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Wednesday 12 February 2014
Delaware County Mortgage Broker Sentenced for Loan FraudRead the Press Release
Thomas C. Phelan, 35, of Wayne, PA, was sentenced today to 33 months in prison for his leadership of a mortgage fraud conspiracy involving nearly $1 million in fraudulent loan proceeds. Phelan established Phelan Mortgage Associates (PMA), a mortgage brokerage business based in Feasterville, PA. From August 2006 until February 2009, Phelan worked with PMA employees and others to defraud lending institutions out of nearly $1 million. On October 15, 2013, Phelan pleaded guilty to all counts of an indictment charging him with conspiracy to commit loan and wire fraud, three counts of loan fraud and one count of wire fraud.
At sentencing, U.S. District Court Judge Robert F. Kelly heard testimony from individual victims of Phelan’s loan fraud, calling the scheme “a heartless crime.” In addition to the 33-month prison sentence, the Court ordered that the defendant pay restitution of $850,670 to two lenders, and a mandatory assessment of $500.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Joan E. Burnes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Commercial Airline Pilot Charged with Travelling to Have Sex with MinorRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A commercial airline pilot has been arrested on a federal charge of travelling across state lines in order to have sex with a minor female.
United States Attorney William J. Ihlenfeld, II announced today that MUSTAFA MOMOUN BAZBAZ, 28 years of age, of Oakdale, Pennsylvania was arrested and charged with “Travel with Intent to Engage in Illicit Sexual Conduct.” BAZBAZ is presently in custody and is being held at the West Virginia Northern Regional Jail pending a detention hearing.
According to Ihlenfeld, BAZBAZ began communicating with a 15-year old female from Jefferson County, Ohio, in December of 2013 via the website known as MeetMe.com. It is alleged that BAZBAZ misrepresented his age and name to the victim, claiming to be 17 years old and to be named “Mike B.” It also alleged that BAZBAZ sent sexually explicit images of himself to the victim before arranging to pick up the victim near her home in Jefferson County in December of 2013. The complaint asserts that BAZBAZ then took the victim to a hotel room in Hancock County where he engaged in sexual intercourse with her.
The matter is being investigated by the Federal Bureau of Investigation and the Hancock County (WV) Sheriff’s Department. This prosecution of the case is being handled by Assistant United States Attorney Robert H. McWilliams, Jr.
BAZBAZ faces up to thirty years in prison if convicted. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The charge is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.Charenton Woman Pleads Guilty to Assault at the Chitimacha Tribal ReservationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Tammy M. Krol, 42, of Charenton, La., entered a guilty plea Tuesday before U.S. Magistrate Judge C. Michael Hill to assaulting a Chitimacha Tribal Reservation resident.
According to evidence presented at the guilty plea, on September 11, 2013, Krol struck a member of the Chitimacha Tribe at the victim’s residence. After arriving at the scene, police found Krol in a house. The occupant said Krol had entered the home without permission, struck him during a confrontation, and tried to take the victim’s prescription pills.
Krol faces up to a year in prison, a year of supervised release, and a $100,000 fine for assault by striking, beating or wounding in Indian Country. A sentencing date was not set.Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony and misdemeanor cases, arising in Indian Country, that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases, arising in Indian Country, involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Chitimacha Tribal Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
CEO of Local Visiting Nurse Care Provider Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – SUSAN WINEBARGER was indicted for allegedly embezzling approximately $600,000 from company accounts and falsifying documents to conceal the embezzlement.
According to the indictment, Winebarger was Chief Financial Officer, then Chief Executive Officer of VNA-TIP of Bridgeton, Missouri. VNA-TIP provides visiting nurse care, hospice care and related patient care service in Missouri and Illinois. In this capacity, she ran the day-to-day business and financial operations of VNA-TIP, including reconciling bank statements and having full access to bank checks for the company’s operating and payroll accounts. Winebarger also directly coordinated payments to the outside Administrator for VNA-TIP’s employee 401(k) plan. The indictment states that between January 2008 and December 2013, Winebarger embezzled approximately $600,000 from VNA-TIP accounts. Without company authority, Winebarger issued checks to herself from both the operating account and its payroll account and deposited those checks into her personal bank accounts and used the company debit card to purchase personal items. In order to conceal her scheme, she made sure she received all the bank account statements, which she altered for submission to VNA-TIP auditors. She also falsified internal financial reports, including monthly profit and loss statements submitted to the shareholders and board members. Finally, the indictment alleges that Winebarger failed to remit money withheld from VNA-TIP employees’ paychecks for their individual 401 (K) retirement accounts to the plan administrator so that the cash reserves would be falsely inflated in order that VNA-TIP shareholders, board members and auditors would not be aware of the true financial status of the company and potentially discover her theft and embezzlement. She also failed to remit state and federal withholding taxes, social security and Medicare funds.
Winebarger, Highland, IL, was indicted by a federal grand jury on two felony counts of wire fraud.In addition to the wire fraud charges, the indictment contains a forfeiture allegation that, if convicted, requires the forfeiture of money and property derived from the criminal activity.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. 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 Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.C. Ray Nagin, Former New Orleans Mayor, Convicted on Federal Bribery, Honest Services Wire Fraud, Money Laundering, Conspiracy, and Tax ChargesRead the Press Release
C. RAY NAGIN, 57, a resident of Frisco, Texas, and formerly the Mayor of New Orleans, was convicted in federal court today on 20 of 21 charges, announced U.S. Attorney Kenneth Allen Polite, Jr., FBI Special Agent-in-Charge Michael Anderson, and IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan. NAGIN was found not guilty on Count 7, a bribery charge.
According to evidence adduced at trial, between December 2004 and the present, NAGIN and several others participated in a conspiracy to commit bribery and honest services wire fraud. Evidence produced at trial showed that NAGIN, in his role as chief executive, devised a scheme to defraud the City of New Orleans and its citizens of his honest services through bribery and a kickback scheme, whereby NAGIN used his public office and official capacity to provide favorable treatment, including awarding contracts, that benefitted business and financial interest of individuals providing him with bribes and kickbacks in the form of checks, cash, granite inventory, wire transfers, personal services, and free travel.
According to court documents, in January 2005, NAGIN created Stone Age LLC, a granite company based in New Orleans. Evidence produced at trial showed, among other things, that NAGIN accepted approximately $62,250 in bribes from Rodney Williams and his company, Three Fold Consultants, LLC. Evidence also showed that NAGIN accepted bribes from Frank Fradella, including $50,000, granite inventory, and nine payoffs in the form of wire transfers from Fradella totaling $112,500. In some cases, money was deposited into NAGIN=s Stone Age corporate account, or free granite inventory was provided to Stone Age.
In addition, trial evidence proved that NAGIN participated in a money laundering conspiracy and filed false tax returns for the years 2005 to 2008.
"Our public servants pledge to provide honest services to the people of Southeast Louisiana. We are committed to bringing any politician who violates that obligation to justice," stated United States Attorney Kenneth Allen Polite, Jr.
"The tireless efforts of the investigative and prosecution team, exceeding 5 years, yielded the just and fair result in holding former Mayor Nagin fully accountable for serving his own personal interests well above those of the city at a time when it needed leadership, integrity and honest dealings the most," stated Michael Anderson, Special Agent in Charged for the FBI New Orleans Field Office.
“The investigation and subsequent prosecution of former Mayor, C. Ray Nagin, and his co-conspirators represents the closing of a dark chapter in the history of this great city. While most people were working to rebuild after Hurricane Katrina these individuals were conspiring to benefit themselves at the expense of the citizens that elected them” stated Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigation. “Special Agents of IRS Criminal Investigation are elite financial investigators and will continue to lend our expertise to this and other task forces to ensure that those elected to public service do just that—serve the public, not contrive backroom deals to get themselves, and their family, private jet trips around the world or secure their family-owned businesses coveted contracts. It also sends a reminder to everyone that all income, legal and illegal, must be reported to the Internal Revenue Service. Know that we, with our federal law enforcement partners, will continue to ensure that all Americans, including public officials, are held to the same standard. No one is above the law.”
“The New Orleans Office of Inspector General congratulates our federal partners in the successful prosecution of the former mayor. OIG involvement in the case dates to 2009 when an evaluation led to a joint investigation of Greg Meffert. The OIG will continue to protect the City from those who would defraud it,” stated Ed Quatrevaux, Inspector General, City of New Orleans.
"The road to former Mayor Ray Nagin's conviction began with one phone call from a courageous citizen,” stated Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “That citizen told the MCC about shipments of granite from Florida by the truckload to the Nagin family business in New Orleans. It was only one piece of a corrupt puzzle but when placed in the hands of the FBI and the U.S. Attorney's office the pieces grew one by one into a sprawling picture of corruption and betrayal."
NAGIN faces the following terms of imprisonment:
- Count 1 (Conspiracy to commit bribery and honest services wire fraud), statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release;
- Counts 2-6 (Accepting a bribe), statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release on each count;
- Counts 8-16 (Accepting payoffs that caused interstate wire communications to occur between Louisiana and other states), statutory penalties of up to 20 years in prison, a $250,000 fine and three years of supervised release on each count;
- Count 17 (Conspiracy to commit money laundering) statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release; and
- Counts 18-21 (Filing false tax returns for years 2005 through 2008), statutory penalties of up to three years in prison, a $100,000 fine and three years of supervised release on each count.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General. U. S. Attorney Polite would also like to acknowledge the assistance provided by the New Orleans Inspector General=s Office and the Metropolitan Crime Commission. The case is being prosecuted by Assistant U. S. Attorneys Matthew M. Coman, Richard R. Pickens, II and Matthew S. Chester.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Jerome C. Crosby, 58, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $2,000,000.
Assistant United States Attorneys Mary Clare Kane and George C. Burgasser, who are handling the case, stated that the defendant was intercepted over New York State wiretaps, on numerous occasions, arranging to acquire and purchase cocaine from Wallace Peace and other defendants. Search warrants executed during the investigation resulted in the seizure of 17 firearms, more than five kilograms of cocaine powder and in excess of 200 grams of crack cocaine.
Crosby was arrested along with 30 other defendants in July 2008. To date, 27 have been convicted.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon, Special Agent in Charge; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 9, 2014 at 12:30 p.m. before Judge Arcara.
Bonesteel Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bonesteel, South Dakota, woman convicted of Child Abuse was sentenced on February 11, 2014, by U.S. District Judge Roberto A. Lange.
Maria Janis, age 35, was sentenced to 12 months and 1 day in custody, 3 years supervised release, a $100 special assessment to the Federal Crime Victims Fund and $17,123 in restitution.
Janis was indicted for Child Abuse by a federal grand jury on April 12, 2013. She pled guilty on November 19, 2013.
Janis, her husband Robert Prue, and several minor children have lived in several states, including Arizona and Washington State before they moved to South Dakota and the Rosebud Sioux Indian Reservation in the spring of 2011. Over an extended period of time, Janis learned Prue was sexually abusing some of the children. Janis said she believed the children when they told her about the abuse, but would leave the children in Prue’s supervision nonetheless. Janis was also aware Prue had methamphetamine and alcohol problems during the time he was around the children.
