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4 April 2014
McLaughlin Man Charged with Felon in Possession of A Firearm and AmmunitionRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm and Ammunition.
Byron Hawk Bear, Sr., age 37, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 2, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 16, 2014, Hawk Bear, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly and intentionally possessed a firearm and ammunition, which had been previously shipped and transported in interstate and foreign commerce.The charge is merely an accusation and Hawk Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobridge Police Department. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Hawk Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maryland Woman Indicted for Treating Patients While Fraudulently Posing as A Physician’s AssistantRead the Press Release
Allegedly Used Stolen Identity to Gain Employment at a Doctor’s Office; Treated 200 Patients, Including Infants, and Wrote Prescriptions
Baltimore, Maryland - A federal grand jury has indicted Shawna Michelle Gunter, age 36, of Severna Park, Maryland, on charges of wire fraud, aggravated identity theft and health care fraud. The indictment was returned on March 18, 2014, and unsealed today upon Gunter’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.
“This case involves very troubling allegations that Shawna Michelle Gunter fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she has no medical training,” said U.S. Attorney Rod J. Rosenstein. “I commend the Maryland State Police for their quick response, which brought the charade to an end.”
According to the four count indictment and search warrant affidavit, from July 5 to August 29, 2013, Gunter acted as a physician’s assistant, even though she did not have the medical education, training or qualifications to do so. Gunter sought employment as a physician’s assistant with a pediatrician who had offices in Centreville and Chestertown, Maryland. To gain employment, Gunter allegedly provided a forged Howard University physician’s assistant diploma. She also allegedly provided a forged physician’s assistant certificate bearing the license number of another physician assistant practicing in Salisbury, without the victim’s knowledge or approval, as well as a forged DEA controlled substance registration certificate bearing a registration number that was almost identical to the victim’s.
Gunter started her employment as a physician assistant on July 5, 2013. She began seeing patients alone on August 18, 2013. According to the affidavit, between August 18 to 29, 2013, Gunter saw and treated around 200 Medicaid patients for sick visits, ADHD follow-ups, newborn visits and routine physicals. Each medical visit resulted in a claim submitted to Medicaid and in turn, money paid to the pediatrician’s practice for medical services allegedly provided by an unlicensed and unqualified individual. Gunter also wrote numerous prescriptions that were filled by the patients and paid by Medicaid.
The affidavit alleges that on August 29, 2013, the physician owner of the pediatric practice contacted the Maryland State Police upon receiving an anonymous communication informing him that Gunter was not qualified to be a physician’s assistant. That same day, Maryland State Police arrested Gunter at the pediatrician’s office in Centreville. At the time of her arrest, Gunter had three of the pediatric doctor’s prescription pads in the pocket of a white doctor’s coat that she was wearing. Officers also seized from her purse numerous items including another prescription pad belonging to a surgeon who Gunter previously worked for; a folder containing a schedule of patients and their illnesses for each day in August; and originals of all of the fraudulent documents Gunter provided to the pediatrician.
The affidavit alleges that further investigation indicates that between April and October 2013 Gunter filled multiple prescriptions for Gabapentin, Divalproex and Cymbalta, purportedly written by a doctor for whom Gunter formerly worked, for her own child. The doctor advises that she never saw Gunter’s child as a patient. The child has since seen another doctor who directed that the child be slowly weaned off the medications.
Gunter faces a maximum sentence of 20 years in prison for wire fraud and health care fraud; and two years in prison, consecutive to any other sentence, for each of two counts of aggravated identity theft. Gunter had her initial appearance this afternoon in U.S. District Court in Baltimore and is detained pending a detention hearing scheduled for April 7, 2014 at 2:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.
Mark A. Billinglsley Sentenced to 10 Months in Prison for Making Fasle Statements During His Bankruptcy ProceedingsRead the Press Release
CHATTANOOGA, Tenn. – Mark A. Billingsley, 35, of Whitwell, Tenn., was sentenced on Apr. 3, 2014, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 10 months in federal prison for knowingly and fraudulently making a false statement under oath in his bankruptcy case, by falsely testifying in a proceeding before the U.S. Trustee at a meeting of creditors. Upon his release from prison, Billingsley will be subject to two years of supervised release. There is no parole in the federal system.
Billingsley filed a bankruptcy case in June 2012, in the U.S. Bankruptcy Court for the Eastern District of Tennessee, Chattanooga Division. A meeting of creditors was held in February 2013, and Billingsley testified under penalty of perjury in relation to his bankruptcy proceeding that he was employed at SK Trucking and that SK Trucking had been making withdrawals from his paychecks to pay into his bankruptcy plan. An investigation by the U.S. Trustee along with the U.S. Secret Service revealed Billingsley’s statements were false and that SK Trucking did not exist. He pleaded guilty in December 2013 to a federal indictment charging him with making a false statement under oath.
Man Pleads Guilty to Transporting a Minor to Morth Carolina and Production of Child PornographyRead the Press Release
Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that William H. Schliebener, Jr., 51, formerly of Sanford, NC, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to transporting a minor in interstate commerce for the purpose of illegal sexual activity and production of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant came to the attention of law enforcement in October 2010 when a young Canandaigua girl was reported missing. Members of the Canandaigua Police Department and the Lee County, North Carolina Sheriff’s Department found the child with the defendant in North Carolina. As part of his plea, Schiebener admitted to transporting the child from Canandaigua to North Carolina with the intent to engage in illegal sexual activity. Following the discovery of the child, a search warrant was executed at the defendant’s residence in North Carolina, and officers seized computers and digital media. Forensic analysis of the media revealed images of the defendant engaged in sexual activity with three children. As part of his plea, Schliebener also pleaded guilty to three counts of producing images of child pornography.
The defendant was scheduled to go to trial on the charges on Monday, April 7, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, members of the Canandaigua Police Department, under the direction of Chief Jonathan P. Welch, and members of the Lee County, North Carolina Sheriff’s Department, under the direction of Sheriff Tracy L. Carter.
Sentencing is scheduled for July 10th, at 3:00p.m. before of Judge Geraci.Madras Man Sentenced in Federal Court to over 11 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Police Seize Methamphetamine, Handguns, and Cash from Defendant’s HomePORTLAND, Ore. – Juan Miguel Lopez, 29, of Madras, Oregon, was sentenced on Monday, March 31, 2014, to 135 months in federal prison by U.S. District Judge Marco A. Hernandez. In December 2013, Lopez pled guilty to one count of possession with intent to distribute more than 50 grams of actual methamphetamine. The defendant is currently in the custody of the United States Marshals Service. After Lopez has completed his 135-month prison term, he will be required to serve 5 years of supervised release, during which time he will be prohibited from associating with any gang members.
“Mr. Lopez was a dangerous, armed drug dealer who spread destruction throughout Central Oregon and Warm Springs,” stated U.S. Attorney Amanda Marshall. “The long prison term imposed by Judge Hernandez will protect the public from this prolific drug dealer.”
Lopez, who went by the nickname “Monster,” told police that he was associated with the Mexican Mafia. Prior to this federal case, Lopez had five prior felony convictions for either delivery or possession of drugs. Lopez also has a prior conviction in Jefferson County Circuit Court for reckless endangerment, based on his hurling a bottle at a woman and throwing gang signs at Cove Palisades State Park.
This federal conviction for possession with intent to distribute methamphetamine is based on a search warrant executed at Lopez’s home on August 6, 2012, in Madras. During the search warrant, police officers seized approximately one-half pound of methamphetamine, a .45 caliber semiautomatic handgun, a .40 caliber semiautomatic handgun, ammunition, scales, drug packaging materials, and $2,655 in cash. Defendant, who was on Jefferson County probation at the time, was arrested that same day.
An investigation by the Warm Springs Police Department’s High Intensity Drug Trafficking Area (“HIDTA”) task force revealed that Lopez had been selling drugs around the Madras and Warm Springs areas. The defendant admitted to police that the two handguns seized from his home did, in fact, belong to him. Lopez told the police that he bought the firearms from an unidentified person at the Indian Head Casino in Warm Springs.
The case was investigated by the Warm Springs Police Department’s HIDTA task force. Assistant U.S. Attorney Scott Kerin prosecuted the case.
Lincoln Residents Charged with Harboring a FugitiveRead the Press Release
On April 4, 2014, a complaint was unsealed charging Aaron James Jackson, 28 of Lincoln, harboring a fugitive. The complaint alleges that between March 20, 2014, and April 4, 2014, Aaron James Jackson was aware that a federal warrant had been issued for his brother, Jason Robert Jackson, for conspiracy to distribute methamphetamine. During that time, Aaron Jackson helped his brother evade the Metropolitan Fugitive Task Force’s efforts to locate him. Aaron Jackson had his first court appearance on April 4, 2014, and he was detained. Aaron Jackson faces up to five years in prison and a fine of up to $250,000.
