Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 10 February 2014
Forest Place Apartments’ Arsonist Arrested on Federal ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Grover Crossland, Resident Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) – Little Rock Field Office; announced that Lacey Rae Moore, age 43, of Little Rock, was arrested and appeared today in federal court on an Indictment handed down by a federal grand jury on Thursday, February 6, 2014. The Indictment, unsealed after her arrest, charges Moore with five counts of arson, two counts of arson resulting in injury and one count of possession of an unregistered destructive device.
“Today’s arrest of this arsonist is the result of excellent investigative work by the Bureau of Alcohol, Tobacco, and Firearms agents, Little Rock Fire Department Fire Marshal’s Office, Arkansas State Police Fire Marshal’s Office and Little Rock Police Department,” stated Thyer. “Through their diligence and expertise the mystery that caused millions of dollars’ worth of damage, destroyed apartment buildings, displaced scores of residents and injured two firefighters, has been solved.”
The Indictment alleges that Moore attempted to maliciously damage and destroy the Forest Place Apartments by use of fire and explosive materials. The fires were set on or about February 24, February 25, 2013; May 15, 2013; May 16, 2013; June 4, 2013; June 22, 2013; and June 28, 2013. As a result of the fires set May 16 and June 4, 2013, two Little Rock Firefighters were injured. The final charge alleges that on July 1, 2013, Moore knowingly possessed a destructive incendiary device and bomb that was not registered to her in the National Firearms Registration and Transfer Record.
The largest fire occurred on May 16, 2013, which nearly destroyed the entire North Building of Forest Place Apartment and caused approximately $4,000,000 in damage. As a result of this fire more than 130 people were evacuated by fire department personnel, with approximately 400 evacuations total and numerous balcony rescues. Approximately 79 people were permanently displaced as a result of this fire.
The fire on June 28, 2013, resulted in the evacuation of approximately 75-100 people from the South Building and resulted in another 11 people being permanently displaced.
At today’s hearing before United States Magistrate Judge Beth Deere, Moore pled, “not guilty,” to the charges. A detention hearing has been set for Wednesday, February 12, 2014, at 11 a.m. before U.S. Magistrate Deere. The trial was set for March 11, 2014, before United States District Judge Billy Roy Wilson.
Moore faces at least five years up to 20 years’ incarceration with not more than three years’ supervised release for each arson charge. The arson charges with injury have a statutory sentence of not less than seven years’, not more than 40 years’ incarceration with not more than 5years of supervised release. Possession of a destructive device carries a possible sentence of not more than 10 years in prison, with not more than three years of supervised release. Each count of the indictment also carries a possible fine of not more than $250,000.
The investigation was conducted by a special task force headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives with substantial assistance from the Little Rock Fire Department Fire Marshal’s Office, the Arkansas State Police Department Fire Marshal’s Office, and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Fifteen Charged in Conspiracy to Distribute PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistOhio Valley Drug Task Force investigation leads to 83 count indictment
WHEELING, WEST VIRGINIA – Law enforcement officials announced the indictment of fifteen Ohio Valley residents alleged to be involved in the distribution of tens of thousands of prescription painkillers, along with cocaine and other drugs.
United States Attorney William J. Ihlenfeld, II, Sheriff Pat Butler of the Ohio County Sheriff’s Department, and Chief Shawn Schwertfeger of the Wheeling Police Department released the details of the investigation on Monday, including the charges and potential penalties that each defendant now faces as a result of the eighty-three count indictment that was unsealed this morning.
According to Ihlenfeld, the lead defendant is Brian SCHULTZ, also known as “Worm.” SCHULTZ, 37 years old of Triadelphia, is charged with “Conspiracy to Distribute Schedule II & III Controlled Substances”, “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”, “Interstate Travel in Aid of Racketeering”, “Possession with Intent to Distribute Buprenorphine”, and “Maintaining a Drug-Involved Premise.”
SCHULTZ is alleged to be the leader of a group that received oxycodone and other prescription drugs from suppliers in northern Ohio and Detroit, Michigan and then redistributed them in the Ohio Valley. Sophisticated surveillance techniques were used during the investigation which culminated in three search warrants being executed in January of 2014 at homes connected to the drug trafficking operation. Large amounts of prescription pills and U.S. currency were seized during the January searches. Over the course of the sixteen month investigation thousands of pills have been recovered by agents via controlled purchases and court-authorized searches.
SCHULTZ faces up to twenty years in prison if convicted.
The U.S. Attorney’s Office is seeking to forfeit residential real estate owned by SCHULTZ in Triadelphia, West Virginia, a 2007 GMC Yukon Denali XL owned by SCHULTZ, and approximately $70,000 in cash seized from SCHULTZ and others during the searches that occurred last month. The U.S. Attorney’s Office is also seeking a money judgment against SCHULTZ and others in the amount of at least $450,000 for proceeds derived from the illegal distribution of controlled substances.
“Legal drugs that are illegally obtained can be deadly, and unfortunately many West Virginians have died as a result of prescription drug abuse,” said Ihlenfeld. “The U.S. Attorney’s Office will continue to do everything it can to stop this epidemic, including continuing to aggressively enforce federal drug trafficking laws.”
Ihlenfeld praised the outstanding investigative work of the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, BCI, and the U.S. Drug Enforcement Administration. Ihlenfeld also thanked all of the agencies that assisted in the apprehension of the defendants this morning and afternoon, and noted that the investigation is ongoing.
This prosecution of this case is being handled by Assistant United States Attorney John C. Parr.
Each defendant faces a possible term of imprisonment, and under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Updates on the status of this case will be made by media releases as well as via the official Twitter feed of the United States Attorney’s Office, @NDWVnews.In addition to SCHULTZ, the following individuals were also indicted:
Katherine HUNGERMAN, also known as “Kat” or “Bubs”, age 44, of Shadyside, Ohio (10 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances” and “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”). HUNGERMAN faces up to 20 years in prison if convicted.Dustin NAMACK, also known as “Dusty”, age 36, of Adena, Ohio (23 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances” and “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”, and multiple counts of “Distribution of Oxycodone within 1,000 feet of a protected location”). Dustin NAMACK faces up to 40 years in prison if convicted.
Derick NAMACK, age 39, of Wheeling, West Virginia (4 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances” and “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”). Derick NAMACK faces up to 20 years in prison if convicted.
Jill WEST, also known as Jill Namack, age 31, of Wheeling, West Virginia (4 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances” and “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”). WEST faces up to 20 years in prison if convicted.
Steven L. NAMACK, age 64, of Wheeling, West Virginia (20 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”, “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”, and multiple counts of “Distribution of Oxycodone within 1,000 feet of a Protected Location”). Steven NAMACK faces up to 40 years in prison if convicted.
Christopher HOWARD, also known as “FATBOY” or “FATTY”, age 39, of Wheeling, West Virginia (30 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”, “Conspiracy to Engage in Interstate Travel in Aid of Racketeering”, “Distribution of Cocaine” and multiple counts of “Fraudulently Obtaining a Controlled Substance”). HOWARD faces up to 40 years in prison if convicted.
Buddy Robert SALEM, JR., also known as “B.J.”, age 32, of Wheeling, West Virginia (5 counts, including “Distribution of Oxycodone” and “Aiding & Abetting the Distribution of Oxycodone”). SALEM faces up to 20 years in prison if convicted.
Kristyn Elizabeth FETCKO, age 33, of Wheeling, West Virginia (5 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”, “Maintaining a
Drug-Involved Premise”, and multiple counts of “Aiding & Abetting in the Distribution of Oxycodone”). FETCKO faces up to 20 years in prison if convicted.Michael COPPA, age 48, of Wheeling, West Virginia (4 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”). COPPA faces up to 20 years in prison if convicted.
Cara OLAKO, also known as Cara Green, age 36, of Wheeling, West Virginia (5 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances” and “Aiding & Abetting the Distribution of Oxycodone within 1,000 feet of a Protected Location”). OLAKO faces up to 40 years in prison if convicted.
Richard A. HERCULES, JR., age 49, of McMechen, West Virginia (3 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”). HERCULES faces up to 20 years in prison if convicted.
Lucas N. HIGH, age 36, of Wheeling, West Virginia (2 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”). HIGH faces up to 20 years in prison if convicted.
Adam W. BARNES, age 39, of Wheeling, West Virginia (3 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”). BARNES faces up to 20 years in prison if convicted.
Jordan SORGE, age 22, of Wheeling, West Virginia (2 counts, including “Conspiracy to Distribute Schedule II & III Controlled Substances”). SORGE faces up to 20 years in prison if convicted.
Federal Inmate Sentenced to 10 More Months in Prison for Possessing HeroinRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 10 months in jail on his conviction for possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Bernardo Granado- Velasquez, 42. The sentence was imposed to run consecutively to the sentence Granado-Velasquez is currently serving.
According to information presented to the court, on or about March 22, 2013, Granado- Velasquez was in possession of contraband, namely, a quantity of heroin.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Granado-Velasquez.
Erie Residents Admit Robbing Postal StationRead the Press Release
ERIE, Pa - Two residents of Erie, Pennsylvania, pleaded guilty in federal court to a charge of robbery of a United States postal station, United States Attorney David J. Hickton announced today.
Elijah Devon Sherrod, 19 and Latisha Marie Palochak, 23, each pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about July 16, 2013, the defendants robbed an individual of money and property that was under the control of the United States.
Judge Cercone scheduled sentencing for June 9, 2014. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Pending sentencing, the court continued Palochak on bond.
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 that led to the prosecution of Sherrod and Palochak.
East Haven Man, West Haven Man Indicted on Drug and Gun ChargesRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury sitting in Hartford has returned a 10-count indictment charging MATTHEW VOLOSHIN, 28, of East Haven and JESSE WRUBEL, 27, of West Haven, with drug and firearms offenses in connection with their alleged involvement in a New Haven area marijuana trafficking conspiracy.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, VOLOSHIN and WRUBEL were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.
The indictment was returned on January 30, and VOLOSHIN and WRUBEL were arrested on the federal charges on February 7. They are currently detained.
The indictment charges VOLOSHIN and WRUBEL with conspiracy to distribute more than 100 kilograms of marijuana, and multiple marijuana distribution offenses. The conspiracy charges carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
The indictment also charges both defendants with possession of a firearm in furtherance of a drug trafficking crime, which carries a consecutive sentence of five years. VOLOSHIN is also charged with possessing three stolen firearms, a charge that carries a maximum term of imprisonment of 10 years.
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 Drug Enforcement Administration’s New Haven Task Force. The case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Dupree Man Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man convicted of Child Abuse was sentenced on February 10, 2014, by U.S. District Court Judge Roberto A. Lange.
Allen White, a/k/a AJ White, age 25, was sentenced to 12 months and 1 day in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
White was charged by Information for Child Abuse on November 15, 2013. He pled guilty on November 18, 2013.
The charge stems from a September 19, 2013, incident that occurred near Dupree. White was angry at his mother and threw a backpack at her that contained a sport energy drink that was full. The heavy backpack missed White’s mother and instead struck the child victim in the head.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
White was immediately turned over to the custody of the U.S. Marshals Service to commence serving his sentence.
Drug Trafficker Sentenced to 20 Years in Federal Prison on Firearm ChargesRead the Press Release
Defendant Shot and Killed Man During Drug Transaction
DALLAS — Jose Inez Zapata, 33, of Dallas, was sentenced this morning, by U.S. District Judge David C. Godbey, to 240 months in federal prison, following his guilty plea in August 2013 to two federal felony firearm charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Zapata pleaded guilty to one count of using and discharging a firearm during a drug trafficking crime and one count of being a felon in possession of a firearm.
On April 4, 2011, Zapata met “R.J.” at an apartment complex parking lot in Dallas to conduct a 30-pound marijuana transaction. Zapata shot and killed “R.J.” and then fled the location.
Then, on January 11, 2012, an officer with the Mesquite Police Department executed a traffic stop on a Ford truck that had been reported stolen a few days earlier from Baylor Hospital. Zapata, the driver of the truck, initially slowed down, but then led police on a high-speed chase, at speeds of up to 100 miles per hour, which lasted several minutes. Zapata eventually stopped the truck and fled on foot, running across Highway 80. Zapata charged the officer and attempted to take weapons from the officer’s gunbelt, but he was eventually handcuffed and arrested. Two firearms were located in the truck along with several other stolen items and counterfeit U.S. currency. Zapata was a convicted felon, having felony convictions in Dallas County for aggravated robbery and aggravated assault on a public servant.
The case was investigated by the Dallas Police Department, the Mesquite Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Secret Service. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Devils Lake Man Sentenced to 30 Years for Abusive Sexual Contact at Spirit Lake Indian ReservationRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Feb. 10, 2014, ErickMcKay, 40, Devils Lake, N.D., was sentenced before U.S. District Judge Ralph R. Erickson, to 30 years in prison on two counts of abusive sexual contact with a minor under the age of 12.
McKay pleaded guilty on Nov.19, 2013, to causing a female child, who had not attained 12 years of age, to have sexual contact with him by the use of threat and force against her.