Once in South Dakota, Janis learned Prue was persisting in his efforts to sexually abuse some of the children. Janis did not take steps to protect the children, but continued to expose them to harm by leaving them with Prue while she would leave the house. Between June 22, 2011, and September 22, 2011, while in South Dakota, Prue engaged in efforts to accomplish sexual acts with one of the victims, a minor.
This case was investigated by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Benton County Man to Federal Prison for Selling MethRead the Press Release
A man who sold “ice” methamphetamine from his rural Benton County home was sentenced on January 30, 2014 to just under four years in federal prison.
Kenneth Gragg, 54, from Garrison, Iowa, received the prison term after a December 2, 2013 guilty plea to possession of methamphetamine with intent to distribute and possession of a firearm as an unlawful drug user.
In a plea agreement, Gragg admitted he sold methamphetamine to a confidential informant on two occasions in late 2012. A search warrant was executed on Gragg’s home in January 2013. During the search, officers seized additional quantities of methamphetamine, which Gragg admitted he had intended to distribute to others. A shotgun was also seized from Gragg’s residence. Gragg could not legally possess the firearm because he was an unlawful user of both methamphetamine and marijuana.
Gragg was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Gragg was sentenced to 46 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. Gragg must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gragg 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 Attorney Justin Lightfoot and investigated by the Rural Area Interdiction Detail (“RAID”) Task Force with assistance from the Tama County Sheriff’s Office. The RAID Task Force is comprised of officers from the Benton County Sheriff’s Office and Buchanan County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 13-CR-59.
Bedford Heights Woman Charged with Stealing More Than $210,000 in Social Security PaymentsRead the Press Release
A Bedford Heights woman was charged with stealing and converting to her own use approximately $210,510 in Social Security payments made to her father after his death, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Gloria F. Vaughn, 71, was charged in a criminal information with one count of theft of government property.
Vaughn’s father received monthly Social Security Administration retirement benefits, which were deposited electronically into a KeyBank savings account. Upon Vaughn’s father’s death in September 1983, Vaughn continued to receive the benefits, which she knew were intended for her father and should have ceased upon his death, according to the indictment.
She received approximately $210,510 in Social Security payments between October 1983 and September 2012, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Bank Robber Pleads Guilty to Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – Rodney Scott Bush, age 49, of Fort Washington, Maryland pleaded guilty today to conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.“This case highlights the importance of the initial response of patrol officers,” said Anne Arundel County Police Chief Kevin Davis. “This repeat offender is in jail because an alert patrol officer observed suspicious activity while responding to a call.”
According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Bush faces a maximum sentence of 20 years in prison on each of the five bank robbery counts; and a maximum of five years in prison for the conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 9, 2014 at 10:00 a.m.
Jacqueline Isaccs, age 55, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and is scheduled to be sentenced on April 18, 2014 15 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Julie D. Podlesni, who are prosecuting the case.
Baltimore Men Face Heroin Distribution Charges in West VirginiaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Maryland residents were arrested this week pursuant to an Indictment returned by a grand jury in West Virginia.
United States Attorney William J. Ihlenfeld, II, announced that KEYYONN ROBERT CORNISH JOHNSON a/k/a “STARLITO,” age 24; SEAN TAVON STOGDON a/k/a “FATS,” age 23; MARCEL EDMONDS, age 23; and, MARQUESE TAVON WARD, age 23, were each charged with “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin and Crack Cocaine.” The defendants reside in Baltimore but are alleged to have traveled to Berkeley County, West Virginia, to engage in drug trafficking.
In addition to the conspiracy charge, other charges include “Distribution of Heroin,” “Possession with Intent to Distribute Crack Cocaine,” and “Possession with Intent to Distribute Heroin.” JOHNSON faces a total of four counts, while STOGDON faces five counts, and EDMONDS and WARD face three counts each.
Each defendant each face up to twenty years in prison, and under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.This case will be prosecuted by Assistant United States Attorney Jarod J. Douglas and was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department, as well as uniformed officers of the West Virginia State Police.
Army National Guard Soldier Pleads Guilty to Role in Scheme to Defraud U.S. Army National Guard BureauRead the Press Release
A U.S. Army National Guard soldier pleaded guilty for her role in a bribery and fraud scheme that caused $30,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Specialist Danielle Applin, 27, of Harker Heights, Texas, pleaded guilty to one count of conspiracy and one count of bribery. The case against Applin arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 27 individuals, 20 of whom have pleaded guilty.
According to court documents filed in the case, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Applin admitted that she paid an Army National Guard recruiter for the names and Social Security numbers of potential Army National Guard soldiers. Applin further admitted that she used the personal identifying information for these potential soldiers to claim that she was responsible for referring these potential soldiers to join the Army National Guard, when in fact she had not referred them. As a result of these fraudulent representations, Applin collected approximately $13,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Applin is scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on June 11, 2014.
This case is being investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Armenian Power Gang Associate Convicted for His Role in Racketeering ConspiracyRead the Press Release
Andranik Aloyan, an associate of the Armenian Power gang, has been convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers who held accounts that were valued at more than $25 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Aloyan, 40, of Los Angeles, was convicted by a federal jury on Feb.11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft, and possession of a firearm by a convicted felon. According to evidence at trial, Aloyan possessed personal and financial information of more than 75 mostly elderly customers of banks throughout the country. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated fraudulent schemes of bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and laundering criminal proceeds. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
Aloyan was convicted after a five-day jury trial before U.S. District Judge Philip S. Gutierrez in the Central District of California. He is scheduled to be sentenced on June 2, 2014.
Five defendants remain pending trial in March 2014. Seventy-seven defendants have previously been convicted or pleaded guilty to the indictments.
The case is being investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, U.S. Secret Service, Los Angeles Police Department, Los Angeles Sheriff's Department, Glendale Police Department, Burbank Police Department, Internal Revenue Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.Armed Career Offender from Albuquerque Sentenced to Fifteen Years for Illegal Possession of AmmunitionRead the Press Release
ALBUQUERQUE – Jonathan Sandoval, 27, of Albuquerque, N.M., was sentenced today to 15 years in federal prison followed by three years of supervised release for being a felon in possession of ammunition. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Acting U.S. Attorney Steven C. Yarbrough said that Sandoval was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Today’s lengthy sentence sends a strong message to career criminals. We will continue to work aggressively with our state and local partners to hold the worst of the worst accountable for their criminal actions,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sandoval was arrested in December 2011, on an indictment charging him with being a felon in possession of ammunition. The indictment alleged that Sandoval unlawfully possessed ammunition in Bernalillo County on Aug. 24, 2011. At the time, Sandoval was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 2nd Judicial District Court for the State of New Mexico: possession of a controlled substance, escape from a community custody release program, and four residential burglaries. Sandoval also had been convicted of larceny and residential burglary in the 13th Judicial District Court.
On May 20, 2013, Sandoval pleaded guilty to unlawfully possessing 30 cartridges of ammunition which were retrieved by law enforcement officers from his vehicle on Aug. 24, 2011. In entering his plea, Sandoval admitted telling the officers that the ammunition belonged to him and that he purchased the ammunition when he was at a shooting range.
Sandoval received an enhanced penalty of a mandatory minimum 15 year prison sentence because of his status as an armed career criminal. According to court filings, despite his lengthy criminal record, Sandoval was never sent to state prison for any of his prior felony convictions.
These cases were investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
Armed Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Loushawn Adaryl Robinson, a/k/a “Cadillac,” age 36, of Baltimore, Maryland, today to 151 months in prison followed by five years of supervised release for armed bank robbery. Judge Blake ordered Robinson to pay restitution of $23,639 and found that Robinson was a career offender, based on two previous convictions for robbery with a deadly weapon and armed robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.
According to Robinson’s plea agreement, on September 29, 2012, Robinson and two other men, one of them armed with a gun, robbed the Carroll Community Bank in Sykesville, Maryland. During the robbery, Robinson forced one of the tellers to take him to the vault, but the teller was unable to open the vault. Robinson subsequently zip tied the teller’s hands while she was on her knees in the vault, and closed the door. The robbers fled the bank with $28,411, but dropped $4,772 in the parking lot, which was recovered by law enforcement. Law enforcement followed the robbers and during the course of the pursuit, Robinson crashed his car into a tree near an elementary school and was arrested. Law enforcement recovered the wig Robinson had worn during the robbery, zip ties, and a key to the vault which had been taken from the bank.United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.
Appraisal Company Owner Sentenced to 8 Years in Prison for Participating in Two Mortgage Fraud SchemesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, to be followed by three years of supervised release, on his conviction of wire fraud and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jason Moreno, 30, of Pittsburgh, Pa.
According to information presented to the court, Moreno committed and conspired to commit wire fraud from November 2005 to November 2007. Moreno owned and operated a company called Platinum Appraisal Services that regularly prepared fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. He was convicted in connection with two complex mortgage fraud schemes. The primary actor in the first scheme was Robert Arakelian, who operated Pittsburgh Home Loans. The primary action in the second scheme was James Platts, who operated Easy Realty Solutions. Both schemes involved overstating the sales prices of the properties, falsely representing that the borrowers had the financial wherewithal to make a significant down payment associated with the purchase of the properties and to make the mortgage payments. In fact, the borrowers, many of whom were unsophisticated and had poor financial conditions, did not make down payments associated with the purchase of the properties and could not make the mortgage payments.
Moreno’s role was to provide fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. The appraisals often reported that the conditions of the properties were vastly superior to their actual conditions. Many of the properties were, in fact, in deplorable condition. Moreno, who was not even licensed to prepare appraisals, also falsely represented that a licensed appraiser prepared the appraisals.
Moreno also participated in the schemes as an investor in some of the properties. In that role, not only did Moreno prepare fraudulent appraisals, but he also misled the borrowers and the lenders on numerous other aspects related to the transactions. Some of those transactions involved his own family members, including his mother, his aunt, and his uncle.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Moreno.
The Mortgage Fraud Task Force conducted the investigation leading to the indictment in this case. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Anderson Aircraft Mechanic Charged with Aircraft Part FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Randy L. Thompson, 65, of Anderson, charging him with fraud involving aircraft parts, United States Attorney Benjamin B. Wagner announced.
According to court documents and documents obtained by the U.S. Department of Transportation, in 2010, Thompson, an aircraft mechanic who operated under the business name “Thompson’s Air,” was hired to overhaul an aircraft engine for a customer in Pennsylvania. As part of the overhaul, Thompson installed an engine crankshaft on the customer’s private airplane. Prior to the installation, Thompson had twice sent the same crankshaft to FAA‑certified repair stations, and in both instances the repair stations had returned the part to Thompson with a tag documenting that the crankshaft was cracked and no longer suitable for use on an aircraft. Nevertheless, Thompson installed the crankshaft and falsely certified that he had performed the engine overhaul in compliance with the FAA regulations and the engine manufacturer’s specifications. After approximately 90 hours of operation, the crankshaft failed in flight, and the aircraft was forced to make an emergency landing in a field. No one was injured.
