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Tuesday 11 February 2014
Lakeland Man Pleads Guilty to Sex Trafficking and Child Pornography ChargesRead the Press Release
Tampa, Florida– United States Attorney A. Lee Bentley, III announces that Michael Gallon (48, Lakeland) pleaded guilty last week to sex trafficking of a minor by force, fraud or coercion and distribution of child pornography. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Gallon was a “pimp” who was operating in the state of Florida and southeastern United States. He recruited adult and minor aged females to join his “dance team.” Gallon then transported the females to bachelor parties and house parties that he arranged. The females danced and performed acts of prostitution at the parties. Gallon set up “VIP” rooms at each of the parties, where he would encourage the females to engage in commercial sex acts. Gallon charged the women to use the “VIP” rooms; he also kept most of the money the women earned. Law enforcement has identified at least twelve minor-aged victims of Gallon’s crime.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
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 (CEOS), 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.projectsafechildhood.gov.
Kirtland, N.M., Man Sentenced to Ninety-Seven Months in Federal Prison for Sexual Assault ConvictionRead the Press Release
ALBUQUERQUE – Hareldo Horse, 31, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., was sentenced this afternoon to 97 months in federal prison followed by five years of supervised release for his sexual assault conviction. Horse will be required to register as a sex offender when he completes his prison sentence.
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.
Horse was arrested on March 11, 2013, on an indictment charging him with sexually assaulting a woman in a location within the Navajo Indian Reservation on Oct. 20, 2012. He has been in federal custody since that time. On Sept. 10, 2013, Horse pleaded guilty to the indictment and admitted inappropriately touching the victim’s genitals at a time when the victim was physically in capable of declining to participate in the sexual act.
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 Paul Mysliwiec. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project 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.
Kankakee Area Father, Son Plead Guilty to $1.7 Million Bank Fraud SchemeRead the Press Release
Urbana, Ill. – Sentencing has been scheduled for May 16, 2014, for Bourbonnais, Ill., businessman Gregory Yates, 54, and his son, Terrance Yates, 32, who yesterday entered pleas of guilty to defrauding a federal business loan program of $1.7 million. Both appeared yesterday afternoon before U.S. Magistrate Judge David G. Bernthal in Urbana. Gregory and Terrance Yates each pled guilty to one count of conspiracy to commit bank fraud. In addition, Terrance Yates pled guilty to one count of money laundering. Both defendants were allowed to remain on bond.
At the time of the fraud, from April 2009 to July 2011, Gregory Yates was the president and chief executive officer of Quality Concepts, LLC; his son, Terrance, was the chief financial officer. Gregory Yates also owned and operated QC Manufacturing, LLC, and Champion Development, LLC, a construction company. Terrance was the chief financial officer and vice-president of operations for Champion Development, LLC. For each company, the principal office location was 1475 Harvard Drive, Kankakee, Ill.
In court proceedings and according to court documents, in May 2009, Gregory Yates, doing business as QC Manufacturing, LLC, purchased a manufacturing facility, tools and equipment, owned by Casey Tool and Machine, at 400 West Delaware Ave., Casey, Ill. At the time of the purchase, Casey Tool and Machine was in bankruptcy. Prior to its bankruptcy, Casey Tool and Machine was owned by Gregory Yates’ brother, Jim Yates.
In November 2009, QC Manufacturing, LLC, applied for and was subsequently awarded a Business and Industry Loan through the U.S. Department of Agriculture, Office of Rural Development. Although the $5.95 million loan was processed through Country Bank of Aledo, the loan guarantee was funded by the USDA using money allocated through the American Recovery and Reinvestment Act.
Gregory Yates admitted that, as part of the loan application, he submitted a letter stating that he intended to use the $5.95 million USDA loan to purchase a vacant manufacturing facility in Casey, Ill., tools and equipment to operate within the facility, and start up working capital for initial cash and inventory. The letter represented that the facility would be used to produce and distribute precision lighting equipment and he estimated that more than 200 new jobs would be created. The loan application included a budget of $1.7 million to perform construction and improvements on the Casey facility.
Although the bank approved the loan, including the renovation budget, QC Manufacturing, LLC was required to complete the work for which it was requesting payment before Country Bank would fund any portion of the $1.7 million allocation. Gregory and Terrance Yates admitted that they agreed with each other to use only their own construction company, Champion Development, and no subcontractors, to perform the construction and improvements. By listing only their own construction company, the Yateses admitted they were able to falsely and substantially inflate the value of the labor or materials furnished by Champion Development, thereby drawing money from the USDA loan for work that was either never performed or was of lesser value than claimed on the contractor’s sworn statements provided to the bank. For example, Gregory Yates admitted he told employees of Champion Development to ‘simply spruce up’ the Casey facility to lower the cost of improvements.
Terrance, in agreement with Gregory Yates, admitted that fraudulent sworn statements and affidavits, signed by Terrance, were submitted to the bank claiming that Champion Development had performed work and supplied materials. Based on these fraudulent statements, the bank disbursed $1.7 million to QC Manufacturing. Of the $1.7 million disbursed, more than $1.3 million was transferred from QC Manufacturing to Champion Development and then transferred to other accounts.
At sentencing, the maximum statutory penalty for conspiracy to commit bank fraud is up to 30 years in prison. For money laundering, the maximum statutory penalty is 10 years in prison.
The charges were investigated by Internal Revenue Service Criminal Investigation; the U.S. Department of Agriculture Office of Inspector General; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and the FBI. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department Highlights Ongoing Efforts to Protect the Public and Shut Down Fraudulent Tax Return Preparers and Promoters NationwideRead the Press Release
Today, the Justice Department announced the results of its ongoing efforts to combat fraudulent tax-return preparers and promoters of tax-fraud schemes. Taxpayers filed an estimated 142 million individual income tax returns for the 2011 tax year, with nearly 70 million taxpayers using a paid return preparer according to the Internal Revenue Service (IRS) Compliance Data Warehouse, Individual Returns Transaction File and Return Preparers and Providers Database, Tax Year 2011, filed through March 2013. The return filing deadline for the 2013 tax year is just over two months away on April 15, 2014. The department’s Tax Division has an active program to stop fraudulent return preparers and promoters from violating federal tax laws, particularly where their fraudulent activity can harm individual customers or drain the U.S. Treasury. In the last year, the division has obtained permanent injunctions against more than 60 preparers and promoters doing business all over the United States.
“During the time when honest taxpayers are preparing their returns, the Tax Division will work tirelessly to challenge those who would abuse the tax laws and take advantange of their customers,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “The division’s attorneys and staff, along with our colleagues in the Internal Revenue Service, are working hard to shut down these abusive schemes and scams and punish the perpetrators where appropriate.”
The division’s enforcement efforts have been directed against against both large-scale return preparation franchises and smaller, independent return preparers and promoters. For example, in 2013 the Tax Division concluded civil actions resulting in permanent injunctions against ITS Financial LLC, the parent company of the Instant Tax Service franchise located in Dayton, Ohio, and against Instant Tax franchises in Las Vegas, Kansas City , Kan., Los Angeles and Indianapolis. Instant Tax Service claimed to be the fourth-largest tax-preparation firm in the nation. In entering the permanent injunction in November 2013 that ordered ITS Financial LLC to cease operating, the court found the "defendants' harm to the public is extensive and egregious, indeed appalling…especially so given the nature of Instant Tax Service's core customer - the working poor - who are particularly vulnerable to [the] defendants' fraudulent practices.” The injunction also barred Fesum Ogbazion, the sole owner and CEO of ITS Financial, from operating or being involved with any business relating to tax-return preparation.
Similarly, in September 2013, the division obtained injunctions that permanently barred the owners, Markey Granberry and Derrick Robinson, as well as Eumora Reese, a former manager of Mo' Money Taxes, the Memphis, Tenn., based tax-preparation chain that at one time operated as many as 300 offices in 18 states, from preparing tax returns for others and owning or operating a tax return preparation business. Earlier, in March 2013, a federal district court in Tennessee permanently shut down a Nashville, Tenn., licensee of Mo’ Money Taxes LLC and MoneyCo USA LLC.
Numerous smaller tax return preparation businesses and individual preparers around the country were also subjects of injunctions shutting down their business, including tax return preparers in Indiana, Maryland, Missouri, Texas, Georgia, South Carolina, Florida and California who were engaging in fraudulent practices.
The division also obtained injunctions against a number of fraudulent tax-scheme promoters. For example, in October 2013, a federal court permanently barred Tobias Elsass and his companies from preparing federal tax returns, promoting the availability of theft loss deductions or engaging in any other tax-related business. The court found that Elsass and Fraud Recovery Group promoted a nationwide scheme that falsely informed customers that they were entitled to claim large theft loss tax deductions, and then prepared the tax returns that improperly claimed such deductions. The court stated “there can be no doubt that the collective transgressions represent concerted and conscious attempts to game the nation’s income tax system not necessarily for the benefit of FRG’s customers, but for the profit of Elsass himself.” At the division’s urging, federal courts also enjoined a real estate appraiser who allegedly inflated easement values on historic properties to help customers claim millions in improper deductions, and a Chicago lawyer who the complaint alleges had lawyers, entrepreneurs and professional football players among his customers, from promoting tax fraud schemes and from preparing various types of tax returns (IRS Forms 1040, 1041, 1065 and 1120) for individuals, estates and trusts, partnerships or corporations, to help facilitate the schemes.
As set forth in the civil injunction complaints filed by the United States, fraudulent return preparers commonly falsify return information to take advantage of refundable credits available under the tax code, often manipulating a taxpayer’s income, expenses and dependents to maximize the amount of the refundable credit claimed. Some return preparers also take advantage of their customers by selling deceptive loan products with exhorbitant fees. As identified in the complaints, some of the fraudulent schemes and practices that have been stopped through injunction orders entered include:
· Preparing phony tax-return forms with fabricated businesses and income;
· Claiming false education and homebuyer credits;
· Claiming false and inflated deductions;
· Claiming false filing status;
· Claiming false dependents;
· Selling deceptive loan products and defrauding customers, who were largely low-income earners, by marketing false and fraudulent loan products to lure them into the tax-preparation offices;
· Filing tax returns without customer consent or authorization;
· Preparing bogus W-2 Forms, based on information from employee paystubs;
· Falsifying return information to claim inflated Earned Income Tax Credits;
· Preparing tax returns for cash payments, but not signing the tax returns; and
· Defrauding customers by requiring franchisees to charge phony and exorbitant fees.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers also face prosecution. Examples of those investigations can be found for fiscal years 2013 and 2014
In the past decade, the Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the department website . Return preparer fraud is one of the IRS’s “Dirty Dozen Tax Scams.”
The IRS advises taxpayers who may select a tax professional to prepare their return to be careful in selecting a tax professional to prepare a return. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the 2014 tax season and receive their refunds as easily as possible.
Justice Department Highlights Ongoing Efforts to Protect the Public and Shut Down Fraudulent Tax Return Preparers and Promoters NationwideRead the Press Release
WASHINGTON – Today, the Justice Department announced the results of its ongoing efforts to combat fraudulent tax-return preparers and promoters of tax-fraud schemes. Taxpayers filed an estimated 142 million individual income tax returns for the 2011 tax year, with nearly 70 million taxpayers using a paid return preparer according to the Internal Revenue Service (IRS) Compliance Data Warehouse, Individual Returns Transaction File and Return Preparers and Providers Database, Tax Year 2011, filed through March 2013. The return filing deadline for the 2013 tax year is just over two months away on April 15, 2014. The department's Tax Division has an active program to stop fraudulent return preparers and promoters from violating federal tax laws, particularly where their fraudulent activity can harm individual customers or drain the U.S. Treasury. In the last year, the division has obtained permanent injunctions against more than 60 preparers and promoters doing business all over the United States.