Judge Erickson sentenced McKay to 15 years on each count of abusive sexual contact. McKay is required to pay $200 special assessment to the Crime Victim’s Fund in addition to his prison sentence.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Denver Man Indicted and Arrested for Production, Distribution and Possession of Child PornographyRead the Press Release
DENVER – Minh Thong, age 30, of Denver, Colorado, appeared in court today on charges of production, distribution and possession of child pornography, United States Attorney John Walsh and Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Thong was originally arrested at Los Angeles International Airport (LAX) as he attempted to travel to Hong Kong. The defendant appeared in federal court in Los Angeles (the Central District of California). A U.S. Magistrate Judge there ordered U.S. Marshals to transport Thong to Denver. Thong made his initial appearance in U.S. District Court in Denver this afternoon before U.S. Magistrate Judge Craig B. Shaffer, where he was advised of his rights and the charges pending against him. Thong is scheduled to next appear before Magistrate Judge Shaffer on Thursday, February 13th, 2014 at 2:00 p.m. for a detention hearing and for arraignment.
Thong was first charged by Criminal Complaint on January 20, 2014. He was then indicted by a federal grand jury on January 27, 2014.
According to court documents, including the affidavit in support of the original Criminal Complaint, on July 10, 2013, a HSI special agent in Seattle, while functioning in an undercover capacity, used the internet to connect to a Peer to Peer file sharing program (a/k/a FSP). The special agent was able to download child pornography from a specific person using a specific username at a unique IP address. The agent was not only able to download child pornography, the agent was also able to view thumbnail images before choosing which images or videos to download.
Further investigation revealed that the IP address resolved at an address in Denver, and was registered to Minh Thong. A federal search warrant for Thong’s residence was then obtained and executed. Special Agents and officers found child pornography on Thong’s computer. Thong obtained child pornography from others using Peer to Peer software. He also produced child pornography by accessing video chat websites where individuals can see each other using a web cam. Thong used a program to play a video of a younger female or younger male so that the minor person on the other end of the web cam chat believed they were chatting with someone other than Thong. During those chats Thong was able to convince users on the other end of the chats to disrobe and/or masturbate. He recorded the video chat and saved the files. Special Agents are in the process of identifying minor victims.
“Our HSI special agents are dedicated to investigating predators who misrepresent themselves on the Internet to sexually exploit our children,” said Kumar C. Kibble, special agent in charge of HSI Denver. “These predators who produce child pornography electronically memorialize their horrific acts against children, and share these images with like-minded depraved individuals. To protect children from being sexually exploited, HSI is a federal law enforcement leader in investigating these crimes against children domestically and internationally.”
Thong is charged with one count of production of child pornography, which carries a penalty of not less than 15, and not more than 30 years imprisonment, and up to a $250,000 fine. He faces one count of distribution of child pornography, which carries a penalty of not less than 5 years, and not more than 20 years imprisonment, and up to a $250,000 fine. Thong also faces one count of possession of child pornography, which carries a penalty of not more than 10 years imprisonment, and up to a $250,000 fine.
This case is being investigated by Homeland Security Investigations (HSI). Anyone who may have been deceived by Thong is asked to contact the HSI Tipline toll-free at 1 (800) 347-2423, or submit a tip on the Internet at: www.ice.gov/tips.
Thong is being prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
The charges contained in the government filings are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Defendant Sentenced to 30 Years in Prison for First Degree MurderRead the Press Release
SAN DIEGO, CA - Manuel Osorio-Arellanes, age 37, was sentenced to 30 years in prison today in United States District Court in Tucson, AZ, for the first degree murder of United States Border Patrol Agent Brian Terry, announced Laura E. Duffy, United States Attorney for the Southern District of California. Agent Terry was shot and killed on December 14, 2010, when the defendant and four others engaged in a firefight with Border Patrol agents.
According to the plea agreement entered in October 2012, Manuel Osorio-Arellanes admitted that during the evening of December 14, 2010, he and others were in the United States for the purpose of robbing drug traffickers of their contraband. While Agent Terry was engaged in the performance of his official duties, members of the defendant’s group exchanged gun fire with agents and one of the shots fired by a member of the defendant’s group killed Agent Terry.
U.S. Attorney for the Southern District of California Laura E. Duffy said, “Nothing can bring back Agent Terry, who gave his life protecting our country. Our hope is that, starting today with this significant sentence, justice will give some modicum of relief to grieving family members. We will continue our unrelenting pursuit of those responsible for the tragic attack against Agent Terry.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division, stated, “Today’s sentencing is another step forward in getting justice in the case involving the murder of U.S. Border Patrol Agent Brian Terry and his family. The FBI remains steadfast in our constant pursuit of those responsible for the death of Agent Terry and we will utilize all available resources to apprehend those responsible for this heinous murder”.
“The sentencing of another individual responsible for the murder of Border Patrol Agent Brian A. Terry is critically important to the men and women of our agency,” said Manuel Padilla Jr., Chief Patrol Agent, Tucson Sector, U.S. Border Patrol. “We are extremely grateful for the effort and tireless dedication to this case from the U.S. Attorney’s Office, the Federal Bureau of Investigation and the Government of Mexico.While we will continue to be relentless in our commitment to securing our Nation’s borders, we will forever remember all of the men and women who have made the ultimate sacrifice.”
On July 20, 2012, in order to seek the public’s assistance, Department of Justice officials announced a reward of up to $1 million dollars for information leading to the arrest of four fugitives: Jesus Rosario Favela-Astorga, Ivan Soto-Barraza, Heraclio Osorio-Arellanes, and Lionel Portillo-Meza.
Lionel Portillo-Meza and Ivan Soto-Barraza have been captured in Mexico. These defendants are charged with crimes including first degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, use and carrying a firearm during a crime of violence, assault on a federal officer and possession of a firearm by a prohibited person. In addition to the murder of Agent Terry, the indictment also alleges that the defendants assaulted Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller, who were with Agent Terry during the firefight.
A sixth defendant, Rito Osorio-Arellanes, pled guilty to conspiracy to interfere with commerce by robbery and was sentenced to eight years in prison in January 2013. Rito Osorio- Arellanes was not present at the incident that resulted in Agent Terry’s murder.
This case is being prosecuted in federal court in Tucson by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson, David D. Leshner, and Fred Sheppard. The U.S. Attorney’s Office for the District of Arizona is recused. This case is being investigated by the Federal Bureau of Investigation.
The public is reminded that an indictment is a formal charging document and defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Cross Lanes Pedophile Sentenced to 20 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Shawn Lee McMullen, 37, of Cross Lanes, W.Va., was sentenced to 20 years of imprisonment followed by 25 years of supervised release for possession of child pornography. The sentence was handed down by United States District Judge John T. Copenhaver, Jr., in Charleston.
McMullen admitted that he took sexually explicit photographs of two children under the age of 13 at his residence in Cross Lanes in early May 2013. McMullen left the images on the cell phone he used to photograph the children.
“This defendant’s crimes are sickening,” said U.S. Attorney Goodwin. “Monsters like this to be punished severely, and that’s exactly what the judge did. Today’s sentence is a victory for justice and for the safety of our children.”
The Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution.
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 http://www.justice.gov/usao/wvs/PSCpage.html.
Ceres Man Sentenced to More Than Eight Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Gary Edward Collins, 46, of Ceres, to eight years and one month in prison, to be followed by 15 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. Ceres will be required to register as a sex offender and his access to minors, computers, and the Internet will be restricted.
Collins was indicted on January 13, 2013 and pleaded guilty on November 18, 2013. He was remanded into custody on September 10, 2013, after a judge found that he violated the conditions of his pretrial release. Collins admitted in a plea agreement that between April 11, 2011, and May 12, 2012, in Stanislaus County he received at least 600 images of child pornography. Many of the images depicted prepubescent minors and some involved violence or sadistic or masochistic conduct or abuse.
This case was the result of an investigation by the Ceres Police Department. Assistant United States Attorney David Gappa prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Bradenton Felon Charged in Firearm and Drug CrimesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Brandon Taylor (24, Bradenton). The five-count indictment charges Taylor with two counts of being a felon in possession of a firearm, and three counts of possession with intent to distribute and distribution of cocaine base. If convicted, Taylor faces a maximum of 20 years in federal prison for each narcotics offense and up to 10 years’ imprisonment for each firearms offense. The indictment also notifies Taylor that the United States intends to forfeit the firearms and ammunition, along with any narcotics proceeds traceable to the offenses.
According to his indictment, Taylor distributed cocaine base on August 16, 2013, August 23, 2013, and September 9, 2013. He is also charged with possessing an Armscor .45 caliber pistol and 8 rounds of.45 caliber ammunition on August 23, 2013, and 11 rounds of .45 caliber ammunition on September 9, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Adam M. Saltzman.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline Strategy to reduce crime in our communities. Frontline is a comprehensive violent crime impact strategy that consolidates limited federal law enforcement resources and focuses ATF’s mission by deconflicting cases and coordinating all law enforcement efforts in critical communities.
Bolton Man Charged with Child Pornography OffensesRead the Press Release
BOSTON - A Bolton man was charged today in U.S. District Court in Worcester on child pornography charges.
Michael Hayes, 24, was charged with distribution of child pornography and possession of child pornography. According to the criminal complaint affidavit, in November 2013, Hayes permitted an undercover federal agent, through the use of a peer-2-peer file sharing network, to download a number of image files and video files which depict child pornography.
If convicted, Hayes faces a mandatory minimum sentence of five years and up to 20 years in prison, a five year mandatory minimum and up to a lifetime of supervised release and a $250,000 fine on the charge of distribution of child pornography; and a maximum of 10 years in prison, lifetime supervised release and a $250,000 fine on the charge of possession of child pornography.United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Vincent C. Alfano, Chief of the Bolton Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz's Worcester Branch Office.
Boise Man Pleads Guilty to Conspiracy in Treasure Valley “Spice” CaseRead the Press Release
Defendants Charged with Multiple Counts of Conspiring to Distribute “Spice,” Money Laundering, Smuggling
BOISE – Troy Palmer, 43, of Boise, Idaho, pleaded guilty today in United States District Court to count four of an indictment charging him with conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. Sentencing is set for May 5, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Palmer admitted in court that beginning in March 2011, he knowingly entered into a conspiracy with Mark Ciccarello, William Mabry, and Robert Eoff to conduct financial transactions in connection with a “spice” manufacturing and distribution business. Palmer also admitted to knowingly participating and assisting in the financial activity of the business by engaging in financial transactions through both domestic and foreign financial institutions. The transactions consisted of the proceeds of prior illegal spice sales and other specified unlawful activity. In many cases, the transactions conducted through financial institutions separately consisted of criminally derived property valued at more than $10,000; most of the transactions occurred in Idaho, Washington and California.
Eoff, Mabry and Ciccarello previously entered guilty pleas to the same charge. Judge Lodge will sentence Eoff on March 11, 2014, and Mabry and Ciccarello on March 25.
The charge of conspiracy to launder money is punishable by up to 20 years in prison, a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, and up to three years of supervised release.
Palmer and his three co-defendants were indicted by a federal grand jury on May 14, 2013, on charges of conspiracy to distribute a controlled substance analogue; conspiracy to smuggle goods into the United States; conspiracy to sell and transport drug paraphernalia; and conspiracy to launder money. The indictment alleged that between March 1, 2011 and July 9, 2012, in Idaho, Alaska, California, Washington, and Wisconsin, the defendants conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make “spice”—a synthetic cannabinoid similar to substances listed in Schedule I of the Controlled Substances Act. The indictment further alleged that one or more of the defendants conspired to sell and transport drug paraphernalia for sale, and that they conspired to launder money illegally obtained through their drug, importation and paraphernalia violations. The government is seeking forfeiture of proceeds derived from the alleged criminal activities.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Bank Robber Sentenced to Federal PrisonRead the Press Release
Defendant Sentenced as a Career Offender for Two Oregon RobberiesMEDFORD, Ore. – John Edward Perdue, 54, of Grants Pass, Oregon, was sentenced today to 151 months in federal prison for committing two bank robberies in Grants Pass. During the February 21, 2013 robbery of the Umpqua Bank, Perdue, with his face partially concealed by a hooded sweatshirt, rushed through the front door and went behind the service counter where the teller was on the telephone with a customer. Perdue tapped her on the shoulder, and ordered her to get off the phone and unlock the drawer at her teller station. Perdue grabbed money from the drawers and fled the bank with $10,580. The teller told detectives that she felt “panicked” and “surprised,” fearing that if she did anything contrary to what he was asking, he might harm her.
During the April 1, 2013 robbery of the Bank of the Cascades, Perdue entered the bank and again walked behind the service counter, ordering the male teller to get on his knees and not get up. Perdue emptied the money from the male teller’s drawer. Perdue then ordered a female teller to unlock an adjoining drawer, but when she was unable to open it he removed money from the drawer at her station. As Perdue was leaving the bank he dropped some of the cash and scrambled around on the floor trying to pick up as much as he could before fleeing with $8,612. The teller told detectives that she was scared during the ordeal due to the excited manner in which Perdue was acting and how he was ordering them around. This was the second time Perdue had robbed this same bank while she was employed as a teller. That robbery occurred in 2008.