This case was the product of an investigation by the Department of Transportation and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Thompson faces a maximum statutory penalty of 15 years in prison and a $500,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Alexandria Man Pleads Guilty to Coordinated Campaign Contributions and False StatementsRead the Press Release
ALEXANDRIA, Va. – Tyler Eugene Harber, 34, of Alexandria, a former campaign finance manager and political consultant, pleaded guilty today to coordinating $325,000 in federal election campaign contributions by a political action committee (PAC) to a Congressional campaign committee. This is the first criminal prosecution in the United States based upon the coordination of campaign contributions between political committees.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
“Campaign finance laws exist to guard against illegal activity such as coordinated campaign contributions,” U.S. Attorney Boente said. “The citizens of the Commonwealth of Virginia can rely this office enforce federal campaign finance law.”
“The Department of Justice is fully committed to addressing the threat posed to the integrity of federal primary and general elections by coordinated campaign contributions, and will aggressively pursue coordination offenses at every appropriate opportunity,” said Assistant Attorney General Caldwell.
“Today, Mr. Harber took responsibility for violating federal election campaign laws by illegally coordinating payments between a super pac and a candidate’s campaign committee,” said Assistant Director in Charge McCabe. “The FBI will continue to investigate allegations of campaign finance abuse which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”
Harber pleaded guilty to one count of coordinated federal election contributions and one count of making false statements to the FBI. He faces a maximum penalty of 10 years in prison when he is sentenced on June 5, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the plea documents, Harber was the Campaign Manager and General Political Consultant for a candidate for Congress in the November 2012 general election. At the same time, Harber participated in the creation and operation of a PAC, which was legally allowed to raise and spend money in unlimited amounts from otherwise prohibited sources to influence federal elections so long as it did not coordinate expenditures with a federal campaign.
Harber admitted, among other things, that he made and directed coordinated expenditures by the PAC to influence the election with $325,000 of political advertising opposing a rival candidate. The coordination of expenditures made them illegal campaign contributions to the authorized committee of Harber’s candidate, and Harber admitted that he knew this coordination of expenditures was an unlawful means of contributing money to a campaign committee. He further admitted that he used an alias and other means to conceal his action from inquiries by an official of the same political party as Harber’s candidate.
Harber further admitted that he told multiple lies when interviewed by the FBI concerning his activities.
This case was investigated by the FBI’s Washington Field Office, Northern Virginia Resident Agency. The case is being prosecuted by Assistant U.S. Attorney Mark D. Lytle of the Financial Crimes and Public Corruption Unit of the Eastern District of Virginia, and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-373.Tweet
Albuquerque Felons Sentenced to Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Two prior felons who reside in Albuquerque were sentenced this morning to lengthy federal prison terms for violating the federal firearms laws. Isaac Aragon, 32, was sentenced to 77 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. In a separate case, Joseph Rael, 40, was sentenced to 88 months in federal prison followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
Acting U.S. Attorney Steven C. Yarbrough said that both men were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Arresting armed violent criminals is a priority of our office. Taking the “worst of the worst” off our streets sends a message that violent behavior will not be tolerated. I am pleased with the investigative efforts of ATF, the Albuquerque Police Department and the leadership of the U.S. Attorney's Office,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Aragon was arrested in Jan. 2013 based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. He subsequently was indicted on that same charge. According to the indictment, Aragon committed this offense in Oct. 2012, in Bernalillo County, N.M. At the time, Aragon was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in New Mexico state courts: two convictions of receiving and transferring a stolen motor vehicle; involuntary manslaughter; and aggravated fleeing from a law enforcement officer.
According to court filings, Aragon was arrested on state charges on Oct. 26, 2012, after officers responded to a call reporting drug trafficking activity at an Albuquerque residence. When the officers arrived at the residence, they arrested Aragon on outstanding state arrest warrants. Thereafter the officers executed a search warrant at the residence and seized a backpack that belonged to Aragon. The backpack contained a .22 caliber revolver, 76 rounds of ammunition, several baggies of methamphetamine, and narcotics paraphernalia. The state firearms charges were dismissed after Aragon was arrested on federal charges. Aragon entered a guilty plea to the federal indictment on Sept. 5, 2013, and admitted possessing a revolver and ammunition on Oct. 26, 2012.
Rael was arrested in June 2013 based on an indictment charging him with unlawfully possessing a firearm and ammunition on Nov. 2, 2012, in Bernalillo County, N.M. At the time, Rael was prohibited from possessing firearms or ammunition because he previously had been convicted of seven felony offenses including attempt to commit forgery, larceny, breaking and entering, false imprisonment, conspiracy to unlawfully take of a vehicle, possession of cocaine and burglary.Rael was charged based on an incident arising out of a traffic stop on Nov. 2, 2012 in Albuquerque. Rael fled in his vehicle from the scene of the traffic stop and later struck another vehicle in an intersection. After Rael was extracted from his vehicle, law enforcement officers discovered a loaded firearm on the driver’s side floorboard. In Aug. 2013, Rael pled guilty to the indictment pursuant to a plea agreement and admitted possessing a firearm and ammunition on Nov. 2, 2012.
These cases were investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. The Aragon case was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley and the Rael case was prosecuted by Assistant U.S. Attorney David M. Walsh.
Tuesday 11 February 2014
Wiliam Davis, Jr. Sentenced to 36 Months in Prison for Sexually Abusing A Minor in 2007Read the Press Release
The United States Attorney's Office announced that on February 7, 2014, Chief U.S. District Judge Dana L. Christensen, sentenced WILLIAM DECATURE DAVIS, JR., 47, of Havre, Montana, to a term of 36 months' in prison, followed by five years of supervised release, for the 2007 sexual abuse of a minor.
Davis was convicted of sexually abusing a six-year old girl after a four day jury trial that began on November 12, 2013. At trial, Assistant U.S. Attorney Jessica Betley presented evidence that the victim, now 12, came forward in August of 2012 and was interviewed by the FBI. She alleged that the defendant, William Davis, Jr., who also goes by "Rooster," raped her in the summer of 2007 when she was six. The defendant, a member of the Eastern Band of Cherokee Indians, was at the time a neighbor of the girl and her mother in a trailer park on the Fort Belknap Indian Reservation.
The victim testified that she woke up one night and could not find her mother. She walked next door to her neighbor's trailer to look for her mother. The victim walked into the trailer and saw the defendant sitting on the couch and drinking beer. The defendant called the victim over and he grabbed her by the front of the shirt and sexually assaulted the girl. When the assault was over, the victim put her clothes on and ran out of the door.
The FBI interviewed Davis two days after the disclosure and he admitted he had sexually abused the victim approximately five and a half years ago in the summer of 2007. In his statement, while denying the more serious assault described by the victim, conceded that he had sexually molested the child and expressed regret for his conduct.
Waterloo Man Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William, J. Hochul, Jr. announced today that Ronald Beaton, 68, of Waterloo, N.Y., who was convicted of possession of child pornography, was sentenced to 30 months in prison and 10 years supervised release, by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Special Agents with Homeland Security Investigations conducted an undercover investigation and discovered that a user of an Internet Protocol address was sharing child pornography files using file-sharing software. The Internet Protocol address was assigned to the defendant and his residence on West Main Street in Waterloo. A search warrant was executed and agents found video files depicting child pornography on the defendant=s computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.
Waterford Man Possessed Sexually Explicit Pictures and Movies of ChildrenRead the Press Release
ERIE, Pa. - A resident of Waterford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Joshua Michael Falk, 22, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Falk possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for June 9, 2014 at 1:45 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Falk on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Falk.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Venango County Man Charged with Falsifying Documents on Well PluggingRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania has been indicted by a federal grand jury in Erie on charges of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
The three-count indictment named Ronald A. Wright, 44, as the sole defendant.
According to the indictment presented to the court, between in and around September 2009, to in and around April 2011, Wright falsified Certificates of Well Plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
“When individuals knowingly submit false reports or data to the government as alleged in this case, our ability to protect public health and the environment is undermined,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Mid Atlantic States. “Anyone thinking about submitting false information should seriously consider today’s indictment. EPA and its partner agencies will not hesitate to seek prosecution of those who violate our nation’s environmental laws.”
The Environmental Protection Agency - Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Reaches Settlement with Natural Supplement Stores for Violations of the Controlled Substances ActRead the Press Release
DENVER -- John Walsh, U.S. Attorney for the District of Colorado, today announced that two natural supplement stores in Colorado Springs have entered into a civil settlement with the United States and will pay $20,000 in civil penalties to resolve allegations that they violated certain provisions of the Controlled Substances Act (“the CSA”) related to the sale of ephedrine, a List 1 chemical. List 1 chemicals have legitimate purposes, but can also be used in the manufacture of controlled substances.
Ephedrine is a decongestant and bronchodilator. It works by reducing swelling and constricting blood vessels in the nasal passages and widening in the lung airways, allowing the user to breathe more easily. It can also be used to manufacture methamphetamine.
The United States alleged that between 2009 and the present, Andrew S. Holmes, as the owner and operator of Crazy Horse Nutrition, Inc. (“Crazy Horse”) and Holmestyle Nutrition LLC d.b.a. Complete Nutrition Center (“Holmestyle”), violated various provisions of the Controlled Substances Act related to the sale of ephedrine. The United States contends, among other allegations, that Holmes, Crazy Horse, and Holmestyle: sold ephedrine to customers after failing to complete periodic training and self-certifying to the DEA that the manager and all employees were following the applicable rules to sell the substance; failed to comply with the CSA’s packaging requirements for the sale of ephedrine; failed to maintain complete and accurate logbook records regarding ephedrine sales; sold ephedrine on at least one occasion to a customer without proper identification; and imported ephedrine from Canada without a registration.
“Although Ephedrine has legitimate uses, its sale is closely regulated because it can also be used to create illegal dangerous drugs – drugs that can seriously damage people’s lives,” said U.S. Attorney John Walsh.
“This action is unique in the District of Colorado and is important in that it shows the retailers will be held accountable in combating the methamphetamine epidemic in our communities,” said Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge Barbra Roach.
In entering into a civil settlement, Holmes, Crazy Horse and Complete Nutrition did not admit to liability, and the agreement indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
The investigation was conducted by the Drug Enforcement Administration. The United States was represented in this matter by Assistant United States Attorney Amanda Rocque and Special Assistant United States Attorney Matthew Mussetter of the U.S. Attorney’s Office in Denver, Colorado.
U.S. Attorney’s Office for the Southern District of New York Recovers Nearly $4 Billion from Criminal and Civil Cases Since January 2013Read the Press Release
U.S. Attorney Also Announces Creation of Money Laundering and Asset Forfeiture Unit
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the Office obtained recoveries of more than $2.7 billion in forfeiture actions since January 2013. The Office also has collected or has entered into agreements to recover $1.06 billion in restitution, criminal fines, and special assessments, and has recovered $149.8 million from civil actions, since January 2013.