"During the time when honest taxpayers are preparing their returns, the Tax Division will work tirelessly to challenge those who would abuse the tax laws and take advantange of their customers," said Assistant Attorney General Kathryn Keneally for the Tax Division. "The division's attorneys and staff, along with our colleagues in the Internal Revenue Service, are working hard to shut down these abusive schemes and scams and punish the perpetrators where appropriate."
The division's enforcement efforts have been directed against against both large-scale return preparation franchises and smaller, independent return preparers and promoters. For example, in 2013 the Tax Division concluded civil actions resulting in permanent injunctions against ITS Financial LLC, the parent company of the Instant Tax Service franchise located in Dayton, Ohio, and against Instant Tax franchises in Las Vegas, Kansas City, Kan., Los Angeles and Indianapolis. Instant Tax Service claimed to be the fourth-largest tax-preparation firm in the nation. In entering the permanent injunction in November 2013 that ordered ITS Financial LLC to cease operating, the court found the "defendants' harm to the public is extensive and egregious, indeed appalling especially so given the nature of Instant Tax Service's core customer - the working poor - who are particularly vulnerable to [the] defendants' fraudulent practices." The injunction also barred Fesum Ogbazion, the sole owner and CEO of ITS Financial, from operating or being involved with any business relating to tax-return preparation.
Similarly, in September 2013, the division obtained injunctions that permanently barred the owners, Markey Granberry and Derrick Robinson, as well as Eumora Reese, a former manager of Mo' Money Taxes, the Memphis, Tenn., based tax-preparation chain that at one time operated as many as 300 offices in 18 states, from preparing tax returns for others and owning or operating a tax return preparation business. Earlier, in March 2013, a federal district court in Tennessee permanently shut down a Nashville, Tenn., licensee of Mo' Money Taxes LLC and MoneyCo USA LLC.
Numerous smaller tax return preparation businesses and individual preparers around the country were also subjects of injunctions shutting down their business, including tax return preparers in Indiana, Maryland, Missouri, Texas, Georgia, South Carolina, Florida and California who were engaging in fraudulent practices.
The division also obtained injunctions against a number of fraudulent tax-scheme promoters. For example, in October 2013, a federal court permanently barred Tobias Elsass and his companies from preparing federal tax returns, promoting the availability of theft loss deductions or engaging in any other tax-related business. The court found that Elsass and Fraud Recovery Group promoted a nationwide scheme that falsely informed customers that they were entitled to claim large theft loss tax deductions, and then prepared the tax returns that improperly claimed such deductions. The court stated "there can be no doubt that the collective transgressions represent concerted and conscious attempts to game the nation's income tax system not necessarily for the benefit of FRG's customers, but for the profit of Elsass himself." At the division's urging, federal courts also enjoined a real estate appraiser who allegedly inflated easement values on historic properties to help customers claim millions in improper deductions, and a Chicago lawyer, who the complaint alleges had lawyers, entrepreneurs and professional football players among his customers, from promoting tax fraud schemes and from preparing various types of tax returns (IRS Forms 1040, 1041, 1065 and 1120) for individuals, estates and trusts, partnerships or corporations, to help facilitate the schemes.
As set forth in the civil injunction complaints filed by the United States, fraudulent return preparers commonly falsify return information to take advantage of refundable credits available under the tax code, often manipulating a taxpayer's income, expenses and dependents to maximize the amount of the refundable credit claimed. Some return preparers also take advantage of their customers by selling deceptive loan products with exhorbitant fees. As identified in the complaints, some of the fraudulent schemes and practices that have been stopped through injunction orders entered include:
- Preparing phony tax-return forms with fabricated businesses and income;
- Claiming false education and homebuyer credits;
- Claiming false and inflated deductions;
- Claiming false filing status;
- Claiming false dependents;
- Selling deceptive loan products and defrauding customers, who were largely low-income earners, by marketing false and fraudulent loan products to lure them into the tax-preparation offices;
- Filing tax returns without customer consent or authorization;
- Preparing bogus W-2 Forms, based on information from employee paystubs;
- Falsifying return information to claim inflated Earned Income Tax Credits;
- Preparing tax returns for cash payments, but not signing the tax returns; and
- Defrauding customers by requiring franchisees to charge phony and exorbitant fees.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers also face prosecution. Examples of those investigations can be found for fiscal years 2013 and 2014.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the department website. Return preparer fraud is one of the IRS's "Dirty Dozen Tax Scams."
The IRS advises taxpayers who may select a tax professional to prepare their return to be careful in selecting a tax professional to prepare a return. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the 2014 tax season and receive their refunds as easily as possible.
Indictment Charges IRS Employee with Tax Fraud and Aggravated Identity TheftRead the Press Release
PHILADELPHIA - Sherelle Pratt, 49, of Philadelphia, was charged by Indictment, unsealed today, with filing false tax returns, aiding and assisting other individuals in preparing and filing false tax returns, theft of government property, and aggravated identity theft, announced United States Attorney Zane David Memeger. Pratt was arrested today.
According the Indictment Pratt is an IRS employee. Pratt, according to the indictment, is alleged to have prepared federal income tax returns for a number of individuals during tax years through 2006 through 2008. Pratt caused the refunds, and stimulus payments that the filers were supposed to receive, to be deposited into her personal bank account. In some cases, she gave the filers a portion of the refunds and stimulus payments. In other instances, according to the indictment, Pratt kept the refund and stimulus payments.
If convicted, the defendant faces a maximum possible sentence of 33 years in prison, including a two year minimum mandatory sentence, a fine of up to $2.25 million dollars, a special assessment of $900, and two years of supervised release.
The case was investigated by the Treasury Inspector General for Tax Administration, Philadelphia Field Office and the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indiana, Pa., Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Indiana, Pa., resident has been sentenced in federal court to 60 months in prison, to be followed by 12 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Christopher Murdock, 27.
According to information presented to the court, on or about Nov. 17, 2012, Murdock possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Murdock.
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.justice.gov/psc.
Highlands Ranch Man Sentenced for Forced Labor and Trafficking in Forced Labor as Well as Other OffensesRead the Press Release
DENVER – Kizzy Kalu, age 49, of Highlands Ranch, was sentenced today by Chief U.S. District Court Judge Marcia S. Krieger to serve 130 months in federal prison after earlier being found guilty of mail fraud, visa fraud, human trafficking and money laundering. Following his prison sentence, Kalu was ordered to serve 3 years on supervised release, and pay $3,790,338.55 in restitution to the victims of his crime. Kalu, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Kalu was first indicted by a federal grand jury in Denver on March 1, 2012. After a 17‑day jury trial, Kalu was found guilty of 89 counts of mail fraud, visa fraud, human trafficking and money laundering on July 1, 2013. He was found not guilty of 6 counts. The jury deliberated for approximately a day and a half before reaching its verdict.
Prior to trial, co-defendant, Philip Langerman, age 78, of McDonough, Georgia, pled guilty for his role in the criminal scheme. Langerman was sentenced by Chief Judge Krieger to serve 3 years on probation. He was also ordered to pay restitution totaling $3,790,338.55 joint and several with Kalu. Langerman appeared at the hearing free on bond.
According to the indictment and evidence presented at trial, Kalu and Langerman were involved in a scheme making false representations to foreign nationals, to the State of Colorado, to the United States of America, and others for the purpose of obtaining money. Kalu and Langerman provided false information to the U.S. government to obtain the apparent lawful presence in the U.S. of foreign nationals. The foreign nationals then worked for nursing homes and other long‑term care facilities. Those facilities paid Kalu’s company, Foreign Healthcare Professionals Group, for the hours the foreign nationals worked. Kalu retained approximately 40% of the money earned from the labor of the foreign nationals.
Among the false information provided to the U.S. government was that the foreign nationals would be employed by Adam University as nurse instructor supervisors (which were considered "specialty occupations" under U.S. immigration law and regulations) and earn more than the prevailing wage so as not to undermine the wages of U.S. workers. Adam University existed largely in name only and had no genuine need for nurse instructor supervisors. The foreign nationals were granted H‑1B visas based on fraudulent representations permitting them to be employed as nurse instructors/supervisors by the largely nonexistent Adam University. Rather than working in specialty occupations, the foreign nationals worked as nurses.
Kalu also made false representations to the foreign nationals, including that they would have full time work available in Colorado. Upon their arrival, they learned that they would have to interview for positions and would not be employed by Adam University in a clinical setting. Some were unable to find full time work. Some learned that Kalu would not allow them to travel freely. Kalu threatened to cause their deportation if the foreign nationals did not provide him their labor and services. As Kalu’s scheme evolved, Kalu directed that the foreign nationals find work on their own and be paid directly by the healthcare facilities. However, Kalu demanded that the foreign nationals pay him between $800 to $1,200 a month or face deportation. Kalu threatened to notify the U.S. Department of Homeland Security and have their visas canceled if they did not pay him the money he demanded. Kalu used debt to help keep the foreign nationals with him. Many had gone deeply into debt to pay him for assistance in obtaining the visas. In addition, Kalu required the foreign nationals to sign employment contracts that provided they would owe Kalu $25,000 if they left his employment.
“Forced labor is a deplorable crime that is intolerable in a free society,” commented Acting Assistant Attorney General Jocelyn Samuels. “These defendants used fraud and deception to lure the victims into the United States, then used a scheme of debts and threats to hold the guest workers in fear. The Civil Rights Division commends the District of Colorado for bringing these traffickers to justice.”
“One of the most important missions the U.S. Attorney’s Office has is protecting the civil liberties and civil rights of individuals, including those who come here from other countries,” said U.S. Attorney John Walsh. “The defendant brought people to the United States under false pretenses, made them work for little pay, and threaten to have them deported if they spoke up. This is classic human trafficking, and as today’s sentence demonstrates, we are committed to stopping those who commit this serious federal crime.”
"The sentencing in this case is indicative of the seriousness of these crimes and the degree that the Diplomatic Security Service is committed to fighting human trafficking and ensuring the integrity of our documents," said Daniel M. Childs, Resident Agent in Charge, Denver Resident Office, Diplomatic Security Service, U.S. Department of State. "This is a textbook case of large‑scale fraud, exploiting workers who are seeking a better life. The tireless efforts of our partners have guaranteed a result that will punish and discourage these acts in Colorado and throughout the world."
"Mr. Kalu fraudulently enticed many foreign nurses to the United States with false promises of jobs," said Kumar C. Kibble, special agent in charge of HSI Denver. "Then, after threatening them with deportation, he coerced money from them on a monthly basis. Homeland Security Investigations, with our law enforcement partners, aggressively investigates and pursues prosecution against modern‑day slavery criminals like Mr. Kalu. For the desperation he has caused to so many people, he deserves every day of the prison sentence he was awarded."
"Today's sentencing highlights our efforts to investigate fraud against the Department of Labor's foreign labor certification program. The defendant devised a scheme to falsify labor certification applications and illegally obtain H-1B visas for foreign nationals, whose earnings he then stole for personal gain. The Office of Inspector General and its law enforcement partners remain committed to investigating these types of crimes," said David C. Wickersham, Special Agent‑in‑Charge for the Dallas Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
This case was investigated by the Department of State’s Diplomatic Security Service, ICE Homeland Security Investigations, and the U.S. Department of Labor’s Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations. Further critical support was provided by U.S. Citizenship and Immigration Services, Office of Fraud Detection and National Security and the Douglas County Sheriff’s Office.