According to sentencing documents filed by AUSA Byron Chatfield, Perdue was previously convicted in 1996 for committing two other bank robberies while he was an escapee from the Oregon Department of Corrections. He was sentenced to 87 months in prison for those robberies. He also received additional state sentences for the escape, as well as subsequent sentences for weapons possession and an attempted escape from the Oregon State Penitentiary. Thereafter, within a month of his release from custody, Perdue committed two additional bank robberies, one at the Bank of the Cascades in Grants Pass in 2008 and the other at the US Bank in Roseburg, Oregon. Perdue was sentenced to 28 months in state prison, as well as additional 24 month consecutive sentence in federal prison. Perdue has been incarcerated for committing criminal offenses for much of the last 20 years and he committed the current bank robberies less than a year after his release from custody.
Senior U.S. District Judge Owen M. Panner sentenced Perdue as a Career Offender, which enhances the sentence for commission of a serious violent felony after two or more convictions for other serious violent felonies. Perdue was also ordered to pay $19,192 in restitution to the banks.
This case was investigated by the Grants Pass Department of Public Safety and the FBI, Medford, Oregon and prosecuted by Assistant U. S. Attorney Byron Chatfield.
Attorney General Holder Announces Justice Department to Lift Hiring FreezeRead the Press Release
In a video message released today, Attorney General Eric Holder announced that, due to the budget agreement approved by Congress last month, the Justice Department is able to lift the hiring freeze that has been in place for just over three years.
The complete text of the Attorney General’s message is below:
“In recent years, federal employees have been asked to contend with sharp budget cuts, sequestration, and the personal hardships imposed by a government shutdown. Here at the Department of Justice, these conditions have strained our capacity. And they’ve compelled us to take extraordinary measures just to make ends meet – including a hiring freeze that I was forced to institute in 2011, and which has resulted in the loss of more than 4,000 employees.
“These losses have been acutely felt. But finally, after years of uncertainty, Congress recently passed – and the President signed – a bipartisan budget agreement that allowed our appropriators to restore Justice Department funding to pre-sequestration levels – and even adds funding for key priorities. As a result of this budget agreement, effective immediately, the Department will lift the hiring freeze that’s been in place for just over three years. After years of doing more with less, we will begin to fill critical vacancies. And we will resume the normal hiring process for federal agents, prosecutors, analysts and the other staff we need to fulfill our mission. These added resources will help us carry out our critical law enforcement responsibilities and improve public safety.
“I want to thank Members of Congress – particularly Senators Mikulski and Shelby and Congressmen Wolf and Fattah – for their leadership in securing this important agreement. As we put these resources to work, my colleagues and I will remain committed to serving as sound stewards of taxpayer dollars. And we’ll continue to make our operations as efficient and effective as possible.
“Across the board, I’m extremely proud of the outstanding work that Justice Department employees have performed in recent years – in the face of adversity, and despite escalating threats and challenges. Every one of them is a credit to this institution, to our nation, and to the American people we’re privileged to serve. So I want to take this opportunity to thank them – for their commitment, for their dedication, and for the sacrifices that they and their families have made in the name of public service. Their efforts inspire me every day. And I will never stop working to secure the support they need to carry out their important duties – and to keep advancing the cause of justice that remains our common pursuit.”
The Attorney General’s video message can be viewed online here: http://www.justice.gov/agwa.php.
Alton Man Pleads Guilty to Aiding and Abetting Armed RobberyRead the Press Release
Case is one of many brought as a result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
An Alton, Illinois, resident pled guilty on February 10, 2014, to an Indictment, charging that he and his co-defendant, Taylor C. Harkey, aided and abetted each other in the commission of an Armed Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Armed Robbery count is a federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton as a way to combat armed robbery in the Southern District of Illinois.
Ramone C. Cunningham, 30, of Alton, Illinois, faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Sentencing is scheduled for May 22, 2014, in East St. Louis, Illinois. Cunningham has been held without bond since his initial appearance on December 3, 2013.
The offense occurred on July 18, 2013, when Cunningham and his co-defendant, Taylor Harkey, were at her residence discussing ways in which to get “quick money.” At Cunningham’s suggestion, Harkey and Cunningham devised a plan to rob a cab driver. The two left in Harkey’s husband’s car and went to another individual’s residence. At this house, Cunningham remained in the car while Harkey went inside and used another individual’s cellular telephone to call Comfort Cab to have a cab sent to a vacant residence in Alton. The two parked in an alley near the vacant house. Prior to committing the robbery, Cunningham provided Harkey with a small black .177 caliber BB gun that looked like a real gun.
Harkey got out of the car and approached the cab that was already at the residence. The cab driver, having noticed that the residence was vacant, notified his dispatcher who told him to wait while they tried to contact the original caller. While waiting for the dispatcher to call back, Harkey reached through the open rear driver’s side window and pointed the gun at the cab driver’s head, stating “Give me your money or I’ll blow your brains out.” Harkey also reached inside the cab and grabbed the cab driver’s company cellular telephone. The driver threw $36.00, consisting of cab fares, out of the window. As Harkey bent down to pick up the money, the cab driver drove away. He was able to contact Comfort Cab to report that he had just been robbed. Comfort Cab subsequently called the Alton Police Department. Using the original number that was used to call the cab, the officers were able to identify Harkey as a suspect. Both Harkey and Cunningham were subsequently arrested a short time later at Harkey’s residence. The BB gun given to Harkey to use during the robbery was recovered from under the mattress of one of her children. Both Cunningham and Harkey provided videotaped statements to Alton police officers in which they admitted their role in the robbery.
The case was investigated by the Alton, Illinois, Police Department. The case is assigned to Assistant United States Attorney Angela Scott.
8 Defendants Indicted on Federal Drug Trafficking ChargesRead the Press Release
SAVANNAH, GA – A federal grand jury sitting in Savannah, Georgia returned an indictment last week charging 8 defendants with trafficking powder and crack cocaine and marijuana in the Savannah area and elsewhere. This federal indictment follows state charges, where the Eastern Judicial Circuit/Chatham County District Attorney’s Office indicted 20 others for their involvement in the drug-trafficking conspiracy.
The indictment follows an 18-month Organized Crime Drug Enforcement Task Force (OCDETF) investigation into drug trafficking activities from Savannah to California. Agents with the DEA and the Chatham-Savannah Counter Narcotics Team (CNT) led the joint investigation. The investigation culminated in arrests and search warrants being executed on September 11, 2013, in the following locations: Port Wentworth, Garden City, and Savannah. During the investigation, agents seized large quantities of powder cocaine, crack cocaine, marijuana and other illegal drugs. Agents also seized over $250,000 in cash.
United States Attorney Edward Tarver said, “Drug dealers beware. If you are pushing poison in our communities, federal and state law enforcement will unite to make sure you are prosecuted to the fullest extent of the law, and that your ill-gotten-gains will be forfeited.”
Eastern Judicial Circuit / Chatham County District Attorney Meg Heap stated, “An operation and resulting seizure of this magnitude was made possible through the collaborative focus and team effort of the U. S. Attorney’s Office, DEA, Counter Narcotics Team and the District Attorney’s Office. By each of these agencies working together towards a common goal, we can ensure that large scale drug operations such as these are effectively razed and prosecuted appropriately for their crimes.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “All participating agencies played a crucial role in the eradication of a criminal network. These drug trafficking activities posed a significant threat to the quality of life in the affected communities. Dismantling drug trafficking organizations makes communities a safer place. I want to thank our federal, state and local law enforcement counterparts who had a direct impact in making this investigation a success.”
Chatham-Savannah Counter Narcotics Director Everett Ragan said, “This is a classic example of the cooperation between the Chatham-Savannah Counter Narcotics Team, the DEA- Savannah field office, and the U. S. Attorney’s Office seeking to remove another major drug organization from the streets of Chatham County.”
The 8 defendants indicted on federal charges include:
ANTONIO ACOSTA, Savannah, 37;
NAKIEA J. HAMPTON, Savannah, 33;
CHRISTOPHER CRIMLEY, Port Wentworth, 39;
KEVIN SPEAK, Savannah, 31;
SHERONE MCBRIDE, Garden City, 36;
SHAMONE MCBRIDE, Garden City, 36;
TRAVIEL PERKINS, Savannah, 36; and,
WILLIAM MCDONALD, Savannah, 39.Upon conviction, each defendant faces up to 20 years in prison, a $1,000,000 fine, and a period of supervised release. Mr. Tarver stressed that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove the defendants’ guilt beyond a reasonable doubt.
Assistant United States Attorney, E. Greg Gilluly is prosecuting the case on behalf of the United States. For additional questions, please contact James D. Durham, First Assistant United States Attorney at (912) 201-2547.
Friday 7 February 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
William Edward Cooper, II, 51, of Mishawaka, Indiana pled guilty before District Judge Robert L. Miller, Jr. to the felony offense of possessing a firearm as an unlawful drug user. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 5/29/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jose Gonzalez, 61, of Milford, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 66 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of possession with intent to distribute controlled substances.According to documents filed in this case, in August 2013, law enforcement officers served a search warrant on Gonzalez’s residence. Officers discovered a white powdery substance hidden in different parts of the property. The powder was found in the dryer vent, roof of the doghouse and in a column on the porch. The substance was tested and determined to be cocaine. Additional drug related paraphernalia was discovered including scales, baggies and other items used to facilitate illegal drug sales.This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Emilio Santana-Esquivel, 27, of Macy, Indiana was sentenced by District Judge Jon E. DeGuilio to 10 months imprisonment followed by no term of supervised release after pleading guilty to the felony offense of use of a false social security number.According to documents filed in this case, in January 2011, Santana-Esquivel lied and utilized a false social security account number. Santana-Esquivel used this false SSN as well as another individual’s social security card and photo ID in his application for employment with an Indiana based company.This case was the result of an investigation by U.S. Immigration and Customs Enforcement.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Tad Vandermark, 53, of Syracuse, Indiana was sentenced by District Judge Jon E. DeGuilio to 360 months imprisonment with 15 years supervised release after pleading guilty to the felony offense of production of child pornography.According to documents filed in this case, between 2003 and March 2005, Vandermark lived with a family and videotaped himself and a minor child of that family having sexual contact. Vandermark was aware that images of that sexual contact were being transmitted via a web camera over the Internet to another individual.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Shawn Fox, 49, of South Bend, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 120 months imprisonment, 2 years supervised release and to pay $3,409 in restitution after pleading guilty to the felony offense of bank robbery with the use of a firearm .According to documents filed in this case, in January 2011, Fox entered a South Bend bank with the intent to rob the facility. Fox was armed with a firearm which he used to threaten a teller and to obtain money. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ronier Scott, 42, of Gary, Indiana, pled guilty before Magistrate Judge John E. Martin to the felony offense of willful failure to file a federal tax return.Magistrate Martin is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 4/1/14.This charge was filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Jermel Washington, 37, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a non- registered firearm.Sentencing has been set for 4/30/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Paul Robinson, 23, of Gary, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of distribution of heroin.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Alejandro Murillo, 26, of Chicago, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of possession with the intent to distribute methamphetamine.This charge was filed as a result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
David Johnson, 58, of Munster, Indiana, was sentenced by Chief Judge Philip Simon to 1 year and 1 day of imprisonment, 1 year of supervised release and a fine of $6000.00 after pleading guilty to the felony offense of payment of a bribe to an agent of a local government receiving federal funds.According to documents filed in this case, Johnson, owner of Dave’s Tree Service, made a series of payments to Hammond City Councilman Alfonso Salinas in order to secure future business from the city.Hammond’s records confirmed that the city had paid Dave’s Tree Service more than $300,000 during a roughly two year period, and that Salinas had authorized most of the work. During an interview with IRS agents, Johnson admitted bribing Salinas. This case was a result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Sonyinee Davis-Pope, 39, of Hammond, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 3 years of probation after pleading guilty to the felony offense of making false statements to the United States Postal Service.According to documents filed in this case, Pope admitted that she submitted on-line employment applications to the United States Postal Service. In each application, she made a false statement or representation by either using a false name, false date of birth, false social security number, or by failing to disclose that she had prior felony convictions. She submitted the false applications in order to pass the pre-employment background check. In all, she submitted over 50 on-line employment applications to the United States Postal Service between July 2010 and February 2011 for employment in Northwest Indiana, Illinois, and Alabama. This case was a result of an investigation by United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Stacy Davis, 46, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 51 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of the bank robbery of Chase Bank in Merrillville, Indiana.This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
Eugene Wilson, 57, of Merrillville, Indiana, was sentenced by Senior District Judge Rudy Lozano to 42 months imprisonment, $1,696,919.45 in restitution and 1 year of supervised release after pleading guilty to the felony offense of wire fraud.According to documents filed in this case, Wilson participated in a scheme to defraud and obtain money from three groups of investors by making false statements. In 2006, in separate transactions, Wilson convinced investors to give him money, collectively more than 1.5 million dollars. As inducements, he promised to pay a high rate of return and return the money in a short time period.He also told the investors that their money, or most of it, would remain in a bank account. After receiving the money from the investors, Wilson sent almost all of it to individuals who were in Europe, and spent the remaining money. Wilson acknowledged that on October 25, 2006, he visited a Bank of America branch in Chicago and directed the bank to wire transfer $470,000 in one transaction, and $30,000 in another, to a bank account located in the country of Liechtenstein. When an investor provided him with $600,000, Wilson told him that his money was safe and most of it would remain in a bank account for ten days. He did not return any money to this investor. This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (all before Magistrate Judge Roger B. Cosbey)
Leobardo Gaona, 40, of Huntertown, Indiana pled guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute less than 500 grams of a mixture and substance containing a detectable amount of cocaine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not yet been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Raul Resendiz, 35, of Fort Wayne, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not yet been set.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Evangelos Doublas, 34, of Tucson, Arizona was sentenced by District Judge Theresa L. Springmann to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute less than 50 kilograms of marijuana.According to documents filed in this case, in December 2010, Doublas received a large quantity of marijuana from a confidential informant.Upon searching Doublas’ property, law enforcement officers recovered 117 pounds of marijuana. This case was the result of an investigation by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the DEA – Missouri, Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Wayne Police Department, and the Pulaski County Sheriff’s Department.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
U.s. Attorney's Office Collects $29.3 Million in Civil & Criminal Actions and Forfeitures in Fy 2013Read the Press Release
(Albany, New York) - United States Attorney Richard S. Hartunian has announced that the Northern District of New York collected $4,006,217.22 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,642,890.05 was collected in criminal actions and $1,363,327.17 was collected in civil actions. The U.S. Attorney’s Office also worked with other components of the Department of Justice to collect an additional $14,313,192.93 in cases pursued jointly. Of this amount, $2,601,102.21 was collected in criminal actions and $11,712,090.72 was collected in civil actions.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $11,051,256 in criminal, civil and administrative forfeitures in 2013. Forfeited assets are deposited into the Department of Justice Asset Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced in January that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“As we go forward in these challenging economic times, collections continue to be a critically important part of our services to the citizens in our district," said U.S. Attorney Richard S. Hartunian. "The U.S. Attorney's Office is dedicated to protecting the public and recovering ill-gotten gains for the federal treasury and for victims of federal crime. Once again this year, the amount collected significantly exceeds the annual cost of our entire office operations."