Manhattan U.S. Attorney Preet Bharara said: “Our Office’s nearly $4 billion in forfeitures, penalties, and fines since the beginning of 2013 stands for the principle that those who break the law or commit civil offenses, whether institutions or individuals, must not be allowed to profit from their misconduct. This is not only a matter of deterring bad conduct. A significant portion of the money recovered will go toward compensating victims of crime or other misconduct who suffered real financial loss. And collected assets help fund important state and local law enforcement programs. It is fair to say the taxpayers have gotten a great return on their investment – almost 8,000% – as this $4 billion represents nearly 80 times the Office’s annual budget.”
Forfeited funds are generally deposited into the Department of Justice Assets Forfeiture Fund (the “Assets Forfeiture Fund”) and the Department of Treasury Forfeiture Fund. The forfeited funds are used to restore money to crime victims and for a variety of law enforcement purposes. In 2013, the U.S. Attorney’s Office for the Southern District of New York returned more than $66 million to crime victims. Of the $2.7 billion forfeited since January 2013, in excess of $1.8 billion is expected to be restored to victims.
In recognition of the success that the Office’s Asset Forfeiture Unit has had in spearheading such record forfeitures, often by bringing some of the country’s most significant and innovative money-laundering prosecutions, the Office has renamed the unit the Money Laundering and Asset Forfeiture Unit. The change also reflects and coincides with the Office’s ongoing efforts in this area, including, among other things, the addition of a number of Special Assistant U.S. Attorneys from partner agencies to focus on anti-money laundering and asset forfeiture; the creation of a team of intelligence analysts and other professionals tasked with reviewing and analyzing Suspicious Activity Reports filed by financial institutions; and the use of more technologically sophisticated tools and software to analyze large volumes of relevant data.
The $149.8 million collected in civil actions came from a combination of cases in which the Office collected government money lost due to fraud or other misconduct, collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws, or recovered funds owed to the Internal Revenue Service.
Nationally, in Fiscal Year 2013, approximately $5.9 billion was collected by the Justice Department’s litigating divisions and the 94 U.S. Attorneys’ offices in individually and jointly handled civil actions. The Department’s litigating divisions and U.S. Attorneys’ offices also collected approximately $2.2 billion in restitution, criminal fines, and felony assessments in criminal actions in satisfaction of criminal debts owed to the U.S. and to federal crime victims.
Below are summaries of some of the cases in which the Office obtained substantial forfeitures or other recoveries since January 2013:
JPMorgan Chase
$1.7 billion forfeited
On January 7, 2014, as part of a deferred prosecution agreement, JPMorgan Chase agreed to pay a non-tax deductible penalty of $1.7 billion, in the form of a civil forfeiture for its violations of the Bank Secrecy Act committed in connection with the Bernard Madoff multi-billion dollar Ponzi scheme. These funds will be used to compensate victims of the Madoff Ponzi Scheme.
SAC Capital Advisors, L.P.
$900 million forfeiture order; $284 million to be collected; total agreed-upon penalty of $1.8 billion
In July of 2013, the Government filed a civil money laundering and forfeiture action seeking the forfeiture of all of the assets of the SAC Companies (“SAC”) on the basis that SAC engaged in money laundering by commingling the illegal profits from insider trading with other assets, using the profits to promote additional insider trading, and transferring the profits with the assistance of financial institutions. In November of 2013, the Government entered into an agreement with SAC in which SAC, among other things, agreed to forfeit $900 million to the United States, including the $616 million payment to the Securities & Exchange Commission (“SEC”). The agreement also involved a criminal fine of another $900 million, resulting in a total penalty of approximately $1.2 billion, on top of the $616 million SEC fine.
PokerStars and Related Cases
$181.4 million forfeited
In July 2012, the United States reached an agreement with the two largest online poker companies in the United States, Full Tilt Poker and PokerStars. The United States had brought a civil forfeiture and money laundering action against these companies and their assets. Under the terms of the settlement, Full Tilt forfeited essentially all of its assets to the United States. PokerStars agreed to forfeit $547 Million, to be paid in several installments, and to reimburse the approximately $184 million owed by Full Tilt to foreign players. The settlement further provides that PokerStars will acquire the Forfeited Full Tilt Assets from the Government. In 2013, $181.4 million was forfeited to the United States. To date, in excess of $406.4 million has been forfeited in the PokerStars civil forfeiture action and related cases.
Ernst and Young
$123 Million forfeited
In March 2013, as part of a non-prosecution agreement, Ernst & Young LLP (“E&Y”) forfeited $123 million in connection with the firm’s participation, from 1999 to 2004, in four tax shelters that were used by approximately 200 E&Y clients in an effort to defer, reduce, or eliminate tax liabilities of more than $2 billion.
PartyGaming
$105 million forfeited
In April 2009, PartyGaming, an Internet gambling company entered into a non-prosecution agreement, wherein, among other things, the company agreed to forfeit a total of $105 million, to be paid in several installments. The $105 million represents proceeds of PartyGaming’s United States Internet gambling operations. In 2013, $105 million was forfeited to the United States.
Lebanese Canadian Bank
$102 million forfeited
In December 2011, this Office filed an in rem forfeiture and civil money laundering action alleging that Lebanese financial institutions, including the Lebanese Canadian Bank (“LCB”) and two exchange houses linked to Hizballah, used the U.S. financial system to launder narcotics proceeds through West Africa and back into Lebanon. Part of the scheme involved wiring funds from Lebanon to buy used cars in the U.S. which were then transported to West Africa and sold. Cash from the sale of the cars, along with the proceeds of narcotics trafficking, were then funneled to Lebanon through Hizballah-controlled money laundering channels. On June 25, 2013, the Government entered into a settlement agreement with LCB in which, among other things, LCB forfeited in excess of $102 million.
Insider Trading Cases
$63 million forfeited
In addition to the SAC forfeiture, in 2013 the Office has forfeited and collected in excess of $63 million from insider trading criminal prosecution and civil forfeitures actions, including the forfeiture of $53.8 million from Raj Rajaratnam.
Wegelin & Co.
$15.8 million forfeited; total penalty, including fine and restitution, exceeding $76 million
In March 2013, Wegelin & Co., a Swiss private bank pled guilty to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service. In connection with the guilty plea, Wegelin agreed to the civil forfeiture of $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers. Together with the April 2012 forfeiture of over $16.2 million from Wegelin’s correspondent bank account, this amounts to a total forfeiture of $30 million.
650 Fifth Avenue
36-story Office Tower; appraised value $525 million
In November of 2009, the Office filed an amended civil forfeiture complaint seeking the forfeiture of, among other things, a 36-story office tower located at 650 Fifth Avenue in Manhattan. The Government alleged that 40% of the office tower was owned by Bank Melli Iran, a state-owned bank, through a shell company Assa Corp. The remaining 60% was owned by Alavi Foundation, a New York-based charitable foundation, which the Government alleged provided services to Iran. On September 11, 2013, the court granted summary judgment for the Government, finding that Assa and Alavi provided services to Iran and that the office tower was forfeitable as proceeds of violations of the International Emergency Economic Powers Act and as property involved in money laundering.
10th Century Cambodian Sculpture
The Office filed a civil forfeiture action seeking to forfeit and return to Cambodia a 10th century sandstone sculpture, known as the Duryodhana, that was allegedly stolen from the Prasat Chen Temple at Koh Ker in Cambodia in 1972 by an organized looting network, and ultimately imported into the United States and offered for sale by Sotheby’s Inc. (“Sotheby’s”). In December 2013, the United States entered into a settlement of the civil forfeiture action under which Sotheby’s and the customer selling the Duryodhana, Decia Ruspoli de Poggia Suasa, agreed to return the Duryodhana to Cambodia.
Tyrannosauras bataar and other dinosaur skeletons
In 2012, the Office filed a civil action seeking to forfeit and return to Mongolia a Tyrannosaurus bataar skeleton which was looted from the Gobi desert in Mongolia, imported into the United States in violation of law and put up for auction in Manhattan by a commercial paleontologist, Eric Prokopi (“Prokopi”). Prokopi was arrested for smuggling and interstate transportation of stolen property. Prokopi pled guilty and agreed to forfeit the Tyrannosaurus bataar skeleton, an additional Tyrannosaurus bataar skeleton and several other fossils. The investigation also led to the seizure and forfeiture for the purpose of returning them to Mongolia of additional dinosaur skeletons and fossils, including a Saurolophus skeleton, another Tyrannosaurus bataar skeleton, a Saurolophus Angustirostris skeleton, a Oviraptor matrix containing at least five Oviraptor skeletons and an additional Oviraptor skeleton. In 2013, all the dinosaur skeletons and fossils were forfeited. In May 2013, the United States returned the Tyrannosaurus bataar and other dinosaur skeletons to Mongolia.
Below are summaries of some of the civil actions in which the Office has obtained significant recoveries:
Ambac
$101.9 million paid to the United States
In April 2013, the Office entered into a settlement in bankruptcy court resolving a dispute arising out of the tax accounting methods used by Ambac, a financial guarantee insurance company, to account for the credit default swap contract losses it purportedly sustained in the wake of the 2008 financial crisis. The United States recovered $101.9 million pursuant to the settlement. The settlement also secured a $1 billion reduction of Ambac’s net operating losses attributable to the credit default swaps, thereby preventing the company from potentially reducing its tax burden by several hundred million dollars.
Delphi
$23.1 million paid to the United States
In November 2013, the Office settled environmental claims and liabilities asserted against DPH Holdings Corporation, formerly known as Delphi Corporation (one of the largest auto parts manufacturers in the world), and its corporate affiliates. Pursuant to the settlement agreement, filed in bankruptcy court, Delphi paid approximately $23.1 million in cash for the clean-up of four properties in Michigan and Ohio contaminated with hazardous waste.
Bioscrip
$2.3 million (out of $11 million total) paid to date to the United States
In January 2014, the Office filed, and simultaneously settled, a civil fraud lawsuit for $11 million against Bioscrip, Inc., for accepting kickbacks from Novartis Pharmaceuticals Corp. in connection with the distribution of Exjade, a Novartis prescription drug. The Complaint alleged that Bioscrip accepted kickbacks in the form of patient referrals and rebates in exchange for recommending to Exjade patients that they should order refills. As part of the settlement, Bioscrip made extensive admissions concerning this conduct and agreed to continue to cooperate in the Government’s continuing investigation. $2.3 million of the $11 million total has been paid to date.
US v. NY Institute of Technology and Cardean Learning Group, LLC
$2.5 million paid to the United States
In December 2012, the Office settled civil fraud lawsuits against New York Institute of Technology and against Cardean Learning Group, LLC, for submitting false claims in connection with federal student loans and grants. In the settlement agreements, NYIT and Cardean made admissions concerning certain conduct set forth in the complaint.
US v. SEEDCO et al.
