Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 March 2014
Rochester Man Sentenced for Performing Phantom Testing on Military Radios and SonobuoysRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Steve Wysocki, 50, of Newark, N.Y., who was convicted of filing false statements with the United States Government, was sentenced to 24 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $299,000 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Wysocki was Testing Manager for Flightline Systems, a Victor based defense contractor working on United States Army and Navy projects. The defendant oversaw product testing for the KG-40 military radio system as well as the SH-60 Sonobuoy system.
The KG-40 is a tactical radio encryption system used by the US Army and Navy and sold for export to foreign countries. It consists of several components including the radio, a remote, and a tray. The SH-60 Sonobuoy system is an Anti-Submarine Warfare (ASW) device. The system includes a small sonar unit which is released from both fixed and rotor wing ASW aircraft as well as various other components including external preamps.
Both the KG-40 and Sonobuoy programs have contractual manufacturing and testing requirements imposed by the United States Department of Defense. Among these protocols is something know as vibration testing. This process subjects the various items to prolonged vibration exposure using a vibration table equipped with pressure plates. The items are placed on the vibration table during the manufacturing process for a pre-set period of time to ensure that they will survive real world conditions on ships and aircraft.
The components are hooked up to a computer during testing which monitors their performance and then produces a unique graph upon successful completion. Due to many individual testing variables, no two items will produce the exact same testing graph. The graphs are unique to each item, and are stamped with the time and date of the test as well as the serial number of the item tested. The graphs are signed by the table operator and are then made part of the items “traveler file” which accompanies each item throughout the assembly and testing process. Each item tested must have a copy of a passing vibration table graph in the file in order to be released to the military. The vibration tests were run at Flightline’s Victor facility.
During the investigation, Special Agents from the FBI and Army Criminal Investigation Division learned that Wysocki was both personally falsifying vibration graphs as well as directing other subordinates to do so. Wysocki would then print the false graph, or direct others to do so, and include this false document in the items history, thus proving that it was successfully tested, even though as he knew, the item was not properly tested. He referred to this process as “phantom vibe testing.”
As a result of the defendant’s conduct, individual components had to be re-tested costing the Department of Defense $299,094.00
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU), under the direction of Special Agent in Charge, L. Scott Moreland; Naval Criminal Investigative Service (NCIS), Northeast Field Office under the direction of Special Agent in Charge, Jeremy Gauthier; and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), under the direction of Special Agent in Charge, Craig Rupert.Retired Boston Police Officer Arrested; Indicted in Investment Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Daniel Rice, 50, a retired Boston, MA, police officer, with wire fraud and conspiracy to commit wire fraud. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that Rice is charged with causing a broker from Montana to wire $250,000 in March 2009 to Carnic Services LLC, one of the “New Frontier” companies controlled by Michael Wilson, formerly of Hamburg, N.Y. According to the indictment, by March 2009, Rice the defendant knew that Michael Wilson’s companies failed to pay out on deals promising large returns in short periods of time. Wilson is currently under indictment for deals entered into by his companies in 2008 through 2010.
The indictment against Rice also charges that, in two deals brokered in January and July of 2010, the defendant intentionally failed to tell the same Montana broker that the company offering the investment program, “Zodiak Capital,” was another of Wilson’s companies. As a result, in January 2010, the Montana broker wired $100,000 to Rice, who kept $40,000 before passing the remaining $60,000 on to a Wilson account at HSBC Bank in Buffalo. In July 2010, Rice was involved in a second deal with Zodiak, and again failed to tell the Montana broker about Zodiak’s connection to Wilson’s companies. As a result, on July 15 and 19, 2010, a total of $71,875.00 of a different investor’s money was wired to accounts in the Buffalo area controlled by Zodiak. None of these deals paid out. The only money ever recovered was the $71,875 wired to Zodiak in July 2010, which was recovered because the government quickly applied to have the receiving bank accounts frozen. The funds eventually were returned to the investor, who lives in Utah.
Rice was arrested today in Stoughton, Massachusetts and made an appearance in U.S. District Court in Boston, after which he was released. The defendant will be arraigned in Buffalo before U.S. Magistrate Judge Jeremiah J. McCarthy on March 28, 2014 at 2:30 p.m.
