally provided to patients who had actually died prior to the dates of his claimed services. He also submitted bills claiming he personally provided services to patients at his clinic when he was actually overseas or in another state. Some of the bills also indicated he would have personally worked more than 24 hours in a single day. Court documents also alleged that when he provided medical services to Medicare and Medicaid patients in nursing homes, he would send fraudulent bills claiming he had seen the patients in private residences in order to collect the higher fees paid for house calls.
Senior U.S. District Judge Hayden Head, who accepted the guilty plea, has set sentencing for May 15, 2014, at which time Ramirez faces up to 20 years in federal prison and a $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI, U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Rex G. Beasley are prosecuting.
Cheektowaga Man Sentenced for Enticement of a MinorRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Salvatore Tantillo, II, 32, of Cheektowaga, N.Y., who was convicted of enticement of a minor to engage in sexual activity, was sentenced to 10 years in prison and five years of supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that the defendant met a 16 year old over the internet. Tantillo misrepresented his age to the victim, advising her that he was 18 years old. After communicating with the victim over the internet for a few months, the defendant met the girl in person for the purpose of engaging in sexual activity. It is a violation of New York State Penal Law, for a person who is 21 years or older to engage in sexual intercourse with a person less than 16 years old.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of a joint investigation on the part of Special Agents of the Federal Bureau of Investigation, members of the Cheektowaga Police Department under the direction of Chief David Zack, and Lancaster Police Department, under the direction of Chief Gerald Gill.Cass County Resident Sentenced to 60 Months in Prison for Conspiracy to Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Azucena Carmen Cordero, a 35 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison followed by four years of supervised release for conspiracy to distribute methamphetamine from July of 2012 until January 21, 2013, announced United States Attorney Nicholas A. Klinefeldt.
Cordero pled guilty on October 15, 2013, to the charge, which was the result of an investigation conducted into methamphetamine distribution in and around the Atlantic, Iowa area. Cordero obtained methamphetamine from a source in South Omaha, Nebraska, distributing it in Atlantic, Iowa, and to a person in Polk City, Iowa. Co-defendant Paul Jessen was previously sentenced to 122 months by Judge Rose.
The investigation was conducted by the Cass County Sheriff’s Office, the Atlantic, Iowa, Police Department and the Iowa Division of Narcotic Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Carbondale Man Pleads Guilty to Heroin OffenseRead the Press Release
On February 14, 2014, Michael Burns, 45, of Carbondale, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, between August 2012, and August 23, 2013, Burns was involved with others in the distribution of heroin in Carbondale, Jackson County. On multiple occasions between November 2012 and August 2013, Burns sold heroin to confidential sources working for law enforcement. When agents executed a search warrant at Burns’ Carbondale residence, they located heroin, cannabis, drug packaging materials, and a large amount of United States currency. At his plea hearing, Burns admitted that he was responsible for the distribution of more than one kilogram of heroin and 200-300 grams of cocaine. Burns is currently being held without bond pending a May 22, 2014, sentencing hearing. The heroin offense carries a penalty of up to 20 years in prison, 3 years of supervised release, and up to a $1,000,000 fine.
The investigation was conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Illinois State Police Tactical Response Team also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Burlington County Woman Sentenced to Three Years in Prison for Defrauding Retailers of $500,000 Through Debit Card SchemeRead the Press Release
NEWARK, N.J. - A Burlington County, N.J., woman who used a debit card fraud scheme to steal more than $500,000 from clothing retailers was sentenced today to 36 months in prison, U.S. Attorney Paul J. Fishman announced.
Temeshia McDonald, 29, of Mount Holly, N.J., previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of access device fraud. As part of the sentence, McDonald was ordered to pay $557,690.18 in restitution to the retailers victimized by her fraud, including Victoria’s Secret, Banana Republic, Wet Seal, and BCBG. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
McDonald took advantage of a particular type of debit card transaction known as a “forced sale,” which is used from time to time in regular business dealings and is described briefly below.
Ordinarily, when a merchant swipes a credit or debit card, a computerized check is performed to determine whether the account associated with the card is valid. If the account is open and funds are available, the transaction goes through; if the account is closed or funds are unavailable, the transaction is denied. If the transaction is denied, a merchant has two choices: ask the customer for another card, or perform a “forced sale” using the declined card. During a typical forced sale, the merchant calls the card issuer (i.e., the customer’s bank or credit card company) and receives an authorization code. The merchant types the code into the credit card terminal and “forces” the transaction, essentially overriding the denial and allowing the sale to go through. At some later date, the merchant and the card issuer settle the outstanding charge.
But for technical reasons relating to the forced sale process, it does not actually matter what code the merchant types into the terminal. Any combination of digits will override the denial. So long as the customer provides a fake authorization code and convinces the merchant to enter it into the terminal, the transaction will go through. The merchant is unlikely to discover the fraud until days or weeks later.
From April 2011 to September 2012, Defendant McDonald convinced retail merchants to “force” more than 500 transactions on her behalf, totaling more than $800,000 in attempted credit card purchases. Defendant McDonald used this “forced sale” scheme to obtain gift cards, clothes, and accessories from a variety of retail stores, including Victoria’s Secret, Wet Seal, Banana Republic, and BCBG, in New Jersey and other states.
In McDonald’s case, when the cashier finished ringing up McDonald’s goods, McDonald would provide an expired or counterfeit card. The transaction would be denied. McDonald would then pretend to call the card issuer and/or claim to possess an “authorization code” that would allow the purchase to go through. The cashier would then enter the code, thereby forcing the sale and permitting the purchase. Only later, when the merchant and the credit card company attempted to settle the charge, would the retail store realize that McDonald had provided a fake code.
In addition to the prison term, Judge Wigenton sentenced McDonald to three years of supervised release and ordered her to pay restitution of $557,690.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Bruck and Special Assistant U.S. Attorney Thomas Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
14-048Defense counsel: Lorraine Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
McDonald, Temeshia Complaint
McDonald, Temeshia InformationBoothbay Harbor Man Sentenced to over Five Years in Prison for Transporting Stolen Vehicle and Violating Release ConditionsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Ronald
Fuller, 63, of Boothbay Harbor, was sentenced today in United States District Court by Judge
George Z. Singal to a total of 5 years and 4 months imprisonment, consisting of 16 months
imprisonment for transporting a stolen vehicle in interstate commerce and an additional 4 years
imprisonment for violating conditions of supervised release. Fuller pleaded guilty to the stolen
vehicle offense on November 8, 2013, and also admitted on that date that he had violated the
conditions of his federal supervised release.According to court documents, in April of 2013, Fuller, a suspect in numerous unsolved
burglaries in Boothbay Harbor and Wiscasset, stole a 1971 Chevrolet Malibu from Woolwich.
He drove the stolen car from Maine to Missouri, where he was found and arrested. Court records
show that at the time he committed this new offense, he was on federal supervised release
following a 1998 conviction for possession of a firearm and ammunition by a convicted felon.The investigation was conducted by the Sagadahoc County Sheriff’s Department, the St.
Francois County (Missouri) Sheriff’s Department, and the Federal Bureau of Investigation.Boise Man Sentenced in Illegal Gambling CaseRead the Press Release
BOISE – Skinner “Skip” Anderson, II, 57, of Boise, Idaho, was sentenced today for misprision of a felony, U.S. Attorney Wendy J. Olson announced. Anderson appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. Judge Winmill sentenced Anderson to a one year term of probation, fined him $2500, and ordered him to complete 120 hours of community service.