$1.8 million paid to the United States
In December 2012, the Office settled a civil fraud lawsuit for $1.725 million against Structured Employment Economic Development Corporation, or SEEDCO, for fraud in connection with a federally-funded program to provide job placement assistance to unemployed and underemployed New York City residents. SEEDCO, a national not-for-profit corporation, operated two New York City Workforce1 Career Centers, which provided services to prepare and connect job candidates to job opportunities. The Government’s lawsuit, filed May 22, 2012, asserted False Claims Act violations against SEEDCO and seven former managers for fraud for, among other things, routinely falsifying entries in the government job placement reporting database. As part of the settlement SEEDCO made extensive admissions and instituted a compliance program. Subsequently in 2013, the Office obtained Consent Decrees and Orders of Settlement and Dismissal as to five settling defendants, each of whom made certain admissions regarding their conduct and made “ability to pay” payments totaling $86,000.
US v. Test Quest et al.
$1.725 million paid to the United States
In January 2013, the Office filed a lawsuit against TestQuest and Michael Logan (a manager at TestQuest) in connection with a scheme whereby TestQuest obtained federal funds for allegedly providing after-school tutoring services that it did not actually provide. At the same time, Logan was arrested. In June 2013, Logan pled guilty to one count of conspiring to defraud the United States and, pursuant to the plea agreement, agreed to pay the Government approximately $750,000 in restitution. In August 2013, the Office filed settlement agreements with TestQuest and Logan, and simultaneously filed an amended civil complaint naming three public school teachers who also participated in the fraud. Pursuant to the settlement agreements, TestQuest made admissions of wrongdoing and paid $1,725,000, and Logan made admissions of wrongdoing.
The Office’s Money Laundering and Asset Forfeiture Unit is led by Sharon Cohen Levin and handles all criminal and civil forfeiture actions for the U.S. Attorney’s Office for the Southern District of New York. Civil recoveries are handled by the Office’s Civil Division, which is led by Sara L. Shudofsky. Criminal and civil collections are handled by the Office’s Financial Litigation Unit, which is led by Kathleen Zebrowski.
For further information, the United States Attorneys’ Annual Statistical Reports can be found online at http://www.justice.gov/usao/resources/reports/.
Two Men Charged with $983,000 Investment Fraud SchemeRead the Press Release
ROCKFORD — A Rockford man and a California man were indicted today by a federal grand jury in Rockford on fraud charges. TODD C. SMITH, 46, of Rockford, was charged with seven counts of mail fraud and ten counts of wire fraud, and TRAVIS OLIVER, 36, of Tremecula, Cal., was charged with eight counts of mail fraud and fifteen counts of wire fraud, in connection with a scheme to defraud investors by falsely representing to investors that their investments in Electus Asset Holdings were guaranteed, fraudulently obtaining more than $983,000 from the investors.
According to the indictment, Oliver was sole managing member of Electus Asset Holdings, and both Oliver and Smith solicited individuals to invest in Electus Asset Holdings, engaging in a scheme from Feb. 13, 2009, to at least March 2012, to defaud investors. The indictment alleges the defendants falsely represented to the investors that their investments would be returned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. However, it is alleged the defendants knew a large portion of the investors’ funds was used to pay personal and other expenses, such as commissions to the defendants, and to make interest and principal payments to other individuals who had invested money with Oliver prior to the formation of Electus Asset Holdings in January 2009, and that the remainder of the investors’ funds was placed in a non-guaranteed investment.
It is further alleged that in order to conceal their false promises and misrepresentations, and prevent the investors from demanding the return of their principal, defendants used funds from new investors to pay interest and principal owed to prior investors. The indictment also charges that defendants mailed monthly statements and IRS 1099-INT forms to investors that falsely stated that the investors had earned interest on their investments, when defendants knew no interest had been earned on the investments.
The indictment alleges that when investors requested the return of their interest and principal, Oliver and Smith made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that the investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that the investors’ money was invested in company that was under investigation by the Federal Trade Commission and its assets had been frozen.
Each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Antonio Gomez, Postal Inspector-In-Charge of the Chicago Division of the U.S. Postal Inspection Service. The Illinois Secretary of State Securities Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving each defendant’s guilt beyond a reasonable doubt.
Indictment
Two Illinois Men Charged in Federal Court with Conspiracy to use Counterfeit Access Devices and Aggravated Identity TheftRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that a federal grand jury returned an eleven-count indictment against Raymond V. Scott (age 39) of Joliet, Illinois, and Tarquin C. Saunders (age 42) of Hillside, Illinois, with conspiracy to use counterfeit access devices and use of counterfeit access devices (counterfeit credit cards bearing stolen credit card numbers) in violation of Title 18, United States Code, Sections 1029(a)(1) and (c)(1)(a)(i). If convicted of the use of counterfeit access devices each defendant faces a maximum penalty of up to 10 years’ imprisonment, a $250,000 fine, and 3 years on supervised release. If convicted of the conspiracy each defendant faces an additional 5 years’ imprisonment; a $250,000 fine; and 3 years’ on supervised release.
The primary purpose of the conspiracy was to obtain stolen personal identifying information, including stolen credit card numbers and stolen credit card authorization codes, manufacture counterfeit credit cards bearing the stolen credit card numbers, and then use the counterfeit credit cards to obtain goods from merchants located throughout the state of Wisconsin and elsewhere.
Scott and Saunders are also charged with aggravated identity theft in violation of Title 18, United States Code, Section 1028A, which carries a mandatory prison sentence of two years, to run consecutive to any other sentence that may be imposed in this case. Congress enacted these penalties in 2004, as part of the Identity Theft Penalty Enhancement Act, to address the growing problem of identity theft.
According to United States Attorney James L. Santelle, “Identity theft crimes are a top priority for the Department of Justice because of their devastating impact on individual victims, their high financial cost to society, and the strong connection between identity theft and other serious financial crimes such as bank and mortgage fraud.”
This case was investigated by the United States Secret Service and the Greenfield, Muskego and New Berlin Police Departments. Assistant United States Attorney Laura S. Kwaterski is prosecuting this case.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Two Garrett County Developers Indicted for A $3.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 49, of Accident, Maryland, and Louis W. Strosnider, III, age 47, of Oakland, Maryland, today on charges related to a $3.7 million bank fraud conspiracy.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the six count indictment, Samuel R. VanSickle and Louis W. Strosnider, III owned and developed property in Garrett County, Maryland. VanSickle controlled the mailbox at an address in Accident, Maryland, and rented a post office box, also in Accident. VanSickle used a number of different business names, including Freedom Church, Gospel Church, Equity Exchange, Unity Mortgage, Impartial Lenders, Noble Forest Consultants and used the names Donald Blunt, Allen Helms, Jacob Aiken, Paul Walsh, and William Hall (an attorney). Strosnider operated Stony Brook Development Company, LLC, a Maryland corporation located in McHenry, MD.
The indictment alleges that from December 31, 2001, through June 30, 2004, VanSickle and Strosnider devised a scheme to fraudulently obtain money and property from financial institutions. Specifically, the indictment charges that VanSickle purchased properties, concealed the ownership and control of the properties using false names and identities, inflated the value of the properties through fraudulent loans and mortgages; entered into sales contracts with Strosnider at inflated prices with fictitious down payments; and then Strosnider obtained bank loans with fraudulent collateral to finance sales of the properties. In this way, the indictment alleges that entities controlled by VanSickle sold the properties to Strosnider, with the purchase prices actually being paid to VanSickle in the name of companies he controlled. The indictment alleges that VanSickle and Strosnider purchased two properties using these methods.
The indictment also seeks forfeiture of $3,751,000 and 40 properties held in VanSickle’s name or in the names of nominees in Maryland, West Virginia and Pennsylvania.
The defendants face a maximum sentence of 30 years in prison for the conspiracy and for each of five counts of bank fraud. An initial appearance has been scheduled for February 28, 2014 in U.S. District Court in Baltimore.
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 FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.
Two Des Moines Men and One Woman Sentenced in Conspiracy to Distribute Cocaine and Gun ChargesRead the Press Release
DES MOINES, IA - On February 10, 2014, Harry Lincoln Garrison, III, a 26 year-old resident of Des Moines, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 132 months in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute at least 500 grams of cocaine, announced United States Attorney Nicholas A. Klinefeldt, United States Attorney. As part of the same case, Matthew Steven Steward, age 21, of Des Moines, Iowa, was sentenced to 120 months in prison for conspiracy to possess with intent to distribute at least 500 grams of cocaine and for carrying a firearm during and in relation to drug trafficking, and Elizabeth Heather Neilson, age 30, of Des Moines, Iowa, was sentenced to 60 months for conspiracy to possess with intent to distribute at least 500 grams of cocaine. The indictment was filed on March 27, 2013, and all three entered their guilty pleas on October 28, 2013.
This case stems from an undercover investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Des Moines Police Department wherein a confidential informant made several illicit purchases of drugs and firearms from Garrison, Steward and others. In the same case, Allen Fortner Jr., Brien Leroy Watson Jr., and Orlando Paul Valadez have also pleaded guilty, and are scheduled for sentencing at a later date.
The investigation was conducted by the Bureau of Alcohol Tobacco and Firearms and the Des Moines, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Three Johnstown Men Indicted on Gun and Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – Three residents of Johnstown, Pa., were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named as defendants the following individuals: James Andre Hendricks, 38; Logan Tyrell Harris, 32; and Dian Shanell Lassiter, 31.
According to the indictment presented to the court, from Aug. 8, 2013, through Aug. 22, 2013, James Andre Hendricks, Logan Tyrell Harris and Dian Shanell Lassiter conspired to distribute and possess with intent to distribute 100 grams or more of heroin.
In addition, on Aug. 8, Aug. 20 and Aug. 22, 2013, Hendricks distributed less than 100 grams of heroin on each of those occasions, and on Aug. 22, 2013, Hendricks, Harris and Lassiter possessed with the intent to distribute 100 grams or more of heroin.
On Aug. 22, 2013, James Andre Hendricks was found in possession of a Sturm & Ruger, Model P95, 9mm pistol. On Dec. 3, 2007, Hendricks was convicted in Bedford County, Pa., of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. On Aug. 22, 2013, Logan Tyrell Harris was found in possession of a Sturm & Ruger, Model P345, .45 caliber pistol. On May 20, 2004, Harris was convicted in Union County Superior Court of New Jersey of resisting arrest, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum total sentence for James Andre Hendricks of 150 years in prison, a fine of $13,250,000, or both; for Logan Tyrell Harris, 90 years in prison, a fine of $10,250,000, or both; and for Dian Shanell Lassiter, 80 years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Statements of Associate Attorney General Tony West and Acting Assistant Attorney General of Enrd on the National Strategy for Combatting Wildlife TraffickingRead the Press Release
Today, the White House released the National Strategy for Combatting Wildlife Trafficking. The Department of Justice, along with the Departments of State and the Interior, are co-chairs of the U.S. Task Force established by President Obama to lead the implementation of this strategy. On Thursday, Associate Attorney General Tony West will lead the U.S. Delegation’s participation at the London Conference on the Illegal Wildlife Trade.