Jason Robert Jackson remains at large and is considered armed and dangerous. Persons with information about Jackson’s whereabouts should contact their local law enforcement agency.
This case was investigated by the Metro Fugitive Task Force, including officers and agents of the United States Marshals Service, the Lancaster County Sheriff’s Department, and the Lincoln Police Department.
Lake Andes Man Resentenced for Sexual Assault and BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that James Bruguier, a/k/a James Bruguier, Jr., age 28, of Lake Andes, South Dakota, was sentenced on March 31, 2014, by U.S. District Judge Karen E. Schreier.
In August of 2011, Bruguier was found guilty by a jury of Aggravated Sexual Abuse, Sexual Abuse of a Minor, and First Degree Burglary for separate sexual assaults on two teenagers from the Yankton reservation. The testimony at trial revealed that one of the sexual attacks perpetrated by Bruguier occurred in the home of the victim when Bruguier crawled through a window uninvited, assaulted the teenager, and then raped her.
Bruguier was originally Indicted in February of 2011 by a federal grand jury, and then re-indicted as more victims were discovered. After his convictions by the jury in 2011, Bruguier was sentenced to 360 months in custody. He appealed to the 8th Circuit Court of Appeals who ordered a resentencing. On March 31, 2014, Bruguier was resentenced to concurrent sentences of 354 months, 300 months, and 180 months for the 3 convictions.
The case was investigated by the Federal Bureau of Investigation and the Yankton Sioux Tribal Police Department. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Bruguier was immediately turned over to the custody of the U.S. Marshals Service.
Investment Manager Sentenced in Manhattan Federal Court to 87 Months in Prison for Perpetrating Multimillion-Dollar Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEPHEN COLANGELO, Jr., was sentenced yesterday to 87 months in prison in connection with two separate schemes that defrauded investors out of more than $3.5 million. COLANGELO’s first scheme involved a hedge fund he controlled called the Brickell Fund, LLC (the “Brickell Fund”), and his second scheme involved three companies he created and controlled called “Hedge Community,” “Start A Hedge Fund,” and “Under the Radar SEO” (collectively, the “Business Ventures”). COLANGELO misled investors in the course of both of these schemes by making numerous misrepresentations, which included issuing fraudulent performance statements, private placement memoranda, and other business documents. In addition to his prison sentence, COLANGELO was ordered to pay restitution to the victims of his schemes, which totals approximately $3.5 million. COLANGELO pled guilty on December 19, 2013, to two counts of securities fraud and two counts of wire fraud, and was sentenced today by U.S. District Judge Robert W. Sweet in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “Stephen Colangelo solicited investor money under false pretenses, and issued fraudulent materials to prop up his phony investment vehicles. Despite lofty promises to investors about their expected returns, the only one guaranteed to make money under his schemes was Colangelo. Now he has learned the true cost of doing business that way.”
According to the Indictment and related court documents and proceedings:
From March 2009 to February 2011, COLANGELO represented that he was an investment manager and solicited funds from private investors for the Brickell Fund, a purported hedge fund he operated. In the course of soliciting funds from investors, COLANGELO made numerous misrepresentations. Specifically, he told potential investors that his compensation for managing their investments in the Brickell Fund would be a nominal management fee and a certain percentage of trading profits, thus ensuring his compensation would be dependent on his trading success. In reality, COLANGELO regularly misappropriated large amounts of investor money for his own personal benefit and to support unrelated business ventures. He also regularly made false claims to investors about investment strategy and alleged profits.
From August 2009 to October 2011, COLANGELO also solicited investments in the Business Ventures. In doing so, COLANGELO represented that investment money would be used for legitimate business expenses, when in reality, he misappropriated a large amount of the investments for his own personal benefit.
Both schemes combined led to net losses to investors of approximately $3.5 million.
COLANGELO, 46, of Congers, New York, was also sentenced to 3 years of supervised release and was ordered to pay a mandatory $400 special assessment.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive,
coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20
federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition
of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For
more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John J. O’Donnell is in charge of the prosecution.
Interior Man Pleads Not Guilty to Assault on A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Interior, South Dakota, man has been indicted by a federal grand jury for Assault on a Federal Officer.
Justin Janis, age 21, was indicted on February 19, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Janis assaulting a female federal officer on November 27, 2013, near Kyle.
The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Janis was released on bond pending trial. A trial date has not been set.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on March 31, 2014 and entering pleas of Not Guilty were:
- MARQUIS DELAFEVETTE DAVIS, a 33 year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, DAVIS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-33
- STEVEN DOUGLAS FOURSTAR, a 46-year-old resident of Shepard, appeared on charges of unlawful purchase of ephedrine base and pseudoephedrine. If convicted of the most serious charge contained in the indictment, FOURSTAR faces 1 year imprisonment and $1,000 in fines. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-25
- DANIEL JOSEPH HARPOLD, a 39-year-old resident of Billings, appeared on charges of possession of a firearm with an obliterated serial number and possession of a sawed-off firearm. If convicted of the most serious charge contained in the indictment, HARPOLD faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearm. PACER Case Reference: 14-31
Appearing before U.S. Magistrate Lynch in Missoula on April 1, 2014 and entering pleas of Not Guilty were:
- CHARLES DOUGLAS MYERS, a 29-year-old resident of Bozeman, appeared on charges of felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious charge in the indictment, MYERS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-06
Appearing before U.S. Magistrate Strong in Great Falls on April 1, 2014 and entering please of Not Guilty were:
- TIMOTHY SEAN COLEMAN, a 43-year-old resident from Walla Walla, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, COLEMAN faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 13-103
Appearing before U.S. Magistrate Strong in Great Falls on April 2, 2014 and entering pleas of Not Guilty were:
- ELAINE FASTHORSE, a 30 year-old-resident of Poplar, appeared on charges of assault with a dangerous weapon and kidnaping. If convicted of the most serious charge in the indictment, FASTHORSE faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-15
- JEANETTE PAYNE, a 27-year-old resident of Wolf Point, appeared on charges of distribution of methamphetamine, distribution of methamphetamine in the presence of a minor and felony child abuse and neglect. If convicted of the most serious charges in the indictment, PAYNE faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-20
Appearing before U.S. Magistrate Ostby in Billings on April 2, 2014 and entering pleas of Not Guilty were:
- SHAWN ALLEN CASSIDY, a 34-year-old transient, appeared on charges of incest and aggravated sexual abuse. If convicted of the most serious charge contained in the indictment, CASSIDY faces life imprisonment, $250,000 in fines and 5 years supervised
The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 12-93
- ERIC BLAINE SIMPSON, a 48-year-old resident of Billings, appeared on charges of felon in possession of firearms, possession of a firearm with obliterated serial number and possession of unregistered firearms. If convicted of the most serious charges contained in the indictment, SIMPSON faces 10 years imprison, $250,000 in fines and 3 years supervised release. PACER Case Reference: 14-31
- GARRETT SIDNEY WADDA, a 35-year-old transient, appeared on charges of first degree murder and aggravated sexual abuse. If convicted of the most serious charge contained in the indictment, WADDA faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-27
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Man Charged with Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois, man has been indicted by a federal grand jury for Criminal Trespass.
Steven Nichols, age 43, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident that took place on March 14, 2014, when Nichols, a non-Indian, entered or remained on the Rosebud Sioux Indian Reservation after the Rosebud Sioux Tribal Court and Rosebud Sioux Tribal Council excluded him from entering its lands.
The charge is merely an accusation and Nichols is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Nichols was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
I-55 Bandit Sentenced on Bank Fraud ChargesRead the Press Release
St. Louis, MO – ANDREW MABERRY, O’Fallon, IL, who the FBI referred to as the I-55 Bandit, was sentenced to 60 months in prison on bank robbery charges, including the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri. He entered his guilty plea last December and was sentenced today in St. Louis by United States District Judge Catherine D. Perry.
According to court documents, on July 2, 2013, Maberry robbed the Commerce Bank in Arnold, Missouri. He also admitted with his plea agreement to nine other robberies in five states: May 15, 2013, US Bank in Crystal City, Missouri; May 21, 2013, First State Community Bank in Cape Girardeau, Missouri; May 6, 2013, Scott Credit Union in Edwardsville, Illinois; June 5, 2013, Harford Bank in Bel Air, Maryland; June 9, 2013, TD Bank located in Essex, Maryland; July 19, 2013, Wells Fargo Bank in Bel Air, Maryland; July 24, 2013, Susquehanna Bank in Ocean City, Maryland; July 30, 2013, Huntington National Bank in Hurricane, West Virginia; and August 14, 2013, Bank of Jackson in Jackson, Tennessee. On September 10, 2013, a multi-state press release was issued, which included bank security camera photographs of the robber who had been dubbed the "I-55 Bandit." The FBI here and in other districts received numerous phone calls from individuals stating that they know Andrew Maberry. On the same date, FBI in St. Louis was contacted and told that the I-55 Bandit wanted to turn himself in, and on September 11, 2013, Andrew Caleb Maberry turned himself in to the FBI in St. Louis.