Anderson pleaded guilty on December 9, 2013, to a one-count information. He admitted to having knowledge of the illegal gambling operation owned by Kings Santy that was being run out of a house he owns located at 6655 W. Victory Road in Boise. Anderson further admitted to taking steps to conceal the illegal gambling operation and not reporting it to the proper authorities. The property on Victory Road was also used as a clubhouse for the Red Warriors Motorcycle Club, which is affiliated with the Hells Angels Motorcycle Club. Anderson previously served as the treasurer for the Red Warriors. Because of Anderson’s involvement with Outlaw Motorcycle Gangs, Judge Winmill ordered as a condition of probation that he not have any contact with documented gang members or gang paraphernalia.
In a related case, Kings Santy pleaded guilty on February 3, 2014, to operating an illegal gambling business. Santy faces up to five years in prison, a maximum fine of $250,000, and not more than three years of supervised release. Sentencing for Santy is set for April 21, 2014, before U.S. District Judge Edward J. Lodge.
In a separate civil proceeding, the United States is seeking forfeiture of the residence where the illegal gambling operation occurred.
This case was investigated by the Treasure Valley Metro Violent Crime Task Force. The task force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction. The Metro Task Force was assisted by Internal Revenue Service-Criminal Investigation.
Bakersfield Drug Dealer Pleads Guilty to Conspiring to Distribute Methamphetamine, Heroin and CocaineRead the Press Release
FRESNO, Calif. —Miguel Sanchez-Mendoza (Sanchez), 46, of Mexico, pleaded guilty today to conspiring to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sanchez and co-defendant Gamaliel Salas-Mendoza, aka Rene Salas Mendoza (Salas), 38, also of Mexico, maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, a half-pound of heroin, all packaged for sale. In addition to the drugs, officers found digital scales, cutting agents, a kilogram press, and $9,483 in cash.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Salas has requested a jury trial, which is currently set for July 8. The charges against Salas are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sanchez is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on April 28, 2014. Sanchez faces 10 years to life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. In addition, both men are subject to deportation following the completion of any prison term imposed.
Alabama Woman Sentenced in Kidnapping CaseRead the Press Release
Jackson, Miss. – Jessie Mae Brown Pollard, of Northport, Alabama, was sentenced today in U.S. District Court to serve a total of 25 years in federal prison followed by two years of supervised release for conspiracy to commit kidnapping, kidnapping, and obstruction of justice, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. She was also ordered to pay restitution in the amount of $1,400. A jury found Pollard guilty of the charges after a November, 2013 trial before U.S. District Judge William Barbour, Jr. in Jackson.
The proof at trial showed that Pollard decided to kidnap Jashayla Hopson from East Kemper Elementary School so she contacted Wanda Faye Dancy, a secretary at East Kemper Elementary School, who agreed to assist with the kidnapping. On April 30, 2013, Pollard and co-defendant Shamarious Ruffin traveled to East Kemper Elementary School in a car rented by Pollard. Pollard called Wanda Faye Dancy to determine the location of Jashayla Hopson within the school building. Dancy said Jashayla was in the library and described the clothing she was wearing. Pollard told Ruffin to go into the library to get Hopson and to tell the librarian that “Miss Wanda said it was alright”. Ruffin went into the school library, gave the librarian Dancy’s message, and took Jashayla Hopson. Ruffin returned to the car with the child.
Thereafter, Jessie Mae Brown Pollard drove to Bessemer, Alabama, with Shamarious Ruffin and Jashayla Hopson where they checked into a hotel. Later, Pollard went to a store in Bessemer and purchased a cell phone. She activated the phone and sent the following text message to Jashayla’s mother: “don’t call the police I will call you later if you call the police u won’t see her again.”
Meanwhile, Jessie Mae Brown Pollard’s son, Devonta Pollard, drove to Boligee, Alabama, picked up Shaquayla Johnigan, and took her to meet Jessie Mae Brown Pollard. Jessie Mae Brown Pollard then gave the child, Jashayla Hopson, to Johnigan, who took the rental car and traveled to Laurel, Mississippi where she checked into a hotel room. Later, Jessie Mae Brown Pollard called Shaquayla Johnigan and told her to send a text message to Jashayla’s mother from the cell phone, which was still in the rental car, stating “since you called police, I want $50,000 by 3 p.m., I will tell you location later.”
Shaquayla Johnigan then met Joyce Johnigan in Vossburg, Mississippi. Together, they drove Jashayla Hopson to a remote location near Enterprise, Mississippi and dropped her off near an unknown residence telling her that “her mom was in the trailer and to run up to it”.
Jessie Mae Pollard called Shaquayla Johnigan and told her to take the rental car to the USM campus and leave it, but instead she and Joyce Johnigan drove it into a ditch and threw the keys into a pond. Shaquayla Johnigan gave the black gym back containing the broken cell phone and other evidence to James Shurman Johnigan and told him to “get rid of it”. She also threw the key to the Laurel hotel room in the garbage. James Shurman Johnigan burned the black gym bag containing the broken Samsung phone.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Cirminal Division John Dowdy and Assistant U.S. Attorney Jerry Rushing.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.
Adair County Resident Sentenced to 120 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Jason Shane Steckelberg, a 49 year-old resident of Fontanelle, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 120 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine on April 3, 2013, announced United States Attorney Nicholas A. Klinefeldt.
Steckelberg obtained methamphetamine from a source in South Omaha, Nebraska, and transported it back to Adair County for redistribution. On April 3, 2013, Steckelberg was stopped by law enforcemen,t and over 125 grams of pure methamphetamine was located in his car along with cash and other items that are indicative of drug trafficking. Steckelberg pled guilty on November 1, 2013, to the charge, which was the result of an investigation conducted into methamphetamine distribution in and around the Adair and Cass County area.
The investigation was conducted by the Adair County Sheriff’s Office, the Cass County Sheriff’s Office, and the Iowa Division of Narcotic Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Friday 14 February 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein):
Felix Gonzalez-Cedillo, 47, of Granger, Indiana, pled guilty to the felony offense of being an illegal alien in possession of a firearm. Magistrate Nuechterlein 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 Internal Revenue Service.Sentencing has been set for 5/16/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Brian Cruz, 37, of Elkhart, Indiana, pled guilty to the felony offense of failure to register as required under the sex offender registration and notification act. Magistrate Christopher A. Nuechterlein 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 United States Marshal Service.Sentencing has been set for 5/16/2014.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
(pled before District Judge Robert L. Miller, Jr.)
Robert Alexander Loft, 45, of Mishawaka, Indiana, pled guilty to the felony offense of distributing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 5/20/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Richard Maxson, 50, of Elkhart, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 21 months imprisonment, 2 years supervised release and to pay $30,000 in restitution after pleading guilty to the felony offense of knowingly and intentionally possessing a vehicle which had an altered or removed VIN number with the intent to dispose of the vehicle.According to documents filed in this case, in February 2013, law enforcement stopped a truck Maxson was driving while hauling a Case skid-steer loader. Maxson had rented the skid-steer loader the day before and was aware the VIN number had been altered or removed. Maxson admitted to being in possession of the skid-steer loader and his intent to dispose of it.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Jacalyn Selman, 54, of Kouts, Indiana was sentenced by District Judge Jon E. DeGuilio to 2 years supervised probation and to pay $502.00 in restitution after pleading guilty to the felony offense of embezzling mail.According to documents filed in this case, in December 2012 through July 2013, Selman, a Postal Service employee, embezzled mail which came into her possession. This case was the result of an investigation by the Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Andrew Bolden, 30,pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/13/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Robert Sanders, 25, of Gary, Indiana, a defendant in the case US v Harris et al., was sentenced by Chief Judge Philip Simon to 15 months imprisonment, $6,636.00 in restitution to be paid joint and several with Willie Harris, and 2 years of supervised release after being found guilty at trial of the felony offense of conspiracy and attempt to commit fraud with identification documents.According to documents filed in this case, the defendants 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. The defendants either utilized their own names or utilized aliases with the accounts which had been taken over. They purchased gift cards, Postal money orders, and made 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 criminal conduct, the defendants 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.