"The Department is pleased to be a part of this interagency approach to combating illegal wildlife trafficking,” said Associate Attorney General West. “Record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions, has resulted in an explosion of illicit trade in wildlife in recent years, with the increasing involvement of organized transnational criminal syndicates. This trade undermines security, fuels corruption and contributes to the spread of disease, and it is decimating iconic animal populations. The National Strategy identifies priority areas for interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. government resources. Combating this problem will also require the shared understanding, commitment, and efforts of the world’s governments, intergovernmental organizations, NGOs, corporations, civil society and individuals. At this week’s London Conference on the Illegal Wildlife Trade, we hope other countries will join us in taking ambitious action to combat wildlife trafficking.”
The Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and Endangered Species Act, as well as related criminal statutes.“The president has called upon DOJ and more than a dozen other federal agencies to combine forces to more effectively battle this pernicious trade, which is growing at an alarming rate and threatens the survival of protected species both at home and abroad,” said Acting Assistant Attorney General Robert Dreher for the Environment and Natural Resources Division. “The release of today’s National Strategy to Combat Wildlife Trafficking is a welcome next step in our longstanding efforts to protect threatened and endangered wildlife species. Strong enforcement is critical to stopping those who kill and traffic in these animals, whether on land or in the oceans. At the same time, the Strategy recognizes that enforcement alone is not enough to stop traffickers. We must also work to reduce demand for illegal wildlife products. This is not a fight that the United States can win alone; under the Strategy, we will build relationships with local and global partners who share our commitment to ending wildlife trafficking.”
The Environmental Crimes Section of the Environment and Natural Resources Division and U.S. Attorneys’ Offices around the country bring criminal prosecutions under these laws against, for example, people who are found smuggling wildlife and plants into the United States. There is a major worldwide black market for some endangered species or products made from them. The main federal agencies that the Division represents in this area are the Fish and Wildlife Service and the National Marine Fisheries Service.
St. Francis Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Abusive Sexual Contact was sentenced on February 10, 2014, by U.S. District Judge Roberto A. Lange.
Joseph Blue Bird, age 26, was sentenced to 36 months of custody, 5 years of supervised release, $43.50 in restitution, and a $100 special assessment to the Federal Crime Victims Fund. Blue Bird was also ordered to register as a sex offender.
Blue Bird was indicted by a federal grand jury on September 19, 2012. He pled guilty on November 19, 2013.
The conviction stems from an incident in May 2012, wherein the victim went to her neighbor's house in Rosebud for a social gathering. Blue Bird was also present at the gathering. The group socialized throughout the evening, and eventually the victim told a resident of the house that she was tired and was going to lie down on the couch. The victim awoke to find that her pants were down and Blue Bird was on top of her, touching her genitalia. Blue Bird then fled the residence without saying anything further to the victim.
This case was investigated by the Rosebud Sioux Tribal Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Six Defendants Charged in Manhattan Federal Court for Jamaican Lottery Telemarketing Fraud Scheme Targeting Elderly U.S. CitizensRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that NADEISHA BLAKE, RASHINA WATSON, CRYSTAL MOSS, KIMONA PETERKIN, MELISSA BLAKE, and SOPHIA BLAKE were arrested today for allegedly engaging in a lottery telemarketing fraud scheme that obtained over $400,000 from elderly victims in the United States between 2010 and March 2013. Five of the defendants – NADEISHA BLAKE, MOSS, PETERKIN, MELISSA BLAKE, and SOPHIA BLAKE – were arrested this morning in New York, and will be presented and arraigned in Manhattan federal court this afternoon before U.S. Magistrate Judge Andrew J. Peck. WATSON, the sixth defendant, was arrested this morning in Bladensburg, Maryland, and will be presented in federal court in Maryland this afternoon.
U.S. Attorney Preet Bharara said: “As alleged, the defendants sought out and preyed on the elderly through their lottery telemarking scam. This Office will aggressively pursue and prosecute fraudsters who seek to exploit our citizens for financial gain. Thanks to the cooperative efforts of law enforcement, both here and abroad, this alleged international fraud scheme was uncovered, and the defendants will now be made to face justice. Citizens should be wary of these types of fraudulent lottery schemes that sound too good to be true.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Foreign lotteries prey upon trusting individuals who believe they have won a large prize. Not only are they illegal, but those who choose to participate run the risk of criminal charges for their involvement, like these alleged defendants. Postal Inspectors will bring to justice anyone who uses the mail for their illegal enterprise, both foreign and domestic.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
The defendants participated in a fraudulent scheme in which dozens of elderly victims in the United States were informed that they had won substantial cash prizes in an international sweepstakes lottery, but that in order to claim these prizes, they first needed to pay tens of thousand dollars in fees and taxes. In fact, there was no sweepstakes lottery and the victims never received any cash prize, even after victims sent cash and checks totaling up to $100,000 each to the defendants and their co-conspirators in Jamaica.
As part of this scheme to defraud, the defendants worked with several co-conspirators in Jamaica. The Jamaican co-conspirators bought lists containing information about elderly Americans, called them, and informed them that they had won the lottery. All the victims had to do to get their prizes, according to the Jamaican co-conspirators, was to send payments for certain “taxes” and “fees.” The victims were then instructed to send the money to the defendants by wire transfer or U.S. mail. Victims who sent money were often contacted again by the Jamaican co-conspirators and instructed to send additional money in order to claim their prizes. After receiving money from the victims, the defendants transmitted the funds to their Jamaican co-conspirators either through wire transfers or by carrying cash to Jamaica.
All of the defendants are charged with one count of conspiracy to commit mail and wire fraud, one substantive count of mail fraud, and one substantive count of wire fraud, which each carry a maximum sentence of 20 years in prison. A chart containing each defendant’s age and residence information is attached. The case is assigned to U.S. District Judge Victor Marrero.
The investigation into the lottery telemarketing fraud scheme is being conducted in New York by the USPIS, in cooperation with the Jamaican Constabulary Force (“JCF”). Mr. Bharara praised the investigative work of the USPIS and the JCF, and expressed his gratitude to the Office of International Affairs, United States Department of Justice Criminal Division, and the Consumer Protection Branch of the United States Department of Justice Civil Division for their cooperation in the investigation.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Megan Gaffney and Tatiana R. Martins are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty
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U.S. v. Nadeisha Blake, et al. Indictment PR
Rochester Man Sentenced on Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced that Richard Bailey, 55, of Rochester, N.Y., who was convicted of distributing and receiving child pornography, was sentenced to 96 months in prison by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Bailey used peer-to-peer software to obtain and distribute images of child pornography. The defendant avoided detection by stealing other people’s wireless internet connection to trade the child pornography. This conduct exposed people who were innocent of any wrongdoing to the risk of having search warrants executed on their homes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Rhode Island State Probation Officer Convicted on Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. –A Rhode Island state probation officer assigned to the sex offender unit was convicted by a federal court jury in Providence on Monday on charges of receiving and possessing child pornography. Gerald J. Silva, 59, of Coventry, was convicted on six counts of receiving child pornography and one count of possession of child pornography, announced United States Attorney Peter F. Neronha; Shelly Binkowski, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Coventry Police Chief Bryan J. Volpe; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
A joint investigation by the U.S. Postal Inspection Service and the Toronto Police Service, dubbed Operation Spade, resulted in the discovery of more than 10,000 customers who had videos shipped to the United States. Silva was arrested in September 2012 by U.S. Postal Inspectors when the investigation revealed that Silva was among the list of individuals who had purchased videos depicting child pornography from a Toronto based company and had the videos shipped to addresses in the United States.
According to the government’s evidence presented to the jury during nearly three days of testimony, in May 2011 Toronto Police Service detectives executed a court authorized search warrant at the business premises of Azov Films, which was producing child pornographic DVDs and selling them in over 90 countries. Detectives obtained Azov Films’ business records, which revealed that Silva was a customer.
The evidence revealed that between October 2011 and April 2012, Silva purchased 75 different videos depicting child pornography in 22 separate orders for $1,589 via the Toronto company's website. The videos, depicting minor and prepubescent males involving the lascivious exhibitions of the genitals, were shipped to Silva’s Coventry residence.
According to the government’s evidence, Postal Inspectors, assisted by Coventry Police and Rhode Island State Police troopers and officers from the Internet Crimes Against Children task force, executed a court authorized federal search warrant at Silva’s residence on September 27, 2012, at which time they seized numerous DVDs depicting child pornography and a laptop computer.
Silva argued to the jury that he ordered and collected the videos as part of a project he had undertaken in his role as a state probation officer. The jury returned guilty verdicts on all charges after less than one hour of deliberations on Monday afternoon.
Receipt of child pornography is punishable by a minimum of 5 years and a maximum of 20 years in federal prison and up to lifetime supervised release; possession of child pornography is punishable by up to 10 years in federal prison.
Silva is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 16, 2014. At the Government’s request, Silva was ordered detained following his conviction.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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.”
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Contact: 401-709-5357
[email protected]Rapid City Woman Sentenced for Concealing A FugitiveRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman convicted of Concealing Person from Arrest was sentenced on February 3, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tina Ladeaux, a/k/a Tina M. Cooper, a/k/a Tina Cooperboyd, age 41, was sentenced to 1 year of probation, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and a $250 fine.
Between September 2012 and November 2012, at Rapid City, Ladeaux concealed her husband, Eric Ladeaux, from law enforcement after she was informed that there was a warrant for his arrest for Escape on federal charges.The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Puyallup Man Sentenced to Five Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Richland, Washington – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Robert John Kearns, age 54, of Puyallup, Washington, was sentenced today after having previously pleaded guilty in November of 2013 to Receipt of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Kearns to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Kearns will be required to register as a sex offender.
According to court records, in March of 2010, the Federal Bureau of Investigation and Grant County Sherriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about producing child pornography images was Robert John Kearns. On April 14, 2011, the FBI executed a search warrant at Kearns' residence and located a laptop computer belonging to Kearns. A forensic examination of Kearns' laptop revealed that it contained images of child pornography that Kearns had requested Ortega send him from her residence in Warden, Washington, to Kearns at his residence in Puyallup, Washington.
Michael C. Ormsby said, "Prosecuting offenders who possess and collect child pornography is a priority of the United States Attorney's Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography-related crimes."
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted by the Federal Bureau of Investigation and Grant County Sherriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-06005-EFS
Prior Sex Offender Sentenced to Fifteen Years in Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Chad F. Summers, 41, of Albuquerque, N.M., was sentenced this afternoon to 15 years in federal prison followed by a lifetime of supervised release. Summers will be required to register as a sex offender after he completes his prison sentence. Summers also was ordered to pay $500 in restitution to the victim whose image is associated with Summers’ crime of conviction.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, Chief Pete N. Kassetas of the New Mexico State Police (NMSP) and Chief Allen Banks of the Albuquerque Police Department (APD).