This case was investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
Hartford Woman Sentenced for Unlawful Selling of Migratory BirdsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hartford, South Dakota, woman charged by Information with Unlawful Selling of Migratory Birds pled guilty to and was sentenced on March 24, 2014, by U.S. Magistrate Judge John E. Simko.
Karen Leisinger, age 49, was sentenced to a fine of $2,500, restitution to the U.S. Fish & Wildlife in the amount of $3,900, and $10 to the Federal Crime Victims Fund.
The conviction is a result of Leisinger selling wood ducks and Canada geese in 2011. At the time of the sale, Leisinger did not have valid state or federal permits to sell migratory birds.
The investigation was conducted by the U.S. Fish & Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Gun Dealer Indicted for Sale of Firearms to A FelonRead the Press Release
April 4, 2014
AUGUSTA, GA – An indictment was returned yesterday by a federal Grand Jury sitting in Savannah, Georgia against William Arnold Debow, 53, a federally licensed firearms dealer who was doing business as The Ponderosa Trading Company. Debow was charged with 28 counts of knowingly transferring a firearm to a convicted felon and with 10 counts of illegally transferring a handgun to out of state residents.
Knowingly transferring a firearm to a felon carries a maximum prison sentence of 10 years and a maximum fine of $250,000 for each count. Illegally transferring a handgun to an out of state resident carries a maximum 5 year prison sentence and a $250,000 fine for each count. United States Attorney Edward Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the ATF. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Grand Jury Returns an Indictment Against State Senator Yee, Raymond “Shrimpboy” Chow, and Twenty-Seven Related DefendantsRead the Press Release
SAN FRANCISCO – A federal grand jury returned an Indictment yesterday charging twenty-nine defendants with firearms trafficking, money laundering, murder-for-hire, drug distribution, trafficking in contraband cigarettes, and honest services fraud, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez. The indictment follows the March 26, 2014 arrests authorized by criminal complaint.
The defendants are charged in the indictment as follows:
DEFENDANT
CHARGES
Kwok Cheung CHOW, a/k/a Raymond CHOW, a/k/a Shrimp Boy
Money Laundering (18 USC § 1956), Conspiracy to Traffic Contraband Cigarettes (18 USC §§ 371, 2342, 2344), Conspiracy to Transport and Receive Stolen Property in Interstate Commerce (18 USC §§ 371, 2314, and 2315)
Leland YEE
Honest Services Conspiracy (18 USC §1349), Wire Fraud (18 USC §§ 1343, 1346), Conspiracy to Deal in Firearms and Import Firearms (18 USC §§ 371, 922(a), 922(l))
George NIEH, a/k/a Heng Nieh, a/k/a Ah Fei
Money Laundering (18 USC 1956), Unlicensed Firearms Dealing (18 USC § 922(a)), Felon in Possession of Firearm (18 USC § 922(g)), Conspiracy to Traffic Contraband Cigarettes (18 USC §§ 371, 2342, 2344), Conspiracy to Transport and Receive Stolen Property in Interstate Commerce (18 USC §§ 371, 2314, and 2315), Narcotics Conspiracy (21 USC § 846)
Keith JACKSON
Wire Fraud (18 USC §§ 1343, 1346), Engaging in Business of Dealing in Firearms (18 USC § 922(a)), Narcotics Conspiracy (21 USC § 846), Murder for Hire (18 USC § 1958), Conspiracy to Deal in Firearms and Import Firearms (18 USC §§ 371, 922(a), 922(l))
Brandon JACKSON
Narcotics Conspiracy (21 USC § 846), Unlicensed Firearms Dealing (18 USC § 922(a)), Murder for Hire (18 USC §1958)
Marlon SULLIVAN
Narcotics Conspiracy (21 USC § 846), Unlicensed Firearms Dealing (18 USC § 922(a)), Murder for Hire (18 USC § 1958)
Rinn ROEUN
Unlicensed Firearms Dealing (18 USC § 922(a)), Murder for Hire (18 USC § 1958)
Alan CHIU, a/k/a Alan Shiu
Money Laundering (18 USC § 1956)
Kevin SIU
Money Laundering (18 USC § 1956)
Kongphet CHANTHAVONG, a/k/a “Joe,” a/k/a “Fat Joe”
Narcotics Conspiracy (21 USC § 846), Money Laundering (18 USC § 1956), Felon in Possession of a Firearm (18 USC § 922(g)), Possession of Narcotics with Intent to Distribute (21 USC § 841), Possession of a Firearm in Furtherance of a Drug Trafficking Crime (18 USC § 924(c))
Michael MEI
Possession of Narcotics with Intent to Distribute (21 USC § 846)
Andy LI
Money Laundering (18 USC § 1956), Narcotics Conspiracy (21 USC 846), Unlicensed Firearms Dealing (18 USC § 922(a)), Felon in Possession of Firearm (18 USC § 922(g))
Leslie YUN
Money Laundering (18 USC § 1956), Conspiracy to Traffic in Stolen and Contraband Cigarettes (18 USC §§ 371, 2315, 2342, 2344)
James PAU
Money Laundering (18 USC § 1956), Conspiracy to Traffic in Stolen and Contraband Cigarettes (18 USC §§ 371, 2315, 2342, 2344)
Jane LIANG
Conspiracy to Transport and Receive Stolen Property (18 USC §§ 371, 2315)
Tina LIANG
Conspiracy to Transport and Receive Stolen Property (18 USC §§ 371, 2315), Narcotics Conspiracy (21 USC § 846)
Brian TILTON
Conspiracy to Transport and Receive Stolen Property (18 USC §§ 371, 2315), Narcotics Conspiracy (21 USC § 846)
Ming MA
Conspiracy to Receive Stolen Property (18 USC §§ 371, 2315)
Hon SO
Conspiracy to Receive Stolen Property (18 USC §§ 371, 2315)
Norge MASTRANGELO
Money Laundering (18 USC §1956)
Albert NHINGSAVATH
Money Laundering (18 USC § 1956)
Serge GEE
Money Laundering (18 USC § 1956)
Xi Ling LIANG, a/k/a Elaine LIANG
Money Laundering (18 USC § 1956)
Gary CHEN
Money Laundering (18 USC § 1956)
Anthony LAI
Money Laundering (18 USC § 1956)
Tong ZHANG
Conspiracy to Traffic Contraband Cigarettes (18 USC §§ 371, 2342, 2344)
Zhanghao WU
Conspiracy to Traffic Contraband Cigarettes (18 USC §§ 371, 2342, 2344)
Barry Blackwell HOUSE
Dealing Firearms without a License (18 USC § 922(a)), Possession of Firearm by a Felon (18 USC § 922(g)(1))
WILSON SY LIM, a/k/a “Dr. Lim”
Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of (18 USC §§ 371, 922(a)(1))
The maximum penalties for the violations are as follows:
18 U.S.C. § 1956(a)(1) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment
18 U.S.C. § 1956(a)(3) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment
18 U.S.C. § § 371,
2314, 2315
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § § 371, 2315,
2342(a), 2344
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § 922(a)(1)
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § 922(g)(1)
Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. §§ 371,
922(a)(1), 922(l)
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § 924(c)
From five years to life
Five years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § 1958
Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment
18 U.S.C. § § 1343,
1346, 1349
Twenty years in prison
Three years supervised release
$250,000 fine
$100 special assessment
21 U.S.C. § 841
From five years to forty years in prison
Four years supervised release
$5 million fine
$100 special assessment
21 U.S.C. § 841, 846
Five years in prison, with five or ten year
mandatory minimum in some instances
Three to five years supervised release
$250,000 to $10 million fine
$100 special assessment
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants are subject to the maximum penalties stated above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
William Frentzen, Susan Badger, and Waqar Hasib are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of a five-year investigation by the FBI, Internal Revenue Service-Criminal Investigations Division, San Francisco Police Department, Oakland Police Department, and Antioch Police Department.
(Chow indictment )
Georgia Woman Pleads Guilty to Damaging a Protected ComputerRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Annette Kendrick, of Marietta, Georgia, pleaded guilty before U.S. Magistrate Judge Marian W. Payson, to a charge of recklessly causing damage to a protected computer. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.