Joshua Mijares, 34, of Griffith, Indiana, was sentenced by Senior District Judge Rudy Lozano to 7 months and 18 days imprisonment, time considered served, and 1 year of supervised release after pleading guilty to the felony offense of re-entry of a deported alien.According to documents filed in this case, law enforcement, responding to information from a tip line that Mijares was an illegal alien, received fingerprint records and other material confirming that Mijares had indeed been deported in 2005.According to criminal history records, Mijares, also known as Jose Lucas, was convicted of aggravated child abuse in Florida in 2002. This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Nathan Arnold, 30, of Berne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of theft or receipt of stolen mail matter. Magistrate Cosbey 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 United States Postal Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS before District Judge Theresa L. Springmann:
Booker Sewell, 33, of Fort Wayne, Indiana was sentenced to 360 months imprisonment with 3 years supervised release after pleading guilty to being a felon in possession of a firearm and 240 months imprisonment with 3 years supervised release for maintaining a place for the purpose of distribution and using cocaine and marijuana, both to be served concurrently. According to documents filed in this case, Sewell was involved in controlled buys of cocaine and crack. Upon his arrest, Sewell’s house contained a revolver, multiple containers and bags with marijuana, approximately $21,917 in cash and evidence of cocaine and chemicals used to multiply (or “cut”) the amount of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Anthony Geller.
Damarcus Johnson, 34, of Fort Wayne, Indiana was re-sentenced after having been found guilty of possession with the intent to distribute crack cocaine and carrying a firearm during and in relation to the drug trafficking offense. Johnson will serve 168 months imprisonment for possession with the intent to distribute crack cocaine to run consecutively to 60 months for carrying a firearm during and in relation to a drug trafficking crime all to run concurrently to 120 months for being a felon in possession of a firearm. According to documents filed in this case, after an encounter with law enforcement in the parking lot of a local late night establishment, Johnson was found in possession of the handgun, marijuana, cocaine, 286 grams of crack cocaine and over two thousand dollars. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Two Truck Drivers Plead Guilty to Transporting an Individual to Texas for ProstitutionRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., area commercial truck drivers – one of whom is a registered sex offender – have pleaded guilty to transporting an individual across state lines for prostitution.
Tony Eugene Wardlow, 55, of St. Joseph, pleaded guilty before U.S. District Judge Dean Whipple today to the charge contained in Jan. 30, 2014, federal indictment. Co-defendant Thomas Farrell, 49, of DeKalb, Mo., pleaded guilty on February 7, 2014, to aiding and abetting Wardlow’s transportation of this individual.
Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of two counts of endangering the welfare of a child (involving two separate child victims) and one count of sexual misconduct (involving one of those victims). Wardlow is self-employed as a commercial truck driver, doing business as Prideco, LLC.
Wardlow admitted that he transported an individual (identified as “Child Victim” or “CV”) to Texas to engage in prostitution activity with himself from Sept. 18 to 21, 2011. Wardlow met CV in August 2011 when s/he was working as a prostitute on Independence Avenue in Kansas City, Mo. Wardlow admitted that he took CV to St. Louis, Mo., and Big Spring, Texas to engage in illicit sexual activity.
Farrell admitted that he aided and abetted Wardlow’s transportion of this same individual to Texas, knowing that Wardlow was engaged in prostitution activity with the child victim prior to and during the trip.
Under the terms of today’s plea agreement, Wardlow will be sentenced to 10 years and three months in federal prison without parole. Farrell is subject to a sentence of up to three years in federal prison without parole. Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.Two Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two members of the Aryan Brotherhood of Texas gang (ABT) have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Ronald Lee Prince, aka “Big Show,” 44, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Stephen Tobin Mullen, aka “Scuba Steve, 44, of Dallas, previously pleaded guilty to the same charge.
According to court documents, Prince, Mullen and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Prince, Mullen and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Prince and Mullen admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 9, 2014, each defendant faces a maximum penalty of life in prison.
Prince and Mullen are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 19 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Trio Convicted of $1.4 Million Fraud ConspiracyRead the Press Release
Three people from the Greater Cleveland area were convicted for their roles in a $1.4 million fraud conspiracy involving property in North Carolina, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Camille M. Harris, 43, of Cleveland, Kenneth T. Embry, 57, of Lyndhurst, and Deon D. Levy, 44, of Bedford, were convicted following a jury trial on conspiracy to commit wire fraud and related charges.
They are scheduled to be sentenced on May 7.
All three were also affiliated with a general contracting company known as Ameribuild Management Company (AMC) in Cleveland: Harris was president, Embry was chief financial officer and Levy was director of operations from May 2007 through February 2008, according to the indictment.
Together, the trio conspired to enrich themselves by making false representations on a mortgage-loan application and other documents related to the North Carolina property and using fictitious invoices as a means to extract money, according to the indictment.
Around November 2007, Levy had been working with a realtor to find a property around Charlotte, N.C. Embry sent Levy bank statements for Harris’ personal account that falsely stated her bi-weekly salary payments were $31,260. Embry also emailed Harris’ personal tax returns and AMC’s corporate tax returns, both of which contained misrepresentations about the financial condition of Harris and AMC, according to the indictment.
On Dec. 21, 2007, Embry sent an invoice to a North Carolina escrow agent for $340,000 from an Ohio business called Wolfco, Inc. The invoice requested payment for work done on the North Carolina property, when in fact no work had been done, according to the indictment.
Embry again sent false bank statements and balance sheets that misstated the financial conditions of Harris and AMC, according to the indictment.
On Dec. 28, 2007, Harris executed and submitted a loan application for the North Carolina property to Fairway Independence Mortgage Corp. that contained several false statements, including claims that she had a monthly income of $62,520, she had more than $1.2 million in two bank accounts and that she owned property on East 141st Street in Cleveland with a market value of $80,000, according to the indictment.
That day, Harris and Embry caused the sale and closing on the North Carolina property with a disbursement check from Fairway of $1,393,873. That included $340,000 that was distributed to Wolfco, Inc. Five days later, Embry opened a bank account in the name of Wolfco, Inc. d/b/a Kenneth Embry, according to the indictment.
On Jan. 7, 2008, Harris and Embry caused the escrow agent to transfer $340,000 to Wolfco’s account. Later that day, Embry drafted a check in the amount of $181,000 made out to “cash.” He then transferred $150,000 from his Wolfco account to the AMC account controlled by Harris, according to the indictment.
Two days after that, Harris drafted a check in the amount of $80,000 from the AMC account payable to herself and deposited it into her personal account.
Harris and Embry caused a loss of approximately $599,388 to Fairway and Amtrust Bank, as the purchaser of the North Carolina property’s mortgage from Fairway, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
Three Individuals Sentenced on Firearms ChargesRead the Press Release
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(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistTen others appear for pleas and sentencings
MARTINSBURG, WEST VIRGINIA – Three individuals sentenced on firearms charges by Judge Gina M. Groh.
United States Attorney William J. Ihlenfeld, II announced that:
CHARLES WILLIAM JONES, III, a/k/a “TREY,” age 27, of Glen Burnie, Maryland, was sentenced to 60 months in prison and 3 years of supervised release for “Possession of Firearms by a Drug User.” On August 27, 2012, in an undercover investigation, JONES sold 14 firearms which he had just stolen, to an undercover officer for $3,000. At that time, JONES was an illegal user of cocaine. JONES, who is free on bond, will self-report to the designated Federal institution on March 11, 2014.