Some notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2013 include the following:
A. Forfeiture Cases
On December 19, 2012, defendant John Tebbetts, Syracuse area owner of the head shop chain known as “Tebb’s Head Shops,” was charged with and pled to possession with the intent to distribute, Schedule I controlled substances in violation of 21 U.S.C. § 841, possession with the intent to distribute a controlled substance analogue, as defined in 21 U.S.C. § 802(32), with the intent that it be used for human consumption, as provided for in 21 U.S.C. § 813, and one count in violation of 18 U.S.C. § 1957, engaging in a monetary transaction in property derived from a specified unlawful activity, for the purchase of a 2012 Forest River Berkshire Motor Home for $157,440 in U.S. Currency in the case of U.S. v. John Tebbetts. On April 22, 2013 the court signed a Preliminary Order of Forfeiture ordering the forfeiture of the 2012 Forest River Berkshire Motor Home, $286,376.37 in U.S. Currency, one 2004 Toyota Scion XB, one 2009 Cadillac CTS 4, and one 2005 GMC Savana G3500, as the proceeds of, and property facilitating the aforementioned violations.
In 2013, the U.S. Attorney’s Office forfeited $5,359,983.91 in real property, vehicles, bank accounts and currency in the case of U.S. v. Lonzinski, et al. This office is seeking to have the moneys collected thus far used to pay the restitution ordered in the amount of $14,108,623. This case involved the criminal prosecution of a mother and son, Laura Conarton and Scott Lonzinski, from the Binghamton area, who engaged in a loan fraud scheme which ultimately bankrupted the Broome County Teachers Federal Credit Union. Among the millions of dollars already seized, $162,347 has been credited to the National Credit Union Administration (NCUA) through administrative action undertaken by the U.S. Attorney’s Office. Upon the sale of forfeited real property, the remaining forfeited proceeds will be eligible for transfer to the NCUA.
B. Civil Actions
In September 2013, the Northern District of New York recovered $3.57 million as part of the settlement in the United States of America ex rel. Lynch v. Imagimed LLC, et al., a civil case filed under the False Claims Act’s qui tam provision. Imagimed LLC is a company that operated 14 different MRI sites in the Northeast, including sites in Elmira, DeWitt, Utica and Amsterdam. The settlement resolved allegations that Imagimed LLC, the company’s former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company’s former chief radiologist, Dr. Steven Winter submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services. Imagimed owns and operates MRI facilities, located primarily in New York State, under the name “Open MRI.” More specifically, it was alleged that, from July 1, 2001, through April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims to Medicare, Medicaid and TRICARE for MRI scans performed with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. It was also alleged that from July 1, 2005, to April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims for services referred to Imagimed by physicians with whom Imagimed had improper financial relationships, in that, in exchange for these referrals, Imagimed entered into sham on-call arrangements, provided pre-authorization services without charge and provided various gifts to certain referring physicians, in violation of the Stark Law and the Anti-Kickback Statute.
In March 2013, $8,065,411 was recovered as part of a $20.3 million dollar settlement in the United States of America, The State of New York and The St. Regis Mohawk Tribe v. Aluminum Company of America and Reynolds Metals Co. civil case. The settlement resolved allegations that, for decades, Alcoa Inc. (Alcoa West), Reynolds Metals Company (now Alcoa East) and the former GM Central Foundry plant, located in Massena, New York adjacent to the St. Regis Mohawk Tribe lands, had released hazardous substances into the St. Lawrence River environment. These substances, including polychlorinated biphenyls (PCBs), adversely impacted natural resources within the surrounding environment and contaminated the Mohawk community of Akwesasne by degrading natural resources used for traditional cultural practices. Most of this settlement, $18.5 million, will be combined with $1.8 million in restoration funds from a 2011 General Motors (GM) bankruptcy settlement, and used for restoration of the St. Lawrence River area. The settlement funds include the following components:
- Approximately $8.4 million of the settlement will go to the Mohawk Tribe to support traditional cultural practices, including an apprenticeship program to promote Mohawk language and traditional teachings. A portion of those funds will also support cultural institutions, including youth outdoor education programs and horticultural programs for medicine, healing and nutrition.
- More than $10 million from the GM and Alcoa/Reynolds settlements will be spent on a variety of ecological restoration projects, including restoration and/or enhancement of wetlands, stream banks, native grasslands, bird nesting and roosting habitat, fisheries and fish habitat, and acquisition of unique habitat under threat of development. These projects may also benefit cultural practices that depend on these restored natural resources.
- Nearly $2 million will be spent by Alcoa/Reynolds to develop and upgrade two boat launches on the Raquette River and construct three new launches on the Grasse River to improve fishing and boating access to rivers in the Massena area.
The litigation of this case was handled primarily by the Department of Justice’s Environment and Natural Resources Division, along with the National Oceanic and Atmospheric Administration, the U.S. Department of the Interior, the New York State Attorney General’s Office and the St. Regis Mohawk Tribe.
C. Criminal Actions
On March 4, 2011, defendant Lal B. Singh, as part of his sentence, was ordered by the Court to pay restitution in the amount of $3,610,538 to the Bank of New York in connection with his scheme to defraud committed while he was employed by the Bank in Manhattan. From 1993 through 2007, Singh served as a Section Manager in the Securities Redemption Department of the Bank. If customers did not redeem bonds that had been purchased upon the maturity date, the additional interest payments on the bonds would be transferred into a pooled account for unclaimed funds. If these funds are not claimed within three years, the bank was required to transfer these monies to the New York State Comptroller’s Office, Department of Unclaimed Funds. Through his job position, Singh had access to a data base that allowed him to view the unclaimed funds and to determine which funds were soon to be transferred to the state. Beginning in 1996, Singh created funds transfer requests to have funds transferred from the Unclaimed Funds accounts to one of several other accounts that belonged to individuals in the Schenectady area who agreed to assist Singh in the fraudulent funds transfer. Singh was able to make wire transfers totaling more than $3.6 million dollars. During the course of the investigation, it was discovered that Singh was entitled to a lump-sum benefit distribution from the Bank of New York Pension Plan in the amount of $281,350. After a Writ of Garnishment was issued to the Bank of New York, a check was issued by the Bank to the United States on November 21, 2012 in the amount of $229,278.59, which was then applied to the court-ordered restitution.
On January 31, 2013, defendant Joseph Dellerba was sentenced by Senior U.S. District Judge Norman A. Mordue. As part of his sentence, he was ordered to pay restitution in the amount of $1,429,458 to various insurance companies in connection with his conspiracy to defraud conviction involving a staged motor vehicle accident in Utica, New York. After a pre-trial financial investigation, Dellerba turned over $102,111, which represents a portion of the proceeds fraud. This amount was then applied toward the restitution he was ordered by the court to pay.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Attached is a chart showing how the FY2013 $29,370,665 collections were distributed to the victims, government agencies serving the public and state and local law enforcement agencies.
Two Persons Charged with Sex Trafficking of Children and Related Illegal Firearms CrimesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two former Edwardsville residents were arrested today by federal and state law enforcement officers on charges involving the sex trafficking and prostitution of a minor and weapons offenses.
According to United States Attorney Peter J. Smith, on January 21, 2014, a federal grand jury in Scranton indicted Travis Humphrey, a/k/a “GT,” age 26, and Kyoni Humphrey a/k/a “Kyoni Nieves,” age 24, for conspiring to force a minor female to engage in prostitution and illegal sexual activity during May 15, 2013, to June 3, 2013.
The indictment alleges that the defendants used a cell phone to post advertisements for “escort services” involving the minor female on the backpage.com website in Pennsylvania and New Jersey, and transported the minor in interstate commerce from Pennsylvania to New Jersey and New York to engage in illegal sexual activity and prostitution.
Both defendants are charged, allegedly, as principal or aiders and abettors, with Conspiracy to Commit Sex Trafficking of Children by Force and Coercion; Sex Trafficking of Children by Force and Coercion; Conspiracy to Transport a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Transporting a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Persuading, Enticing and Coercing a Minor to Travel in Interstate Commerce to Engage in Prostitution; and Transporting a Person in Interstate Commerce to Engage in Prostitution.
Both defendants are charged with Carrying and Possessing a Firearm in Furtherance of a Crime of Violence. Travis Humphrey is charged with Possessing a Firearm as a Convicted Felon. Kyoni Humphrey is charged with Making False Statements During the Purchase of a Firearm.
The charges stem from an investigation by the Department of Homeland Security, the Pennsylvania State Police and the Luzerne County District Attorney’s Office.
Sex trafficking of children by force and coercion is punishable by a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of life in prison. The carrying and possessing a firearm in connection with a crime of violence charge is punishable by a mandatory minimum sentence of five years in prison and a possible maximum sentence of life in prison, and that sentence must run consecutive to any other sentence imposed. The other charges contain maximum sentences of from 10 to 20 years imprisonment.
Both defendants are scheduled to appear before U.S. Magistrate Judge Karoline Mehalchick this afternoon at the federal courthouse in Wilkes-Barre.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Trenton, N.J., Mayor Convicted on Federal Extortion, Bribery and Mail and Wire Fraud ChargesRead the Press Release
Mayor’s Brother Also Convicted in Connection with Extortion Plot
TRENTON, N.J. — A federal jury today found Trenton Mayor Tony F. Mack guilty on all six federal extortion, bribery and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.
Mack’s brother, Ralphiel Mack, was also convicted on three of the charges, but found not guilty on three mail and wire fraud counts, following a five-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack’s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on City-owned land.
“The jury’s verdict solidly affirms what we first charged more than a year ago – that Tony Mack, with the helping hands of his brother and their cohorts, sold the mayor’s office and sold out the people of Trenton,” U.S. Attorney Fishman said. “We are very grateful to the members of the jury for their service.”
Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on Sept. 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, N.J. An indictment returned in December 2012 added charges against all three defendants.
Giorgianni pleaded guilty on Dec. 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.
Mayor Mack was convicted of the six counts charged in the indictment:
- Conspiracy to obstruct and affect interstate commerce by extortion under color of official right;
- Attempted obstruction of commerce by extortion under the color of official right;
- Accepting and agreeing to accept bribes;
- Two counts of wire fraud;
- Mail fraud;
Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.
According to documents filed in this case and the evidence presented at trial:
Mayor Mack, Giorgianni and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept, from two cooperating witnesses (“CW-1” and “CW-2”). In exchange for the payments, Mayor Mack agreed to, and did, assist CW-1 and CW-2 in their efforts to acquire a City-owned lot (the “East State Street Lot”) to develop an automated parking garage (the “Parking Garage Project”). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the City of Trenton for the lot as a bribe and kickback payment to Giorgianni and Mayor Mack. The mayor authorized and directed a Trenton official responsible for disposition of City-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.
The defendants went to great lengths to conceal their corrupt activity and keep Mayor Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Mayor Mack’s benefit. Mayor Mack also used another City of Trenton employee involved in the scheme, Charles Hall III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Mayor Mack that a corrupt payment had been received. For example, on Oct. 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Mayor Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Mayor Mack to a meeting location controlled by Giorgianni (“Giorgianni’s Clubhouse”), stating “we gotta talk” because “I got something that might be good for him” and that “they’ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Mayor Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Mayor Mack replied, “I’ll call you, J. Okay?” In text messages to Mayor Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”
The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni’s residence, an eatery maintained by Giorgianni known as JoJo’s Steakhouse, Giorgianni’s Clubhouse and Atlantic City restaurants. At one Atlantic City meeting among Mayor Mack, Giorgianni, Hall and CW-2, Mayor Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.