Assistant U.S. Attorney, Bradley E. Tyler, who is handling the case, stated that the defendant intentionally and without authorization logged into the computer domain of a Rochester company. After logging on, Kendrick caused modifications to various job applications, job postings and job posting requirements. As part of the unauthorized intrusion, the defendant caused e-mails with false information to be sent to outside employment agencies about the company’s job postings, and to job applicants, saying that they were no longer being considered for a position. Kendrick’s unauthorized intrusion caused the company to incur costs of $50,034.96 to investigate, repair and re-secure the company’s computer domain.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 6, 2014, at 11 a.m. before Magistrate Judge Payson.Fraudsters Who Collected Thousands of Dollars in Unemployment Benefits Have Pleaded Guilty to Federal Theft ChargesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that five individuals from across Eastern Washington, who fraudulently collected unemployment benefits from the Washington State Employment Security Division, have pleaded guilty to Federal charges of Theft of Government Funds, in violation of 18 U.S.C. § 641. Each of the fraudsters unlawfully collected thousands of dollars in unemployment benefits, ranging from $5,500.00 to $36,000.00.
The Washington State Employment Security Division implements the unemployment benefits program in the state of Washington. For an individual to receive unemployment benefits, he or she must submit a weekly claim to the Washington State Employment Security Division, certifying that he or she is unemployed and entitled to benefits under the program. The state program is overseen by the United States Department of Labor and any fraud committed against the program is a Federal crime.
On February 20, 2014, Elke Anna Marie Covey, age 56, of Spokane Valley, Washington, pleaded guilty to Theft of Government Funds. According to information disclosed during the court proceedings, which were presided over by Chief United States District Court Judge Rosanna Malouf Peterson, Covey claimed unemployment benefits from August, 2010 through October, 2011. Each week during this period of time Covey claimed she was not working and had no reportable earnings, when in truth she was collecting monies from the Washington Department of Social and Health Services for providing child care. Covey unlawfully collected approximately $23,022.00 in benefits. CR-13-130-RMP.
On February 20, 2014, Sherrie Lynn Clark, age 49, of Spokane, Washington, also pleaded guilty to Theft of Government Funds. According to information disclosed during the court proceedings, which were presided over by United States District Court Judge Thomas O. Rice, Clark claimed unemployment benefits from August, 2009 through October, 2010. Each week during this period of time Clark certified that she was neither working nor receiving income. In fact, Clark was employed by a company located in Idaho. Clark admitted to investigators that she falsely claimed she was unemployed when she submitted her weekly claim for benefits to the Washington Employment Securities Division. Clark also admitted that she unlawfully collected approximately $36,332.00 in unemployment benefits. CR-13-129-TOR.
Similarly, on December 16, 2013, Albert Junior Riojas, age 31, of Yakima, Washington, pleaded guilty to Theft of Government Funds. According to information disclosed during the court proceedings, which were presided over by Senior United States District Court Judge Wm. Fremming Nielsen, Riojas began submitting claims for benefits in December, 2009, after losing his employment with the City of Toppenish. However, from December, 2010 through October, 2011, Riojas continued to collect unemployment benefits after he secured employment. Riojas submitted weekly claims for benefits, unlawfully certifying that he was not employed. Riojas admitted his fraudulent conduct to investigators and that he unlawfully collected over $18,500.00 in unemployment benefit payments. CR-13-2106-WFN.
On October 24, 2013, Matthew Allegal Loges, age 33, of Prosser, Washington, also pleaded guilty to Theft of Government Funds. In this case, which was presided over by Senior United States District Court Judge Lonny R. Suko, it was disclosed that Loges began to submit claims for unemployment benefits in May, 2011. He was subsequently incarcerated in a state correctional facility on unrelated state charges in September, 2011, yet continued to submit claims for unemployment benefits until November 2011. Each week Loges certified he was available from, able to, and actively seeking employment. Loges admitted to investigators that he falsely submitted the claims, and stated he considered the payments a "low-interest loan from the state" which he could use to make the payments on a new boat and a new car while incarcerated. Loges fraudulently collected approximately $5,755.00 in benefits. CR-13-6059-LRS.
On October 22, 2013, Bobby Joe Perez, age 33, of Kennewick, Washington, also pleaded guilty to Theft of Government Funds. Senior United States District Court Judge Wm. Fremming Nielsen presided over the case, during which it was disclosed that Perez began to file for unemployment benefits beginning in 2003, and thereafter, sporadically filed for benefits in subsequent years. The investigation revealed that, from April, 2011 through January, 2012, Perez was actually employed, but each week during this time period he falsely reported he was unemployed. Perez unlawfully collected approximately $16,980.00 in benefits. Of note, based on a Washington State Employment Security Division investigation in 2009, Perez was found to have fraudulently submitted and collected unemployment benefits from the program – at that time he was barred from collecting benefits for six months and required to repay the monies he had received. CR-13-6060-WFN.
Michael C. Ormsby stated, "The United States Attorney's Office for the Eastern District of Washington is committed to ferreting out and prosecute aggressively fraud-induced "white collar" crimes. The investigation and prosecution of these cases is just one example of this commitment. I commend the superb work of this Office's state and Federal investigative partners."
These cases were investigated by the U.S. Department of Labor (Office of Inspector General), the Washington Employment Security Department, and the Federal Bureau of Investigation. These cases are being prosecuted by Caitlin A. Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Fort Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 31, 2014, by U.S. District Judge Roberto A. Lange.
Patrick Scott Pomani, age 33, was sentenced to 30 months in custody, 5 years of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
Pomani was indicted by a federal grand jury on July 16, 2013. He pled guilty on January 22, 2014.
The conviction stems from Pomani failing to register as a sex offender between April 28, 2013, and July 16, 2013. Pomani was previously convicted of a sex offense in federal court, and he is required by law to register under the Sex Offender Registration and Notification Act.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Pomani was immediately turned over to the custody of the U.S. Marshals Service.
Former Vice President of Government Contracting Company<br /> Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
A former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, 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.
Adam C. White, 40, was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials. White faces a maximum penalty of five years when he is sentenced on July 11, 2014.
According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects. For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.
White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners. Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials. In his statement of facts, White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.
As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.
In December 2013, White resigned from his position as vice president of the government contracting company.
Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme. On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes. On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000. On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.
The case was investigated by the FBI, DCIS and NCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.Former Vice President of Government Contracting Company Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
NORFOLK, Va. – Adam C. White, 40, a former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.
Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, 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.
White was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials. White faces a maximum penalty of five years when he is sentenced on July 11, 2014.
According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects. For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.
White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners. Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials. White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.
The case was investigated by the FBI, DCIS, and NCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.
In December 2013, White resigned from his position as vice president of the government contracting company.
Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme. On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes. On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000. On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.Former U.S. Railroad Retirement Board Representative Sentenced in Manhattan Federal Court to Five Years in Prison for Her Role in LIRR Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARIE BARAN, a former employee of the United States Railroad Retirement Board (“RRB”), was sentenced today in Manhattan federal court to five years in prison for her role in the massive fraud scheme in which Long Island Railroad (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. Between approximately 2007 and 2011, BARAN completed fraudulent disability applications on behalf of at least 188 LIRR clients in exchange for cash payments. Following a three-week jury trial in August 2013, BARAN was convicted of two counts of conspiracy to commit mail fraud, wire fraud, and health care fraud, two counts of conspiracy to defraud the RRB, two counts of health care fraud, two counts of mail fraud, and two counts of wire fraud. She was sentenced today before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara stated: “Marie Baran manipulated a safety net for the disabled and took advantage of the federal agency that employed her for decades. In exchange for cash, she helped nearly 200 LIRR employees obtain more than $75 million based on lies. Today’s sentence ensures that she will now pay for her crimes.”
According to the Complaint, the Superseding Indictments, the evidence at trial, and statements made in court:
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service) they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits.
BARAN is a former employee of the RRB who, following her retirement from the agency in 2006, began accepting cash payments from LIRR workers to complete fraudulent disability applications on their behalf. Between approximately 2007 and 2011, BARAN helped at least 188 LIRR employees obtain disability benefits to which they were not entitled. In exchange for payments of over $1000 per employee, BARAN completed fraudulent disability applications on the employees’ behalf, fabricating claims of serious physical suffering and decline, and grossly exaggerating the physical demands of the employees’ jobs. As a result of this fraud, BARAN’s LIRR customers have received approximately $30 million in RRB disability benefit payments, and the intended losses from her fraud amount to over $77 million.
In addition to her prison term, BARAN, 66, of East Meadow, New York, was also sentenced to three years of supervised release. She was also ordered to pay approximately $31 million in restitution, to forfeit approximately $31 million, and to pay a $1000 special assessment.
Thirty-three people have been charged in connection with the LIRR disability fraud scheme, 28 of whom have pled guilty and five of whom were convicted after trial.