CODY ASHBY, age 22, of Martinsburg, was sentenced to 51 months in prison and 3 years of supervised release for “Felon in Possession of a Firearm.” ASHBY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MATTHEW TODD CRIM, age 21, of Berkeley County, was sentenced to 27 months in prison and 3 years of supervised release for “Possession of a Firearm with an Obliterated Serial Number.” CRIM was remanded to the custody of the United States Marshal pending designation to a Federal institution.
These cases were prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Department.
In other hearings before Judge Groh:
JOSEA LORENZO HICKS, age 35, of Washington, D.C., was sentenced to 16 months in prison and 3 years of supervised release for “Distribution of Crack Cocaine.” HICKS was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Brandon S. Flower.ADAM BRADY, age 21, of Martinsburg, was sentenced to 12 months in prison and 6 years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.” BRADY was remanded to the custody of the United States Marshal pending designation to a Federal institution. Co-defendant MONICA GREEN, age 35, of Martinsburg, was sentenced to 5 years probation for “Aiding and Abetting the Distribution of Crack Cocaine.” This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin.
ASHLEY SEAL, age 25, of Bunker Hill, West Virginia, was sentenced to 3 years probation for “Aiding and Abetting the Distribution of Crack Cocaine.” This case was prosecuted by Assistant U.S. Attorney Jarod J. Douglas.
These three cases were investigated the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
BRANDON BARTLEY, age 30, of Martinsburg, was sentenced to 3 years probation for “Prescription Fraud.” This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the Drug Enforcement Administration.MITCHELL LAMONT FERNANDO, age 31, of Washington, DC, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Burke Street Elementary School.” FERNANDO, who is in custody pending sentencing, faces up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen Vogrin and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
TALBERT FOSTER DEHAVEN, III, age 36, of Winchester, Virginia, entered a plea of guilty to “Possessing a United States Marshal Badge.” DEHAVEN, claiming to be a U.S. Marshal engaged in the location and apprehension of a wanted criminal, displayed this badge at several nightclubs in Berkeley County. DEHAVEN, who is free on bond, faces up to six months in prison. This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the United States Marshals Service.
In plea hearings before Magistrate Judge James E. Seibert:
RAHANEED GORDON, age 35, of Waynesboro, Pennsylvania, entered a plea of guilty to “Distribution of 100.2 Grams of Heroin.” GORDON, who is in custody pending sentencing, faces up to 40 years in prison, and as part of his plea, has agreed to forfeit his interest in $990.25 in U.S. currency. This case was prosecuted by Assistant U.S. Attorney Jarod J. Douglas.MICHAEL STOTLER, age 23, of Martinsburg, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine.” STOTLER, who is in custody pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
The GORDON and STOTLER cases were investigated the Eastern Panhandle Drug & Violent Crime Task Force.PHILLIP WAYNE WERTZ, age 46, of Keyser, West Virginia, entered a plea of guilty to “Possession of Child Pornography.” WERTZ, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the West Virginia State Police.
Three Florida Residents Plead Guilty to Fraud Charges Related to Bogus Business OpportunitiesRead the Press Release
Three individuals charged in connection with operating a series of fraudulent business opportunity companies pleaded guilty this week in the U.S. District Court for the Southern District of Florida. Mitchell Berman (aka Brian Griffin) of Boca Raton, Fla., and Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo) of Coconut Creek, Fla., pleaded guilty this morning to one count of conspiracy to commit mail fraud. Steven Axelrod (aka Michael Hutton) of Wellington, Fla., yesterday entered a plea to one count of conspiracy to commit mail fraud. With their pleas, the defendants admit they operated a series of fraudulent companies that sold coffee display rack business opportunities to buyers who were told falsely that they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000 each.
The defendants admit that they operated, beginning in August 2000 and continuing through October 2011, a series of five companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. Each company operated for six months to a year, and after one company closed, the next one opened.
The defendants admit that Berman and Gallo ran the companies, while also working as salesmen together with Axelrod. All three defendants made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the false statements were that purchasers likely would earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman also was violating a December 2000 federal court order barring him from misrepresenting profits, locations and other aspects of business opportunities.
Also according to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants used aliases and gave out false addresses for the companies. Berman and Gallo also avoided listing their own names on corporate and promotional documents and instead paid people who did not work at the companies to be titular presidents.
All three defendants will be sentenced later this year by Judge William J. Zloch in Ft. Lauderdale, Fla. Each faces a maximum statutory term of 20 years in prison, a possible fine and mandatory restitution.
Assistant Attorney General of the Justice Department’s Civil Division Stuart F. Delery commended the investigative efforts of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Cindy Cho and Chris Parisi of the Consumer Protection Branch of the Justice Department’s Civil Division.Three Charged in Tax Fraud SchemeRead the Press Release
HOUSTON – Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, Carey Jermaine Johnson aka Jermaine Johnson, and Tarmera Renee Wyckoff aka Toni Wyckoff, are charged in a 23-count indictment alleging conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS), wire fraud and making false claims to obtain tax refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (CI), and Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS).
“Today's announcement exemplifies IRS special agents' intense focus on the rigorous pursuit of refund fraud,” said Cruz. “At the IRS, protecting taxpayer money is a matter we take very seriously; IRS-CI will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The sealed indictment, returned Jan. 30, 2014, was unsealed yesterday. At that time, Wyckoff appeared before U.S. Magistrate Judge George C. Hanks Jr. and was released upon posting bond. Carey Jermaine Johnson is set to appear today at 2:00 p.m.
A warrant remains outstanding for the arrest of Cheryl Reed Johnson.
The indictment alleges the defendants devised a scheme to acquire personal identifying information of various individuals and used that information in the filing of tax returns. According to the indictment, the returns were filed online through a tax preparation service and the refunds were directed to the bank accounts of the defendants and others. The returns submitted to the IRS by the defendants in 2008 falsely claimed a first time home buyer credit, according to the charges. These false claims allegedly totaled approximately $1.5 million.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Wemyss. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
The charges of conspiracy to commit mail or wire fraud as well as wire fraud each carry a possible 20-year federal prison term, upon conviction. If convicted of conspiracy to make false claims to the IRS, the three also face another 10 years, while making a false claim to obtain tax refunds is punishable by up to five years in prison. All the charges also carry a possible $250,00 fine upon conviction.
IRS-CI and USPIS investigated. Assistant United States Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Ten Individuals Convicted on Heroin Trafficking ChargesRead the Press Release
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(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Ten individuals involved in the distribution of heroin in the Clarksburg and Morgantown areas entered pleas of guilty before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that:
TRAYVON TERELL SNOE, age 22, of Pittsburgh, Pennsylvania; MEGAN LEE GRAEBER, age 28, of Bridgeport, West Virginia; and, SAMANTA COTTRILL, age 22, of Hepzibah, West Virginia, entered pleas of guilty to “Distribution of Heroin within 1,000 Feet of Pierpont Community and Technical College,” and co-defendant CRYSTAL DAWN ROTH, age 31, of Walkersville, West Virginia, entered a plea of guilty to “Possession with Intent to Distribute Heroin.” SNOE and GRAEBER, who are in custody and COTTRILL, who is free on bond pending sentencing face up to 40 years in prison. ROTH, who is free on bond pending sentencing, faces up to 20 years in prison. As part of their pleas, $2,104 that was seized on October 29, 2013, will be forfeited. The case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the by the Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service. The case will be prosecuted by Criminal Chief Shawn A. Morgan
CHARLES E. JEFFERSON, JR. a/k/a “LC,” age 26, of Westover, West Virginia; WILLIAM A. BLOSSER, age 29, of Morgantown, entered pleas of guilty to “Distribution of Heroin.” Co-defendants WRIGHT BOWEN, age 31, of Core, West Virginia, BRITTANY BOWER, age 27 of Morgantown; BARTLEY JEFFERSON a/k/a “BART,” age 24, of Morgantown; and, JASON HUNT, age 32, of Core, entered pleas of guilty to “Distribution of Heroin within 1,000 feet of West Virginia University and Tot Lot playground at Marjorie Gardens.” JEFFERSON and BLOSSER, who are in custody pending sentencing, face up to 20 years in prison. BOWEN, JEFFERSON and HUNT, who are free on bond and BOWER who is in custody pending sentencing face up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and was investigated by the Mon Valley Drug Task Force, comprised of officers from the Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration, assisted by the Federal Bureau of Investigation.