Kalu was prosecuted by Assistant U.S. Attorney Robert Brown and ICE Special Assistant U.S. Attorney Beth Gibson.
Hamden Man Sentenced to 30 Months in Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEANDRE BARNES, also known as “D-Man,” 24, of Hamden, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 30 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
On April 9, 2012, a grand jury returned an indictment charging BARNES and 17 other individuals with narcotics distribution offenses stemming from this investigation. On October 16, 2013, BARNES pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
Eight defendants are awaiting trial, which is currently scheduled for March 2014. With respect to these defendants, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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[email protected]Gunman in Armed Robbery Spree Exiled to 25 Years in PrisonRead the Press Release
Brandished a Gun in All 22 Robberies and Shot a Customer in One Robbery
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Hatratico Smith, age 48, of Baltimore, Maryland, today to 25 years in prison, followed by five years of supervised release, for a series of armed commercial robberies committed from January through June, 2012. Smith brandished a gun in all of the robberies and shot a customer during one of the robberies.
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; Baltimore City State’s Attorney Gregg L. Bernstein; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore Police Commissioner Anthony W. Batts.
According to Smith=s plea agreement, from January 22, 2012 through June 11, 2012, he conspired with Rico Bias, Monzell Lee and others, to commit 22 robberies of convenience stores, fast food restaurants, and other businesses. Smith brandished a gun during the robberies, and on two occasions fired the gun, including on February 21, 2012, which resulted in the shooting of a customer. Lee participated in four of the robberies and Bias admitted that in addition to checking out the stores prior to his codefendants entering the businesses to commit the robberies, he obtained and drove the get away car in each of the robberies. The defendants have been in federal custody since their arrests.
Rico Bias, age 34, and Monzell Lee, age 20, both of Baltimore, pleaded guilty to their roles in the robberies. Bias was sentenced to 185 months in prison and Lee was sentenced to nine years in prison for the four robberies in which he participated.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Georgia Woman Arraigned for Social Security FraudRead the Press Release
ATLANTA - Cathy Thomas has been arraigned in federal court on charges arising out of a scheme to obtain benefits that should have been used for a disabled, mentally incompetent beneficiary.
“This Defendant was entrusted with the responsibility of making certain that the Social Security benefits were used to care for this defenseless woman who was unable to care for herself, and could not even communicate her name to others" said United States Attorney Sally Quillian Yates. "Instead, the Defendant stole her money and let her languish in various hospitals where they did not even know her true identity."
“The Office of the Inspector General has no higher priority than the protection of those Social Security beneficiaries least able to defend themselves,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration. “Representative payees are appointed to ensure the well-being of a beneficiary when the beneficiary is unable to administer his or her own affairs, and the violation of that trust will be prosecuted. We are gratified to see this case brought to a successful conclusion, and appreciative of the U.S. Attorney’s commitment to helping us protect those most in need.”
According to United States Attorney Yates, the indictment, and other information presented in court: In August 2010, an unidentified, mentally incompetent woman was abandoned at an Alabama hospital emergency room. Because she was unable to communicate she remained unidentified until August 2013, when the Alabama Bureau of Investigation, working in connection with the Georgia Bureau of Investigation, was able to identify her. The Social Security Administration (SSA) determined that the woman was a Supplemental Security Income (SSI) beneficiary. They further determined that Cathy Thomas was the woman’s representative payee, and was continuing to receive the woman’s monthly SSI benefits.
Thomas, 59, of Douglasville, Ga. was arraigned on February 7, 2014, on an indictment that charged her with one count of wire fraud in violation of Title 18 USC Section 1343, three counts of false statements to a federal agency in violation of Title 18 USC Section 1001, and one count of representative payee fraud in violation of Title 42 USC Section 1383a(a)(4).
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Social Security Administration, Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Four Employees of Adoption Services Provider<br /> Charged with Conspiracy to Defraud the United States<br /> in Connection with Ethiopia OperationsRead the Press Release
Four current and former employees of International Adoption Guides Inc. (IAG), an adoption services provider, have been indicted by a grand jury in South Carolina for allegedly conspiring to defraud the United States in connection with IAG’s adoption services in Ethiopia. IAG is a South Carolina company that identified children in Ethiopia for adoption and arranged for their adoption by U.S.-based parents.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney William N. Nettles of the District of South Carolina and Assistant Secretary Gregory B. Starr of the Department of State’s Bureau of Diplomatic Security made the announcement.
“The defendants are accused of obtaining adoption decrees and U.S. visas by submitting fraudulent adoption contracts signed by orphanages that never cared for or housed the children, thus undermining the very laws that are designed to protect the children and families involved,” said Acting Assistant Attorney General Raman. “As today’s indictments show, the Justice Department, alongside its partners both here and abroad, will respond vigorously to these criminal schemes and will act to protect the many families and children who rely on the integrity of the adoption process.”
“The Bureau of Diplomatic Security uses its global presence to vigorously investigate any fraud related to the acquisition of U.S. visas,” said Assistant Secretary Starr. “The Department of State’s Bureaus of Consular Affairs and Diplomatic Security are firmly committed to working with the U.S. Department of Justice to investigate and bring to justice people who victimize children and families by abusing inter-country adoption system and bribe officials to facilitate their actions.”
The international program director and coordinator for IAG, James Harding, 53, of Lawrenceville, Ga., was arrested today in Georgia. Alisa Bivens, 42, of Gastonia, N.C., who oversaw the Ethiopian operations from the United States, is scheduled to make an appearance at a later date in U.S. District Court in Charleston, S.C. The company’s executive director, Mary Mooney, 53, of Belmont, N.C., was apprehended in Belize by Belizean authorities and transported to the United States. Haile Mekonnen, age unknown, an Ethiopian national who ran IAG’s operations on the ground in Ethiopia, was also charged in the indictment.
According to the indictment, the defendants allegedly engaged in a five-year conspiracy to violate laws relating to the adoption of Ethiopian children by U.S. parents. The scheme involved, among other things, paying orphanages to “sign off” on contracts of adoption with the adopting parents as if the children had been raised by those orphanages — even though the children had never resided in those orphanages and had not been cared for or raised there. These orphanages could not, therefore, properly offer these children up for adoption. In some instances, the children resided with a parent or relative.
As part of the charged conspiracy, the defendants then allegedly submitted or caused to be submitted these fraudulent contracts of adoption to Ethiopian courts in order to secure adoption decrees, and submitted or caused to be submitted the fraudulent contracts of adoption and the fraudulently procured adoption decrees to the U.S. Embassy in Ethiopia in order to obtain U.S. visas for the children to travel to the United States to be with their new families. The indictment also charges that the defendants’ scheme involved paying bribes to an Ethiopian government official and agreeing to create counterfeit U.S. Citizenship and Immigration Service forms that were to be submitted to the Ethiopian government.
The charge of conspiring to defraud the United States carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If you believe you have been a victim of this crime involving the named individuals or International Adoption Guides, please call 1-800-837-2655 and leave your contact information. If you have questions or concerns about adoptions from Ethiopia in general, please contact the Office of Children’s Issues at the Department of State through the email address [email protected] . If you have specific questions about an adoption from Ethiopia that IAG facilitated, you should contact the Office of Children’s Issues at the Department of State through the email address [email protected] .
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The prosecution is being conducted by Assistant United States Attorney Jamie Schoen of the District of South Carolina and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.Former Postal Service Employee Sentenced to Nine Years for Drug Conspiracy and Possessing Stolen MailRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced that a Wasilla woman was sentenced yesterday by U.S. District Court Judge Sharon Gleason to nine years in federal prison for her role in a drug conspiracy as well as for possession of stolen mail.
Brenda Sue Cox, 53, of Wasilla, Alaska, previously pled guilty to conspiring with others to distribute large amounts of methamphetamine and heroin. Cox, a former contract employee with the United States Postal Service, also admitted to being in possession of mail that she had removed from her postal route. In addition to her prison sentence, Cox will pay $1,949.92 in restitution to the individuals and businesses whose mail she had in her possession at the time of her arrest.
In sentencing Cox, Judge Gleason noted that Cox’s drug trafficking appeared to be motivated by greed and stressed that she found the nature and circumstances of Cox’s offenses troubling. Judge Gleason also emphasized the need for deterrence in these types of cases.
Responding to the sentence, Inspector in Charge of the Seattle Division of the United States Postal Inspection Service, Bradley Kleinknecht, stated that, “The United States Postal Inspection Service is committed to ensuring that the United States mail remains one of the most trusted forms of communication in the world, and that the theft of the United States mail will be prosecuted to the fullest extent of the law.”
Kleinknecht went on to state that “United States Postal Inspectors are also committed to identifying mail containing drugs, while ensuring that drug traffickers know that the United States mail is no safe haven for them. This sentence sends a strong message to anyone who misuses the United States mail in any way; you will be caught and you will be prosecuted.”
In announcing the sentencing, U.S. Attorney Loeffler praised the United States Postal Inspection Service and the Alaska State Troopers, who conducted the investigation in this case.
Former Mingo County Chief Magistrate Arrested for Violating Bond ConditionsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin confirmed today that former Mingo County Chief Magistrate Dallas Toler was arrested last night for violating the conditions of his release on bond. Toler had been free on bond since he pleaded guilty on December 2, 2013, to procuring a false voter registration application. The arrest came in response to a motion filed by Goodwin’s office detailing Toler’s involvement in illegal drug activity. The full motion is available here, and the Court is expected to schedule a hearing on the motion soon.
Former Grandview Mayor Pleads Guilty to $35,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former mayor of Grandview, Mo., pleaded guilty in federal court today to a wire fraud scheme in which he used a bogus charity to steal $35,000 in contributions from International House of Prayer, a local nonprofit organization.
Stephen S. Dennis, 50, of Grandview, waived his right to a grand jury and pleaded guilty before U.S. Senior District Judge Howard F. Sachs to a federal information that charges him with the felony offense of wire fraud. Dennis resigned as mayor of Grandview on Jan. 10, 2014.
By pleading guilty today, Dennis admitted that he engaged in a scheme from Dec. 12, 2011, to Nov. 29, 2013, to solicit donations to a corporation called Matters of the Heart. Dennis incorporated Matters of the Heart as a nonprofit corporation under state law, but falsely claimed it was also a federally tax-exempt 501(c)(3) corporation. Dennis never applied for 501(c)(3) status with the IRS for Matters of the Heart, even though application instructions were given to him in December 2011 by an attorney from whom he sought legal advice.
According to today’s plea agreement, Dennis received two checks from International House of Prayer Forerunner Christian Fellowship, a nonprofit organization in Grandview, totaling $35,000 in 2012. After obtaining the $35,000, Dennis used these funds for his own personal benefit, including his immediate family’s living expenses, rather than for any charitable purpose.
Matters of the Heart is now dissolved. In the organization’s articles of incorporation, Dennis listed himself as incorporator, registered agent, and one of the three directors of the board. He listed two persons, identified as “B.S.” and “J.M.” as the other two directors. B.S. and J.M. had no knowledge that they were listed as directors, and at no time gave Dennis permission or authority to claim them as such. B.S. and J.M. have never served as directors on the Matters of the Heart board of directors.
Under the terms of today’s plea agreement, the government will jointly recommend with the defendant a sentence of one year and one day in prison. The court may also order Dennis to pay restitution to International House of Prayer. 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 Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the FBI.