The indictment is the result of an investigation by the Federal Bureau of Investigation, with assistance from the Boston Police Department Anti-Corruption Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Panama Man Sentenced for Child Pornography/Immigration OffensesRead the Press Release
Follow @SDILNewsA resident of Panama, who was living illegally in the United States, in Glen Carbon, Illinois, was sentenced on March 21, 2014, on a three-count Indictment, charging him with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 1), Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of a Counterfeit Alien Registration Card, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jean Paul Jimenez-Kuchler, 30, Panama City, Panama, was sentenced to a concurrent terms of 84 months in federal prison on each count, concurrent terms of supervised release of five years on Counts 1 and 2 and three years on Count 3, fined $300, and ordered to pay a $300 special assessment. In addition, upon his release from prison, Jimenez-Kuchler will be deported to Panama.
The investigation began on June 6, 2013, when a federal search warrant was executed at Jimenez-Kuchler’s residence in Glen Carbon, after local agents with the Department of Homeland Security (DHS), were informed that an IP address registered to Jimenez-Kuchler’s address was captured while trying to access an online bulletin board that had, as its primary purpose, the sexual exploitation of minors, primarily prepubescent minors.
Agents seized two hard drives from Jimenez-Kuchler’s bedroom. Jimenez-Kuchler admitted that the hard drives belonged to him. One of the hard drives contained at least five video files, four of which exceeded five minutes in length, of prepubescent minors engaged in sexually explicit behavior. The other hard drive contained approximately 4,349 image and/or video files of minors engaged in sexually explicit behavior, many of which depicted prepubescent minors or minors who had not attained 12 years of age (Count 2). The analysis also revealed that two of the videos depicting images of minors engaged in sexually explicit conduct were downloaded and received by Jimenez-Kuchler on or about June 5, 2013 (Count 1).
Jimenez-Kuchler admitted that he was a citizen of Panama City, Panama, who was present in the United States illegally. He also admitted accessing the child pornography bulletin board that had, as its primary purpose, the sexual exploitation of minors, which was the basis of the federal search warrant.
An alien registration receipt card was also recovered from Jimenez-Kuchler. During his interview, Jimenez-Kuchler admitted that the alien registration card was counterfeit, stating that he obtained it approximately five years prior so that he would be eligible for employment in the United States. Jimenez also admitted being in the United States illegally since after 2001 when his “visitor for pleasure” card expired, and that he knew that the alien registration card found in his possession was fake (Count 3).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 was investigated by the Department of Homeland Security, Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott.
Murphysboro Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn March 21, 2014, Donald E. Gregory, 47, of Murphysboro, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Gregory, who had previously pled guilty to the methamphetamine offense, was sentenced to 130 months in prison, to be followed by 4 years supervised release, and fined $300. The offense occurred between March 2011 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Gregory was involved with others in the manufacture of methamphetamine. At sentencing, the district court found that Gregory was responsible for the manufacture of 660 grams of methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Mortgage Company Owner Convicted of Bank Fraud ConspiracyRead the Press Release
Albert Greer, Sr. of Shelby Township was found guilty on March 20, 2014 of Conspiracy to Commit Bank Fraud, and of Aiding and Abetting Bank Fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
They jury deliberated for 3 hours before returning the guilty verdicts, concluding a trial that began on March 11, 2014 before United States District Judge Stephen J. Murphy III.
Evidence introduced during the trial established that from 2004 through 2007, Greer devised and executed a scheme to commit bank fraud by locating residential properties in the Detroit metropolitan area, then recruiting and paying “straw buyers” to sign for mortgage loans they never intended to repay on homes they never intended to live in. Greer often made the mortgage payments on the loans for several months so the lenders would not immediately realize that the loans had been obtained by fraud, but then the loans went into default and the properties went into foreclosure.
Co-defendant and co-conspirator Carlton Davis (who pleaded guilty in 2013 to conspiring with Greer) would submit fraudulent loan applications to various financial institutions on behalf of the straw buyers. The applications were filled with material false representations which were supported by phony documents Greer created, including W-2s, earnings statements, verifications of deposit, verifications of employment, and so on. Greer attempted to insulate himself from criminal liability by acting through the straw buyers and through shell companies -- including Detroit National Mortgage Associates --he established in the names of his family members. Greer also had his family members open bank accounts in their names, which he used to launder the proceeds of his crimes.