The extortion conspiracy and attempted extortion charges are each punishable by a maximum potential penalty of 20 years in prison. The bribery charge is punishable by a maximum potential penalty of 10 years in prison. The mail and wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. All of the counts also carry a potential fine of $250,000 or twice the gain or loss from the offense. Sentencing is scheduled for May 14, 2014
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
14-045
Defense counsel:
Tony Mack: Mark G. Davis Esq., Hamilton, N.J.
Ralphiel Mack: Robert Haney, Princeton Junction, N.J.Three Mexican Brothers Sentenced for Sex TraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, New York, three brothers were sentenced to lengthy prison terms following their pleas of guilty to sex trafficking charges. Benito Lopez-Perez and Anastasio Romero-Perez were sentenced to 18 years of imprisonment to be followed by 5 years of supervised release, and Jose Gabino Barrientos-Perez, was sentenced to 10 years and one month of imprisonment, to be followed by 5 years of supervised release. The defendants, who are Mexican nationals, transported Mexican females from Mexico to the United States illegally, forcing them to work as prostitutes in New York City and elsewhere. The defendants were arrested in Mexico in October 2011 and extradited to the United States in December 2012. Today’s sentences are the latest in the Office’s comprehensive anti-trafficking program, which has to date indicted over 55 defendants in sex trafficking cases and rescued over 100 victims, including over 17 minors.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“The defendants preyed upon the young and vulnerable, abducting one of their victims at age 14, and forcing them into a life of sexual slavery in Mexico and the United States. Working together with our law enforcement partners at home and abroad, we stand firm in our resolve to vigorously investigate and prosecute those who would subject others to modern-day slavery,” stated United States Attorney Lynch. “These sex traffickers have now been held to account for the horror and violence that they inflicted on their victims. We hope that these sentences bring some measure of closure to the victims as they attempt to heal from the mental and physical abuse inflicted by the defendants.” Ms. Lynch thanked the Mexican authorities and other entities that assisted with the extradition and successful prosecution of this case.
“The individuals sentenced today exploited and enslaved women for personal profit while terrifying and traumatizing them through rape, violence, and intimidation,” stated HSI Special Agent-in-Charge Hayes. “No prison sentence can ever do justice for the pain and suffering experienced by these victims, but knowing that justice has been served on their tormentors will hopefully allow for the beginning of a healing process that these women so justly deserve.”
The sex trafficking involved at least four victims, and the defendants used various methods to force these women and girls to work in prostitution, ranging from abduction, rape, assault and threats of violence, to psychological coercion. One minor victim, identified in court papers as Jane Doe 1, was primarily trafficked by the defendant Benito Lopez-Perez. Jane Doe 1 met Lopez-Perez in 2005 in Mexico when she was 14 years old. After attending a movie with a group that included Lopez-Perez, he took Jane Doe 1 to his family home and raped her. Lopez-Perez then forced Jane Doe 1 into prostitution, first in Mexico and later, after arranging to smuggle her across the border, in the United States, where Jose Gabino Barrientos-Perez also participated in the victim’s sex trafficking. Jane Doe 1 was required to service 10 to 40 clients per day, on threat of physical abuse, and was kept under the defendants’ control for five years until she escaped in 2010.
At age 14, the victim identified as Jane Doe 2 met the defendant Romero-Perez while she was living with her sister (also a victim and identified in court papers as Jane Doe 3), who was married to Jose Gabino Barrientos-Perez. Jane Doe 2 began a romantic relationship with Romero-Perez, who subsequently persuaded the victim to work as a prostitute to pay off a debt. Romero-Perez brought Jane Doe 2 to a bar where she was closely monitored to ensure she kept none of the money she earned. When she refused to work, or did not earn enough money, Romero-Perez beat her. In approximately October 2008, Romero-Perez and Lopez-Perez arranged to smuggle Jane Doe 2 into the United States where she was forced to work as a prostitute in New York, New Jersey, and Connecticut, servicing approximately 12 to 15 clients per day. While she was in the United States, Romero-Perez raped and beat Jane Doe 2 on several occasions.
Jane Doe 3 was primarily trafficked by her husband, the defendant Jose Gabino Barrientos-Perez. Approximately one year after the birth of their son, Barrientos-Perez persuaded Jane Doe 3 to work as a prostitute, telling her he needed the money pay off debts and to provide for their baby. Barrientos-Perez brought Jane Doe 3 to Tijuana and Mexico City to work in prostitution, beating her on several occasions in order to force her to work. In 2006, Barrientos-Perez arranged to smuggle Jane Doe 3 into the United States and ultimately to New York City to work as a prostitute under the defendant’s threats of violence. Jane Doe 3 paid Barrientos-Perez approximately $700-$1,000 per week from her prostitution earnings – when she paid less, the defendant threatened that he would not let her see her children.
Jane Doe 4 was trafficked by the defendant Romero-Perez beginning at the age of 20, after she was pressured into a romantic relationship with him. After approximately three months of working as a prostitute in Mexico, Jane Doe 4 was smuggled into the United States. Romero-Perez promised his victim that they would get jobs and have an apartment together, but after they arrived, Romero-Perez told her that she needed to prostitute herself to support them. Like the other victims, Jane Doe 4 gave the majority of the prostitution proceeds to Romero-Perez and his family members.
Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the Procuraduría General de la República (PGR), the Secretaría de Seguridad Pública (SSP), Procuraduría Social de Atención a las Víctimas de Delitos (PROVICTIMA), and non-governmental partners in the United States and Mexico in a Bilateral Human Trafficking Enforcement Initiative. Through this Initiative, the United States and Mexico have worked together to bring high-impact prosecutions under both U.S. and Mexican law to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, prosecute human traffickers, rescue human trafficking victims, and reunite victims with their families. Other significant bilateral cases have been prosecuted in Atlanta, Georgia, and Miami, Florida.
United States Attorney Lynch extended her grateful appreciation to the Department of Justice’s Office of International Affairs for its assistance in obtaining the extraditions of the defendants, and the New York City Police Department for its longstanding partnership in the Office’s coordinated anti-trafficking program. Ms. Lynch also thanked the many victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking, in particular, Safe Horizon; Sanctuary for Families; Restore NYC; LifeWay Network; the New York City Bar Justice Center; The Legal Aid Society, Civil Division (Bronx); My Sister’s Place; the Mt. Sinai Sexual Assault and Violence Intervention Program; Bellevue Hospital Center, and the law firms of Skadden, Arps, Slate, Meagher & Flom LLP and Wilmer Cutler Pickering Hale and Dorr LLP.
The sentences were imposed by Chief United States District Judge Carol B. Amon.
The government’s case was prosecuted by Assistant United States Attorneys Taryn A. Merkl, Elizabeth Geddes, and Erik Paulsen.
The Defendants:
Name: BENITO LOPEZ-PEREZ
Age: 35
Name: ANASTASIO ROMERO-PEREZ
Age: 40
Name: JOSE GABINO BARRIENTOS-PEREZ
Age: 52
E.D.N.Y. Docket No. CR-11-199 (CBA)
Statement of the Department of Justice Antitrust Division on Its Decision <br /> to Close Its Investigation of Samsung’s Use of Its Standards-Essential PatentsRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into Samsung Electronics Co. Ltd.’s use of its portfolio of standards-essential patents that it had committed to license to industry participants on fair, reasonable, and non-discriminatory terms (SEPs) to exclude certain Apple, Inc. products from the U.S. market:
“The Antitrust Division’s investigation focused on Samsung’s attempts to use its SEPs to obtain exclusion orders from the U.S. International Trade Commission (ITC) relating to certain iPhone and iPad models.
“As the Department of Justice and the Patent & Trademark Office (PTO) explained in their joint ‘Policy Statement on Remedies for Standards-Essential Patents Subject to Voluntary F/RAND Commitments,' issued on Jan. 8, 2013, a number of competitive issues arise when holders of SEPs seek to block their competitors from selling products that implement the SEPs. While there are certain circumstances where an exclusion order as a remedy for infringement of such patents could be appropriate, in many cases there is a risk that the patent holder could use the threat of an exclusion order to obtain licensing terms that are more onerous than would be justified by the value of the technology itself, effectively exploiting the market power obtained through the standards-setting process.“The U.S. Trade Representative (USTR) reviewed the exclusion order issued by the ITC against Apple at Samsung’s request and overturned it, determining that it was not consistent with the public interest. As a result of the USTR’s action, the Antitrust Division has determined that no further action is required at this time. The Antitrust Division is therefore closing its investigation into Samsung’s conduct, but will continue to monitor further developments in this area.
“Throughout the investigation, the Antitrust Division has worked closely and consulted frequently with its colleagues at the European Commission. This cooperation underscores the agencies’ common concerns over the potential harm to competition that can result from the anticompetitive use of SEPs.”
The Antitrust Division’s Closing Statement Policy
The division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the division's obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the division's evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the division in any future enforcement actions. Guidance on the division's policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.
St. Mary’s County Cocaine Dealer Sentenced to over 15 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Damon Jerome Estep, a/k/a “Country”, age 38, of California, Maryland, today to 188 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute five kilograms or more of cocaine hydrochloride and 280 grams of cocaine base, commonly known as crack.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
According to his plea agreement, from February 2012 to April 2013, Estep conspired with Alrahman Allen, Jamar Holt and Jeffrey Berry to distribute cocaine and crack in southern St. Mary’s County. Holt provided Allen with cocaine and other drugs and then regularly called Estep to coordinate the delivery of cocaine to Estep, Berry or others from St. Mary’s County.Nearly every week, Estep, Berry and others met Allen in the Glen Burnie area and paid Allen for one-fourth, one-half and one kilogram quantities of cocaine for further distribution in St. Mary’s County by Estep and others at Estep’s direction. Once Berry and others transported the cocaine back to their stash locations in St. Mary’s County, Estep and others would cook portions of the cocaine into crack, and distribute the cocaine and crack throughout southern Maryland at Estep’s direction.
Estep stored the powder and crack cocaine in several locations, including 20141 Point Lookout Road in Great Mills, and 18310 Three Notch Road in Lexington Park. Estep and others sold the drugs at locations in southern Maryland, including at a building located at 15076 Point Lookout Road. The distribution of between five and 15 kilograms of cocaine, and between 280 and 840 grams of crack, were reasonably foreseeable to Estep.
Co-defendants Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” Jamar Holt, a/k/a “Reds” and “Jamal Holt;” and Jeffrey Kirk Berry, a/k/a “Kojack,” previously pleaded guilty to their participation in the conspiracy and await sentencing.
United States Attorney Rod J. Rosenstein praised the DEA and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and James A. Crowell, IV who prosecuted the case.
Spokane Man Sentenced to 10 Years in Federal Prison for Possessing with Intent to Distribute MethamphetamineRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Todd Anthony Sawyer, Jr., age 28, of Spokane, Washington, was sentenced for possessing with intent to distribute 50 grams or more of pure methamphetamine. United States District Court Judge Robert H. Whaley sentenced Sawyer to a 10-year term of imprisonment and a five-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, on March 27, 2013, the United States Probation Office received information from a Washington State Department of Corrections (DOC) Community Corrections Officer that Sawyer was in possession of methamphetamine at his residence in Spokane, Washington. At the time, Sawyer was under court supervision for a 2009 conviction for being a previously convicted felon in possession of a firearm and ammunition. As a condition of supervised release, Sawyer was prohibited from using or possessing controlled substances. Based on the information received from DOC, the United States Probation Office requested the assistance of certified drug-detection canine with the Washington State Patrol (WSP) and proceeded to Sawyer's residence. The WSP's drug-detection canine alerted on a T-Mobile bag located under the only bed in the residence. The canine's handler, a Washington State Patrol Trooper, looked inside the T-Mobile bag and found 202 grams of pure methamphetamine. The trooper also found an electronic scale commonly used to weigh controlled substances. Sawyer was charged with possessing with intent to distribute 50 grams or more of pure methamphetamine and he pled guilty to that crime on September 12, 2013
Michael C. Ormsby said, "I commend the officers of the Spokane Police Department, Spokane Violent Crimes Gang Enforcement Team – a Federal Bureau of Investigation Safe Streets Task Force, Washington State Patrol, United States Marshals Service, and United States Drug Enforcement Administration for their efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney's Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities."
This case was investigated by the Spokane Police Department, Spokane Violent Crimes Gang Enforcement Team – a Federal Bureau of Investigation Safe Streets Task Force, Washington State Patrol, United States Marshals Service, and United States Drug Enforcement Administration. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00104-RHW
South Floridian Sentenced in Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, and Marc Elias, Jr., Chief, North Miami Police Department, announce the sentencing of defendant Robinson Calixte, 22, of Miami. U.S. District Judge Donald L. Graham sentenced Calixte to 47 months in prison, followed by three years of supervised release.
On September 13, 2013, Calixte was charged in a five count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Calixte was found with over 800 names, dates of birth and social security numbers of other individuals.