Summers was arrested on Feb. 12, 2013, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M., between Aug. 2012 and Feb. 2013. The complaint also charged Summers with unlawfully possessing a firearm on Feb. 12, 2013. At the time, Summers was prohibited from possessing firearms or ammunition because he previously had been convicted of child pornography offenses in an Oregon state court. On March 5, 2013, Summers was indicted and charged with three counts of receipt of child pornography, one count of possession of child pornography, and being a felon in possession of a firearm.
On July 11, 2013, Summers pleaded guilty to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Summers acknowledged that HSI, NMSP and APD executed a search warrant at his residence on Feb. 12, 2013 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the NMSP that began in Oct. 2012, and targeted individuals who possessed, received and distributed child pornography. The investigation revealed that an IP Address which was subscribed to Summers was being used to offer child pornography images and videos through a peer-to-peer file-sharing program.
Summers acknowledged voluntarily participating in a recorded interview on Feb. 12, 2013, during which he admitted downloading child pornography images of preteens. He also admitted having a prior conviction for child pornography offenses from Oregon. In his plea agreement, Summers acknowledged that a forensic examination of his computers and computer-media uncovered more than 1600 child pornography images and videos.
This case was investigated by the Albuquerque office of HSI, NMSP and APD and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Pooler Resident Indicted on Two Local RobberiesRead the Press Release
SAVANNAH, GA -- BOBBY JOE WHITE, JR., 42, of Pooler, Georgia was indicted last week by the federal grand jury sitting in Savannah for robbing the Sea Island Bank and the Biomat USA Savannah Blood Plasma Donation Center. According to the indictment, White allegedly robbed the Sea Island Bank on November 1, 2013 by “force, violence, and intimidation.” Three weeks later, on November 22, 2013, White allegedly robbed the Biomat USA Savannah Plasma Donation Center of about $8,000 in cash.
White faces a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release for each robbery charge. An 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 arose out of an investigation by the FBI Safe Streets Violent Crime Task Force of Southeast Georgia, which was assisted by the Pooler Police Department and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorney Charlie Bourne is prosecuting the case on behalf of the United States.
Ojo Amarillo Woman Sentenced to Six Years in Federal Prison for Using a Firearm During an AssaultRead the Press Release
ALBUQUERQUE – Perfinna King, 34, an enrolled member of the Navajo Nation who resides in Ojo Amarillo, N.M., was sentenced this morning to six years in federal prison followed by three years of supervised release for using a firearm during a crime of violence. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
King was arrested in April 2012, based on a criminal complaint charging her with assaulting her domestic partner, another Navajo woman, with a knife and a pistol on April 6, 2012. King subsequently was indicted and charged with assault with a dangerous weapon, assault resulting in serious bodily injury, and using and carrying a firearm during a crime of violence. Prosecution of this case was delayed by competency proceedings.
Court filing reflect that, in the early hours of April 6, 2012, King had an argument with the victim during which King stabbed the victim in the leg in a residence located in the Navajo Indian Reservation. Although the victim tried to get away from King by hiding in a bathroom, King dragged the victim out of the bathroom and stabbed her again. Thereafter, King shot the victim in the leg as the victim ran out of the residence in an effort to get away from King. The victim was treated for multiple stab wounds and a gunshot wound on her leg.
On November 13, 2013, King entered a guilty plea to Count 3 of the indictment and admitted using a firearm during an assault she committed on April 6, 2012.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New London Heroin Dealer Sentenced to 68 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRUZ BONILLA, also known as “Jay,” 30, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 68 months of imprisonment, followed by four years of supervised release, for distributing heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. On multiple occasions in the fall of 2012, BONILLA was intercepted over court-authorized wiretaps ordering heroin from other members of the conspiracy. BONILLA then sold the drug to his own customers. In October 2012, while he was incarcerated for state parole violations, BONILLA arranged to have his then-girlfriend purchase and distribute heroin on his behalf.
On October 2, 2013, BONILLA pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
BONILLA has been incarcerated since October 2012, but his time served will not be credited toward his 68-month federal sentence.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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[email protected]Minnesota Man and Woman Sentenced for Participating in a Sex Trafficking ConspiracyRead the Press Release
Today, the Justice Department announced that Andre James Hertzog, 29, was sentenced to serve 10 years in prison and eight years of supervised release for participating in a sex trafficking conspiracy. Hertzog’s co-defendant, Nicole Bramer, 29, was sentenced to serve 21 months in prison, to be followed by five years of supervised release. In addition, the defendants were each ordered to pay $6100 in restitution to the victims of the offense. Hertzog and Bramer are both from St. Paul, Minn.
“The defendants preyed upon vulnerable young women by a variety of deplorable means,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice is committed to prosecuting those who sexually exploit vulnerable women for financial benefit.”
“Working with victims of sex trafficking to attain a measure of justice is a serious responsibility,” said Special Agent in Charge Christopher Warrener for the FBI’s Minneapolis Field Office. “These sentences are the culmination of investigators and prosecutors effectively communicating with victims.”
Bramer pleaded guilty to participating in the sex trafficking conspiracy on May 29, 2013, and Hertzog pleaded guilty on July 2, 2013. During his plea hearing, Hertzog admitted that, from April 2011 to August 2012, he and Bramer engaged in a scheme to target and recruit young, vulnerable women, one of whom was a minor, and to compel them into performing commercial sex acts for their own financial gain. Hertzog and Bramer used coercive tactics, including physical violence and psychological coercion, to isolate the young women, control them and cause them to perform acts of prostitution. As part of the trafficking scheme, the defendants transported the victims across state lines for the purpose of having them engage in prostitution, and the defendants routinely advertised the sexual services of the young women on the internet website Backpage.com.
The case was investigated by the FBI and prosecuted jointly by Special Assistant U.S. Attorney Mark Kappelhoff for the District of Minnesota, Trial Attorney Christine M. Siscaretti, and former Trial Attorney Amanda Gregory for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Middleburg Man Pleads Guilty to Making False Statements to the FAA and Illegally Piloting an AircraftRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Reginald Wayne Sibley, Jr. (39, Middleburg) today pleaded guilty to making false statements and representations to the Federal Aviation Administration (FAA) and illegally piloting an aircraft in air transportation. Sibley faces a maximum penalty of eight years in federal prison. His sentencing hearing is scheduled for May 12, 2014.
According to the plea agreement, Sibley was certified by the FAA to serve as a pilot in command of Lear Jet aircraft only. As part of the FAA certification process, Sibley was required to undergo annual medical examinations to determine his medical fitness as a pilot. On June 1, 2009, Sibley stated on his FAA airmen medical certificate application form that he did not have a criminal history, when in fact, he had at least three criminal convictions. An investigation also revealed that, on October 8, 2009, Sibley was the pilot in command of a Gulfstream aircraft that departed from the Orlando Executive Airport and landed at an airport in California. After landing, Sibley claimed, to an FAA representative, that he was “rated” to fly the Gulfstream aircraft that he was piloting. The FAA informed Sibley that it had no record of his “rating” for this kind of aircraft and recommended that Sibley not continue to fly the aircraft to his next destination. Sibley disregarded the FAA and proceeded to board passengers onto the aircraft and fly to another location, in California. The investigation confirmed that Sibley was not authorized or “rated” to fly the Gulfstream aircraft, which he operated on October 8, 2013.
This case was investigated by the U.S. Department of Transportation, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
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Mexican National Living in Star Sentenced to 188 Months for Trafficking MethRead the Press Release
Defendant and Four Others Admitted to Distributing Approx. 130 Pounds of Meth
BOISE – U.S. Attorney Wendy J. Olson announced today that Ausencio Gonzalez Tovar, 48, a Mexican national living in Star, Idaho, was sentenced yesterday to 188 months in prison followed by five years of supervised release for possession with intent to distribute 500 grams or more of methamphetamine. Tovar appeared before Senior U.S. District Judge William Fremming Nielsen of the Eastern District of Washington. Tovar was also ordered to forfeit $100,000 in proceeds derived from the drug trafficking offense and $18,400 in seized currency. He will be deported to Mexico after serving his prison sentence.
Tovar pleaded guilty to the charge on October 2, 2013. According to court proceedings, he was arrested on April 3, 2013, and was found to be in possession of 1.7 kilograms of pure methamphetamine and a firearm. The government argued at sentencing that Tovar was responsible for distributing approximately 130 pounds of high purity methamphetamine between October 2012 and April 2013.
Four co-defendants from the Treasure Valley were sentenced to prison earlier for their role in the conspiracy. Michael Scott Longhi was sentenced to 188 months in prison; Samantha Jo Tackitt to 151 months; Darin James Bangham to 87 months; and Ashley Marie Armstrong to 51 months.
The case was investigated by the Ada County Sheriff’s Office, Meridian Police Department, and Drug Enforcement Administration.
Logan County Husband and Wife Plead Guilty to Distributing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – A Logan County couple has pleaded guilty to distribution of methamphetamine, United States Attorney Booth Goodwin announced today. In a plea hearing held in Charleston before United States District Judge John T. Copenhaver, Jr., Rodney and Opal Wiley admitted that in January of last year, they sold methamphetamine, a dangerous and addictive controlled substance, to a confidential informant working with the US 119 Drug Task Force in exchange for $40.00. The drug deal took place on the parking lot of the Dollar General Store in Chapmanville, West Virginia. Following the sale, the Wileys were arrested and pre-recorded buy money was recovered from Rodney Wiley. Both Wileys provided post-arrest statements in which they admitted to having been involved in the distribution of methamphetamine for several months leading up to their arrest. The Wileys are scheduled to be sentenced by Judge Copenhaver on May 8, 2014 and face possible penalties of up to 20 years imprisonment and fines of up to $1,000,000.00.
Local Physician Indicted on Charges of Healthcare FraudRead the Press Release
ROCKFORD — A suspended Rockford physician was indicted today by a federal grand jury on charges of healthcare fraud. CHARLES S. DEHANN, 59, of Belvidere, Ill., was charged with nine counts of engaging in a scheme to defraud Medicare.
The indictment alleges that DeHaan, a physician licensed in Illinois, and president of Housecall Physicians Group of Rockford, S.C., treated numerous patients at Rockford-area assisted living facilities and, as a physician, had access to patients and patient records. The indictment alleges that, from January 2013 through Jan. 24, 2014, in order to enrich himself, DeHaan submitted false claims to Medicare for reimbursement for medical services that DeHaan provided to patients in their homes. As part of the scheme, DeHaan allegedly obtained patient information of Medicare beneficiaries through his affiliation with and privileges granted to him at various Rockford-area assisted living facilities, without the knowledge or consent of the patients. It is also alleged that DeHaan billed for medical services purportedly provided to patients whom DeHaan never actually treated, and billed routine visits with Medicare patients at the highest levels of in-home care when he knew that his visits with these patients typically did not qualify for such billing.
In addition, DeHaan allegedly billed for medical services provided to patients when he knew he did not provide any reimbursable medical service. For instance, on multiple occasions, DeHaan billed Medicare for medical services purportedly provided to patients, when DeHaan’s visit with the patient involved no medical care and instead involved DeHaan’s having sexual contact and attempting to have sexual contact with a patient and making sexual advances toward a patient, according to the indictment.