In another drug investigation:ROGIE JOHNSON, age 29, of Morgantown, entered a plea of guilty to “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” JOHNSON, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
Tax on the Run Owners and Others Sentenced for Roles in Tax Refund Scheme Involving Misuse of First-Time Home Buyer Tax CreditRead the Press Release
Impoverished Taxpayers Were Recruited to
Allow Their Names and SSNs to be Used in Filing Fraudulent ReturnsDALLAS — All six defendants convicted for their respective roles in a tax refund scheme involving the misuse of the First-Time Home Buyer Tax Credit, have now been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
At a hearing yesterday afternoon, U.S. District Judge Jorge A. Solis sentenced Rickel Shine to 34 months in prison and ordered him to pay nearly $115,000 in restitution. Jarrod Phread Altman was sentenced to eight months’ home confinement as part of a three-year term of probation. Judge Solis will impose restitution as to Jarrod Phread Altman at a later date.
Three other defendants convicted in the case, Jason Phread Altman, Emanuel James Harrison and Fread Jamille Jenkins were each recently sentenced to 84 months in federal prison. Jason Altman, Harrison, and Jenkins were each ordered to pay restitution of more than $860,000. Billy Hamilton was sentenced to 13 months in federal prison and ordered to pay nearly $52,000 in restitution.
According to factual resumes filed in the case, Jason Altman and his brother, Jarrod Altman, and Emanuel James Harrison owned and operated a tax preparation business, Tax On the Run, located in Dallas. Jenkins worked as office manager for the business, while Shine and Hamilton worked as intermediaries and recruited clients on behalf of the owners.
Beginning in March 2009, Jason and Jarrod Altman, Jenkins, Harrison, Shine and Hamilton conspired to defraud the IRS, according to the factual resumes filed in the case. They used Tax On the Run to file false Forms 1040, in the names of numerous clients, which overstated and fabricated income and tax deductions on Schedule C and Forms 5405 by falsely representing that the taxpayers were entitled, under the provisions of the Housing and Economic Recovery Act of 2008, to claim a tax credit as a first-time homebuyer. As part of the scheme, according to factual resumes filed in their cases, Shine and Hamilton acted as intermediaries to recruit clients, and they were paid after they recruited impoverished taxpayers to allow their names and social security numbers to be used to file fraudulent tax returns. The fraudulent returns were routinely filed even though the tax preparers never met the taxpayers and with the full knowledge that none of the taxpayers qualified to claim the credit, according to the factual resumes.
Tax On the Run used Santa Barbara Bank and Trust (SBBT) to process refund anticipation loans based on the fraudulent returns filed. The factual resumes filed further state that after electronically filing the false tax returns, Tax On the Run would be notified by SBBT that the loan had been approved and a check could be printed and provided to the taxpayer. Once the check was printed, the taxpayer was transported to a local check cashing business and instructed to cash the refund check. After it was cashed, members of the conspiracy paid the taxpayer a small percentage of the refund and kept the remainder of the proceeds, according to the factual resume.
Defendant Jarrod Altman admitted, according to the factual resume filed in his case, that during tax year 2009, he failed to report approximately $71,133 in taxable income that was obtained from his business, Tax On the Run. Of that amount, Jarrod Altman admitted that he received $53,140 in the form of a payment by check from Jason Altman for a 2007 Mercedes Benz S550, which was purchased in June 2009, for Jarrod Altman’s use, with money from Tax On the Run. He further admitted that he falsely reported $57,207 in taxable income for tax year 2009 that did not include the $71,133 income described above, and as a result of his false statements regarding his taxable income, Jarrod Altman caused $20,135 in tax harm to the IRS.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch, Brian Poe and Rick Calvert prosecuted.
Tamuning Christian Fellowship Invites U.S. Attorney to Speak to Youth GroupRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, Districts of Guam and the Northern Mariana Islands, was invited to speak with the youth of the Tamuning Christian Fellowship on January 26, 2014. They, along with adult mentors of the youth group, discussed problems experienced by youth, including violence, substance abuse, and discrimination including discrimination because of one’s ethnicity, race and gender identity. They shared ways to engage the community so as to raise awareness about these issues, including a forum to bring together students, parents, families, educators, law enforcement, victim service providers, social services, health professionals, faith-based organizations, Mayors, Consulate Offices, and other community stakeholders, to dialogue about these problems and establish effective programs, projects and other means to address and prevent violence, abuse and exploitation, and discrimination, and to encourage positive behavior and role-modeling.
U.S. Attorney Limtiaco also shared information about Department of Justice initiatives, including Project Safe Childhood (PSC), Project Safe Neighborhoods (PSN) and the Diverse Community Outreach.
Launched in May 2006, PSC is a nationwide initiative designed to protect children from online sexual exploitation and abuse. Led by U.S. Attorneys= Offices, the Child Exploitation and Obscenity Section of the Department=s Criminal Division, and Internet Crimes Against Children task forces, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. PSC’s goal is to educate parents about the potential dangers that their children face online, and warns potential online predators that exploiting a child online is a serious federal offense.
PSN is a nationwide commitment to aggressively prosecute offenders who engage in drug distribution, gang involvement and violent crime. U.S. Attorney Limtiaco talked about the Gang Resistance Education And Training (G.R.E.A.T.) Program, a program under PSN aimed at elementary and middle school students, which focuses on developing life skills to help students avoid delinquent behavior and violence, and to solve problems through communication and the exercise of good judgment.
The purpose of the Diverse Community Outreach Initiative is to increase and improve communication and collaboration between the community and law enforcement. Faith-based community members, Consulate Offices and other stakeholders are invited and participate in the
initiative. Issues discussed at the Diverse Community Outreach Initiative meetings include human trafficking; hate crimes and civil rights; immigration; labor; cultural competency; national security; and crime prevention.Photos taken at Tamuning Christian Fellowship.
Tampa Man Sentenced to Federal Prison for Possessing Destructive ExplosivesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced James Lee Minyard (42, Tampa) to 30 months in federal prison for possessing destructive explosives. Minyard pleaded guilty on December 12, 2013.
He was originally indicted on August 14, 2013.
According to court documents, pursuant to a search of Minyard’s residence, law enforcement found multiple explosive devices and chemicals commonly used for explosive devices, including a powerful and destructive explosive named Triacetone Triperoxide (TATP). The search also uncovered a homemade remote control used to detonate explosive devices. During an interview with law enforcement, Minyard admitted to knowingly possessing these explosive devices and to manufacturing TATP. Three of the explosive devices found were firearms (destructive devices) that contained TATP, and were designed to be used as weapons.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Tampa Police Department, with the assistance of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case is also a part of ATF’s Frontline strategy - a comprehensive violent crime impact strategy that consolidates limited federal law enforcement resources and focuses ATF’s mission by deconflicting cases and coordinating all law enforcement efforts in critical communities.
Statement of U.S. Attorneys Jenny A. Durkan and Michael C. OrmsbyRead the Press Release
“Cash businesses such as marijuana distribution can be a magnet for criminal violence. Today's guidance seeks to mitigate the public safety concerns created by high volume cash based businesses without access to the banking and financial systems. The guidance also seeks to prevent criminal organizations from laundering their criminal proceeds beyond the reach of law enforcement. The guidance reaffirms the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems. That obligation remains. This new guidance also makes it clear that banks have an obligation to continue to report and not offer services to businesses that operate outside such strong regulatory and enforcement regimes.”