Mr. Bharara praised the RRB Office of Inspector General, the Federal Bureau of Investigation, and the Metropolitan Transit Authority - Office of Inspector General for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Daniel Tehrani, and Nicole Friedlander are in charge of the prosecution.
Former Raleigh Identity Thief Sent to Prison for 54 Months for Role in Expansive Credit Card SchemeRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that yesterday afternoon in federal court United States District Judge Louise W. Flanagan sentenced MAMADOU SALIEU BARRIE, 34, to serve a total of 54 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, and Possession of Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Section 1029(a)(3). BARRIE was also ordered to make restitution to victims.
According to the Indictment and information provided to the Court at sentencing, BARRIE was a participant in a wide-ranging and ongoing credit card and cigarette trafficking scheme. The purpose of the scheme is to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which are resold on the black market in New York and other states. To carry out the scheme, participants acquire stolen credit card data on the internet and other locations, and encode the stolen data onto the magnetic strip of what appear to be legitimate gift or credit cards. Managers in the scheme then distribute the cards to “runners” who travel to various gas stations, convenience stores, and grocery stores located around the state where they purchase dozens of cartons of cigarettes at a time using the counterfeit gift and credit cards. The runners return the cigarettes to the managers in the scheme, who pay the runners a kickback and supply them with more counterfeit cards. The managers periodically make trips to New York where they sell the cigarettes on the black market for cash.
On April 30, 2011, BARRIE was arrested on state charges after a search of his Raleigh apartment turned up 92 fraudulently re-encoded gift cards and 106 cartons of cigarettes. Several months later, on January 3, 2012, BARRIE was arrested again during a traffic stop, at which time he was found in possession of 33 gift cards that had been re-encoded with stolen credit card data. The investigation also uncovered that BARRIE caused another person to rent a storage unit in her name. A search of that Raleigh storage unit uncovered a magnetic card encoding device, 32 cartons of cigarettes, and another 20 re-encoded credit cards.
During questioning by law enforcement, BARRIE admitted to receiving counterfeit cards and storing cigarettes for others involved in the scheme. He further admitted to renting the storage unit containing the card encoding device in connection with the scheme.
BARRIE was indicted by a federal grand jury sitting in the Eastern District of North Carolina on January 3, 2013. On August 15, 2013, BARRIE pled guilty to Counts 1 and 3 of the Indictment, which charged him with Aggravated Identity Theft, and Possession of Fifteen or More Unauthorized Access Devices.
At the sentencing hearing, over BARRIE’s objections, Judge Flanagan adopted findings by the United States Probation Office that 92 individuals and 18 banks were victimized as a result of BARRIE’s conduct.
The investigation of the ongoing scheme described above continues. Anyone with knowledge of the scheme should contact the United States Secret Service in Raleigh at (919) 855-1052.
Investigation of BARRIE’s case was conducted by the United States Secret Service, with the assistance of the Raleigh Police Department, the New Bern Police Department, and the Kinston Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Former Marion Resident Sentenced to over 12 Years for Attempting to Entice MinorRead the Press Release
A man who attempted to entice a minor to engage in sexual activity was sentenced April 3, 2014, to over twelve years in federal prison.
Michael Glawe, age 31, formerly of Marion, Iowa, received the sentence after a December 16, 2013, guilty plea to one count of attempted enticement of a minor. At the guilty plea hearing, Glawe admitted that, between 2010 and 2011, he attempted to entice an undercover officer who was posing as a minor to meet for the purpose of unlawful sex with a minor.
Glawe was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Glawe was sentenced to 151 months’ imprisonment. A special assessment of $100 was imposed, and Glawe must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Marion Police Department, and the Clinton County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-79.
Former Marion Investment Broker Sentenced to More Than Nine Years for Fraud, Money Laundering, and Tax EvasionRead the Press Release
Judge calls Randy Beltramea an "Unrepentant Flim Flam Artist"
A former investment broker was sentenced today, to more than nine years in federal prison.
Randy Beltramea, age 49, from Marion, Iowa, received the prison term after a guilty plea to making false statements to banks, defrauding investors, and evading taxes.
In a plea agreement, Beltramea admitted that in 2009 and 2010, he devised a scheme to defraud former investors by soliciting money from them under false pretenses. In particular, Beltramea admitted telling former investors that their money was to be invested in Subway sandwich shop restaurants, when he actually intended to, and did, use their money in his own real estate investment and for his own personal expenses. In connection with soliciting money from one of the investors, Beltramea provided the investor with a promissory note on which he forged the signature of another person who was involved in buying a Subway restaurant. In fact, that other person did not give Beltramea permission to use or sign his name to the promissory note. Beltramea also admitted that he moved some of the proceeds from the fraud into a bank account under his mother’s name for the purpose of trying to hide the source of the money and in an effort to evade taxes. The IRS had previously imposed a tax lien in excess of $320,000 against Beltramea because he had not filed tax returns or paid taxes since 2001. Finally, Beltramea admitted that he obtained loans and loan extensions from two banks by providing them with false financial statements and with tax returns he falsely represented had been filed with the IRS.
Beltramea was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Noting Beltramea was an “unrepentant flim flam artist,” Chief Judge Reade sentenced to 111 months’ imprisonment. He was also ordered to make $376,488.27 in restitution to his victims. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Beltramea is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys C.J. Williams and Jacob Schunk and investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-20-LRR.
Former Grand Rapids Counselor and Foster Parent Sentenced to 30 Years in Prison for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Victor Marchione, 48, of Grand Rapids, was sentenced to 30 years in federal prison after pleading guilty to distributing and possessing over 44,000 images and videos of child pornography, U.S. Attorney Patrick Miles announced today. Marchione was a licensed counselor and mentor to numerous adolescent boys, as well as adoptive parent, foreign host parent, and foster parent to 29 children. He also pled guilty in the 17th Circuit Court, State of Michigan, to Criminal Sexual Conduct, Third Degree (Person 13-15) for having oral sex with a teenage boy. He faces sentencing on the state charge later this month.
In delivering the sentence, U.S. District Judge Robert J. Jonker stated, “In my experience, this has got to be the largest collection of child pornography I have seen in a single case.” Referring to allegations by several young men that they were molested by Marchione over the past 22 years, Judge Jonker continued, “This is a very serious underlying set of conduct and violations of the law.” The prison sentence will be followed by lifetime supervised release.
U.S. Attorney Miles commented: “People with a sexual interest in children who put themselves in positions of authority and mentorship over youth exploit the trust of everyone in our community. People like Marchione who prey on children for sexual gratification and who supply child pornography to others will be prosecuted to the fullest extent of the law.”In January 2012, two different undercover agents downloaded child pornography from Marchione through an online file-sharing program. Marchione told one of the undercover agents in a chat session that he was interested in 10-14 year-old boys and that he had sexual contact with boys in the past. In August 2012, the FBI executed a search warrant at Marchione’s home and seized computers and external hard drives containing over 44,000 images and videos of child pornography. The investigation uncovered an online chat session in which Marchione instructed another person to become an activity leader or tutor in his community to find a child to molest. He sent 150 pages of instructions on how to find and molest a child without the child telling anyone and instructing readers to find a vulnerable child who needs someone to trust.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood also work to educate local communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about project, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
The FBI investigated the case. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted it.
END
Florissant Man Convicted of Federal Drug Conspiracy ChargesRead the Press Release
St. Louis, MO – TORRANCE COTTON was convicted late Thursday of charges involving a conspiracy to distribute large amounts of cocaine in the St. Louis area.
Testimony at trial revealed that beginning in late summer 2012, Torrance L. Cotton began supplying cocaine to co-defendant David Frazier, who in turn supplied it to co-defendant Jeremy Poe. According to the testimony, the exchanges of drugs and money took place at a business located on South Broadway in St. Louis where both Torrance Cotton and David Frazier were employees. On January 11, 2013, co-defendant Jeremy Poe was arrested after agreeing to sell a kilogram of cocaine to a government informant. Subsequent search warrants at addresses associated with Jeremy Poe yielded an additional 1.5 kilograms of cocaine, along with a blender, scale, cutting agent and a press. On January 18, 2013, agents seized a kilogram of cocaine from co-defendant David Frazier’s kitchen. Torrance Cotton’s fingerprints were later located on the packaging of that kilogram of cocaine.
Cotton, Florissant, was convicted after a four-day trial before United States District Judge John A. Ross. Sentencing has been set for June 2014.
Ten co-defendants have entered guilty pleas to related charges, have been sentenced or are awaiting sentencing.