Greer not only scammed banks out of several million dollars, he also stole the sellers' proceeds on occasion by submitting invoices for "consulting fees" owed to Detroit National Mortgage Associates; if the seller did not realize those fees were included on the HUD-1s, proceeds checks would be issued to the shell company at closing, and Greer would cash the checks. In this way, Greer stole $167,844.31 from the homeowner who sold 18630 Fairway in Detroit in 2005, and $21,948.92 from the homeowner who sold 16872 Huntington in Detroit in 2006.
Each count of conviction, Conspiracy to Commit Bank Fraud and Aiding and Abetting Bank Fraud, carries a maximum prison term of 30 years, a $1,000,000 fine, and 5 years of supervised release following the period of incarceration. No sentencing date has been set at this time.
“Some people rob banks with guns and masks,” McQuade said. “This defendant robbed banks with lies and false documents. White collar criminals deserve to be seen as the robbers that they are.”
The investigation of this case was conducted by special agents of the FBI and prosecuted by Assistant U.S. Attorney Cynthia Oberg.
Mobile Man Sentenced to Thirty Six Months Imprisonment for Being A Felon in Possession of A FirearmRead the Press Release
MOBILE, AL - The United States Attorney, Kenyen R. Brown, announces that Anthony Wesley Cade was sentenced to thirty six months imprisonment today by United States District Court Judge Kristi DuBose, after pleading guilty to being a felon in possession of a firearm in violation of Title 18 USC '922(g)(1). Cade was previously convicted of the felony offense of Possession of Marijuana 1st Degree in the Circuit Court of Mobile County in October 2009. The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff's Office, Narcotics Division.
Mobile Man Sentenced to Forty One Months Imprisonment for Possession of Pseudoephedrine with the Intent to Manufacture MethamphetamineRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Tony Lee Collier was sentenced to forty one months imprisonment yesterday by United States District Court Judge William H. Steele, after pleading guilty to possession of pseudoephedrine with the intent to manufacture methamphetamine in violation of Title 21 USC '841(c)(1). The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff's Office, Narcotics Division.
Missouri Residents Charged with Bank RobberyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 21, 2014, Darren E. Everett, 43, and Mackenzie A. Leonard, 28, residents of Chesterfield, Missouri, who were dating at the time of the commission of the alleged offense, were arraigned on an Indictment charging them with Bank Robbery. Both defendants were ordered detained, that is, held without bond, pending trial, which is scheduled for May 5, 2014, in Federal Court in East St. Louis, Illinois.
The indictment charges that, on February 4, 2013, both defendants robbed Commerce Bank in Monroe County of approximately $1,782. If convicted, both defendants face a term of imprisonment of not more than 20 years, a fine up to $250,000, or both, a term of supervised release of not more than three years, and a $100 special assessment.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Columbia, Illinois, Police Department, the Illinois State Police and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Missouri Man Charged with Trying to Shutdown Phila.GovRead the Press Release
PHILADELPHIA - Michael Crockett, 29, of Kansas City, Missouri, was charged today by Information with attempting to intentionally damage a computer, announced United States Attorney Zane David Memeger.
The Information alleges that between September 24 and 26, 2012, Crocket knowingly caused the transmission of codes and commands to a computer hosting the City of Philadelphia’s website, www.phila.gov, in an attempt to shut down that website. This type of attack is known as and described as a distributed denial of service attack (DDOS). Crockett’s actions caused a loss to the city of more than $5,000.
If convicted the defendant faces a maximum possible sentence of 10 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Middle School Teacher Sentenced for Sexually Assaulting StudentRead the Press Release
The United States Attorney's Office announced that TYRELL LEE BALIBARDIN, 22, of Browning, Montana, was sentenced to a term of 30 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian M. Morris.
BALIBARDIN was sentenced in connection with his December 17, 2013, guilty plea to sexual abuse of a minor. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that BALIBARDIN was a substitute teacher for the Technology Class at Browning Middle School. BALIBARDIN began a sexual relationship with his student that included vaginal and oral sex.
At sentencing, the government stated, "Teachers exist to nurture and help their students to explore the world. No part of that job description includes having sexual intercourse. Mr. Balibardin violated that rule, breaching the trust of the school, parents, and the community."