DeHaan was initially charged with federal healthcare fraud last month when he was arrested on a criminal complaint. He was released on bond and will appear for arraignment on February 12, 2014, at 10:00 a.m. in Federal Court in Rockford, before U.S. Magistrate Iain D. Johnston.
Each count of healthcare fraud carries a maximum potential penalty of up to 10 years in prison, a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Lamont Pugh, III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The federal case was investigated by the FBI and HHS-OIG, with the assistance of the Illinois Department of Financial and Professional Regulation. The government is being represented by Assistant U.S. Attorney Scott R. Paccagnini.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving his guilt beyond a reasonable doubt.
Indictment
Liberty Man Pleads Guilty to Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man pleaded guilty in federal court today to stealing $84,137 by spending his deceased mother’s Social Security benefits.
Jeffery Schwed, 40, of Liberty, pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a Feb. 19, 2013, federal indictment.
According to today’s plea agreement, Schwed was a joint owner of his mother’s bank account, where her monthly Social Security payments were deposited. Schwed’s mother died on March 16, 2007, but the monthly benefits continued to be deposited into the bank account for approximately five years, through April 2012. Schwed admitted that he converted at least some of these payments for his own personal use.
Schwed admitted that he knowingly and intentionally concealed his mother’s death from the Social Security Administration in order to fraudulently obtain Social Security payments that he knew he was not entitled to receive. Schwed was incarcerated when the Social Security Administration made some of its deposits. Approximately $18,000 in ATM withdrawals were made during the periods when he was incarcerated.
Under the terms of today’s plea agreement, Schwed must pay $84,137 in restitution to the Social Security Administration.
Under federal statutes, Schwed is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General.Leader of Large-Scale Identity Theft Ring Sentenced to 12 Years in Prison for His Role in Fraud EnterpriseRead the Press Release
NEWARK, N.J. – The leader of a fraud ring that engaged in identity theft and financial crimes which have led to charges against 54 individuals was sentenced today to 144 months in prison for directing the large-scale, sophisticated criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Sang-Hyun Park, a/k/a “Jimmy,” 48, of Palisades Park, N.J., previously pleaded guilty before then-U.S. Magistrate Judge Patty Shwartz to a five-count information charging him with conspiracy to unlawfully produce identification documents and false identification documents (Count One); conspiracy to commit wire fraud affecting financial institutions and bank fraud (Count Two); aggravated identity theft (Count Three); money laundering (Count Four); and conspiracy to defraud the Internal Revenue Service (Count Five). U.S. District Court Judge Katharine S. Hayden imposed the sentence today in Newark federal court.
“Sang-Hyun Park presided over a criminal enterprise that was extraordinary in its scope and complexity,” U.S. Attorney Fishman said. “The crimes for which he was sentenced today put us all at risk, not just because of the cost to our financial institutions, but also because of the threat posed by fake identification documents. Fortunately, the law enforcement agents and prosecutors who target identity theft and organized crime were just as patient and painstaking as the defendants who designed and executed this scheme, Mr. Park today joins dozens of his criminal conspirators in federal prison.”
“Sang Hyun Park was the mastermind behind multiple, complex, fraudulent schemes that affected numerous financial institutions and individual victims,” FBI-Newark Special Agent in Charge Aaron T. Ford said. “In doing so, he exploited the close ties of the community he lived in. The severity of the sentence imposed today speaks to the outstanding efforts of the FBI, IRS, DHS-HSI, and the United States Attorney's Office who uncovered, investigated and prosecuted Park and all of his co-conspirators who participated in these schemes.”
According to documents filed in these cases and statements made in court:
Park was the leader of a criminal organization (the “Park Criminal Enterprise”) headquartered in Bergen County, N.J., that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud and tax fraud. As part of the scheme, the Park Criminal Enterprise obtained Social Security cards beginning with the prefix “586.” Social Security cards with that prefix were issued by the United States to individuals, usually from China, employed in American territories, such as American Samoa, Guam, and Saipan. The Park Criminal Enterprise sold the cards to its customers and then escorted the customers to various states to use them to obtain identification cards and driver’s licenses.
The Park Criminal Enterprise then engaged in the fraudulent “build up” of credit scores associated with these fraudulently obtained identities. They did so by adding these identities as authorized users to the credit card accounts of various conspirators who received a fee for this service - members of the enterprise’s credit build-up teams. By attaching the identities to these existing credit card accounts, the teams increased the credit scores associated with the identities to between 700 and 800. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.After building the credit scores associated with these identities, Park and his conspirators assisted, coached and directed his customers to open bank accounts and obtain credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit card related to these fraudulent transactions, the collusive merchants gave the money to Park and his conspirators, minus their kkang fee.
Park admitted that he operated the criminal enterprise out of several offices in Bergen County, ran advertisements in local newspapers to attract customers interested in his illegal services, met with customers and other conspirators and otherwise directed the activities of the criminal enterprise. He also admitted that he obtained and sold 586-prefix Social Security cards to his customers and members of his criminal enterprise escorted more than 100 customers to various states so they could fraudulently obtain identification cards and driver’s licenses using the Social Security cards and other fraudulent documents – such as counterfeit Chinese passports.
Park also admitted he conspired with and paid cash to various build-up teams to build the credit scores and establish credit histories for the fraudulent identities that he had sold to his customers. Park also laundered portions of the money he obtained through the fraud by wiring the money to various accounts in South Korea.Park defrauded various credit card companies, banks, and lenders out of $4 million. He and his conspirators also claimed more than $182,000 in tax refunds from the IRS through the filing of false and fictitious tax returns and accompanying documents.
In addition to the prison term, Judge Hayden sentenced Park to five years of supervised release and ordered to pay restitution of $4,774, 116. He will also be deported upon his release from prison.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special
Agent in Charge Aaron T. Ford in Newark; IRS Criminal Investigation, under the direction
of Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s
Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Andrew M. McLees; the Federal Deposit Insurance Corporation –Office of Inspector General, under the direction of Acting Inspector General Fred W. Gibson Jr.; and the Bergen County Prosecutor’s Office and the office’s Chief of Detectives Steven Cucciniello for their work leading to today’s sentence.The government is represented by Assistant U.S. Attorneys Jane Yoon of the U.S. Attorney’s Office Criminal Division and Anthony Moscato of the Office’s Organized Crime/Gangs Unit in Newark.
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Defense counsel: Christian P. Fleming Esq., East Brunswick, N.J.Leader of Drug Conspiracy That Resulted in Death Sentenced to 27 Years in PrisonRead the Press Release
St. Louis, MO – ANDREUS O'BRYANT, St. Louis, Missouri, was sentenced to 330 months imprisonment for his organization and leadership in a drug conspiracy that required the murder of Jamie Benson of Houston, TX, on April 22, 2011. In August 2013, O’Bryant pleaded guilty to conspiracy to possess with the intent to distribute over 500 grams of cocaine. O’Bryant was sentenced today by United States District Court Judge Audrey G. Fleissig after a two-day sentencing hearing.
According to court documents and testimony provided during the sentencing hearing, in early April 2011, O’Bryant recruited multiple individuals, including his co-defendants Scott Compton and Lodgy Jackson, to participate in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis, after luring Benson from Houston to St. Louis. Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Benson for an inflated price. Compton played that role. In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Benson of the cocaine and murder him.
Jackson was brought to St. Louis by O’Bryant for purposes of carrying out the murder in exchange for compensation from O’Bryant. In the early morning hours of April 22, 2011, O’Bryant drove himself, Benson, Jackson and another individual to a St. Louis alley. O’Bryant exited the vehicle. Jackson and Benson sat inside O’Bryant’s vehicle. Benson was the front seat passenger. Jackson sat directly behind him. To facilitate Benson’s murder, Jackson initiated a heated argument with Benson. As the argument began, Jackson sent a text to O’Bryant notifying O’Bryant that the murder was imminent. As the argument continued, Jackson mouthed the words “watch this” to another passenger inside O’Bryant’s vehicle. Jackson then fired one shot into the back of Benson’s head from a firearm Jackson possessed. That firearm was given to Jackson by O’Bryant prior to the murder. Jackson, O’Bryant and another abandoned Benson's body in the alley, where it was later discovered by the St. Louis Metropolitan Police Department. Jackson, O’Bryant and others undertook significant efforts to cover up the conspiracy and destroy evidence of the crime.
Upon learning of the indictment against him, O’Bryant fled the State of Missouri. He eluded authorities for almost a year. A joint task force of officers from St. Louis, Missouri, and Houston, Texas, with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service apprehended O’Bryant in Houston, Texas, and returned him to the Eastern District of Missouri to face the indictment. O’Bryant is the third of three defendants to be sentenced in this matter. Compton pleaded guilty for his involvement and has been sentenced to 5 years imprisonment. Jackson also pleaded guilty and has been sentenced to 33 years imprisonment.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department; the St. Charles County Police Department and the O’Fallon Police Department.Las Cruces Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Agustin Abascal, 28, of Las Cruces, N.M., was sentenced this morning in Las Cruces federal court to 10 years in federal prison followed by five years of supervised release for his methamphetamine trafficking conviction.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, Special Agent in Charge Bobby Holden of the Las Cruces/Doña Ana County Metro Narcotics Agency and New Mexico State Police Chief Pete N. Kassetas.
Abascal and Mark Anthony Harriman, 45, also of Las Cruces, were arrested in April 2013, based on a criminal complaint charging them with conspiracy to distribute methamphetamine in Doña Ana County, N.M., between Nov. 2012 and March 2013. According to the complaint, Harriman and Abascal sold quantities of methamphetamine to a New Mexico State Police officer and a DEA informant who were acting in undercover capacities during the five month period. Both men have been in federal custody since their arrests.
Abascal entered a guilty plea in July 2013, to a one-count felony information charging him with distribution of methamphetamine. In his plea agreement, Abascal admitted selling methamphetamine to an undercover officer on five separate occasions between Nov. 1, 2012 and March 7, 2013.
Harriman pled guilty in July 2013 to a two-count felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Harriman admitted that between Feb. 6, 2013 and March 14, 2013, he obtained methamphetamine from California and sold it in Las Cruces. He also admitted selling an ounce of methamphetamine to an informant on Feb. 26, 2013. Harriman further admitted that he was returning to Las Cruces from California with two ounces of methamphetamine when he was arrested in this case.
Harriman also admitted that, when federal agents executed a search warrant at his residence, they seized nine firearms and large amounts of ammunition that belonged to him. Harriman acknowledged that he was prohibited from possessing firearms or ammunition because he previously was convicted of two felony offenses.
On October 29, 2013, Harriman was sentenced to 20 years in federal prison followed by five years of supervised release. Harriman also was ordered to forfeit the firearms and more than 1000 rounds of ammunition seized from his residence in addition to $13,940 in cash.
This case was investigated by the Las Cruces office of the DEA, the Las Cruces/Doña Ana County Metro Narcotics Agency and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.