On December 2, 2013, Calixte pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Sections 1029 (a)(3) and 2; and to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028 A(a)(1) and 2.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, ATF, North Miami Beach Police Department, and North Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Seven Metroplex Residents Charged in ID Theft ConspiracyRead the Press Release
One Defendant Allegedly Used Her Position at Fannie Mae to Steal Personal Identifying
Information of Approximately 1,100 Fannie Mae CustomersDALLAS, Texas — A total of seven metroplex residents have been charged in a 13-count superseding indictment, just unsealed, with various offenses related to an identity theft scheme they ran from October 2009 to July 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In addition to each being charged with one count of conspiracy to commit bank fraud, the defendants are also each charged with the following:
Anthony Minor, 25, of Cedar Hill, is also charged with six counts of bank fraud; one count of conspiracy to commit fraud and related activity in connection with identification documents; one count of using or trafficking in unauthorized access device; and two counts of aggravated identification theft.
Tilisha Morrison, 24, of Dallas, is also charged with three counts of bank fraud; one count of conspiracy to commit fraud and related activity in connection with identification documents; and one count of producing, using, trafficking in a counterfeit access device.
Katrina Thomas, 40, of Garland, who worked as an Underwriting Support Specialist for the Federal National Mortgage Association (Fannie Mae), is also charged with one count of conspiracy to commit fraud and related activity in connection with identification documents and one count of producing, using and trafficking in a counterfeit access device.
Kario Butler, 28, of Mansfield; Karen Mendoza, 43, of Dallas and Wichita Falls; Cyrus Pritchett, 24, of Dallas; and Jamilah Karriem, 20, of Dallas and Desoto, are also each charged with one count of bank fraud.
Minor and Morrison were originally charged in an indictment returned by a federal grand jury in October 2013. Minor remains in federal custody.
According to the indictment, the defendants stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
Thomas, through her employment at Fannie Mae and her access to customer files, stole the personal identifying information of approximately 1,100 Fannie Mae customers and sold or provided the information to Minor or Morrison, knowing it was illegal and knowing that the information would be used to commit bank fraud.
Minor and Morrison recruited co-conspirators (“runners”), including Butler, Mendoza, Pritchett and Karriem, who would either use their own existing bank account, or would allow their identities to be used, to create new bank accounts to further the scheme. They would either directly access the victim-customer’s account or open a joint account in the names of the runner and the victim-customer, without the victim-customer’s knowledge or consent. Minor and Morrison would also use the banks’ telephone and online banking systems to transfer funds from the compromised victim-customer’s account into an account controlled by one of the co-conspirators. They would then direct the runner to withdraw the money and Minor often drove the runner to the bank or automated teller machine to perform the transaction.
According to the indictment, the defendants used the funds or stolen information to rent hotel rooms and purchase luxury goods. In fact, in July 2013, when Minor was arrested in his room at a luxury hotel in Dallas, which he had rented using another’s identification, he was in possession of several false identities and counterfeit checks as well as a computer containing a template for Texas Department of Public Safety Temporary Driver’s License and counterfeit checks.
In late June 2013, unidentified co-conspirators burglarized a furniture store in Farmers Branch, Texas, and stole a safe containing a passport, social security card and birth certificate of a particular individual. On July 1, 2013, Morrison used that identification to rent an apartment in Mesquite.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, upon conviction, the conspiracy to commit bank fraud count, as well as each of the bank fraud counts, carry a maximum statutory penalty of 30 years in prison and a $1 million. The conspiracy to commit fraud and related activity in connection with identification documents count carries a maximum statutory penalty of 15 years in prison and a $250,000 fine. The producing, using or trafficking in a counterfeit access device counts each carry a maximum statutory penalty of 10 years in prison and a $250,000 fine. The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison, to be served consecutively to any other term or imprisonment, and a $250,000 fine.
The case is being investigated by the U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor are prosecuting.
(Download Factual Basis)
Seven Defendants Indicted in Six Armed Robberies of Cell Phone Stores in Chicago Suburbs, Indiana and Downstate IllinoisRead the Press Release
CHICAGO — Seven defendants were indicted on federal charges for their alleged roles in a series of at least six armed robberies of cellular telephone stores last year that extended from suburban Chicago to Indiana and downstate Illinois. Two defendants, ERIC ROGERS and ERIC CURTIS, who allegedly directed a robbery conspiracy, were arrested on federal charges in December following the robbery of a cellular telephone store in suburban Woodridge. The other five defendants, all of whom are in state custody, were charged federally for the first time in this district in a nine-count indictment returned by a federal grand jury yesterday and announced today.
Rogers, 39, of Hazel Crest, and Curtis, 29, of Park Forest, allegedly selected the stores that were robbed, recruited their co-defendants to participate in the robberies, provided them with firearms and other equipment, and paid them to commit armed robbery at their direction. They were each charged with one count of robbery conspiracy, three counts of robbery, and two counts of brandishing firearms, and Curtis alone was charged with being a felon-in-possession of a firearm. Both remain in federal custody without bond.
Also indicted were: MARCUS HARRIS, 20, of Chicago; DANIEL WRIGHT, 28, of Chicago; ANDRE WADLINGTON-ANTHONY, 27, of Harvey; TONY JOHNSON, 20, of Harvey; and LAVELL HUGHES, 41, of Gary, Ind. Four of the five were charged with one count each of robbery and brandishing a firearm, while Wadlington-Anthony was charged with two counts of each of those crimes.
All seven will be arraigned on dates yet to be determined in U.S. District Court.
According to the indictment, the defendants in various combinations, committed the following armed robberies in 2013:
- Jan. 31 – Sprint store, 1323 West Lake St., Addison;
- Feb. 4 – AT&T store, LaPorte, Ind.;
- March 19 – AT&T store, 4155½ North Harlem, Norridge. Court documents allege the loss of approximately 100 phones and tablet computers valued at approximately $54,000 in this robbery;
- April 4 – Sprint store, East Peoria, Ill.;
- April 8 – T-Mobile, 110 South Waukegan Rd., Deerfield; and
- Dec. 14 – T-Mobile, 1001 West 75th St., Woodridge.
The indictment alleges that Rogers and Curtis also conspired with Rogers’ deceased cousin, Ryan Rogers, who, following the March 19 Norridge robbery, drove toward a Chicago police officer attempting to stop his vehicle and was shot and killed.
Each count of robbery carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Curtis also faces a maximum 10-years sentence on the felon-in-possession charge. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The case was investigated by the FBI’s Safe Streets Task Force, which is comprised of the FBI and the Chicago Police Department. The police departments in Addison, Deerfield, Homewood, Norridge, Woodridge, LaPorte, Ind., and East Peoria, Ill., also assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Christopher Parente.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Sanborn Map Co. Pays $2.1 Million to Resolve Allegations of False <br /> Claims for Map Work Related to United States Military Convoy <br /> Routes in Iraq and Marine Corps Bases in United StatesRead the Press Release
Sanborn Map Company Inc. has agreed to pay $2.1 million to the U.S. government to resolve allegations that it submitted false claims in connection with U. S. Army Corps of Engineers contracts, the Justice Department announced today. Sanborn, headquartered in Colorado Springs, Colo., provides photogrammetric mapping and geographic information system services.
“We are committed to defending the integrity of our public contracting process,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “ The Department of Justice will not hesitate to pursue companies that knowingly fail to comply with their contractual obligations, particularly obligations involving the protection of our national security interests.”From 2005 to 2011, Sanborn contracted with the U.S. Army Corp of Engineers to produce maps for U.S. convoy routes in Iraq, Marine Corps bases in the U. S. and other military and civilian projects. Allegedly, in an effort to save money, Sanborn used unapproved foreign subcontractors on three projects, which violated contractual obligations and caused delays on these projects. Sanborn also allegedly used unapproved domestic subcontractors when Sanborn was required to complete all map work in-house and charged unrelated work to the government contracts.
"We applaud the hard work and dedication of our agents and partners at the Department of Justice and other fellow law enforcement agencies," said Director Frank Robey of the U. S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "Our specially trained agents will doggedly pursue all who would undermine the needs and resources of the military.”The allegations arose from a lawsuit filed by a former Sanborn employee, James Peterson, in a federal court in St. Louis, Mo., under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private individuals known as “relators” to sue on behalf of the government and to share in the proceeds of any settlement or judgment. Peterson’s share of today’s settlement has not been determined.
The settlement was the result of a coordinated effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the Eastern District of Missouri and the U. S. Army Corps of Engineers. The U.S. Army Criminal Investigation Command – Major Procurement Fraud Unit; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Defense Contract Audit Agency assisted in the investigation.
The case is United States ex rel. James Peterson v. Sanborn Map Company Inc., 4:11CV000902 AGF (E.D. Mo.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Romanian Man Pleads Guilty to Role in International Fraud Scheme Involving Online Market Place WebsitesRead the Press Release
Alexandru Stanciu, 34, of Bucharest, Romania pleaded guilty today to one count of conspiracy to commit bank and wire fraud for his role in moving approximately $320,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to testimony at the plea hearing, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as Autotrader and eBay. When potential buyers expressed interest in purchasing the vehicles, co-conspirators sent e-mails that directed the buyers to wire payments to certain bank accounts. In total, 17 individuals sent approximately $321,389 to accounts opened by Stanciu. None of the victims ever received the vehicles for which they paid.
“International online marketplace fraud schemes pose a serious threat to consumers and to Internet commerce,” said U.S. Attorney David Rivera. “Foreign-based criminals believe they can flee safely back to their home countries and avoid the consequences of the crimes they commit here. They are mistaken. Federal, state, local, and foreign law enforcement officials increasingly are working together to investigate, arrest and prosecute the people responsible for these schemes. The safe havens for these criminals are shrinking thanks to these coordinated efforts. Prosecutions like this one reinforce that message.”
According to testimony, beginning at least as early as December 2011 and continuing to as late as July 2013, Stanciu opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit passports. Stanciu opened 10 such accounts, under nine different names. Stanciu subsequently sent the bulk of the money to other co-conspirators located abroad
Stanciu was apprehended in July 2013 at Miami International Airport, from which he was scheduled to travel to Bucharest, Romania by way of London. At the time of his arrest Stanciu had $1,850 U.S. Dollars and 4,600 Euros in cash in his possession.
Stanciu is scheduled to be sentenced on June 2, 2014. He faces a maximum of thirty years in prison and a $1,000,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones with the Middle District of Tennessee and Trial Attorney Mysti Degani with the Criminal Division’s Computer Crime and Intellectual Property Section.
Rochester Tax Preparer Sentenced for Filing Fraudulent ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge Laurido, 54, of Rochester, N.Y., who was convicted of assisting in the preparation of false tax returns, was sentenced to five years probation and a fine of $10,000 by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant prepared and filed false income tax returns for tax filers in Rochester. Specifically, the defendant filed tax returns for the years 2007 through 2010 that falsely represented the taxpayers' earned amounts of self-employment income. This allowed Laurido's clients to be eligible for larger Earned Income Credits. The false returns resulted in the taxpayers receiving larger refunds than they were entitled to. The Internal Revenue Service determined that the false tax returns prepared and filed by the defendant resulted in losses totaling $116,139.00.
The sentencing was the culmination of an investigation on the part of Special Agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Toni Weirach.Robertsdale Woman Sentenced to Serve 10 Years in Prison for Distributing Methamphetamine IceRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that Lacey Lynn Freeman, age 49, of Robertsdale, Alabama, was sentenced today by Chief United States District Judge William H. Steele to serve 120 months in federal prison in connection with her guilty plea to two counts involving her possession with intent to distribute 98% pure methamphetamine, commonly known as “ice”. The 120- month sentence was the mandatory minimum sentence required by federal statute.
This case was investigated by the Baldwin County Sheriff’s Office and the Department of Homeland Security. The case was prosecuted by Donna B. Dobbins of the United States Attorney=s Office for the Southern District of Alabama.
Ringleader of Large-Scale ATM Skimming Scheme Extradited to United States to Face Multiple ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden is scheduled to make his initial court appearance today following his extradition to face charges that he directed a large-scale ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, is scheduled to appear before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court on a six-count criminal complaint charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. In July 2013, as federal agents arrested various members of Vintila’s large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden.
According to documents filed in this and other cases and statements made in court:
Vintila was allegedly the ringleader of an extensive ATM skimming scheme that defrauded Wells Fargo, Citibank, TD Bank and multiple other financial institutions out of at least $5 million. Vintila and his conspirators installed skimmers and pinhole cameras at bank ATMs in order to steal thousands of customer bank account numbers and PIN codes. Each skimmer would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers.
Vintila and another conspirator, Bogdan Radu, 30, who was charged separately and is also in custody, created and constructed the homemade skimming devices and taught others how to install them on bank ATMs. The homemade devices were installed on multiple ATMs in New Jersey, New York, Connecticut, and Florida, and were used to steal thousands of bank account numbers and personal identification numbers. After the account information was stolen, Vintila and his conspirators created false and fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. During the course of the conspiracy, Vintila produced and transferred hundreds of fraudulent ATM cards. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles, and rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds.