Public Corruption Hotline
The FBI has established a toll-free public corruption hotline, 1-855-KCPCTIP, and email [email protected]. Details regarding the various types of public corruption investigated by the FBI can be found online: http://www.fbi.gov/about-us/investigate/corruption.Former Franklin Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pennsylvania, has been sentenced in federal court to ten months in jail on his conviction of failure to register under the Sex Offender Registration and Notification Act, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Thomas K. Baker, 56.
According to information presented to the court, Baker knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Baker.
Former Employee Pleads GuiltyTo Stealing Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., pleaded guilty Tuesday to stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said.
Terrence M. Heathington, 31, formerly of Olathe and currently of Atlanta, Ga., pleaded guilty to one count of mail fraud. In his plea, he admitted that the crime was committed from March to September 2008 when he worked in Garmin International, Inc.’s warehouse in Olathe as a material handler. He shipped a large quantity of Garmin GPS devices to his personal address and the address of high school friends living in Atlanta. He and his friends sold the devices on eBay and to other individuals.
The thefts were discovered when a person who bought one of the stolen devices contacted the company. An audit revealed that boxes of GPS devices had been shipped to Heathington’s home in Ottawa and to addresses in Georgia, where Heathington had lived.
Sentencing will be set at a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former City Worker Sentenced to Probation with Home Detention for Bid-rigging SchemeRead the Press Release
PITTSBURGH - A former City of Pittsburgh employee has been sentenced in federal court to three years supervised release which consists of six months home detention and a $6,000 fine on her conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Christine Kebr, 57, of Pittsburgh, Pa.
According to information presented to the court, Kebr was an employee of the City of Pittsburgh with responsibility for installing radios and mobile data terminals (MDTs) in City Police cars. She conspired with others to create a company, Alpha Outfitters, in order to steer a city contract to Alpha Outfitters, for the installation of MDTs in police cars. Alpha received the contract in part by fraudulently representing that the company was a Women's Business Enterprise (WBE).
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations for the investigation leading to the successful prosecution of Kebr.
Former Cameron County District Attorney Armando Villalobos Sentenced to Federal Prison in Connection with South Texas Bribery SchemeRead the Press Release
In Brownsville today, former Cameron County District Attorney Armando R. Villalobos was sentenced to 13 years in federal prison for his role in a South Texas bribery and extortion scheme announced United States Attorney Robert Pitman.
In addition to the prison term, U.S. District Judge Andrew Hanen ordered that Villalobos pay $339,000 in restitution, pay a $30,000 fine, and be placed under supervised release for a period of three years after completing his prison term. Judge Hanen also ordered that Villalobos be remanded to the custody of the U.S. Marshals Service following today’s sentencing hearing.
“The most important component of an effective justice system is the public’s ability to trust those who are responsible for enforcing the law. But even when there is a breach of that trust, as in this case, the public should take some comfort in knowing that there is a mechanism for detecting, rooting out and punishing those who would corrupt the process,” stated United States Attorney Robert Pitman.
In May 2013, a federal jury convicted Villalobos of one count of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act, one count of conspiracy to violate the RICO Act and five counts of extortion. Jurors acquitted Villalobos of two counts of extortion. This afternoon, Judge Hanen granted the defendant’s motion for acquittal on an extortion count (count 3) before sentencing Villalobos to 156 months incarceration on each of the six remaining charges all to run concurrent.
Evidence presented at trial revealed that from October 2, 2006, through May 3, 2012, Villalobos and others were involved in a scheme to illegally generate income for themselves and others through a pattern of bribery and extortion, favoritism, improper influence, personal self-enrichment, self-dealing, concealment and conflict of interest. Jurors found that Villalobos solicited and accepted over $100,000 in bribes and kickbacks in the form of cash and campaign contributions in return for favorable acts of prosecutorial discretion, including minimizing charging decisions, pretrial diversion agreements, agreements on probationary matters and case dismissals. Furthermore, Villalobos solicited and arranged for private counsel to handle civil and forfeiture matters associated with criminal matters pending in the Office of the District and County Attorney of Cameron County.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Brownsville Police Department. Former Southern District of Texas Assistant United States Attorney Michael Wynne and current Western District of Texas Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
Financial Advisor Sentenced to 10 Years in Prison for Investment Fraud SchemeRead the Press Release
RENO, Nev. – A former bank financial advisor in Reno who defrauded six persons of over $2 million during 2010 and 2011, has been sentenced to 10 years in prison, five years of supervised release and ordered to pay restitution to the victims, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gary H. Lane, 60, of Reno, who pleaded guilty in September 2013 to 12 counts of mail fraud and five counts of attempt to evade or defeat tax, was sentenced on Monday, Feb. 10, 2014, by U.S. District Judge Robert C. Jones.
“Beware of persons who offer better interest rates than traditional sources,” said U.S. Attorney Bogden. “They prey on the elderly and unsophisticated and will use numerous methods to steal your money. If you do not know if an investment opportunity is legitimate, it is always better to investigate the person or company first before turning over any money to them.”
Lane was employed until March 2011 as a financial advisor with Bank of America Investment Services, which later merged with Merrill Lynch. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures. Lane allegedly looked for investors who were elderly or lacked investing experience and who had a desire for high returns and aversion to risk. Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. Lane corroborated the trades by creating false confirmations and distributing them to the victims by mail. After receiving the monies from the victims, Lane gave them to his spouse who mailed them to her E-Trade account. The monies were then withdrawn at Lane’s direction for his own use or to pay other investors. In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies. In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years.
Using this scheme, Lane defrauded approximately six persons of over $2 million between January 2010 and March 2011. Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS.
The case was investigated by the FBI, IRS Criminal Investigation and the Nevada Secretary of State Securities Division, and prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Federal Jury Finds Legal Permanent Resident from China Guilty on Fraud, Immigration and Witness Tampering ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict earlier today finding Hai Gan guilty on fraud, immigration and witness-tampering charges after a six-day trial. The verdict 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 Ulrich, and Chief Patrol Agent Scott A. Luck, El Paso Sector of the U.S. Border Patrol.
Hai Gan, 56, a legal permanent resident from China who resides in The Colony, Texas, was arrested on May 11, 2011, at a U.S. Border Patrol checkpoint on Interstate 25 north of Doña Ana County, N.M., when Border Patrol Agents learned that he was transporting an illegal alien. Hai Gan subsequently was indicted and charged with 51 counts of fraud in connection with identification documents, eight counts of transporting illegal aliens, three counts of money laundering and two counts of witness-tampering. The indictment also sought forfeiture of three residences owned by Hai Gan, two in Albuquerque and another in Moriarty, as well as Hai Gan’s residence in The Colony as assets used in or derived from Gan’s illegal activities.
Hai Gan’s trial began on Feb. 3, 2014 and concluded this afternoon when the jury returned a verdict of guilty on all counts.
The evidence at trial established that from Aug. 2009 to May 2011, Hai Gan engaged in a scheme to aid undocumented aliens who were not New Mexico residents in obtaining New Mexico drivers’ licenses by assisting the aliens in fabricating fraudulent documents purportedly establishing New Mexico residency; arranging for the aliens to travel to New Mexico; and assisting the aliens in securing New Mexico drivers’ licenses by fraudulently attesting that they were New Mexico residents. The evidence also established that Hai Gan advertised his services in Chinese–language newspapers, and charged each alien upwards of $3000 for his services. Hai Gan would first work with the alien to develop false residency documents using one of the residences he owned in New Mexico as the alien’s address. After sufficient fraudulent residency documentation was developed, Hai Gan typically would meet the alien at the Albuquerque airport and assist the alien in obtaining a temporary New Mexico driver’s license. When the alien’s permanent driver’s license was delivered to the address identified as the alien’s residence, Hai Gun would mail the driver’s license to the alien’s true home.
The evidence also established that Hai Gan transported undocumented aliens in Bernalillo and Torrance Counties on eight occasions between Dec. 2009 and May 2011. An undocumented alien testified that in Nov. or Dec. 2012, Hai Gan attempted to dissuade him from testifying against him by suggesting that he would be arrested if he did not relocate. The wife of another alien testified that Hai Gan called her and requested that her husband relocate or deny knowledge of Hai Gan’s criminal activities.
The jury deliberated approximately three hours before returning its guilty verdict.
Hai Gan was remanded into custody after the jury returned its verdict and remains detained pending his sentencing hearing which has yet to be scheduled. At sentencing, Hai Gan faces the following maximum penalties: 15 years in prison on each of the 51 counts of document fraud; ten years in prison on each of the eight alien transportation counts; ten years in prison on each of the three money laundering counts; and 20 years in prison on each of the witness-tampering charges. The court will render a verdict on the issue of forfeiture at sentencing.
This case was investigated Homeland Security Investigations, the U.S. Border Patrol, the Department of Homeland Security-Office of Inspector General, and HSI El Paso’s Financial Operations and Currency Unified Strike Force (FOCUS), which includes DEA, Texas Department of Public Safety, IRS Criminal Investigation and U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Michael S. Pleters.
Federal Advisory Committee Examines Juvenile Courts and Justice System Programs for American Indian Children Exposed to ViolenceRead the Press Release
More than 30 tribal leaders, juvenile court judges, child advocates, juvenile justice system experts and community members from the Salt River Pima-Maricopa Indian Community testified today in the second public hearing of the Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence. The hearing focused on how juvenile courts and other programs within tribal juvenile justice systems address the impact of children’s exposure to violence.
“Too many native children encounter violence in their homes and communities that can disrupt a path to living healthy adult lives, and we must do all that we can to protect these young people,” said Associate Attorney General Tony West. “By intervening early, we can help these children avoid a fate involving courts and the corrections system.”
During the hearing, experts explained how children entering tribal, state or federal justice systems are screened and treated for trauma from previous exposure to violence. They also discussed a variety of issues facing Native children in juvenile justice systems, including the availability of legal representation, tribal court transfer of juvenile cases to adult courts, culturally sensitive programs and services that divert youth from entering the juvenile justice system.
“The long-term impact of a child’s exposure to violence depends heavily on how law enforcement officials, prosecutors, defenders, judges, and corrections professionals handle that child’s case,” said Assistant Attorney General of the Office of Justice Programs Karol V. Mason. “Through the work of the task force, we hope to find ways to make the justice system a force for positive change in a young person’s life.”
The Attorney General’s Task Force on American Indian and Alaska Native Children exposed to violence is comprised of a federal working group that includes U.S. Attorneys and officials from the Departments of the Interior and Justice and an advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare and law.
The 13-member advisory committee is co-chaired by former U.S. Sen. Byron Dorgan and Iroquois composer and singer Joanne Shenandoah. The advisory committee will draw upon research and information gathered through public hearings to draft a final report of policy recommendations that it will present to Attorney General Eric Holder by late 2014.
Attorney General Holder created the task force in April 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
The advisory committee held its first public hearing Dec. 9, 2013, in Bismarck, N.D. and will hold additional public hearings, in Fort Lauderdale, Fla. and Anchorage, Alaska.
For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Fast Food Restaurant Robbers Sentenced for Firearms OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that TREVIN MAURICE GIBSON of Greenville, MICHAEL RONDALE GIBSON of Greenville and DESHAUN ENTREA SPRUILL of Robersonville were each sentenced today resulting from their earlier guilty pleas to firearms charges. The charges involved a string of robberies of fast food restaurants in and around Greenville from September 2011 through January 2012. The robberies involved outlets of Bojangles, KFC, Subway, Burger King, McDonalds and Popeyes.