Cotton now faces a penalty range of ten years to life in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration.First Ever Extradition on Antitrust ChargeRead the Press Release
Romano Pisciotti, an Italian national, was extradited from Germany on a charge of participating in a conspiracy to suppress and eliminate competition by rigging bids, fixing prices and allocating market shares for sales of marine hose sold in the United States and elsewhere, the Department of Justice announced today. This marks the first successfully litigated extradition on an antitrust charge.
Pisciotti, a former executive with Parker ITR Srl, a marine hose manufacturer headquartered in Veniano, Italy, was arrested in Germany on June 17, 2013. He arrived in the Southern District of Florida, in Miami, yesterday and is scheduled to make his initial appearance today in the U.S. District Court for the Southern District of Florida in Ft. Lauderdale, at 11:00 a.m. EDT.“This first of its kind extradition on an antitrust charge allows the department to bring an alleged price fixer to the United States to face charges of participating in a worldwide conspiracy,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “This marks a significant step forward in our ongoing efforts to work with our international antitrust colleagues to ensure that those who seek to subvert U.S. law are brought to justice.”
Marine hose is a flexible rubber hose used to transfer oil between tankers and storage facilities. During the conspiracy, the cartel affected prices for hundreds of millions of dollars in sales of marine hose and related products sold worldwide.
According to a one-count felony indictment filed under seal on Aug. 26, 2010, and ordered unsealed on Aug. 5, 2013, in U.S. District Court in the Southern District of Florida, Pisciotti carried out the conspiracy by agreeing during meetings, conversations and communications to allocate shares of the marine hose market among the conspirators; use a price list for marine hose in order to implement the conspiracy; and not compete for customers with other marine hose sellers either by not submitting prices or bids or by submitting intentionally high prices or bids, all in accordance with the agreements reached among the conspiring companies. As part of the conspiracy, Pisciotti and his conspirators provided information received from customers in the United States and elsewhere about upcoming marine hose jobs to a co-conspirator who served as the coordinator of the conspiracy. That coordinator acted as a clearinghouse for bidding information that was shared among the conspirators, and was paid by the manufacturers for coordinating the conspiracy. The department said the conspiracy began at least as early as 1999 and continued until at least May 2007. Pisciotti was charged with joining and participating in the conspiracy from at least as early as 1999 until at least November 2006.
Pisciotti is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
As a result of the department’s ongoing marine hose investigation, five companies, including Parker ITR; Bridgestone Corp. of Japan; Manuli SPa of Italy’s Florida subsidiary; Trelleborg of France; and Dunlop Marine and Oil Ltd, of the United Kingdom, and nine individuals have pleaded guilty.
The investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the Defense Criminal Investigative Service (DCIS) of the Department of Defense’s Office of Inspector General, the U.S. Navy Criminal Investigative Service and the Federal Bureau of Investigation. The U.S. Marshals Service and other law enforcement agencies from multiple foreign jurisdictions are also investigating or assisting in the ongoing matter. The Criminal Division’s Office of International Affairs provided assistance.
Anyone with information concerning bid rigging or other anticompetitive conduct in the marine products industry is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694.
Financial Services Firm President Sentenced to 3 Years in Prison for $2.9M Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 36 months imprisonment followed by 3 years supervised release on his conviction of violating federal laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Ronald A. Moog, 78.
According to information presented to the court, Moog was the President of Moog Transfinancial Services, a Pittsburgh based corporation in the business of auditing freight bills for other companies who had a large volume of freight business. According to Moog’s contractual relationship with the victim companies, Moog would inform the victims of the payment necessary to pay off their freight charges. The victims would then send Moog money, which Moog would place into a trust account. For nearly 13 years, the defendant syphoned money out of the trust account for purposes other than paying the victims’ freight bills, leading to a shortfall within the account of over $2.8 million. This amount was passed onto the victim companies in the form of delinquent freight invoices, which they had already sent money to Moog to pay for and which they believed had been already paid.
As part of the sentence, Judge Fischer ordered Moog to pay restitution of approximately $2.9 million to the following victims: Mine Safety Appliances (MSA), Jennmar, Traco, Union Switch & Signal, Neville Chemical, Penn Machine Company, Union Spring, Bradley Paint Company, B.M Kramer & Co. Inc., and E.W. Bowman, Inc.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Moog.
Financial Planner Sentenced to Serve 10 Years in Federal Prison on Wire Fraud and Money Laundering ConvictionsRead the Press Release
Defendant Also Ordered to Pay Nearly $100,000 in Restitution
FORT WORTH, Texas — Caleb Deason, 34, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge John McBryde to serve a total of 120 months in federal prison, following his conviction at trial in December 2013 on one count each of wire fraud and money laundering. Departing upward from the U.S. Sentencing Guidelines, Judge McBryde remarked that it was obvious to him that Deason was nothing more than a “con man and a flim-flam” who has been amoral in the majority of his dealings in his professional life. Judge McBryde also ordered Deason to pay $99,491 in restitution. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Deason owned and operated CD Financial, a financial services business in Fort Worth. He was an agent of Transamerica Life Insurance Company from November 2006 through May 2012. In October 2011, Deason sold an individual a Transamerica policy with a death benefit of approximately $1 million.
In January 2012 the insured died unexpectedly. Transamerica conducted extensive due diligence before agreeing to pay the policy’s death benefit to the insured’s wife. However, Deason fraudulently changed the bank account and routing information and forged the beneficiary’s signature on a Transamerica wire request form in order to divert the proceeds from the life insurance policy to his own personal use, which included purchasing a 2010 Range Rover. The Range Rover was administratively forfeited by the U.S. Secret Service.
The U.S. Secret Service and the Texas Department of Insurance investigated. Assistant U.S. Attorneys Brian Poe and John de la Garza prosecuted.
Federal Inmate Charged with Attempted Murder at CanaanRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal information has been filed in U.S. District Court in Scranton charging that an inmate at the United States Penitentiary at Canaan, Pennsylvania, with allegedly assaulting another inmate with a dangerous weapon with the intent to commit murder on November 7, 2013. Eddie Joe Sutton, age 59, formerly of Texas, was charged with the offense. According to United States Attorney Peter Smith, the alleged victim was another inmate who survived the attack but suffered stab wounds which required treatment at a local hospital.
The Government also filed a plea agreement which is subject to approval by the Court.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fairview Man Pleads Guilty to Produciton of Child PornographyRead the Press Release
Kevin S. Kolb, 47, of Fairview, Tenn., pleaded guilty today in U.S. District Court in Nashville to five counts of production of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to testimony at the plea hearing, Kolb took sexually explicit images of a young girl, while in his care, when she was between the age of seven and ten years old. Kolb distributed these images via the internet and investigators also found approximately 600 sexually explicit images and 12 videos of child pornography in Kolb’s possession.
Kolb faces a mandatory minimum sentence of fifteen years in prison and up to 150 years for these crimes. Sentencing is scheduled for June 23, 2014, before U.S. District Court Judge Aleta Trauger.
This matter was investigated by the Federal Bureau of Investigation and the United States is represented by Assistant U.S. Attorney S. Carran Daughtrey.
Executive Sentenced to Five Years in Federal Prison on Wire Fraud Conspiracy ConvictionRead the Press Release
Ran Ponzi Scheme Involving Medical Insurance Investments
DALLAS — Duncan MacDonald III, 50, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to five years in federal prison, following his guilty plea in July 2013 to a felony Information charging conspiracy to commit wire fraud. Restitution owed will be determined at a later date. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In a related case, Gloria Ann Solomon, 71, also of Dallas, will be sentenced by Judge Boyle on April 17, 2014. She pleaded guilty to an Information charging the same offense.
According to documents filed, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.
GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.
In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.
MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.
MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.
MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.
When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.
The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.
In a parallel action, both defendants were also charged by the U.S. Securities and Exchange Commission (SEC) with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments. On August 8, 2013, the district court entered Agreed Partial Judgments against both defendants, enjoining them from future violations of federal securities laws. The SEC continues to seek disgorgement plus prejudgment interest and civil penalties against both defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is 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.
The FBI conducted the investigation. The SEC’s Fort Worth Regional Office also provided valuable assistance. Assistant U.S. Attorney Chris Stokes led the prosecution.
Eight Defendants Charged in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the unsealing of a twenty-two count indictment charging eight defendants with participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims' bank accounts and obtain unauthorized credit or debit cards.
All of the defendants were charged with one count of conspiracy, in violation of Title 18, United States Code, Section 1349, and several defendants were charged individually with access device fraud, in violation of Title 18 United States Code, Sections 1029(a)(2) and 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The defendants charged are: Chouman Emily Syrilien, 25, of Lauderdale Lakes, Arrington Basil Segu, 28, of Miami, Carlos Antonio Alexander, 24, of Orlando, Angel Arcos, 23, of Pompano Beach, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, and Monique Smith, 31, of Pompano Beach. Arcos, Godfrey and Smith had their initial appearances this morning before U.S. Magistrate Judge Alicia O. Valle. Segu had his initial appearance yesterday. Alexander is currently incarcerated. Two defendants remain at a large.