The District Court sentenced BALIBARDIN to 30 months of imprisonment, with five years of supervised release to follow. BALIBARDIN will also be required to register as a sexual offender.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that BALIBARDIN will likely serve all of the time imposed by the court. In the federal system, BALIBARDIN does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
U.S. Attorney Mike Cotter said the sentence, which was within the federal advisory sentencing guideline range, reflected the seriousness of the crime and the need to protect children from those who abuse and take advantage of a position of trust. "Children are the most treasured, yet most vulnerable, members of the tribal community. They are made even more vulnerable when they are told to trust, respect, and obey those in positions of authority, like teachers. The sexual abuse of children is most destructive when committed by people entrusted with their care."
This case was investigated by the Federal Bureau of Investigation.
Meth Manufacturer Sentenced to Lengthy Federal Prison TermRead the Press Release
Follow @SDILNewsOn March 20, 2014, Eric L. Kellems, 43, of Madison, Ill., was sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Kellems, who had previously pled guilty to the methamphetamine offense, was sentenced to 192 months in federal prison, to be followed by 6 years on supervised release, and fined $200. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Kellems was involved with others in the manufacture of methamphetamine. During the conspiracy, Kellems obtained over 70 grams of pseudoephedrine for use in the manufacture of methamphetamine. Kellems received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Member of Massive Counterfeit Goods Conspiracy Sentenced to 38 Months in PrisonRead the Press Release
NEWARK, N.J. – A member of a massive, international counterfeit goods conspiracy was sentenced today to 38 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Ning Guo, 40, of the People’s Republic of China, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to traffic in counterfeit goods and one count of money laundering conspiracy. Judge Salas imposed the sentence today in Newark federal court.
Two other conspirators have already been sentenced, and two await sentencing. Yi Jian Chen, 53, and Hui Huang, 33, both of Brooklyn, each previously pleaded guilty to one count of conspiracy to traffic in counterfeit goods and await sentencing. Jian Zhi Mo, 45, of Flushing, N.Y. and Yuan Feng Lai, 28, of New York City, each previously pleaded guilty to one count of conspiracy to traffic in counterfeit goods and were each sentenced to 14 months of home confinement.
According to documents filed in this case and statements made in Court:
From August 2008 through February 2012, the defendants ran an international counterfeit goods smuggling and distribution conspiracy. The defendants and others imported more than 35 containers of counterfeit goods – primarily cigarettes, handbags, and sneakers – into the United States from China. These goods, if legitimate, would have had a retail value of more than $300 million.
The conspirators sought help in importing counterfeit goods into the United States and used a corporation to import the goods through Port Newark-Elizabeth Marine Terminal in Elizabeth, N.J. This corporation was actually a front company set up by law enforcement to act as an importer. The conspirators imported the counterfeit goods using fraudulent customs paperwork, which, among other things, falsely declared the goods within the containers.
Certain conspirators controlled the importation of the counterfeit goods into the United States. Some conspirators managed the distribution of counterfeit goods once they arrived in the United States. Others paid individuals they believed controlled an importation company with connections at the port. In fact, these individuals were undercover law enforcement agents.
Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. A number of conspirators, including Guo, also engaged in a money laundering conspiracy to disguise and conceal the source of what they believed to be the profits of certain unlawful activity, moving this money through banks in the United States, China, and elsewhere, to disguise the sources of the funds.
Law enforcement introduced several undercover special agents to the conspirators. These undercover agents purported to have connections at the port, which allowed them to obtain containers that were on hold, get them released and pass them through to the conspirators. The conspirators paid the undercover agents more than $900,000 for these “services.”Undercover agents recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Guo’s primary role was to transport and store imported counterfeit merchandise for the conspirators after it arrived at the port. He was also involved in the actual importation of the goods from China. Guo communicated with the undercover agents in numerous recorded calls and meetings about importing counterfeit goods from China and clearing the goods through customs. Guo was also involved in an international money laundering scheme through which he and others laundered the proceeds of the counterfeit goods smuggling scheme.
In addition to the prison term, Guo is subject to deportation.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
14-098
Defense counsel: Richard Willstater Esq., White Plains, N.Y.Member of Bakken Drug Ring Sent to Federal PrisonRead the Press Release
The United States Attorney's Office announced that SEAN MICHAEL VAIRA, 30, of Billings, was sentenced to 37 months in prison followed by 3 years supervised release by U.S. District Judge Susan Watters on March 13, 2014. The defendant previously pled guilty to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Joe Thaggard told the Court in an Offer of Proof that in early 2013, the Montana Division of Criminal Investigation (MDCI), the Drug Enforcement Administration (DEA) and Sidney, Montana Police Department began to investigate a drug trafficking network operating in Sidney and Fairview, Montana. That investigation revealed that Sean Vaira was involved in the drug trafficking network.