A PDF copy of the guidance is attached to this release.
The U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing guidance today entitled “BSA Expectations Regarding Marijuana-Related Businesses,” which is referred to in the attached memorandum from the Deputy Attorney General. FinCEN's guidance will be available later today on this website:http://www.fincen.gov/
Statement of Michael C. Ormsby and Jenny A. Durkan, United States Attorneys for the Eastern and Western Districts of WashingtonRead the Press Release
"Cash businesses such as marijuana distribution can be a magnet for criminal violence. Today's guidance seeks to mitigate the public safety concerns created by high volume cash based businesses without access to the banking and financial systems. The guidance also seeks to prevent criminal organizations from laundering their criminal proceeds beyond the reach of law enforcement. The guidance reaffirms the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems. That obligation remains. This new guidance also makes it clear that banks have an obligation to continue to report and not offer services to businesses that operate outside such strong regulatory and enforcement regimes."
The United States Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing guidance today entitled "BSA Expectations Regarding Marijuana-Related Businesses," which is referred to in the attached memorandum from the Deputy Attorney General. FinCEN's guidance will be available later today on this website:
http://www.fincen.gov/statutes_regs/guidance
MEMORANDUM FOR ALL UNITED STATES ATTORNEYSFROM: James M. Cole Deputy Attorney General
SUBJECT: Guidance Regarding Marijuana Related Financial Crimes
On August 29, 2013, the Department issued guidance (August 29 guidance) to federal prosecutors concerning marijuana enforcement under the Controlled Substances Act (CSA). The August 29 guidance reiterated the Department's commitment to enforcing the CSA consistent with Congress' determination that marijuana is a dangerous drug that serves as a significant source of revenue to large-scale criminal enterprises, gangs, and cartels. In furtherance of that commitment, the August 29 guidance instructed Department attorneys and law enforcement to focus on the following eight priorities in enforcing the CSA against marijuana-related conduct:
- Preventing the distribution of marijuana to minors;
- Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels;
- Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
- Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
- Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
- Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
- Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
- Preventing marijuana possession or use on federal property.
Under the August 29 guidance, whether marijuana-related conduct implicates one or more of these enforcement priorities should be the primary question in considering prosecution under the CSA. Although the August 29 guidance was issued in response to recent marijuana legalization initiatives in certain states, it applies to all Department marijuana enforcement nationwide. The guidance, however, did not specifically address what, if any, impact it would have on certain financial crimes for which marijuana-related conduct is a predicate.
The provisions of the money laundering statutes, the unlicensed money remitter statute, and the Bank Secrecy Act (BSA) remain in effect with respect to marijuana-related conduct. Financial transactions involving proceeds generated by marijuana-related conduct can form the basis for prosecution under the money laundering statutes (18 U.S.C. §§ 1956 and 1957), the unlicensed money transmitter statute (18 U.S.C. § 1960), and the BSA. Sections 1956 and 1957 of Title 18 make it a criminal offense to engage in certain financial and monetary transactions with the proceeds of a "specified unlawful activity," including proceeds from marijuana-related violations of the CSA. Transactions by or through a money transmitting business involving funds "derived from" marijuana-related conduct can also serve as a predicate for prosecution under 18 U.S.C. § 1960. Additionally, financial institutions that conduct transactions with money generated by marijuana-related conduct could face criminal liability under the BSA for, among other things, failing to identify or report financial transactions that involved the proceeds of marijuana-related violations of the CSA. See, e.g., 31 U.S.C. § 5318(g). Notably for these purposes, prosecution under these offenses based on transactions involving marijuana proceeds does not require an underlying marijuana-related conviction under federal or state law.
As noted in the August 29 guidance, the Department is committed to using its limited investigative and prosecutorial resources to address the most significant marijuana-related cases in an effective and consistent way. Investigations and prosecutions of the offenses enumerated above based upon marijuana-related activity should be subject to the same consideration and prioritization. Therefore, in determining whether to charge individuals or institutions with any of these offenses based on marijuana-related violations of the CSA, prosecutors should apply the eight enforcement priorities described in the August 29 guidance and reiterated above. 1 For example, if a financial institution or individual provides banking services to a marijuana-related business knowing that the business is diverting marijuana from a state where marijuana sales are regulated to ones where such sales are illegal under state law, or is being used by a criminal organization to conduct financial transactions for its criminal goals, such as the concealment of funds derived from other illegal activity or the use of marijuana proceeds to support other illegal activity, prosecution for violations of 18 U.S.C. §§ 1956, 1957, 1960 or the BSA might be appropriate. Similarly, if the financial institution or individual is willfully blind to such activity by, for example, failing to conduct appropriate due diligence of the customers' activities, such prosecution might be appropriate. Conversely, if a financial institution or individual offers services to a marijuana-related business whose activities do not implicate any of the eight priority factors, prosecution for these offenses may not be appropriate.
The August 29 guidance rested on the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems in order to minimize the threat posed to federal enforcement priorities. Consequently, financial institutions and individuals choosing to service marijuana-related businesses that are not compliant with such state regulatory and enforcement systems, or that operate in states lacking a clear and robust regulatory scheme, are more likely to risk entanglement with conduct that implicates the eight federal enforcement priorities. 2 In addition, because financial institutions are in a position to facilitate transactions by marijuana-related businesses that could implicate one or more of the priority factors, financial institutions must continue to apply appropriate risk-based anti-money laundering policies, procedures, and controls sufficient to address the risks posed by these customers, including by conducting customer due diligence designed to identify conduct that relates to any of the eight priority factors. Moreover, as the Department's and FinCEN's guidance are designed to complement each other, it is essential that financial institutions adhere to FinCEN's guidance.3 Prosecutors should continue to review marijuana-related prosecutions on a case-by-case basis and weigh all available information and evidence in determining whether particular conduct falls within the identified priorities.
As with the Department's previous statements on this subject, this memorandum is intended solely as a guide to the exercise of investigative and prosecutorial discretion. This memorandum does not alter in any way the Department's authority to enforce federal law, including federal laws relating to marijuana, regardless of state law. Neither the guidance herein nor any state or local law provides a legal defense to a violation of federal law, including any civil or criminal violation of the CSA, the money laundering and unlicensed money transmitter statutes, or the BSA, including the obligation of financial institutions to conduct customer due diligence. Even in jurisdictions with strong and effective regulatory systems, evidence that particular conduct of a person or entity threatens federal priorities will subject that person or entity to federal enforcement action, based on the circumstances. This memorandum is not intended, does not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law by any party in any matter civil or criminal. It applies prospectively to the exercise of prosecutorial discretion in future cases and does not provide defendants or subjects of enforcement action with a basis for reconsideration of any pending civil action or criminal prosecution. Finally, nothing herein precludes investigation or prosecution, even in the absence of any one of the factors listed above, in particular circumstances where investigation and prosecution otherwise serves an important federal interest.
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1The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing concurrent guidance to clarify BSA expectations for financial institutions seeking to provide services to marijuana-related businesses. The FinCEN guidance addresses the filing of Suspicious Activity Reports (SAR) with respect to marijuana-related businesses, and in particular the importance of considering the eight federal enforcement priorities mentioned above, as well as state law. As discussed in FinCEN's guidance, a financial institution providing financial services to a marijuana-related business that it reasonably believes, based on its customer due diligence, does not implicate one of the federal enforcement priorities or violate state law, would file a "Marijuana Limited" SAR, which would include streamlined information. Conversely, a financial institution filing a SAR on a marijuana-related business it reasonably believes, based on its customer due diligence, implicates one of the federal priorities or violates state law, would be label the SAR "Marijuana Priority," and the content of the SAR would include comprehensive details in accordance with existing regulations and guidance.