According to the indictment, Syrilien was employed by Interactive Response Technologies, lnc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Godfrey, and Smith and were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money. Alexander, Smith and Godfrey each made both retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity.
If convicted, the defendants each face a maximum of thirty years in prison for the conspiracy charge, a maximum of ten years in prison for the access device fraud charge, and a mandatory term of two years in prison for each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
East St. Louis Man Sentenced for Crack Cocaine OffensesRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Damon L. Pruitt was sentenced today in District Court in East St. Louis to 100 months in prison for selling crack cocaine.
Pruitt, 28, of East St. Louis, Illinois, pled guilty on November 15, 2013, to selling crack cocaine on three separate occasions in East St. Louis during May, 2013. Pruitt has been confined since his arrest on June 26, 2013.
The investigation which resulted in Pruitt’s arrest and conviction was conducted by police officers assigned to the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Eagle Butte Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on March 31, 2014, by U.S. District Judge Roberto A. Lange.
Debra Charging Cloud, age 28, was sentenced to 30 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Charging Cloud was indicted by a federal grand jury on May 15, 2013, and she pled guilty to Involuntary Manslaughter on January 13, 2014.
The conviction arose from a car crash that occurred on April 6, 2013, when Charging Cloud, who was driving under the influence of alcohol, went into the ditch and rolled over. Charging Cloud’s blood alcohol level was .226. During the crash and rollover, an adult female passenger in Charging Cloud’s vehicle was ejected and died as the result of her injuries.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Highway Patrol, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Charging Cloud was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Seth Carter, age 20, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 2, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, with a violation of a condition of release possibly resulting in 5 years of additional incarceration on any such revocation, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 4, 2013, and February 11, 2014, Carter, who was required to register under the Sex Offender Registration and Notification Act, and having entered, left, and resided in Indian country, knowingly failed to register and update his sex offender registration.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Carter was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for May 15, 2014.
District Man Sentenced to 17 Years in Prison for 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., was sentenced today to 17 years in prison for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye pled guilty in January 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of 17 years in prison. The Honorable Jennifer Anderson accepted the plea agreement today and sentenced Slye accordingly. Upon completion of his prison term, Slye will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim/Witness Advocate Tamara Ince, and Information Technology Specialist Leif Hickling. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston, who prosecuted the case.
14-078District Man Sentenced to 17 Years in Prison for 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., was sentenced today to 17 years in prison for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye pled guilty in January 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of 17 years in prison. The Honorable Jennifer Anderson accepted the plea agreement today and sentenced Slye accordingly. Upon completion of his prison term, Slye will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim/Witness Advocate Tamara Ince, and Information Technology Specialist Leif Hickling. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston, who prosecuted the case.
14-078Dallas Man Guilty of Straw Purchasing Firearms and Other ChargesRead the Press Release
LAREDO, Texas – Martin Lopez-Villela, 51, a legal permanent resident of Dallas, has entered a plea of guilty to conspiracy to defraud, smuggling goods from the United States and making a false statement during the purchase of firearms, announced United States Attorney Kenneth Magidson.
A straw purchase, as it is commonly referred, occurs when the true purchaser solicits a middleman to conduct a firearm transaction for him. The true purchaser does not want to reveal his identity, frequently because federal law prohibits him from purchasing firearms.
On or about Feb. 13, 2014, Lopez-Villela drove a 2007 Chevrolet Avalanche to the Lincoln Juarez Bridge in Laredo, attempting to exit the U.S. and enter Mexico. At that time, he was questioned and he gave a negative declaration for firearms and ammunition. Upon inspection, however, agents and officers discovered two .22 caliber semi-automatic firearms and five boxes that contained 300 rounds of various handgun ammunition.
Lopez-Villela was traveling to San Luis Potosi, Mexico, to deliver the firearms and ammunition. He admitted that while in Dallas, he purchased the two firearms from a firearms dealer and was to transport them and the ammunition into Mexico. He expected to be paid a total of $450 upon delivery.
U.S. District Judge Diana Saldana will sent a sentencing date in the near future. At sentencing, he faces up to 10 years in federal prison for the straw purchasing conviction, as well as a maximum of five and 10 years, respectively, for the conspiracy and smuggling charges. All charges also carry a possible $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Customs and Border Protection and Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting.
Co-Owner of New Jersey Industrial Pipes Supply Company Pleads Guilty to Making False Statement in Connection with Superfund InvestigationRead the Press Release
A co-owner of a Middlesex, N.J., industrial pipes, valves and fittings supply company pleaded guilty today to one count of making a false statement, the Department of Justice announced.Victor Boski pleaded guilty in the U.S. District Court of New Jersey to willfully making a materially false and fictitious statement to the U.S. Environmental Protection Agency (EPA) at a debarment proceeding. Previously, Boski and his company, National Industrial Supply LLC (NIS), had pleaded guilty on March 4, 2009, to participating in a kickback and fraud conspiracy to defraud the EPA at the Federal Creosote Superfund site located in Manville, N.J., and to defraud Tierra Solutions Inc., a general contractor based in The Woodlands, Texas, at the Diamond Alkali Superfund site in Newark, N.J., from approximately December 2000 to approximately September 2004. As outlined in the 2009 plea agreement, Boski provided $55,000 in kickbacks to two employees of the prime contractor responsible for awarding contracts at the two Superfund sites in exchange for the award of sub-contracts to NIS. These kickbacks included luxury vacations and payments to shell companies held by the two employees. Today’s guilty plea arises from false statements Boski made to the EPA in regard to his and NIS’s debarment hearing that resulted from the 2009 guilty pleas.
According to court documents, Boski appeared before the EPA on or about Nov. 30, 2011, on behalf of NIS to review his and NIS’s future eligibility to contract with the United States. During the course of the hearing, Boski falsely stated that he and NIS had paid kickbacks in the form of sporting event tickets and that the $55,000 in kickbacks he and NIS pleaded guilty to paying was an artificial number.
“When individuals plead guilty to participating in fraud and kickback schemes, it is crucial that that they do not then lie to government procurement officials about their conduct,” said Bill Baer, Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “The division will vigorously prosecute individuals who make false statements regarding the crimes they have committed.”Including Boski, nine individuals and three companies have pleaded guilty or been convicted of charges arising out of this investigation. More than $6 million in criminal fines and restitution have been imposed and six of the individuals have been sentenced to serve prison sentences ranging from five months to 14 years. One individual was sentenced to six months home confinement and the remaining two were sentenced to pay criminal fines and restitution. An additional individual, John A. Bennett, a Canadian citizen, was also charged on Aug. 31, 2009, and is facing extradition to the United States. Boski is scheduled to be sentenced on July 7, 2014, before Judge Susan D. Wigenton.
Boski faces a maximum penalty of five years in prison and a $250,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation. Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at the Federal Creosote and/or the Diamond Alkali sites should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.htm.
California Man Sentenced for Possession of Unauthorized Credit CardsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Darnele Nelson, 32, of California, who was convicted of possession of 15 or more unauthorized access devices, was sentenced to 36 months in prison and ordered to pay restitution totaling $1,722.91 by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated the defendant was in possession of 109 unauthorized credit, debit and gift cards and a magnetic card reader/writer device when he was refused entry into Canada on May 13, 2013. Nelson traveled from Nevada to Ohio, Maryland, Pennsylvania and New York before he attempted to travel to Canada.
The sentencing was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.Buffalo Woman Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Besari Torres, 37, of Buffalo, N.Y., who was convicted of possession with intent to distribute cocaine, was sentenced to three years probation including six months home detention by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on September 29, 2011, the defendant, at the direction of her husband and co-defendant Victor Marshall, sold cocaine to a confidential informant on Albany St. in Buffalo. Victor Marshall Was convicted of a controlled substance offense and will be sentenced on May 16, 2014.
The sentencing is the culmination of an investigation by the Safe Streets Task Force, under direction of the Federal Bureau of Investigation.Broward Resident Charged for Filing over $439,000 in False Claims for Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the unsealing of an indictment charging Bradley Bowman, of Lighthouse Point, with two counts of filing false claims to the IRS, in violation of Title 18, United States Code, Sections 287 and 2.
According to court documents, Bowman engaged PMDD Services, a tax return preparation firm in Shelley, Idaho, to prepare his 2005 and 2008 Individual Income Tax Returns. Bowman claimed fraudulent tax refunds of $299,024 and $140,355 on his tax returns for the 2005 and 2008 tax years, respectively.