On August 7, 2013, the Vaira was interviewed by MDCI Agents and told agents that in approximately December of 2012, he met a methamphetamine dealer based in Sidney. Vaira admitted that between late December 2012 or early January 2013, and mid-March of 2013, he drove that drug dealer to meetings in Butte and Missoula at which the drug dealer obtained a total of approximately one and one-half pounds of methamphetamine and which the drug dealer then distributed in Big Timber and Sidney.
The Defendant stated that, in approximately mid-April 2013, he obtained approximately seven grams of methamphetamine from a drug dealer in Fairview which he in turn distributed to others. Vaira said that several days later, at the behest of that drug dealer, he drove to Butte and obtained one-half pound of methamphetamine which he then drove to Sidney and distributed some of the drugs to the Fairview-based drug dealer and some of the drugs to others he knew in the Sidney area.
Several days later, Vaira made another drug run to Butte and obtained another half-pound of methamphetamine which he brought back to the Fairview-based drug dealer and other drug dealers in the Sidney area.
March Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 41 indictments charging 45 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jorge Almazan-Garcia, age 44, of Gibbon, Nebraska, is charged with illegal reentry into the United States on or about January 30, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Richard D. Avila, Jr., age 50, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about May 1, 2013 and continuing to on or about November 21, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jose Avila-Ortiz, age 26, of Omaha, is charged with illegal reentry into the United States on or about March 10, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, a 1 year of supervised release, and a $100 special assessment.
* Keith D. Baker, age 40, of Omaha, is charged with being a felon in possession of a firearm on or about February 10, 2014. The maximum possible penalty is imprisonment of up to life, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Diana Castillo-Toscano, age 28, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about August 13, 2012. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about August 13, 2012, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Rosa Cervantes-Santiago, age 42, of Omaha, is charged with misuse of a Social Security Number on or before September 17, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Tyler L. Coddington, age 20, of Omaha, is charged with failure to register as a Sex Offender in the State of Nebraska on or about January 21, 2014. The maximum possible penalty for this count includes imprisonment of 10 years, a fine of $250,000, a term of supervised release for life, and a special assessment of $100.
* Jonathan Contreras, age 19, is charged with conspiring with others to distribute and possess with intent to distribute a mixture or substance containing methamphetamine on or about February 20, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey L. Eckert, age 54, of Pilger, Nebraska, was charged with fraudulently making a material false oath and account in his Chapter 7 bankruptcy case, on or about March 23, 2009. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julio Enriquez-Salinas, age 30, is charged in a four-count indictment. Count I charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about January 30, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about February 3, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about February 6, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with possession with intent to distribute a mixture or substance containing a detectable amount of methamphetamine on or about February 12, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Blanca Estela Factor-Villanueva, using the name L.P., age 38, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about January 7, 2013. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised, and a special assessment of $100. Count II of the Indictment charges on or about January 7, 2013, the defendant made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about January 7, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Santiel Flores-Trejo, age 24, of Omaha is charged with illegal reentry into the United States on or about February 14, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alfonso Lopez Garcia, also known as Alfonso L. Garcia and also known as Alfonso Garcia, age 55, of Modesto, California, and Fredy Salvador Alcaraz Mendoza, also known as Fredy Mendiolaza-Untiveros, age 41, of Shawnee, Kansas, were charged with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about March 2, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Conrado Gastelo-Sanchez, age 45, of Omaha, is charged with illegal reentry into the United States on or about August 12, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Darwin Alexi Gonzalez-Rodriguez, age 34, of Jacksonville, Texas, is charged with illegal reentry into the United States on or about March 11, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Kurt Hansen, age 34, of Lincoln, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about February 19, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* William Hurst, age 30, is charged in a two-count Indictment. Count I alleges that beginning on or about September 1, 2013, and continuing to on or about January 16, 2014, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about January 16, 2014, the defendant possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to the United States currency seized from the defendant on January 16, 2014, should be forfeited to the United States.