2For example, financial institutions should recognize that a marijuana-related business operating in a state that has not legalized marijuana would likely result in the proceeds going to a criminal organization.
3Under FinCEN's guidance, for instance, a marijuana-related business that is not appropriately licensed or is operating in violation of state law presents red flags that would justify the filing of a Marijuana Priority SAR.Stamford Attorney Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut today announced that, on February 12, CHRISTOPHER BRECCIANO, 35, of Stamford, waived his right to indictment and pleaded guilty in Bridgeport federal court to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2010, BRECCIANO, while working as an associate at a Stamford law firm, participated in mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport, Norwalk and Stamford. BRECCIANO acted as a closing attorney for at least 50 mortgage loan transactions in which materially false information was provided to mortgage lenders by BRECCIANO or his co-conspirators. The fraudulent information included false verifications of down payments for real estate transactions, false deeds, and false HUD-1 Forms. In many of the transactions, BRECCIANO knew that the borrower was a “straw buyer,” and that other individuals intended to control the property and collect rent from the property. In many transactions, BRECCIANO distributed mortgage loan funds to the straw buyer and other co-conspirators at the closing.
Many of these properties ended up in foreclosure, or in short sale transactions. In pleading guilty, BRECCIANO admitted that he was also involved in many short sale transactions in which he knew that the buyer and seller were working together to retain control of the property while representing to the lender that the sale was an arm’s length transaction.
Through this scheme, lenders suffered losses of more than $7 million.
BRECCIANO pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 7, 2014, and faces a maximum term of imprisonment of 30 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]South Windsor Man Charged with Federal Firearms Offenses Related to Theft from East Windsor Gun StoreRead the Press Release
February 14, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that JORDAN MARSH, 26, of South Windsor, has been charged by criminal complaint with being a previously convicted felon in possession of a firearm, and theft of a firearm from a federally licensed firearms dealer.
MARSH appeared today before United States Magistrate Judge Donna F. Martinez in Hartford federal court. He is currently detained in state custody on related charges.
As alleged in the criminal complaint, on December 11, 2012, MARSH stole a Windham Weaponry 5.56 caliber semi-automatic rifle from the front counter of Riverview Gun Sales, a federal firearms dealer located in East Windsor. The theft was captured on the store’s video surveillance system, but no employee at Riverview observed the theft or realized the firearm was missing until the Hartford Police retrieved it from MARSH’s hotel room on December 17, 2012, two days after MARSH had been arrested for attempting to steal a different semi-automatic rifle from the same store.
The complaint further alleges that, in 2011, MARSH was convicted of a felony stemming from his prior thefts of firearms from Riverview.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Each of the federal charges carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford and East Windsor Police Departments. The case is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]South Mississippi Physician Indicted on Income Tax ViolationsRead the Press Release
Gulfport, Miss. – Timothy Dale Jackson, 49, of Pass Christian, Mississippi, an orthopedic physician, has been charged in a five count felony indictment alleging income tax evasion and obstruction of the due administration of the internal revenue laws, announced U.S. Attorney Gregory K. Davis and IRS Criminal Investigation Special Agent in Charge Gabriel L. Grchan.
Jackson appeared on February 13, 2014 before Chief United States Magistrate Judge John M. Roper for his initial appearance and was released on a $700,000 bond. His arraignment is set for Tuesday, February 18, 2014 at 11:00 before Judge Roper.
The indictment charges four counts of willful evasion of income tax, which each carry a maximum penalty of five years imprisonment and a fine of $250,000; he is also charged in an additional count of obstructing and impeding the due administration of the internal revenue laws, which carries a maximum penalty of three years imprisonment and a $250,000 fine.
“Tax evasion is not a victimless crime," said Special Agent in Charge Gabriel L. Grchan of IRS Criminal Investigation. "We all pay when others swindle the government. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."
This case was investigated by IRS Criminal Investigation and the prosecution will be handled by Assistant U.S. Attorney Ruth Morgan.
The public is reminded that an indictment is a formal accusation of criminal conduct. A defendant is presumed innocent unless and until proven guilty.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
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(225) 334-4707
or e-mail it to:
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Serial Bankruptcy Filer Convicted of Lying During Bankruptcy ProceedingsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Shelley R. Callahan, 49, of Clinton, Mo., guilty of making a false statement during a bankruptcy proceeding. United States District Judge Donald Walter presided over the three-day trial.
Callahan’s trial began Monday and was postponed Tuesday and Wednesday because of weather. The trial ended today with the jury returning the guilty verdict after deliberating for approximately 30 minutes. Witness testimony and exhibits admitted into evidence established that Callahan filed for bankruptcy protection on August 26, 2010, her eighth bankruptcy filing in nine years. Callahan falsely stated that she had not made any gifts or payments to family members prior to filing for bankruptcy protection. In truth, Callahan received more than $55,000 for a personal injury claim eight months before her latest bankruptcy filing. Instead of paying her creditors, she provided gifts during the Christmas season and gambling trips to casinos to her family.
Callahan faces up to five years in prison, three years of supervised release, and a $250,000 fine for one count of making a false statement during a bankruptcy proceeding. The sentencing date is May 22, 2014.The U.S. Trustee’s Office and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan is prosecuting the case.
Sentencing in Stolen Equipment CaseRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced today that Corey Sanchez Howard, a Birmingham, Alabama area resident, and Rickel Powell, a Camden, Alabama resident, were sentenced today by Federal District Judge DuBose.
Howard received a sentence of thirty-nine months and was ordered to make restitution. Powell was sentenced to sixty days to serve and ordered to make restitution. The defendants had previously entered guilty pleas to interstate transportation of stolen property in connection with thefts of heavy equipment in and around Huntsville, Safford, Thomasville, Grove Hill, and Frisco City Alabama. Some of the stolen equipment was transported to, and later recovered in, Mississippi.
The case arose from an investigation by the Clarke County, Alabama, Sheriff’s Office, the Thomasville Police Department, the Grove Hill Police Department and the FBI and was prosecuted by Assistant United States Attorney Deborah Griffin.
San Vicente Catholic School Invites U.S. Attorney to Judge Human Rights Day ContestRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was invited to San Vicente Catholic School (SVCS) on January 27, 2014, to be a judge of the middle school’s Human Rights T-Shirt Design Contest in observance of Human Rights Day and as part of its Catholic Schools Week festivities. The school’s 6th – 8th graders were tasked to design a t-shirt advocating the respect of human rights. This was coordinated by the Middle School Language Arts teacher and SVCS Catholic School Chairperson, Mrs. Belen De Fant, and sponsored by the SVCS Shalom Club. The contest was judged by U.S. Attorney Limtiaco, Mrs. Tina Blas, SVCS grandparent and wife of the former Lt. Gov. Frank F. Blas, and Ms. Ann Leon Guerrero, SVCS teacher.
Pictured above are some of the students showcasing their t-shirt design at San Vicente
Catholic School’s (SVCS) Human Rights T-Shirt Design contest in observance of
Human Rights Day and part of its Catholic Schools Week festivities.
The contest was judged by Ms. Alicia Limtiaco, the United States Attorney for the
Districts of Guam and the Northern Mariana Islands, Mrs. Tina Blas, SVCS grandparent and wife of the former Lt. Gov. Frank F. Blas, and Ms. Ann Leon Guerrero, SVCS teacher.San Francisco Attorney Pleads Guilty to Failing to Report More Than $1.3 Million of IncomeRead the Press Release
SAN FRANCISCO – James P. Kleier pled guilty yesterday to two counts of failing to file income tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to his plea agreement, Kleier is a practicing tax attorney focusing on federal and state tax controversies. From 1999 through 2005, Kleier was a partner at Preston, Gates, & Ellis, LLP. From 2005 through 2010, Kleier worked at Reed Smith, LLP. During those years from 1999 through and including 2010, Kleier failed to report any income he earned.