If convicted, the defendant faces a maximum term of five years in prison for each count.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani and Department of Justice Tax Division Trial Attorney Gregory P. Bailey.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Braintree Man Charged with Narcotics RobberyRead the Press Release
BOSTON - A Braintree man was charged yesterday for selling narcotics from a pharmacy.
Daniel McPeck, 27, was charged with robbery involving a controlled substance.
According to the indictment, in April 2013, police officers responded to a Rite Aid on Pearl Street in Braintree in response to an armed robbery. Witnesses reported that McPeck entered the pharmacy carrying a plastic bag and a gun. The charges further allege that McPeck announced that a robbery was occurring, and ordered the pharmacist to put all the narcotics in the safe into the plastic bag he was carrying. He then fled through a back door.If convicted, McPeck faces a maximum sentence of 25 years in prison, a maximum of five year of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Braintree Police Chief Russell W. Jenkins, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced for ATM BurglaryRead the Press Release
BOSTON – A Boston man was sentenced today for the 2012 robbery of an ATM in Boston’s South End.
Terry K. Leigh, 47, was sentenced by U.S. District Court Judge Dennis F. Saylor today to 30 months in prison, three years of supervised release, and ordered to pay $58,000 in restitution to the Bank of America. In January 2014, Leigh pleaded guilty to bank burglary.
On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, as part of an ongoing investigation into ATM burglaries. At approximately 9:45 p.m. the agents observed two individuals enter the lobby of an apartment building located next to the ATM. Access to the ATM’s “money room” is gained through a locked security door within the apartment building’s lobby. One of the individuals, later identified as Leigh, was carrying a green duffle bag and wearing a blue hat, a gray shirt, dark sweatpants and what appeared to be a fake black beard. After a few minutes, both individuals left the apartment building, exiting onto Columbus Avenue. Leigh then reentered the apartment building. The agents, believing that the ATM was about to be robbed, gained access to the building’s lobby and observed Leigh exiting the ATM’s money room. Leigh fled up an adjoining staircase and was captured a short time later on the roof. Following Leigh’s arrest, the agents located the green bag containing various cutting tools, the blue hat and the fake beard which Leigh had been wearing. The ATM, which sustained significant damage, contained in excess of $240,000.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.Boston Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON - A Hyde Park man was indicted yesterday, charged with producing child pornography.
Geraldo Christiano DeSouza, 42, was indicted on possession of child pornography, distribution of child pornography, production of child pornography, and two counts of coercion and enticement of a minor.
In October 2012, an undercover officer accessed a peer-to-peer file sharing program and located a host computer that offered files indicative of child pornography for sharing. Two of the files downloaded by the officer contained child pornography. A search warrant was executed at DeSouza’s apartment, and officers seized four laptops and other computer media from his room. The indictment alleges that child pornography was found on all four laptops, as well as evidence that DeSouza had engaged in sexual activity with minors. DeSouza also "chatted" with these minor victims using various forms of social media and webcam, and directed the minors to display themselves in a sexually explicit manner. Using his cell phone, DeSouza allegedly also filmed himself having sexual intercourse with minors.
If convicted, DeSouza faces a maximum of 10 years in prison on the charge of possession of child pornography; a mandatory minimum of five years and a maximum of 20 years in prison on the charge of distribution of child pornography; a mandatory minimum of 15 years and a maximum of 30 years in prison on the charge of production of child pornography; and a mandatory minimum of 10 years and a maximum of a lifetime in prison on the charge of coercion and enticement of a minor. DeSouza also faces a minimum of five years and a maximum of a lifetime of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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 U.S. Attorneys’ offices and 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.Belle Fourche Man Found Guilty of Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that James Eugene Larive, Jr., age 43, of Belle Fourche, South Dakota, was found guilty of Commercial Sex Trafficking as a result of a federal jury trial held in U.S. District Court in Rapid City. Following a two-day trial, the jury returned the guilty verdict on April 4, 2014.
The charge carries a mandatory minimum term of 10 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
“We will bring the full weight of justice down on anyone who wants to pay money to have sex with a child in South Dakota,” said Johnson. “We are grateful for the outstanding work of our state, local and federal law enforcement partners in this case.”
Larive was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
This conviction stems from Larive responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Larive believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was the trade of an expensive smart phone.
Of the nine original defendants, five have pled guilty. One has been sentenced to 10 years in federal prison, another to 7 years, and the other three await sentencing. The remaining 3 defendants are scheduled for trial.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins is prosecuting the cases.
Larive was remanded to the custody of the U.S. Marshals Service pending sentencing.
Armed Robbery Crew Sentenced to 32 Years of ImprisonmentRead the Press Release
Earlier today, United States District Judge Raymond J. Dearie sentenced Edward Byam, Derrick Dunkley, and Akeem Montsalvatge each to serve 32 years of imprisonment for the violent armed robberies of two Queens check-cashing stores. Following a two-week trial that ended on August 9, 2013, the defendants were each found guilty of robbery conspiracy, two counts of robbery, and two counts of using a firearm in connection with those robberies.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Thomas J. Canon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New York.
“This armed robbery crew terrorized the hard-working employees of Queens in pursuit of a quick buck,” stated United States Attorney Lynch. “They used masks and costumes to elude law enforcement, but, as they have learned today, their disguises could not shield them from justice.” Ms. Lynch thanked the ATF, the agency that led the government’s investigation, and expressed her grateful appreciation to the New York City Police Department’s Police Impersonation Unit, which assisted in the government’s investigation at all stages, and the United States Marshals Service, for its crucial assistance in apprehending these violent criminals.
The government’s evidence at trial established that the defendants committed two armed robberies of separate Pay-O-Matic check cashing stores in Queens, New York. In 2010, the three defendants stole over $40,000 from a Pay-O-Matic after one of the defendants gained entry through the roof into the secure teller area. Wearing hooded sweatshirts and cloth masks, the defendants held the victim teller at gunpoint, handcuffed him and beat him with a metal chair before making off with the stolen cash. In 2012, the defendants robbed another Pay-O-Matic check cashing store at gunpoint, while wearing New York City Police Department jackets, badges, and life-like Hollywood-style special effects masks that concealed their identities and made them appear to be three white men. During this robbery, the defendants gained entry to the secure teller area by showing one of the tellers a picture of her own home and then forced a second teller to let the defendants into the area where the safe was located. Once inside, the defendants held the tellers at gunpoint and stole over $200,000.
The government’s witnesses included the victim tellers who were held at gunpoint during the robberies, as well as the owner of the company that manufactured the life-like special effects masks used by the defendants during the 2012 robbery. The government’s evidence also included telephone and cell site records placing the defendants at the scenes of both crimes, DNA evidence, text messages among the defendants discussing how they would spend the robbery proceeds, and records showing the defendants bought thousands of dollars of luxury items from high-end luxury boutiques with the money they had stolen.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith, Tiana Demas, and Maria Cruz Melendez.
The Defendants:
EDWARD BYAM
Age: 26
Queens, New York
DERRICK DUNKLEY
Age: 26
Queens, New York
AKEEM MONTSALVATGE
Age: 38
Queens, New York
E.D.N.Y. Docket No. 12-CR-586 (RJD)
Antioch Resident Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND – Khyber Law pleaded guilty today to conspiring to file false claims, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in January 2011, Law assisted in filing several tax returns with the IRS that were false and fraudulent. Law admitted that the tax returns were false because the filings included fictitious Forms W-2 that inflated the individuals’ wages. The filings included a tax return filed in Law’s name which falsely reported that he was employed at a staffing agency. In other instances, Law admitted to filing the false tax returns without ever showing the fraudulent tax return to the purported filer. Law helped file the false returns from his residence and from other places.
Law, of Antioch, was charged in a superseding indictment on Dec. 17, 2013. He was charged with conspiracy to file false claims, wire fraud, filing false claims and aggravated identity theft. Law pleaded guilty to conspiracy to file false claims and agreed to pay restitution related to this offense.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 22, 2014, before the Honorable Jon S. Tigar, United States District Court Judge in Oakland.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Law indictment )
Alabama Sheriff’s Investigator Pleads Guilty to Assaulting Handcuffed Man at Macon County JailRead the Press Release
J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office, pleaded guilty in federal court today to assaulting a handcuffed man at the county jail, resulting in bodily injury to the victim.
An indictment against McCray, 41, charged that on July 4, 2013, he violated the civil rights of a door-to-door salesman who was selling alarm systems in McCray’s Tuskegee, Ala., neighborhood. At the plea hearing, McCray admitted that he arrested the salesman and transported him to the Macon County Jail. There, McCray struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
McCray pleaded guilty to one felony count of deprivation of rights under color of law. At sentencing, McCray faces a maximum sentence of 10 years in prison and a $250,000 fine.
“The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law. The Department will continue to hold accountable those who abuse their authority.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We trust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.