* Francisco Lara-Beltran, age 40, is charged with illegal reentry into the United States on or about February 17, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Roxana Maritza Lopez-Ramon, age 24, of Omaha, is charged with misuse of a Social Security Number on or before February 27, 2012. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Ruben Machuca-Delgado, age 44, of Omaha, is charged with illegal reentry into the United States on or about March 5, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Pascual Mancinas, age 29, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine beginning on or about May 1, 2012, and continuing to on or about May 30, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $195,905.00 in United States currency seized from the defendant on May 2, 2013, should be forfeited to the United States.
* Susan Marr, age 38, of Walthill, Nebraska, is charged in a three-count Indictment. Count I alleges that from on or about July 30, 2007, and continuing to on or about October 19, 2012, the defendant stole and converted to her own use $38,171.00 in Social Security Supplemental Security Income payments made on behalf of her son, knowing her son was not entitled to those payments. The maximum possible penalty if convicted includes imprisonment of 10 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment. Count II alleges that on or about October 19, 2012, the defendant made a false statement and representation of a material fact for use in determining rights to Social Security Supplemental Security Income. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment. Count III alleges that beginning on or about July 2, 2009, and continuing without interruption until on or about October 19, 2012, the defendant concealed and failed to disclose to the Social Security Administration material facts knowing the facts would affect her son’s eligibility to continue to receive Social Security Supplemental Security Income. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment.
* William Giovanni Sandoval Martinez, using the name S.O.M., age 35, of Schuyler, is charged in a three-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about June 3, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* McDonald, Aaron, age 28, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about January 27, 2014, and continuing to on or about March 6, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment.
* Trevor P. McLaurine, age 24, of Elkhorn, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges McLaurine with receipt of child pornography from on or about February 1, 2012, to on or about August 28, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. McLaurine is charged in Count II with possession and distribution of child pornography on or about August 28, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any and all property used or intended to be used in any manner or part to commit and to promote the commission of the violation should be forfeited to the United States.
* Luis Mellan-Rivera, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 27, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Martha Molina, age 44, and Osman Meza-Romero, age 24, both of Omaha, are charged with conspiring together and with others to distribute and possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine beginning on or about November 1, 2013, and continuing to on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to: United States currency seized on January 17, 2014, from 311 William Street, Omaha, Nebraska, should be forfeited to the United States.* Ricardo Muro and Juan Aguilar-Arredondo are charged with conspiring together and with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about January 1, 2014, and continuing to on or about March 10, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to: $28,000.00 in United States currency seized from Juan Aguilar-Arrendondo on March 10, 2014, and $5,200.00 in United States currency seized from the residence of Ricardo Muro on March 10, 2014, should be forfeited to the United States.
* Adam Mwanza, age 42, of Omaha, is charged in a 15-count indictment. Counts I through XV allege that for calendar years 2007 and 2008, the defendant aided, assisted, advised, and prepared individual income tax returns for taxpayers knowing the income tax returns were false and the taxpayers were not entitled to claim the various deductions, credits, and refunds the defendant claimed on their tax returns. The maximum possible penalty for each count includes imprisonment of 3 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Juana Bautista Palma Nunez, using the name A.L.P., age 31, of Schuyler, is charged in a three-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about June 3, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty if convicted includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count if convicted includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Dannes Aracely Padilla-Villatoro, age 29, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about December 21, 2012. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III alleges that on or about December 21, 2012, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Olga Padilla-Villatoro, using the names O.P.M. and P.M., age 31, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with misuse of a Social Security Number on or about during and between April 1, 2013, and June 30, 2013. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III alleges that on or about during and between April 1, 2013, and June 30, 2013, the defendant misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Guillermo Pena-Perez, age 46, of Fremont, Nebraska, is charged with illegal reentry into the United States on or about February 24, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Everardo Perez-Gutierrez, age 28, of Omaha, is charged with illegal reentry into the United States on or about June 23, 2013, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Diana Rincon-Martinez, age 27, of Omaha, Nebraska, is charged with illegal reentry into the United States on or about March 12, 2014. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jesus Romero-Cante, age 28, is charged in a two-count Indictment. Count I charges the defendant with misuse of a Social Security Number on or about March 3, 2010. The maximum possible penalty includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges that on or about March 3, 2010, the defendant misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Matthew Sears, age 26, of Gretna, Nebraska, is charged in a two-count Indictment. Count I alleges that beginning on or about December 1, 2013, and continuing to on or about January 10, 2014, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about January 10, 2014, the defendant possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Enrique Simeon-Franco, age 28, of Omaha, is charged with illegal reentry into the United States on or about February 27, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Brian Spotts, age 46, of North Platte, Nebraska, is charged with conspiring with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine beginning on or about February, 2013, and continuing to on or about February 12, 2014. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to the United States currency seized from the defendant on February 12, 2014, should be forfeited to the United States.