In November, 2013, each defendant entered a plea before Chief U.S. District Judge James C. Dever, III to two counts of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). Judge Dever sentenced TREVIN GIBSON to 43 years in prison. TREVIN GIBSON was also sentenced to 2 additional years in prison for violating the release terms from a prior federal conviction, resulting in a total sentence of 45 years in prison. TREVIN GIBSON was also ordered to pay $21,336 in restitution and to be supervised for 5 years following his release. MICHAEL GIBSON, Trevin Gibson’s brother, was sentenced to 36 years in prison and ordered to pay $10,061 in restitution. He was also ordered to be supervised for 5 years following his release. SPRUILL was sentenced to 33 years in prison, and ordered to pay $20,251 in restitution. He will also be supervised for 5 years following his release.
Two other defendants, Prentise Wilkins and Marcus Garrett, will be sentenced at a later date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greenville Police Department, the Williamston Police Department, the Robersonville Police Department, the Wilson Police Department, the Farmville Police Department, the Elizabeth City Police Department, the Goldsboro Police Department, the Snow Hill Police Department, and the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Erie Man Indicted on Drug ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Jamie Darnell Pacely, 35, as the sole defendant.
According to the indictment presented to the court, on three occasions, Pacely possessed with intent to distribute and distributed less than 28 grams of crack cocaine.
The law provides for a maximum total sentence of 60 years in prison, a fine of $3,000,000 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation 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.
Durable Medical Equipment Clinic Owner Sentenced for His Role in $11 Million Health Care Fraud SchemeRead the Press Release
The former owner of a defunct durable medical equipment (DME) clinic was sentenced today in Miami to serve 70 months in prison for his role in an $11 million health care fraud scheme involving World Class Medical Clinic Corp. (World Class).
U.S. Attorney for the Southern District of Florida Wifredo A Ferrer, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami Office made the announcement.
Francisco Enrique Chavez, 36, of Miami, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to his prison term, Chavez was sentenced to three years of supervised release and ordered to pay $1,713,959 in restitution.
On Nov. 21, 2013, Chavez pleaded guilty to one count of health care fraud.
During the course of the health care fraud scheme, Chavez served as the president and sole corporate officer of World Class, a defunct DME company located in Miami. From March 27, 2006 through Aug. 22, 2006, Chavez submitted and caused to be submitted approximately $11.3 million in false and fraudulent claims to the Medicare program on behalf of World Class for DME that was neither prescribed by a physician nor medically necessary. Medicare paid more than $1.7 million on these false and fraudulent claims. The proceeds of the World Class fraud scheme were deposited into corporate bank accounts that were controlled by Chavez. Chavez, in turn, made numerous cash withdrawals and deposits into personal and shell entity bank accounts to facilitate and conceal the nature of the scheme.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Allan J. Medina and Sarah M. Hall of the Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Durable Medical Equipment Clinic Owner Sentenced <br /> for His Role in $11 Million Health Care Fraud SchemeRead the Press Release
The former owner of a defunct durable medical equipment (DME) clinic was sentenced today in Miami to serve 70 months in prison for his role in an $11 million health care fraud scheme involving World Class Medical Clinic Corp. (World Class).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Florida Wifredo A Ferrer; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami Office made the announcement.
Francisco Enrique Chavez, 36, of Miami, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to his prison term, Chavez was sentenced to three years of supervised release and ordered to pay $1,713,959 in restitution.
On Nov. 21, 2013, Chavez pleaded guilty to one count of health care fraud.
During the course of the health care fraud scheme, Chavez served as the president and sole corporate officer of World Class, a defunct DME company located in Miami. From March 27, 2006 through Aug. 22, 2006, Chavez submitted and caused to be submitted approximately $11.3 million in false and fraudulent claims to the Medicare program on behalf of World Class for DME that was neither prescribed by a physician nor medically necessary. Medicare paid more than $1.7 million on these false and fraudulent claims. The proceeds of the World Class fraud scheme were deposited into corporate bank accounts that were controlled by Chavez. Chavez, in turn, made numerous cash withdrawals and deposits into personal and shell entity bank accounts to facilitate and conceal the nature of the scheme.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Allan J. Medina and Sarah M. Hall of the Fraud Section .
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Douglas Man Arrested for Attempting to Entice A Federal Agent Posing as MinorRead the Press Release
BOSTON - A Douglas man was charged in the U.S. District Court in Worcester today with attempting to entice a 13-year-old girl over the internet.
Scot Trudeau, 39, was charged in a complaint with using a means or facility of interstate commerce to induce and/or entice a minor to engage in unlawful sexual activity.
An affidavit unsealed today alleges that an undercover investigation was initiated after receiving complaints that Trudeau had been communicating via email with a minor in New York State. Between September 2013 and January 2014, federal agents posed as a 13-year-old-girl and communicated with Trudeau via email during which time Trudeau repeatedly enticed the agent to engage in unlawful sexual conduct and discussed the possibility of traveling to New York to meet and engage in sexual acts.
If convicted, Trudeau faces a mandatory minimum sentence of 10 years and a maximum of a lifetime in prison, a mandatory minimum of five years and up to a lifetime of supervised release.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Mark J. Grady of Ortiz’s Worcester Branch Office.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Sentenced on Federal Drug ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Timothy Dewayne Hunt of Mobile was sentenced to 15 months imprisonment, following a May 2013 guilty plea to a charge of possession with intent to distribute a controlled substance. The charge arose from a July 27, 2012, traffic stop in which Hunt was found in possession of marijuana and powder cocaine. The sentence was imposed by Senior U.S. District Court Judge Charles R. Butler, Jr. During the same Court proceeding, Judge Butler also imposed a consecutive sentence of (10 months) based upon a revocation of Hunt’s supervised release on an earlier federal conviction.
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force, with assistance from the Mobile and Fairhope Police Departments. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
DOJ and City Hail Federal Judge’s Approval of the new Seattle Police Department Crisis Intervention PolicyRead the Press Release
U.S. District Judge James L. Robart today approved a new Crisis Intervention Policy for the Seattle Police Department, announced U.S. Attorney Jenny A. Durkan. The policy, developed with local, regional and nationally-recognized experts in the fields of mental health and drug addiction, is designed to improve community safety and provide officers with the guidance and training they need to treat those having a behavioral crisis with dignity and respect, and to resolve crisis incidents by connecting those individuals with community services that can provide long-term stabilizing support. One key component of the policy calls for officers to de-escalate the situation when feasible and reasonable.
The new policy will become the official policy of the Seattle Police Department on March 3, 2014, and initial training to the policy will begin soon thereafter.
“SPD’s data shows that far too many situations requiring force involve people suffering from mental health or substance abuse issues. This new policy creates critical new organizational and operational changes for the Seattle Police Department that will guide and help officers when dealing with such individuals,” said U.S. Attorney Jenny A. Durkan. “The phased approach is a model for urban policing. While all officers will be trained, selected officers will be certified with advanced training to manage the scene when dealing with a person in crisis. A crisis response team will follow up on criminal investigations where mental illness is suspected. These organizational and operational changes are recognized as best practices at the best law enforcement agencies in the nation. We thank the members of the Crisis Intervention Committee (and their sponsoring agencies) for the time they generously spent in diligently and carefully helping to craft these policies.”The new policy was developed over months of work by the Crisis Intervention Committee (CIC), composed of mental and behavioral health experts: providers, clinicians, advocates, academics, outside law enforcement representatives, members of the Seattle Police Department (SPD) and the judiciary. The CIC was created in 2013 to provide a problem-solving forum for interagency issues, including the development of policy, the evaluation of training for SPD’s officers engaged with this population, and the collection of data and other information to track systemic failures in providing the available services.
“People experiencing a behavioral crisis are victims who deserve of our care and attention, and our SPD officers deserve clear expectations for how to approach and interact with those in this kind of situation,” said Seattle Mayor Ed Murray. “The many lessons learned from the tragic John T. Williams shooting have helped inform the Department’s new crisis intervention policy, which I believe will be of significant help to officers as they face these kinds of encounters in the future.”
The policy creates the position of a Crisis Intervention Team (CIT) coordinator, Lt. Marty Rivera, who is appointed by the Chief of Police and provides command-level oversight of the Crisis Intervention Program and, who is the primary point of contact for the mental health provider/clinician/advocacy community for the SPD.
The Crisis Intervention Program consists of three distinct levels of expertise: all line patrol officers who will receive basic training on crisis intervention; the “certified” Crisis Intervention officers; and the follow-up Crisis Response Team. To become a CIT “certified” officer, those officers must take a 40 hour crisis intervention course with a certification exam and complete additional annual training. A CIT-certified officer will be dispatched to every scene where the police communications center suspects a behavioral crisis and, for the first time, will take primary responsibility at the scene of crisis events. The Crisis Response Team is tasked with following up on officer encounters with those enduring a crisis to assess that appropriate services are in place.
“The new Crisis Intervention Policy gives my officers clear guidelines and resources when they encounter people who are experiencing behavioral crisis,” said Interim Seattle Police Chief Harry Bailey. “This policy also provides access and resources to a vulnerable population. As police officers we are also charged with community care taking duties and this new policy works in concert with that philosophy and will provide officers with the necessary training and tools to help people that are in need of those services. I want to thank the Crisis Intervention Committee for helping us reach another milestone in the DOJ settlement agreement.”
Also, for the first time, officers will be required to collect data on every encounter they have with individuals in behavioral crisis, again to systematically track and assess the deployment and effectiveness of resources.
The Justice Department’s investigation in 2011 found that SPD’s patterns of excessive force often arose from encounters with persons with mental illnesses or those under the influence of alcohol or drugs. This finding was particularly troubling because, by its own estimates, 70% of SPD’s use of force during that time period involved these populations.
Connecticut Man Found Guilty of Drug Conspiracy After TrialRead the Press Release
DAVENPORT, IA - On February 7, 2014, a twelve-member jury found Michael G. Efthimiatos, age 35, of Danbury, Connecticut guilty of conspiracy to possess with intent to distribute marijuana. The trial commenced on Monday, February 3, 2014. Michael Efthimiatos was charged along with his brother, Angelo Efthimiatos, and the jury concluded that Michael Efthimiatos was a member of the conspiracy with his brother.
Angelo Efthimiatos was arrested on February 19, 2013, in Washington, Iowa, after he landed an airplane at the Washington Municipal Airport. The airplane contained approximately 55 pounds of high grade marijuana. Angelo Efthimiatos pleaded guilty on December 20, 2013, to conspiracy to manufacture, distribute, and possess with intent to distribute more than 50 kilograms of marijuana, and a separate charge of possession with intent to distribute marijuana.
The case was investigated by the United States Department of Homeland Security Investigations and Customs and Border Protection, the United States Drug Enforcement Administration, the Washington, Iowa, Police Department, the State of Connecticut Department of Public Safety, and the Danbury, Connecticut, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Chinese Citizen Arrested for Attempting to Violate the Arms Control Export ActRead the Press Release
A citizen of China was arrested in Seattle on February 10, 2014, after he entered the United States as part of a scheme to obtain restricted parts and illegally smuggle them to China, announced U.S. Attorney Jenny A. Durkan. SEE KEE CHIN, a/k/a, Alfred Chin, 56, of Hong Kong appeared in U.S. District Court in Seattle today. CHIN is charged by complaint with violating the Arms Control Export Act by seeking to obtain and export certain accelerometers that are designated on the United States Munitions List, International Traffic in Arms Regulations. The accelerometers are designed for low and zero gravity inertial navigation systems that are used in spacecraft.