According to court documents, for 2008, 2009, and 2010 Kleier earned $624,923, $476,088, and $200,734, respectively. He was required by law to file an income tax return with the IRS and did willfully fail to do so. Kleier has agreed to pay past-due taxes to the government in the total amount of $650,993 for 2003, 2008, 2009, and 2010.
“Our tax system is vital to this country and our communities, funding programs and services like roads, water, education, and agriculture, accessed and needed by millions of people every day. The defendant, a tax attorney, should and did know that he is required to file tax returns and pay taxes. This office will continue to work with the IRS to ensure that each person pays his or her fair share,” stated U.S. Attorney Melinda Haag.
Special Agent-in-Charge José M. Martinez said, “The prosecution of individuals who brazenly attempt to avoid their tax filing and payment obligations and prevent the IRS from performing its mission is necessary to maintaining public confidence in our tax system.”
Kleier, of San Francisco, was charged on May 1, 2013, with three counts of failure to file income tax returns. He pleaded guilty to one count. As part of the plea, Kleier will be sentenced to 12 months in prison and pay restitution in the amount of $650,993. Sentencing is scheduled for May 29, 2014, before the Honorable Laurel Beeler, United States Magistrate Court Judge, in San Francisco.
The maximum statutory penalty for each count failure to file a tax return, in violation of 26 U.S.C. § 7203, is one year imprisonment and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation the Internal Revenue Service, Criminal Investigation.
(Kleier information )
Realtor Sentenced to Prison for Tax Evasion and False StatementsRead the Press Release
TALLAHASSEE, FLORIDA – William “Geri” Eaton, 60, was sentenced to 27 months in prison for tax evasion and for making false statements in a matter involving a health care benefit program.
Between 2004 and 2008, Eaton, a realtor, earned more than $1.18 million in taxable income. He failed to file his federal income tax returns as they became due and instead, in the fall of 2009, Eaton filed late returns for all four prior tax years. His total tax due, not counting interest and penalties, was more than $472,000. In early 2010, Eaton entered an agreement to pay his back-taxes in monthly installments of $1,000. He made six payments, and then stopped paying altogether. On April 29, 2011, Eaton opened an account under a false social security number at a Tallahassee credit union. One week later, he sold his beach house in St. Teresa, Florida, for more than $1.3 million. To conceal the money from the IRS, Eaton deposited the $727,437 in proceeds he received from the sale into his fraudulently-opened credit union account. He later transferred a portion of this money to a Pensacola credit union account, which he had also opened under a false social security number. Over the course of the next seven months, Eaton spent more than $125,000 of the sales proceeds. He made no payments on his taxes during this period.
In September 2011, Eaton was treated for a heart attack at Sacred Heart Hospital in Pensacola. He applied to the hospital for financial assistance in paying his bill. In his application for assistance, Eaton falsely claimed that he had a single checking account with a balance of only $1,588, when, in fact, the balances in his accounts totaled well over $600,000. In listing his assets on the application, Eaton also fraudulently omitted the fact that he had purchased two vehicles for $31,000 only a month before. In reliance on Eaton’s false statements, Sacred Heart Hospital wrote off $79,622 in charges for Eaton’s care.
In November 2011, the IRS levied Eaton’s fraudulently-opened credit union accounts and obtained approximately $610,000 as payments toward his tax liabilities.
In November 2013, Eaton pleaded guilty to charges of tax evasion and making false statements in a matter involving a health care benefit program. In addition to his prison sentence, Eaton was ordered to pay $99,126 in restitution to the IRS and to Sacred Heart Health System.
In announcing the sentence handed down by the court, United States Attorney Pamela C. Marsh expressed her deep gratitude for the work of the Assistant U.S. Attorney who prosecuted the case, as well as the agents of IRS Criminal Investigations who investigated the case. Ms. Marsh said, “Every year, millions of hard-working Americans comply with the law and pay their federal taxes. Those who evade and cheat the system hurt all of us. Criminal tax prosecutions are often difficult and complicated to investigate and prosecute, but they are necessary to deter potential violators and promote respect for the tax laws. The sentence in this case should serve as a stark warning to those who choose to cheat their fellow Americans by failing to pay their fair share.”
The case was prosecuted by Assistant United States Attorney Karen Rhew-Miller.
Pleasanton Man Sentenced to 6 Years in Prison for Folsom-Based Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Garland E. Burrell Jr. sentenced Kenneth Kenitzer, 70, of Pleasanton, today to six years in prison, to be followed by three years supervised release, for wire fraud in connection with a Ponzi scheme that took in more than $80 million between April 2006 and December 2008, United States Attorney Benjamin B. Wagner announced.
According to court records, beginning in 2006, Anthony Vassallo and Kenneth Kenitzer ran Equity Investments Management & Trading (EIMT). Vassallo claimed that he had developed computer software that enabled him to make profits of approximately 3 percent per month, or 36 percent per year. Investors were told that this strategy had worked successfully for years with one loss situation that had been corrected so that it would not happen again. In fact, Vassallo’s strategy had been historically unsuccessful, losing money overall. Investors generally funneled money into EIMT through a number of sub-funds. Kenitzer was an officer of EIMT and the primary administrator of several of the sub-funds that invested with EIMT. He also was the primary point of contact for investors and sub-fund managers to actually transfer money to and from EIMT. Although Kenitzer was aware that EIMT never functioned as promised, and ultimately became aware that Vassallo was lying about the returns on investments, Kenitzer maintained to investors and sub-fund managers that EIMT was a profitable investment platform.
The scheme began to unravel in late 2008, and investors began demanding their money back. Vassallo and his intermediaries engaged in stalling tactics, claiming that Vassallo was “restructuring” the funds, TradeStation was conducting an audit, or the SEC had frozen the TradeStation account due to a baseless complaint. Vassallo continued to recruit new investments. One investor transferred $250,000 to Vassallo’s account less than two weeks before Vassallo admitted to a group of investors that he had ceased trading and their money had been lost.
More than 300 individuals invested in the EIMT scheme, contributing at least $83 million. Of that amount, more than $55 million was returned to investors, although nearly $17 million of that constituted amounts paid to some investors above the amount of their original investments. Thus, actual loss to the investors totaled more than $40 million.
U.S. Attorney Wagner said: “While Kenitzer wasn’t the primary salesman of EIMT, his administration of the money and of some sub-funds was a crucial part of keeping the scheme running as long as it did, and contributed to the breathtaking quantity of victims and funds lost. His sentence today is an important measure of justice for the victims of the EIMT scam, many of whom lost their homes, health, and retirements to this fraud.”“Greed and Ponzi schemes go hand in hand. Although Kenitzer and others have been sentenced, time in federal prison cannot restore the millions lost by victims. FBI special agents are highly skilled at investigating elaborate, complicated cases such as these but I am hopeful that investors will cast a wary eye when presented with investment opportunities that seem too good to be true,” said Special Agent in Charge Monica M. Miller of the Sacramento field office of the Federal Bureau of Investigation.
“Today’s sentencing marks the end of a saga that has stretched over many years,” said IRS-Criminal Investigation Special Agent in Charge José M. Martinez. “This was a classic Ponzi scheme, the defendants preyed on investors with the promise of high returns with little risk. IRS-CI is committed to identifying and investigating those who line their pockets with profits from these schemes.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley prosecuted the case.
This case is part of the President’s Financial Fraud Enforcement Task Force that was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.