* Jose Joel Vargas-Castro, age 32, of Omaha, is charged with illegal reentry into the United States on or about March 4, 2014, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Louis A. Venditte, age 66, Ruby A. Venditte, age 65, and John W. Wagstaffe, age 64, all of Omaha, are charged in a four-count Indictment. Count I alleges that the defendants conspired together and with others to transport an individual in interstate commerce with the intent to promote prostitution from at least 2003 through on or about October, 2013. The maximum possible penalty for this count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release, and a special assessment of $100. Count II alleges that on or between January, 2013, and August, 2013, the defendants transported an individual in interstate commerce with the intent to promote prostitution. The maximum possible penalty for this count includes imprisonment of 10 years, a fine of $250,000, a 1 year term of supervised release, and a special assessment of $100. Count III alleges that on or between January, 2013, and August, 2013, the defendants persuaded and attempted to persuade, induce, entice and coerce an individual to travel in interstate commerce to engage in prostitution. The maximum possible penalty for this count includes imprisonment of 20 years, a fine of $250,000, a 3 year term of supervised release, and a special assessment of $100. Count IV alleges that on or about March 20, 2012, Louis A. Venditte used a facility in interstate commerce with the intent to promote, manage, establish, carry on and facilitate the promotion of prostitution. Ruby A. Venditte and John W. Wagstaffe were members of the conspiracy at the time Count IV occurred. The maximum possible penalty for this count includes imprisonment of 5 years, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.Louisiana Man Sentenced to Prison for Threatening Witness in Federal TrialRead the Press Release
Anthony Williams, of Baton Rouge, La., was sentenced to serve 24 months in prison followed by two years of supervised release, the Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced today. Williams previously pleaded guilty to threatening to retaliate against a witness by causing bodily injury.
According to court documents, Williams is the son of Angela Myers, who was tried in federal court in Baton Rouge in March 2013 for filing fraudulent tax returns with stolen identities. One of the witnesses at Myers’ trial was an individual who testified on March 6, 2013, and the next day Williams used Instagram, a popular social media platform, to make a threat against this witness. Williams described the witness as a “rat” and threatened bodily injury against him in retaliation for his testimony. As explained in court documents and court proceedings, federal law enforcement took steps to ensure the safety of the witness and to prevent the threat from being carried out. On March 7, 2013, a jury found Myers guilty on 21 felony counts and she was later sentenced to serve 11 years in prison . Williams was indicted in July 2013 and pleaded guilty to making the threat in October 2013.
“Our legal system depends on witnesses testifying without the fear of retribution,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “This prosecution shows that the Justice Department will take action when someone threatens a witness.”
“Threatening or intimidating a witness in a federal criminal matter is a quick way to find yourself in federal prison,” said U.S. Attorney J. Walter Green for the Middle District of Louisiana. “Our office will continue to have zero tolerance for such conduct and will continue to devote the necessary resources to aggressively pursue those who engage in such conduct. No one should fear speaking the truth about possible federal criminal activity.”
“It is extremely important for witnesses who provide testimony in criminal matters to know that our justice system protects them from retaliation,” said Special Agent in Charge of IRS-Criminal Investigation Gabriel L. Grehan. “It is also appropriate for Anthony Williams to suffer the consequences of his actions to threaten a witness in a criminal proceeding. IRS-CI would like to thank the Department of Justice and our federal law enforcement partners for pursuing this case to its foreseeable end.”
Assistant Attorney General Keneally and U.S. Attorney Green commended the efforts of special agents of IRS - Criminal Investigation and TIGTA, who investigated the case, and of Tax Division Trial Attorney Jason Poole and Assistant U.S. Attorney Alan Stevens, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Local Mortgage Broker/Loan Officer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – ROBERT POYNTER was indicted for his alleged scheme to assist buyers in obtaining mortgages based on false information.