According to the criminal complaint, a U.S. company that sells accelerometers reported suspicious contact with a Canadian who wanted to purchase restricted equipment. Between September 2013 and February 2014, the investigation revealed that the Canadian was inquiring on behalf of CHIN. CHIN indicated he would personally pick up the order and was arrested in Seattle after he made payment of over $85,000, and picked up the items.
The penalties for violating the Arms Control Export Act are up to twenty years of imprisonment and up to a million dollar fine. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the accelerometers ordered in this case. As a result, the export requires an export license.
The case is being investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigation (HSI).
The case is being prosecuted by Assistant United States Attorney Thomas Woods.
Caldwell Man Sentenced for Possessing Obscene Visual Representations of the Sexual Abuse of MinorsRead the Press Release
BOISE — U.S. Attorney Wendy J. Olson announced today that Patrick S. Baker, 50, of Caldwell, Idaho, was sentenced today in United States District Court to 12 months and one day in prison. Baker pleaded guilty on November 21, 2013, to possessing obscene visual representations of the sexual abuse of children. U.S. District Judge William Fremming Nielsen, from the Eastern District of Washington, also ordered Baker to be on supervised release for three years after his release from prison, and to participate in sex offender treatment. Baker was also ordered to forfeit the laptop computer used in the offense.
According to the plea agreement, officers from the Nampa Police Department responded to the Hilton Inn in Nampa, Idaho, on March 14, 2013, in response to a request from hotel management to remove a guest who had overstayed the contracted time. Officers discovered Baker in the room. He had checked in the previous night and used the hotel’s wireless Internet service to download hundreds of images of child erotica and at least 36 realistic-looking digitally created images depicting prepubescent minors engaged in various sexual acts with adults, according to the plea agreement. Investigators also found several images of minor females, most approximately ages 3 to 12 years, in various kinds of dress, posing in ways to bring attention to their genital or pubic area. Baker admitted that he had downloaded the images and that he had a long-standing addiction to pornography, including adults and children.
The case was investigated by the Nampa Police Department, an affiliate of the Idaho Internet Crimes Against Children Task Force (ICAC). The ICAC is a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Buffalo Attorney Sentenced for Submitting False Tax ReturnsRead the Press Release
Buffalo, N.Y. -- The United States Attorney's Office for the Western District of New York announced today that Lisa M. Yaeger, 50, of Buffalo, N.Y., who was convicted of submitting false documents to the Internal Revenue Service, was sentenced to time served and six months supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Gretchen L. Wylegala, who handled the case, stated that the defendant, an attorney who was employed in a variety of public positions, also maintained a private practice. Yaeger failed to report substantial amounts of income she received from her private practice in the years 2005, 2006 and 2007. The tax loss attributable to the undisclosed income exceeded $22,000. The defendant has made full restitution.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigative Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.
Bridgeport Man Admits Stealing 111 Firearms from Smith & Wesson Factory in SpringfieldRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that ELLIOT PEREZ, 28, of Bridgeport, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to multiple offenses related to his theft of 111 firearms from the Smith & Wesson manufacturing plant in Springfield, Mass.
“This defendant is responsible for stealing over 100 illegal firearms and putting some of them directly into the hands of criminals,” stated U.S. Attorney Daly. “These guns are turning up in criminal investigations as far away as North Carolina, and one was used in a recent shooting at a Hartford night club. There is nothing more important to our mission than keeping illegal guns off the streets. We will continue to prioritize these cases and prosecute them to the fullest extent of the law. We thank the Stratford and Bridgeport Police Departments for their great work in quickly arresting these defendants, and the ATF for their investigative work and ongoing efforts to find the over 50 firearms that have yet to be recovered.”
“Stopping the illegal flow of firearms continues to be one of ATF’s top priorities,” stated Special Agent in Charge Kumor. “This ongoing investigation is another example of what happens when law enforcement works together to make communities safer.”
According to court documents and statements made in court, on November 8, 2012, PEREZ, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck. At the same time, PEREZ stole three additional boxes containing a total of 111 firearms. PEREZ then drove the truck containing all the firearms to his residence in Bridgeport where he met his cohort Michael Murphy. Shortly thereafter, PEREZ delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.
PEREZ and Murphy stored and ultimately sold many of the stolen guns.
On November 20, 2012, when interviewed by ATF special agents, PEREZ falsely stated that a “black male” at Smith & Wesson’s manufacturing plant told PEREZ which boxes he was supposed to load onto his truck, and that he delivered all of the firearms he picked up to the distribution center in Stratford.
Prior to November 2012, PEREZ had multiple felony convictions, including convictions for larceny and burglary, and Murphy had a felony conviction for burglary. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PEREZ pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon and one count of making a false statement to a federal law enforcement officer. Judge Thompson scheduled sentencing for May 7, at which time PEREZ faces a maximum term of imprisonment of 20 years.
On December 12, 2013, Murphy, 25, pleaded guilty to one count of conspiracy to possess and sell stolen firearms and one count of possession of firearms by a convicted felon. He is scheduled to be sentenced on April 21 and faces a maximum term of imprisonment of 15 years.
PEREZ and Murphy were originally arrested by the Stratford Police Department on state firearms charges. PEREZ has been in custody since his state arrest on November 23, 2012, and Murphy has been in custody since his federal arrest on November 30, 2012.
U.S. Attorney Daly noted that two convicted felons found in possession of stolen Smith & Wesson firearms taken during the November 2012 theft are also being prosecuted by her office.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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[email protected]Bank Robber Sentenced to 18 Years in PrisonRead the Press Release
Committed Three Bank Robberies and Robbed a Store Where He Was Employed While on Supervised Release for Previous Federal Bank Robbery Convictions
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Reginald Anthony Lasley, age 41, of Silver Spring, Maryland, today to a total of 18 years in prison followed by three years of supervised release. Judge Messitte sentenced Lasley to 16 years for the robbery of a store and three bank robberies and an additional two years in prison for violating his supervised release in connection with previous federal bank robbery convictions. Judge Messitte also ordered Lasley to pay restitution of $29,150.
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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Lasley’s plea agreement, on February 12, 2012, he robbed the pharmacy where he was employed. During the robbery Lasley threatened the manager at knifepoint, bound the manager with duct tape and took approximately $18,000 from the safe before leaving the store. Two months later, Lasley committed three bank robberies. In each bank robbery, Lasley presented the teller with an intimidating note demanding that the teller give him all the $100s, $50s, and $20s, and fled the bank in a black van driven by another individual. Specifically, on April 6, Lasley robbed a SunTrust bank in Landover, Maryland, of $4,810; on April 9 Lasley robbed a SunTrust bank in Upper Marlboro, Maryland of $5,370; and on April 11, Lasley robbed an M&T bank in Largo, Maryland of $1,390.Shortly after the robbery of the M&T bank, Lasley was apprehended by law enforcement. At the time of his arrest, officers recovered from Lasley the demand note used in the M&T bank and the money stolen in the robbery. Officers also recovered from the black van another bank robbery demand note and the hat and shirt Lasley wore during the M&T robbery.
At the time of the 2012 robberies, Lasley was on supervised release in connection with previous federal bank robbery convictions.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.
Attorney Convicted in Connection with Rothstein Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce today that a federal jury in West Palm Beach convicted Christina M. Kitterman, 38, of Deerfield Beach, on three counts of wire fraud, after a week-long trial before U.S. District Judge Daniel T. K. Hurley. A sentencing date has not been set.
Kitterman was charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
Evidence introduced at trial established that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors in order to explain to the investors the reason why certain payments due to them had not been made.
At sentencing, Kitterman faces up to twenty years in prison and a fine of $250,000.00.
U.S. Attorney Wifredo A. Ferrer stated, “The verdict rendered by the jury today is another step toward bringing Rothstein’s criminal associates to justice. As I have previously stated, the success of Rothstein's complex scheme to deceive and defraud depended on the complicity of individuals like Christina Kitterman. Kitterman, an attorney, was the fifteenth individual to face criminal charges in connection with this complex financial fraud.”
IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The jury has validated the government's case sending a strong message that those who knowingly assist in perpetrating investment scams will be held accountable for their actions. Together with our law enforcement partners, we will continue to aggressively investigate and bring to justice those who aided Rothstein in perpetrating this massive fraud.”
“Although Scott Rothstein was the ringleader in a massive Ponzi scheme, he needed help. A jury of her peers has determined Christina Kitterman gave him that help and needs to be held accountable,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arizona Man Pleads Guilty to Drug and Money Laundering ChargesRead the Press Release
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that Shane Grafman, 29, of Prescott, Arizona, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, before U.S. District Court Judge Richard J. Arcara. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a fine of $11,342,000.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between April 2009 and February 1, 2012, the defendant conspired with others to distribute cocaine and marijuana. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
As part of his plea, the defendant admitted that he distributed more than 100 kilograms (200 pounds) of cocaine and 1000 kilograms (more than 2000 pounds) of marijuana during the course of his crimes. At an average usage rate for cocaine of 100 milligrams per use, the amount of cocaine distributed by the defendant would have resulted in at least 1,000,000 individual uses, or “hits.”
Grafman was arrested in February 2012. Other defendants charged in the case include Elijah Chaffino, of Tempe Arizona, who has been convicted nd is awaiting sentencing. Charges are still pending against defendants Jordan Ali, formerly of Alden, N.Y, Jason Nati, of Buffalo, N.Y., and Jacquelyn Witman, formerly of Buffalo, N.Y., now residing in the Atlanta, Georgia area. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; Internal Revenue Service, under the direction of Special Agent-in-Charge Toni M. Weirauch; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Kevin Niland; Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Sentencing is scheduled for June 25, 2014 at 9:00 a.m. before Judge Skretny.
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Anthony, N.M., Man Pleads Guilty to Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Javier Orozco, 29, of Anthony, N.M., pleaded guilty this afternoon in Las Cruces federal court to being a felon in possession of a firearm and ammunition under a plea agreement with the U.S. Attorney’s Office.
Orozco and his brother Victor Manuel Carreon, 23, of Anthony, N.M., were arrested on Sept. 5, 2013, on a criminal complaint charging them with being felons in possession of firearms and ammunition. The two were subsequently indicted on these charges in Dec. 2013. The indictment alleged that Orozco and Carreon unlawfully possessed firearms and ammunition in Doña Ana County, N.M., on June 19, 2013. At the time, the brothers were prohibited from possessing firearms or ammunition because they were convicted felons. Orozco had been convicted for shooting at a motor vehicle and aggravated assault, and Carreon previously had been convicted for possession of a controlled substance and aggravated fleeing from a law enforcement officer.
According to the criminal complaint, on June 19, 2013, Orozco and Carreon were arrested on state charges by Doña Ana County Sheriff’s deputies who were seeking to arrest Carreon on state warrants. The deputies detained Orozco in the vicinity of a truck parked outside a residence in Anthony, and arrested Carreon inside the residence. At the time of his arrest, Carreon was near a trash can that contained a loaded handgun; he admitted ownership of the handgun during a post-arrest interview. The deputies arrested Orozco after they allegedly found a large amount of cash and a plastic bag containing methamphetamine in Orozco’s pockets. During a search of the truck, which allegedly was driven primarily by Orozco, officers allegedly found additional currency and a loaded handgun.
This afternoon, Orozco entered a guilty plea and admitted possessing a 9 mm handgun on June 19, 2013. Orozco has been in federal custody since his arrest in this case and remains detained pending his sentencing hearing. At sentencing, Orozco faces a maximum penalty of ten years in prison.