Vintila’s alleged ATM skimming operation is one of the largest ever uncovered by law enforcement. In total, to date, 12 others have been charged in connection with the skimming scheme. Many of the conspirators are Romanian nationals who lived in and around Queens, N.Y. Other charged conspirators, recruited by Vintila, included Radu, Constantin Ginga, 53; Marius Cotiga, 35; Constantin Pendus, 30; Emil Revesz, 30; Florin Apetrei, 18; Ioan Leusca, 30; Dezso Gyapias, 29; Luis Franco, 23; Mirel Hadzalic, 24; Enes Causevic, 23; and another individual charged as “FNU LNU,” (first name unknown, last name unknown) a/k/a “Chioru.” These conspirators installed the devices designed by Vintila and Radu and used the stolen bank account information to withdraw millions of dollars from bank customers’ accounts.
With the arrest of Vintila, 12 of the 13 conspirators charged in connection with Vintila’s ATM skimming scheme to date are in custody in New Jersey and are being held without bail. Leusca and Gyapias have pleaded guilty to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. They await sentencing on Feb. 20, 2014. Ginga also previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Feb. 26, 2014.
Vintila is charged with six counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
2
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
3
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
4
Possession of Fifteen or More Counterfeit Access Devices
Ten years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Possession of Access Device-Making Equipment
Fifteen years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to Vintila’s arrest and extradition. U.S. Attorney Fishman also thanked the U.S. Secret Service London Field Office, HSI Frankfurt, the Swedish National Bureau of Investigation, Fugitive Active Search Team, and the Police Authority of Skåne, Malmo Division, for their assistance in locating and apprehending Vintila in Sweden. The Office of International Affairs from the Justice Department’s Criminal Division provided assistance with the extradition.The charges in the complaint against Vintila are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-044
Vintila Complaint
Raleigh County Man Sentenced for Roll in Check Cashing SchemeRead the Press Release
McGann Dummied Up Invoices For Coal Operators As Part Of A Tax Evasion Scheme
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that Donald R. “Duke” McGann, 62, of Hinton, West Virginia, was sentenced to three years of probation, the first two of which are to be served on home confinement. McGann was previously convicted of tax evasion and structuring cash withdrawals from various banks in southern West Virginia as part of a larger check cashing scheme orchestrated with several coal operators. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
As part of the scheme, McGann would provide a coal operator a bogus invoice reflecting the delivery of goods or services. The coal operator then provided McGann a check, which was deposited into McGann’s checking account. Sometimes with the aid of others, McGann withdrew the cash from his checking account in increments of $10,000 or less to avoid the bank’s reporting requirement. McGann returned the cash to the coal operator less a ten-percent fee. The cash was used to pay cash wages or otherwise kept by the coal operator as a tax-free windfall.
In 2009 alone, McGann cashed over $770,000 checks for three different coal operators.
This case was investigated by the IRS Criminal Investigative Division that focused on James Trent, 53, of Rock View, Wyoming County and others in a larger tax evasion and structuring scheme. Trent was sentenced on November 15, 2013 to three years in prison for tax evasion. Assistant United States Attorney Thomas Ryan handled the prosecution.
Prince Frederick Physician Admits to Illegal Drug Distribution and Health Care Fraud SchemeRead the Press Release
Prescribed Drugs Without a Medical Exam and Knowing That His Patients Were Selling or Abusing the Drugs; Filed Fraudulent Insurance Claims for Services That Were Not Rendered or Medically Necessary
Greenbelt, Maryland - Physician George Mathews, age 76, of Prince Frederick, Maryland, pleaded guilty today to the illegal distribution of drugs and health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Frost of the U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division; Special Agent in Charge William R. Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Calvert County Sheriff Mike Evans; St. Mary=s County Sheriff Tim Cameron; Charles County Sheriff Rex Coffey; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Today’s guilty plea serves as a warning to those who would defraud the Department of Labor’s Office of Workers’ Compensation Programs by charging for medical services that were not rendered or not medically necessary,” said Bill Jones, Special Agent-in-Charge of the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature.”
“The workers’ compensation program benefits thousands of Postal Service employees who have received legitimate on-the-job injuries,” said Thomas Frost, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division. “By submitting false claims to this program, Dr. Mathews undermined the system and contributed to the growing epidemic of health care fraud. This resolution marks a significant effort in the on-going battle against workers’ compensation fraud. We appreciate the partnership of the DEA, the U. S. Department of Labor- OIG, and the U.S. Attorney’s Office, District of Maryland on this case.”
According to his plea agreement, Mathews had medical offices in Prince Frederick and in Waldorf, Maryland. From January 2007 to July 2011, Mathews repeatedly wrote prescriptions for drugs that he knew were without any legitimate medical purpose. On a number of occasions, Mathews prescribed drugs after being made aware that his patients were either selling or abusing the prescribed drugs. In addition, numerous patients stated that Mathews performed little or no examination before writing the prescriptions.
In April 2011, a DEA undercover law enforcement officer walked in to Mathews’ Prince Frederick medical office without an appointment. After paying the receptionist an office visit fee of $120, Mathews saw the undercover officer and gave him a prescription for 60 pills of oxycodone. Mathews explained that he had a problem with his DEA registration and told the undercover officer that he could only get his prescription filled at a particular pharmacy. Mathews never performed any type of routine medical testing of the undercover officer before filling out the prescription.
During the time that Mathews filled prescriptions without any legitimate medical purpose, Mathews billed the Department of Labor Office of Workers’ Compensation Programs (OWCP) and other health care benefit programs for services that were not rendered or were not medically necessary. Mathews billed all of his “repeat” patients to a particular medical code 99214, regardless of the actual content of the medical visit or examination. Most of Mathews’ patients’ repeat visits lasted no more than five minutes and involved no physical examination. OWCP provides guidance to physicians that a patient visit which can be properly billed at a code 99214 will typically involve approximately 25 minutes face to face with the patient.
As a result of the criminal conduct, Mathews received at least $615,000 from either patients who received drugs without there being a medical necessity, or from OWCP and other health care benefit programs for services that were not rendered or were not medically necessary.
Mathews and the government have agreed that if the Court accepts the plea agreement, Mathews will be sentenced to two years of probation with a condition requiring home detention for all two years. Mathews has also agreed to forfeit $615,000. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for April 21, 2014, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the DEA – Washington Division Office, Tactical Diversion Squad; U.S. Postal Service - OIG; Department of Labor - OIG; Charles, St. Mary=s and Calvert County Sheriff’s Offices, Defense Criminal Investigative Service, OPM-OIG and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao, Mushtaq Z. Gunja and Sujit Raman, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Peter Hoffman and Michael Arata Indicted for Fraudulent Film Tax Credit SchemeRead the Press Release
PETER M. HOFFMAN, age 63, of Los Angeles, California and MICHAEL P. ARATA, age 47, of New Orleans, Louisiana, were charged in a six count Indictment by a Federal Grand Jury with conspiracy and wire fraud, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits which were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the State for infrastructure tax credits were entitled to receive an amount equal to 40% of their qualified and audited infrastructure expenditures. Once this amount was certified by the State of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The defendant, PETER M. HOFFMAN, was the Chief Executive Officer of Seven Arts Entertainment, Inc., a company that was primarily involved in the motion picture and entertainment industry in California. As Chief Executive Officer of Seven Arts Entertainment, Inc., his duties included the selection and production of major motion pictures, strategic planning, business development, operations, financial administration and accounting. HOFFMAN was also an attorney and participated as a lawyer and executive in numerous financial and tax-preferred financings over a period of more than twenty-five years. HOFFMAN also owned, operated and controlled numerous companies related to and affiliated with Seven Arts Entertainment, Inc.
The co-defendant, MICHAEL P. ARATA, was a Louisiana attorney and businessman who also owned and operated companies involved in the movie and entertainment industry. Through their respective companies, HOFFMAN and ARATA were partners in different movie-industry business ventures.
Through their respective companies, HOFFMAN and ARATA purchased property located at 807 Esplanade, New Orleans, Louisiana. 807 Esplanade was an old mansion, located in the Faubourg Marigny neighborhood on the edge of the French Quarter, which had fallen into a severe state of disrepair over many years. The proposed reason for purchasing the property was to renovate the mansion and turn it into a film post-production facility.
After purchasing the property, HOFFMAN and ARATA submitted an application and supporting documents to the State of Louisiana in order to receive film infrastructure tax credits for money the defendants fraudulently claimed had been spent on 807 Esplanade. On or about June 19, 2009, the State of Louisiana issued approximately $1,132,480.80 in tax credits to the 807 Esplanade partnership.
The Indictment charges that HOFFMAN and ARATA fraudulently submitted materially false and misleading documents and information regarding 807 Esplanade expenditures to the auditors and to the State of Louisiana in order to receive infrastructure tax credits.
“The United States Attorney’s Office, the FBI and the Louisiana Office of the Inspector General stand committed to protecting the economic interests of the United States and the State of Louisiana,” stated U.S. Attorney Polite. “The State of Louisiana has provided significant incentives to the film and entertainment industry in order to develop business and employment in Louisiana. Such an important effort will not be criminally exploited.”
“Those who brazenly steal from the taxpayers and abuse tax credit programs should know that we will relentlessly pursue and hold them criminally accountable wherever possible,” stated Louisiana Inspector General Stephen Street. “We remain committed to working with the FBI and United States Attorney to root out this sort of corruption wherever it may exist.”
HOFFMAN and ARATA face a maximum term of imprisonment of five (5) years with respect to Count 1, and twenty (20) years with respect to each of Counts 2 through 6. The defendants also face a maximum fine of $250,000 with respect to each count, and supervised release of three (3) years.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys G. Dall Kammer and Jordan Ginsberg.
(Download Indictment )
Pension Administrator Sentenced to Prison for Embezzling FundsRead the Press Release
PITTSBURGH – An Allegheny County man has been sentenced in federal court to 25 months in prison and $1,190,957.86 in restitution on his conviction of false statements and concealing information on pension plan documents, U.S. Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence yesterday on Merrill J. Druggs, 67, of Gibsonia, Pa.
According to the information presented to the court, Druggs was a Tax Manager for Oerlikon USA Holding, Inc., and a Plan Administrator and Trustee of an Oerlikon employee pension plan covering 1,400 persons. In 2011, after 34 years of employment with Oerlikon, Druggs was fired when the embezzlements were discovered. Druggs embezzled monies in several ways: by diverting Oerlikon monies to bank accounts using addresses of post office boxes that he created and controlled and his personal residence; by setting up an unauthorized 401(k) plan for his benefit and the benefit of two employess who he directly supervised, and used Oerlikon's money to fund it; and by using Oerlikon checks and a company American Express card to pay for his personal expenses. Druggs was able to embezzle $718,518 over a period of several years. The restitution ordered by the court included an additional amount of $472,439.86 to reimburse Orelikon and the pension plan for lost earnings on the embezzled monies.
Before imposing sentence the court said that this was a “carefully calculated plan” and that Druggs used his “education, experience and learning” to steal from Oerlikon and the pension plan. The court noted that Druggs was a trusted fiduciary of Oerlikon and the pension plan, and further explained that in order to function, our “system of commerce relies upon the trust we place in fiduciaries” such as Druggs. By abusing that trust Druggs conduct was “by any measure a very serious offense”.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the U.S. Department of Labor, Pension Benefit Welfare Administration, for the investigation leading to the successful prosecution of Merrill J. Druggs.
Operation Bloodline Defendant Sentenced to 10 Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRITT MARTIN, also known as “Big Baby,” 30, formerly of Northford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 120 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
One target of the investigation was Christopher “White Boy Chris” Morley, who operated a large-scale drug trafficking operation in the greater New Haven area, involving cocaine, crack cocaine, marijuana, and oxycodone. The investigation revealed that MARTIN conspired with Morley to obtain large quantities of cocaine and marijuana from sources of supply in New York City. Some of the cocaine was converted to crack, and the drugs were sold to customers and other drug distributors in and around New Haven.
MARTIN’s criminal history includes an arrest on December 21, 2011, when law enforcement officers conducted a motor vehicle stop of a car in which MARTIN was a passenger and found him in possession of approximately eight ounces of marijuana. A subsequent search of a residence connected to MARTIN revealed more than two pounds of marijuana, approximately $18,500 in cash and a loaded revolver that had been stolen.
MARTIN has been detained since his federal arrest on May 22, 2012. On November 12, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.
Morley has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Oakland Man Sentenced to over Five Years in Prison for Robbing Five Banks and Attempting to Rob Two Banks in the East BayRead the Press Release
OAKLAND – Amanuel Moreno was sentenced yesterday to 70 months in prison for bank robbery and attempted bank robbery, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Moreno admitted to robbing or attempting to rob the following banks:
Date
Bank
Location
Amount Stolen
06/29/2012
Bank of the West
24299 Southland Drive, Hayward
$25
12/06/2012
Bank of the West
4900 Telegraph Avenue, Oakland
$506
12/06/2012
Chase Bank
2270 Otis Drive, Alameda
Attempt
12/13/2012
Wells Fargo Bank
950 South Holland Drive, Hayward
$1,541
12/18/2012
Chase Bank
32101 Union Landing, Union City
Attempt
12/18/2012
U.S. Bank
1585 East 14th Street, San Leandro
$724
01/16/2013
Bank of the West
4900 Telegraph Avenue, Oakland
$3,321
In his robberies and attempted robberies, Moreno entered the banks and passed the victim tellers threatening notes demanding money. The notes informed the tellers that Moreno had a gun, and in the last three incidents Moreno threatened to shoot the tellers.