On Jan. 7, 2014, Carreon pleaded guilty to being a felon in possession of a firearm and ammunition without the benefit of a plea agreement. Carreon has been in federal custody since his arrest in Sept. 2013, and remains detained pending his sentencing hearing, which has yet to be scheduled. Carreon also faces a maximum penalty of ten years in prison when he is sentenced.
This case was investigated by the Las Cruces office of the FBI and the Doña Ana County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Akron Man Pleads Guilty to Posession of Child PornographyRead the Press Release
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that Michael A. Taschetta, 55, of Akron, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant downloaded images of child pornography from the internet, some of which included graphic depictions of children under 12 years old engaged in sexual conduct. Taschetta downloaded child pornography onto his computer utilizing a peer-to-peer software application.
The plea is the culmination of an investigation on the part of Special Agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Sentencing is scheduled for May 27, 2014 at 12:30 p.m. before Judge Arcara.
24 Defendants with Ties to Powerful Italian Organized Crime Syndicate Known as the ‘Ndrangheta Arrested in Coordinated U.S.-Italian TakedownRead the Press Release
BROOKLYN, NY- A fifteen-count indictment was unsealed this morning in federal court in the Eastern District of New York charging seven defendants with narcotics trafficking, money laundering and firearms offenses based, in part, on their participation in a transnational heroin and cocaine trafficking conspiracy involving the ‘Ndrangheta, one of Italy’s most powerful organized crime syndicates.1 The defendants – ‘Ndrangheta member Raffaele Valente, also known as “Lello,” Gambino associate Franco Lupoi, Bonanno associate Charles Centaro, also known as “Charlie Pepsi,” Dominic Ali, Alexander Chan, Christos Fasarakis, and Jose Alfredo Garcia, also known as “Freddy” – were arrested earlier today. In a coordinated operation, Italian law enforcement authorities arrested 17 members and associates of the ‘Ndrangheta in Calabria, Italy who were involved in the narcotics trafficking conspiracy, among other crimes.
The seven defendants arrested in the United States are scheduled to be arraigned this afternoon before Chief United States Magistrate Judge Steven M. Gold, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The case has been assigned to United States District Judge Sterling Johnson, Jr.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The ‘Ndrangheta is an exceptionally dangerous, sophisticated and insidious criminal organization, with tentacles stretching from Italy to countries around the world,” stated United States Attorney Lynch. . “The defendant Lupoi sought to use his connections with both ‘Ndrangheta and the Gambino crime family to extend his own criminal reach literally around the globe. Today, thanks to the vigilance and sustained cooperation of the Department of Justice and its law enforcement partners in Italy, the ‘Ndrangheta’s efforts to gain a foothold in New York have been dealt a lasting blow.” Ms. Lynch praised the outstanding investigative efforts of the Federal Bureau of Investigation and expressed her thanks to law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP) and, in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia. Ms. Lynch also expressed gratitude to the U.S. Department of Justice Attaché and the Office of the FBI Legal Attaché at the U.S. Embassy in Rome, who coordinated extensive evidence-sharing and coordinated undercover operations.
“As alleged, ‘Ndrangheta’s clan members conspired with members of the Gambino organized crime family in New York in an attempt to infiltrate our area with their illegal activities. Under the auspices of legitimate shipping businesses, the two criminal groups worked together to establish a plan of moving cocaine and heroin between the United States and Italy. Little did they know, there was an ongoing collaboration between the FBI and the Italian National Police to investigate and identify their scheme. This international cooperation between our great law enforcement agencies is one that was established at the beginning of our investigation, and it remains in place today. With every arrest made, both here and in Italy, FBI agents and Italian National Police officers closely coordinated their operations and share the success of this operation,” said FBI Assistant Director-in-Charge Venizelos.
As detailed in the indictment and detention letter filed today, defendant Franco Lupoi, a Brooklyn resident who has lived in Calabria, used his close criminal ties to both the Gambino organized crime family and the ‘Ndrangheta, an Italian criminal organization akin to the Mafia in Sicily and the Camorra in Naples, to pursue criminal activity that stretched across the globe. The Italian charges unsealed today reveal how the ‘Ndrangheta has operated for decades in Calabria in localized clans – known as ‘ndrine – based primarily on close family ties. In this case, Lupoi’s father-in-law, Italian defendant Nicola Antonio Simonetta, is a member of the Ursino clan of the ‘Ndrangheta. In 2012, Simonetta traveled to Brooklyn and met with Lupoi and an undercover FBI agent, who recorded Simonetta and Lupoi discussing plans to ship narcotics between the U.S. and Italy via the port of Gioia Tauro in Calabria, an infamous hub of ‘Ndrangheta activity. Simonetta revealed that his ‘Ndrangheta associates at the port would guarantee the safe arrival of container ships containing contraband.
As alleged in court documents, Lupoi exploited these underworld connections to link his criminal associates in New York with those in Calabria, forming conspiracies to traffic heroin and cocaine. On the Italian side, he allegedly engaged Italian defendant and ‘Ndrangheta leader Francesco Ursino and others as suppliers of heroin and buyers of cocaine. During two joint FBI-INP operations in Italy, Lupoi and Ursino sold over 1.3 kilograms of heroin to an FBI undercover agent for what they believed was eventual distribution in the United States. In New York, Lupoi, Chan and Garcia sold the undercover agent more than a kilogram of heroin.
As alleged, Lupoi also set into motion a plot to transport 500 kilograms of cocaine, concealed in frozen food, in shipping containers from Guyana to Calabria. In the course of these conspiracies, Lupoi assured his confederates of his relationship with a corrupt port official in Gioia Tauro, indicating that in return for €200,000, the official could guarantee passage of unlimited containers of contraband. In New York, Lupoi joined forces with defendants Alexander Chan and Garcia to orchestrate the Guyana-Italy cocaine conspiracy. In conversations recorded by the undercover agent, the conspirators discussed their connections to Mexican drug cartels operating in Guyana, South America, and plotted to transport 500 kilograms of cocaine internationally, hidden in shipments of frozen fish or pineapples. On the Italian side, Ursino and his coconspirators planned to use a fish importation company to receive the shipment. As set forth in Italian court documents, the conspiracy slowed when shipping containers originating from the same Guyanese shipping company were seized in Malaysia and found to contain over $7 million in cocaine hidden in pineapples and coconut milk.
As set forth in court documents, Lupoi also worked closely with U.S. defendant and ‘Ndrangheta member Raffaele Valente, who sold an illegal silencer and sawed-off shotgun to the FBI undercover agent at the Royal Crown Bakery in Brooklyn. In conversations intercepted on Italian wiretaps, Valente revealed that he had assembled a group of well-armed men in New York and that their base of operations was as secure as “Fort Knox.” Valente also discussed his devotion to St. Michael the Archangel as the purported “patron saint” of the ‘Ndrangheta and exhorted Italian defendant Andrea Memmolo to wear a special ring as a sign of pride and mutual recognition. Valente and Lupoi are charged with conspiracy to transfer a firearm, and Valente is charged with two counts of illegal possession of a silencer. Valente is also charged in Italy with the crime of mafia association based on his role in establishing an ‘Ndrangheta cell in New York.
As alleged, Lupoi further maintained a network of money laundering associates in New York. He and his codefendants Dominic Ali, Charles “Charlie Pepsi” Centaro, and Christos Fasarakis, an employee of Alma Bank in Brooklyn, laundered more than $500,000 in funds that they believed were the proceeds of narcotics and illegal weapons trafficking. Centaro was recorded describing his access to bank accounts with millions of dollars through which he could launder and conceal criminal proceeds.
If convicted, Lupoi, Chan and Garcia face a maximum sentence of life imprisonment; Ali, Centaro and Fasarakis face a maximum sentence of twenty years’ imprisonment on each money laundering charge; and Valente faces a maximum sentence of ten years’ imprisonment on each firearms charge.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Kristin Mace and Kevin Trowel.
The Defendants:
FRANCO LUPOI
Age: 44
Brooklyn, NY
DOMINIC ALI
Age: 55
Brooklyn, NY
CHARLES CENTARO, a.k.a. “Charlie Pepsi”
Age: 50
Brooklyn, NY
ALEXANDER CHAN
Age: 46
New York, NY
CHRISTOS FASARAKIS
Age: 42
Brooklyn, NY
RAFFAELE VALENTE, a.k.a. “Lello”
Age: 42
Brooklyn, NY
JOSE ALFREDO GARCIA, a.k.a. “Freddy”
Age: 47
New York, NY
E.D.N.Y. Docket No. 14-CR-042 (SJ)
___________________________________________________________________________
1 The charges contained in the indictment and complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Monday 10 February 2014
Wood County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
HUNTINGTON, W.Va. – A 22-year-old Wood County man who solicited and received sexually explicit images of a child pleaded guilty today. Jon Seth Davisson pleaded guilty in federal court in Huntington before Chief United States District Judge Robert C. Chambers to receiving child pornography. Davisson faces a mandatory minimum of five years and up to 20 years in prison when he is sentenced on May 12, 2014.
In August 2013, Davisson exchanged text messages with a 13-year-old Cabell County child and persuaded the child to take and send sexually explicit photographs to Davisson. At the time Davisson received these photographs, he was a U.S. Army private stationed at Fort Lewis, Washington. Davisson had been acquainted with the child for several years and was aware of the age of the child at the time he requested that the images be taken and sent.
The Cabell County Sheriff’s Office and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Woman Traveled to Pittsburgh to Sell Counterfeit Money Orders and Bank ChecksRead the Press Release
PITTSBURGH, PA - A New Jersey woman pleaded guilty in federal court to charges of fraudulently transmitting postal money orders, and making, uttering and passing counterfeit security, United States Attorney David J. Hickton announced today.
Shawn S. Foote, 46, of Atlantic City, New Jersey, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Foote traveled to Pittsburgh, Pennsylvania, from Atlanta Georgia, to sell counterfeit U.S. Postal Money Orders and counterfeit bank checks to another for the purpose of being fraudulently negotiated.
Judge Bissoon scheduled the sentencing for May 28, 2014, at 10 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $250,000, 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 Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation that led to the prosecution of Shawn S. Foote.
Waterloo Internet "Molly" Dealer Pleads Guilty to Federal Drug ConspiracyRead the Press Release
A Waterloo man who imported MDMA (also known as “ecstasy” or “Molly”) he ordered through the internet pled guilty today in federal court in Cedar Rapids.
Adam Lawin, age 23, from Waterloo, Iowa, was convicted of conspiracy to distribute 3,4-methylenedioxymethamphetamine (also known as MDMA or “Molly”).
In a plea agreement, Lawin admitted that he obtained the MDMA by utilizing the highly encrypted drug trafficking marketplace website, Silk Road. Lawin also admitted he insulated himself from detection by law enforcement by having the packages delivered to friends or acquaintances, and paying those individuals a nominal fee (either a small amount of MDMA or cash) for delivering the packages to him. During a search of Lawin’s Waterloo residence on April 26, 2013, law enforcement seized over 1.3 kilograms of MDMA. During earlier searches, officers had seized over 250 grams of MDMA destined for Lawin.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lawin was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Lawin faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and at least 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Department of Homeland Security, Homeland Securities Investigations, and the Tri-County Drug Enforcement Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is No. CR13-2040-1-LRR.
Wasilla Man Sentenced for Fraud in Scheme to Unlawfully Obtain Social Security Retirement BenefitsRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that William S. Stemmons, 31, of Wasilla, was sentenced to five years of probation for committing fraud against the Social Security Administration.
Chief United States District Court Judge Ralph R. Beistline imposed the sentence on February 4, ordering Stemmons to serve four months of home confinement and imposing restitution in the amount of $57,991.40. Stemmons was indicted in Denver, Colorado, in June 2013 on charges that he committed wire fraud, made false statements, and engaged in aggravated identity theft as part of a scheme to fraudulently obtain social security retirement benefits in his father’s name.
The case was transferred from Colorado to Alaska with the agreement of the United States Attorney’s Offices and the United States District Courts in both states. On November 20, 2013, Stemmons pled guilty to one count of wire fraud, admitting that between 2006 and 2010 he fraudulently obtained retirement benefits in the name of his father, who was then living outside the United States and had not applied for the payments. The scheme was discovered when Stemmons’ father did apply for retirement benefits, triggering the investigation that identified Stemmons’ thefts.
According to the sentencing memorandum filed by the prosecution, Stemmons was working in law enforcement and as a military security guard during the period that he was defrauding the United States.
The case was investigated by the Social Security Administration, Office of the Inspector General, Office of Investigations, in Denver and Seattle, and was prosecuted jointly by the United States Attorney’s Offices for the Districts of Alaska and Colorado.
Vienna Man Pleads Guilty in Connection with Heroin Overdose Death of McLean TeenagerRead the Press Release
ALEXANDRIA, Va. – Kyle Alifom, 20, of Vienna, Va., pleaded guilty today to tampering with evidence for hiding the body of Emylee Lonczak, a 16-year-old from McLean, Va. who died after a heroin overdose.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Alifom faces a maximum penalty of 20 years in prison when heis sentenced on May 16, 2014.
In a statement of facts filed with the plea agreement, Alifom admitted that he and three other individuals, including Emylee Lonczak, traveled from Virginia into Washington, D.C. to purchase heroin. All four people used the heroin, and Lonczak became unconscious. The group traveled back to Virginia, and one of the other individuals dropped off the defendant and Lonczak, who remained unconscious, at the defendant’s residence in Vienna, Va.
Alifom and the other individual put Lonczak in a basement bedroom. The following morning, Alifom discovered that Lonczak had died. Alifom then dragged Lonczak’s body into a wooded area behind a neighbor’s house and covered the body with an abandoned window screen that he found nearby. The Fairfax County Police Department located Lonczak’s body approximately one day later. An autopsy and toxicology report confirmed that Lonczak had a fatal level of heroin in her system.
This case was investigated bythe Fairfax County Police Department and the DEA. Assistant United States Attorney Michael P. Ben’Ary is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Utah Man Sentenced for Threatening CEO of Anti-Doping AgencyRead the Press Release
DENVER – Robert Hutchins, age 60, of Sandy, Utah, was sentenced this morning by Chief U.S. District Court Judge Marcia S. Krieger to serve 1 year probation, with mental health treatment, for sending interstate communications involving a threat, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Chief Judge Krieger also ordered Hutchins to serve 50 hours of community service and pay a fine of $3,300, which represents the cost to supervise a person on probation for a year.
Hutchins was indicted by a federal grand jury in Denver on July 10, 2014. He pled guilty before Chief Judge Krieger on November 4, 2013. The defendant was sentenced today, February 10, 2014.
According to the stipulated facts contained in the plea agreement, in 2012, the United States Anti-Doping Agency (USADA) had been investigating allegations that cyclist Lance Armstrong had achieved his prodigious record by cheating; by “doping” and using drugs and other improper means to win. As the investigation heated up in the summer of 2012, Chief Executive Officer of USADA, Travis Tygart, received a barrage of negative public comment, mostly via emails, about USADA’s investigation. In August 2012, it was anticipated that USADA would announce its findings, including that Lance Armstrong would banned from cycling for life. On August 23, 2012, Lance Armstrong released a press statement that he would not challenge USADA’s findings. The negative emails intensified. On August 24, 2012, USADA, as predicted, made the announcement that Lance Armstrong would be banned from cycling for life and disqualified of all his competitive results from August 1, 1998, through August 24, 2012. This disqualification included being stripped of his seven Tour de France titles.
Among the members of the public who were angry over USADA’s methods and conclusions was the defendant, Mr. Hutchins. Beginning in July 2012, Mr. Hutchins sent two emails USADA voicing his displeasure. Those emails, while scathing in tone and full of invective, were not threatening.
On the evening of August 23, 2012, Mr. Hutchins crossed the line and made threats to Travis Tygart. The email was sent to one of USADA’s email addresses with the subject line “Travis Tygert [sic] Hope you have body guards and bullet proof vest.” The email read as follows:
Travis Tygert [sic], Hope you have body guards and bullet proof vest, your [sic] a dead man mother f@%&*#. You just don’t know what you’ve done!!!
You’re a** is f@%&*#.The email was traced to Mr. Hutchins in Sandy, Utah. As a result of the threatening email sent on August 23, 2012, Mr. Travis Tygart hired private security for himself and his family, and moved his family to a secure location while the FBI investigated the source of the threat.
This case was investigated by the FBI.
The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer.
U. S. Attorney's Office Announces Historic Cocaine SeizuresRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that four defendants have been charged in three separate complaints with narcotics trafficking resulting in the largest seizure of cocaine ever in the Rochester area.
“These seizures demonstrate the commitment of law enforcement to protect the community from these dangerous drugs,” said U.S. Attorney Hochul. “At the same time, the public should be aware that cocaine, in addition to heroin and prescription drugs that are illegally abused, can have lethal consequences and no one is immune from the addictions cause by these drugs.”
Christopher Kendrick was arrested on February 4, 2014 on Interstate 490 near Chili, N.Y. with 24 kilograms of suspected cocaine. He is charged with possession with intent to distribute 10 kilograms or more of cocaine. The charge carries a mandatory minimum of 10 years in prison, a maximum of life and a $10,000,000 fine. This seizure is believed to be the single largest seizure of cocaine ever in the Rochester area.
In another case, Jaime Fontanez and Daniel Acevedo were also arrested on February 4, 2014 following the execution of a search warrant at 72 Jewell Street in Rochester, N.Y. During the course of the investigation, law enforcement officers recovered three kilograms of suspected cocaine. The defendants are charged with possession with intent to distribute 500 grams or more of cocaine, attempting to possess 500 grams or more or cocaine with intent to distribute, and possession of cocaine with intent to distribute.
A fourth defendant, Manuel Rivera, was arrested on January 31, 2014 after officers recovered two kilograms of cocaine during a search warrant at the defendant’s residence on Seneca Manor Drive in Rochester. He is charged with conspiracy to possess 500 grams or more of cocaine with intent to distribute.
Fontanez, Acevedo and Rivera all face a mandatory minimum five years in prison, a maximum of 40 years, and a $5,000,000 fine.
The complaints are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division, the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Sentenced for Selling Oxycodone in Nitro, West VirginiaRead the Press Release
Couple busted with hundreds of illegal prescription pills
HUNTINGTON, W.Va. – Michelle Craig, age 34, and James Bennett, age 44, were both sentenced today in Huntington by Chief U.S. District Judge Robert Chambers to terms of imprisonment of two years nine months and two years, respectively. Craig and Bennett previously plead guilty in August 2013 to aiding and abetting each other in the illegal distribution of oxycodone, a powerful prescription painkiller. Craig and Bennett admitted that on April 22, 2010, they sold 100 oxycodone tablets for $2,300 to a confidential informant (CI) working with the Metropolitan Drug Enforcement Network Team (MDENT). The drug deal took place in the parking lot of a Pilot gas station in Nitro, West Virginia. In addition to the pills sold to the CI, agents also seized another 66 pills from the defendants’ car and 188 pills from the home the defendants shared in Putnam County, West Virginia.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers.
Two New Braunfels Ammo Smugglers Found Guilty of Federal ChargesRead the Press Release
In Del Rio on Friday evening, a federal jury found 23-year-old Jesus Cardenas of New Braunfels, TX, and 34-year-old Luis Cardenas guilty on multiple counts of smuggling ammunition from the United States announced U.S. Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Janice Ayala.
The federal jury convicted the brothers of two counts of smuggling ammunition from the United States. The jury also convicted Jesus Cardenas of two counts of smuggling ammunition and magazines from the United States.
Evidence presented during the three-day-trial showed that on two separate occasions between November 2011 and January 2012, Jesus Cardenas purchased, on behalf of an individual in Piedras Negras, Mexico, a total of more than 15,000 rounds of ammunition and 400 assault rifle magazines intended for export to Mexico. Furthermore, Luis Cardenas was paid to transfer the ammunition to an individual who then transported it to Del Rio.
On December 1, 2011, United States Border Patrol agents seized part of the ammunition along with 23 assault rifles within yards of the Rio Grande River outside Del Rio. Special Agents with Homeland Security Investigations seized additional ammunition and magazines in January 2012.
Both remain in custody pending sentencing. Each charge of conviction calls for a maximum of ten years in federal prison and a maximum $250,000 fine. Sentencing for the case is presently set for August 14, 2014, before U.S. District Judge Alia Moses in Del Rio.
This case resulted from an investigation by Homeland Security Investigations (HSI) together with United States Customs and Border Protection, United States Border Patrol and the Federal Bureau of Investigation. Assistant United States Attorneys Lewis Thomas and Patrick Burke are prosecuting this case for the Government.
Two Men Sentenced for Federal Hate Crime Charges Resulting from 2012 New Year's Eve AttackRead the Press Release
The Civil Rights Division and U.S. Attorney’s Office for the Central District of California announced that two Latino men associated with the Compton 155 street gang were sentenced today by U.S. District Judge Terry J. Hatter Jr. for their racially-motivated attack on African-American juveniles at a residence in Compton, Calif., on Dec. 31, 2012. Jeffrey Aguilar, also known as Terco, 19, and Efren Marquez Jr., also known as Stretch and Junior, 21, were each sentenced to serve 21 months in prison along with three years of supervised release.
On Oct. 17, 2013, both defendants pleaded guilty to violating the Matthew Shepard-James Byrd Jr. Hate Crime Prevention Act after admitting their involvement in the assault.
Aguilar and another individual physically attacked a 17-year-old African-American, who was walking down a street in the city of Compton. Aguilar chased down and struck the victim in the head with a metal pipe. During the incident, Marquez threatened to shoot another African-American juvenile who was present. Both Aguilar and Marquez admitted that the attack on the 17-year-old victim was motivated by the race and color of the victim.
“Despite the substantial progress made, violent acts of hate committed because of someone’s race continue to occur to this day, and the department will continue to use every available tool to identify and prosecute hate crimes whenever and wherever they occur," said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division.
“Hate based crimes have no place in America,” said U.S. Attorney André Birotte Jr. for the Central District of California. “The defendants’ attempt to rid their neighborhood of African-Americans serves as a sickening reminder that racial intolerance still exists in some segments of our community. For this egregious conduct, the defendants have received well-deserved prison terms.”
“The FBI is committed to the protection of civil rights and will continue to investigate allegations of crime motivated by hate,” said Assistant Director in Charge Bill L. Lewis for the FBI’s Los Angeles Field Office. “I’m hopeful that this sentencing will clarify the serious consequences for anyone contemplating senseless violence against the innocent due to their religion, race, disability, ethnic origin or sexual orientation.”
“Law enforcement is dedicated to protecting the civil rights of all members of our community and the outcome of this case is a great example of the close cooperation between all agencies involved to ensure that goal,” said Interim Sheriff John L. Scott of the Los Angeles County Sheriff’s Department.
This case is the result of an investigation conducted by the FBI and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Reema El-Amamy of the Violent and Organized Crime Section of the U.S. Attorney’s Office and Trial Attorney Saeed Mody of the Civil Rights Division.