Moreno, 21, of Oakland, was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He has been in federal custody since July 5, 2013. The superseding indictment charging Moreno with five counts of bank robbery and two counts of attempted bank robbery was filed on August 1, 2013. Moreno pleaded guilty to all seven counts on October 23, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, Hayward Police Department, Oakland Police Department, Alameda Police Department, Union City Police Department, and San Leandro Police Department.
(Moreno superseding indictment )
Northern Nevada Man Convicted of Distributing Synthetic DrugsRead the Press Release
RENO, Nev. – In the first federal jury trial of its kind in Nevada involving synthetic drugs commonly referred to as “spice,” a Reno, Nevada man has been convicted of multiple counts related to the distribution and possession of the dangerous substances, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 33, was convicted on Thursday, Feb. 6, 2014, of 16 counts of possession with intent to distribute or distribution of controlled substances, and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise as to his business. Singh-Sidhu was originally charged and arrested in March 2013, and the jury trial started on Monday.
“Purchasing and using these compounds is extremely dangerous and can be equated to playing Russian roulette,” said U.S. Attorney Bogden. “The chemicals used to make the drugs are continually altered and the substance you get one day will not be the same one you get the next day. Persons, including youth, are increasingly ingesting these dangerous combinations of chemicals. We are working diligently with our local, state and federal law enforcement partners to investigate these cases, and will use federal laws to prosecute persons who recklessly distribute these substances.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The spice he distributed over the course of these four occasions was labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, federal search warrants were executed at his business, Grab n Go Food n Liquors, located at 1801 West 4th Street, in Reno, and at his residence located at 3101 Platte River Drive, in Reno. Dozens of packages of several varieties of “spice” were found at his business, and three boxes and a garbage bag containing hundreds of packages of various types of “spice” were recovered at his home. The overall street value of the “spice” recovered at these premises containing controlled substances or analogues intended for human consumption was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” with these controlled substances, and analogues intended for human consumption.
Singh-Sidhu faces up to 20 years in prison and a $1 million fine on each count, except for the maintaining a drug-involved premises count, which carries a maximum fine of $500,000. Singh-Sidhu is scheduled to be sentenced in Reno on June 9, 2014, at 2:00 p.m. by U.S. District Judge Robert C. Jones.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, Virginia.
North Miami Man Sentenced in Mail Fraud and Identity Theft CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge of the Atlanta Regional Office, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity, announce the sentencing of Guy Robert Nalien, 26, of North Miami, after a plea of guilty on November 6, 2013, to mail fraud and aggravated identity theft. On February 5, 2014, U.S. District Court Judge Marcia G. Cooke sentenced Nalien to 32 months in prison, followed by three years of supervised release, and restitution to the State of Florida in the amount of $29,815.
According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleged, that Nalien used the U.S. Postal Service to receive these fraudulently obtained benefits for his own personal use.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida’s Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Nineteen Face Federal Methamphetamine ChargesRead the Press Release
A federal grand jury in Benton, Illinois, has charged nineteen individuals with methamphetamine related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Those charged are Delbert Bargo, Jr., 53, of Thompsonville, IL, Kathryn Ann Medlin, 43, of Thompsonville, IL, Caleb S. Hoffard, 36, of Marion, IL, Jamie L. Hughey, 36, of Mt. Vernon, IL, Traci L. Jackson, 36, of West Frankfort, IL, Amber D. Mulkins, 31, of Marion, IL, Jeffrey Morneweg, 49, of Johnston City, IL, Weldon A. Poole, 29, of Marion, IL, Jamie R. Sneed, 31, of West Frankfort, IL, Kevin Spurlock, 42, of DuQuoin, IL, Regina K. Spurlock, 41, of DuQuoin, IL, Amber R. Duckworth, 37, of Hurst, IL, Justin C. Phillips, 27, of Elizabethtown, IL, Scotie M. Slaten, 26, of West Frankfort, IL, Jason K. Wells, 30, of Marion, IL, Jessica M. Peters, 34, of West Frankfort, IL, and Laura L. Coker, 51, of Carterville, IL. Two of those indicted remain at large.
All those charged face up to 20 years in prison and up to a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in these cases was conducted by the Illinois State Police, Southern Illinois Drug Task Force, United States Marshals Service, Franklin County Sheriff’s Office, West City Police Department, Christopher Police Department, Zeigler Police Department, Sesser Police Department, Drug Enforcement Administration, Jackson County Sheriff’s Office, Jackson County State’s Attorney, Franklin County State’s Attorney, Williamson County Sheriff’s Department, Southern Illinois Drug Enforcement Group, Pope County Sheriff’s Office, and the Pope County State’s Attorney.
“Federal investigations into methamphetamine actives in Franklin, Williamson, and Pope Counties have thus far resulted in the indictment of over 90 individuals, and we are not finished - the investigations are ongoing.” said United States Attorney Wigginton.
These cases are being prosecuted by Assistant United States Attorney Tom Leggans.
Newport News Man Convicted for His Involvement in Hampton ShootoutRead the Press Release
NEWPORT NEWS, Va. – Ryan Fultz, 33, of Newport News, Va., was convicted today by a federal jury of possessing and discharging a firearm during a drug trafficking crime, possession with intent to distribute cocaine, and felon in possession of a firearm.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and, Terry L. Sult Hampton Police Chief, made the announcement after the verdict was accepted by United States District Judge Henry C. Morgan, Jr.
Fultz was indicted on March 13, 2013 on charges of possession with intent to distribute cocaine base, commonly known as “crack” cocaine, possession, brandishing and discharging a firearm during a drug trafficking crime, and felon in possession of a firearm.
According to court records, and evidence at trial, on December 27, 2011, Fultz was present during a planned drug deal in the Wal Mart parking lot located at Cunningham Drive, Hampton, Va. Fultz provided back-up to a drug dealer and when a dispute arose, he participated in a shootout with two other individuals. Fultz discharged a Bushmaster AR-15 high powered rifle during the shooting in which more than 30 shots were exchanged as evidenced by shell casings recovered at the scene. Fultz is the third participant federally prosecuted as a result of this incident. Fultz faces a minimum of ten years on his firearm conviction but due to his status as a career criminal, he faces a maximum sentence of life in prison when he is sentenced on May 22, 2014.
This case was investigated by the FBI Safe Streets Task Force, Hampton Police Division and ATF’s Washington Field Division. Special Assistant United States Attorney Timothy R. Murphy prosecuted 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.
New York Man Sentenced to over 24 Years for Violent Sex TraffickingRead the Press Release
Defendant used brutal tactics to victimize multiple women and girls into prostitution
ALEXANDRIA, Va. – Taleek Sherrod Swinney, also known as “Kash da Pimp,” age 26, of Jamaica Queens, New York, was sentenced today to 294 months in prison, followed by 20 years of supervised release, for operating a sex trafficking ring using violence, force, and threats to victimize multiple women and girls. Swinney also was ordered to pay to the victims over $500,000 in restitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; and Stafford County Sherriff Charles E. Jett, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
“Swinney was one of the most violent sex traffickers ever found in the Eastern District of Virginia,” said Acting U.S. Attorney Boente. “My office will continue working to bring to justice sex traffickers who use violence to prey upon vulnerable women, and I thank our partners at Homeland Security Investigations and the Stafford County Sheriff’s Office for their commitment to this issue.”
“This sentencing marks the end of a life of misery inflicted on the victims of Swinney’s heinous sex trafficking operation. Swinney will be held accountable for his victimization and exploitation of these vulnerable women,” said Scot R. Rittenberg, Acting Special Agent in Charge, HSI Washington.
“Stafford County Sheriff’s Office Deputies have received extensive training in the signs and indicators of sex trafficking,” said Stafford County Sheriff Charles Jett. “This one case clearly illustrates that a strong partnership with law enforcement agencies nationwide, both federal and local, can bring violent criminals such as Swinney to justice.”
On November 4, 2013, Swinney pleaded guilty to one count of sex trafficking. According to court documents, Swinney has been prostituting women since at least 2006. He started in New York City, but later sex trafficked women and girls in multiple states along the East Coast from Connecticut to Florida, including in Virginia, Maryland, and Washington. As part of his operation, Swinney utilized the website Backpage.com to advertise the women and obtain commercial sex customers. At least one of his victims was a juvenile when Swinney began prostituting her.
Swinney required the women he prostituted to give him all of the money that they earned. Swinney frequently set a quota for the women, and those who failed to meet the quota were not allowed to eat.
As detailed in the statement of facts entered at Swinney’s plea, Swinney’s violence included beating one of his victims almost daily. On one occasion, Swinney used a metal rod to beat this victim, stopped to film the victim naked and bleeding, and then continued beating her. During this beating, Swinney fractured the victim’s nose and jaw. Swinney later showed this video to other pimps, including a co-conspirator known as “Prince Charming.”Swinney often would beat victims in the presence of the other women that he was prostituting as a means of instilling fear in all of them. In one instance, Swinney lacerated a victim’s face and ear with a box cutter. When another victim became pregnant, Swinney forced the woman to obtain an abortion. In another instance, when one of Swinney’s victims refused to get out of his vehicle and walk the streets to obtain customers, Swinney threw her out of the moving vehicle. Later, when Swinney found out that one of the victims was cooperating with the government, he threatened her and her family with violence.
This case was investigated by HSI Washington and the Stafford County Sheriff’s Office, with assistance from HSI New York and the New York Police Department. Assistant United States Attorney Michael J. Frank prosecuted 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.New Mexico Farmer Sentenced to Prison for Tax Fraud, Fraudulently Collecting Farm SubsidiesRead the Press Release
Bill Melot, a farmer from Hobbs, N.M., was sentenced to serve 14 years in prison today to be followed by three years of supervised release for tax evasion, program fraud and other crimes, the Justice Department, Internal Revenue Service (IRS) and U.S. Department of Agriculture’s (USDA) Office of Inspector General announced today. Melot was also ordered to pay $18,469,998 in restitution to the IRS and $226,526 to the USDA.
Melot was previously convicted of tax evasion, failure to file tax returns, making false state ments to the USDA and i mpeding the IRS following a four-day jury trial in Albuquerque, N.M. According to court documents and evidence presented at trial and at sentencing, Melot has not filed a personal inco me tax return since 1986, and owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas. In addition, Melot has i mproperly collected more than $225,000 in federal farm subsidies from the USDA by furnishing false infor mation to the agency. Specifically, Melot provided the USDA with a false Social Security nu mber (SSN) and a fictitious e mployer identi fication nu mber (EIN) to collect federal farm aid.
According to court documents and evidence presented at trial, Melot took nu merous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the na me of no minees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS. Additionally, Melot maintained a bank account with Nordfinanz Zurich, a Swiss financial institution, which he set up in Nassau, Baha mas, in 1992, and failed to report the account to the U.S. Treasury Depart ment as required by law.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and Acting U.S. Attorney Steven C. Yarbrough for the District of New Mexico co mmended the investigative efforts of IRS - Cri minal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silvers mith and Assistant U.S. Attorney George Kraehe, who prosecuted the case. Assistant Attorney General Keneally and Acting U.S. Attorney Yarbrough also thanked the Cri minal Investigation Division of the Texas Co mptroller of Public Accounts for assistance in prosecuting this matter.
More infor mation about the Justice Depart ment’s Tax Division and its enforce ment efforts is available at the website
New Mexico Farmer Sentenced to Prison for Tax Fraud, Fraudulently Collecting Farm SubsidiesRead the Press Release
ALBUQUERQUE – Bill Melot, a farmer from Hobbs, N.M., was sentenced to serve 14 years in prison today to be followed by three years of supervised release for tax evasion, program fraud and other crimes, the Justice Department, Internal Revenue Service (IRS) and U.S. Department of Agriculture’s (USDA) Office of Inspector General announced today. Melot was also ordered to pay $18,469,998.51 in restitution to the IRS and $226,526 to the USDA.
Melot was previously convicted of tax evasion, failure to file tax returns, making false statements to the USDA and impeding the IRS following a four-day jury trial in Albuquerque, N.M. According to court documents and evidence presented at trial and at sentencing, Melot has not filed a personal income tax return since 1986, and owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas. In addition, Melot has improperly collected more than $225,000 in federal farm subsidies from the USDA by furnishing false information to the agency. Specifically, Melot provided the USDA with a false Social Security number (SSN) and a fictitious employer identification number (EIN) to collect federal farm aid.
According to court documents and evidence presented at trial, Melot took numerous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the name of nominees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS. Additionally, Melot maintained a bank account with Nordfinanz Zurich, a Swiss financial institution, which he set up in Nassau, Bahamas, in 1992, and failed to report the account to the U.S. Treasury Department as required by law.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and Acting U.S. Attorney Steven C. Yarbrough for the District of New Mexico commended the investigative efforts of IRS - Criminal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silversmith and former Assistant U.S. Attorney George Kraehe, who prosecuted the case. Assistant Attorney General Keneally and Acting U.S. Attorney Yarbrough also thanked the Criminal Investigation Division of the Texas Comptroller of Public Accounts for assistance in prosecuting this matter.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.