According to the indictment, Poynter owned and operated branch offices of First Continental Mortgage, America One Finance, LLC and A-1 Closing Services, all located in St. Charles, MO. The indictment alleges that Poynter caused to be funded a mortgage loan in excess of $100,000 from Crescent Mortgage for the sale of a residence on Michigan Avenue in St. Louis by falsifying HUD-1 settlement documents and diverted the proceeds from the sale of the property back to the buyer. Poynter then used these funds to finance the borrower’s down payment for the same transaction. Poynter benefited from the transaction through invoices and brokers fees paid by the closing title company. Additionally, the indictment states that he also caused to be funded a mortgage loan in excess of $249,000 for the sale of a property on Midland Boulevard, St. Louis, by falsifying the employment information of the buyer.
Poynter, Saint Peters, MO, was indicted by a federal grand jury late Wednesday on one felony count of wire fraud and one felony count of making a false statement.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. The false statement charge carries a maximum of 2 years in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency-Office of Inspector General and the Department of Housing and Urban Development. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Livingston Man Sentenced to Prison for Possession of MethamphetamineRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, GRADEN ROY NORLIN, 59, of Livingston, was ordered to serve a term of 57 months in prison followed by 3 years supervised by U.S. District Judge Sam Haddon. The sentence is a result of Norlin's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Paulette Stewart stated that beginning in approximately November of 2011, law enforcement began to gather information which indicated that Norlin was dealing methamphetamine in Billings and Livingston, Montana. The investigation uncovered that Norlin(s source of supply was located in Billings, Montana. Norlin traveled from Livingston to Billings to obtain methamphetamine for distribution. During one such trip on January 31, 2012, law enforcement stopped Norlin on his way back to Livingston from Billings and searched his truck. In Norlin(s truck law enforcement found 31.8 grams of suspected methamphetamine. The suspected methamphetamine was sent to the DEA Laboratory. The lab results confirmed that the substance found in Norlin's truck was 26.4 grams of actual (pure) methamphetamine. The confiscated methamphetamine was intended to be distributed to Norlin's customers.
Littleton Man Found Guilty of Implementing Mortgage Fraud SchemeRead the Press Release
DENVER – Peter V. Capra, age 56, of Littleton, Colorado, was found guilty by a jury today of wire fraud, mail fraud and money laundering, federal law enforcement authorities announced. The guilty verdict was the result of a 8 day trial before U.S. District Court Judge R. Brooke Jackson. The jury deliberated for nearly two days before reaching their verdicts. At the conclusion of the trial Capra was taken into custody pending a bond hearing, scheduled for April 2, 2014 at 1:00 p.m.
Capra was indicted by a federal grand jury in Denver on April 15, 2012, followed by a superseding indictment on May 23, 2012. As part of the mortgage fraud scheme, Demetrious G. Gianopoulos, and Brian Waring were charged in two separate indictments and Justin Knight was charged by an information. Gianopoulos pled guilty to one count of money laundering and was sentenced to five years’ probation. Knight pled guilty to destruction of records in a federal investigation and was sentenced to 12 months of home confinement. Waring pled guilty to conspiracy to commit mail fraud, wire fraud, and money laundering and is scheduled to be sentenced on May 30, 2014.
According to the indictment, superseding indictment and evidence presented at trial, Capra was the President of Golden Design Group, Inc. (GDG), a company which built and sold houses in the Denver metropolitan area. Capra was also the registered agent for Distinctive Mortgages, LLC, which used space within GDG’s office building and provided mortgages to some of the customers buying houses from GDG.
From January 2005 through July 2008, Capra, along with others, executed a scheme to defraud several mortgage lenders. The scheme was executed in connection with applications for residential mortgage loans and related documents associated with real estate purchases including but not limited to 33 properties in Parker, Colorado. Capra structured transactions involving GDG homes to allow buyers to receive substantial amounts of the lenders’ money at the time of closing without the knowledge of the lenders. He also sold a large volume of homes to otherwise unwilling or unqualified buyers. The evidence at trial showed that Capra netted over $11,000,000 as a result of his scheme.
Loan applications for the buyers were submitted through several different mortgage brokers that assisted with providing, or at least failing to question the accuracy of, false information submitted in connection with the applications, including materially false and fraudulent representations about the buyers’ income, liabilities, source of down payment, and intent to occupy the properties as their primary residences. At closing, funds ranging from $85,000 to over $200,000 were distributed to the buyers in ways that prevented the lenders from discovering that these funds were actually going to the buyers; these funds were not disclosed in the HUD-1 closing statements or were disguised in those statements.
Capra was charged with and found guilty of fourteen counts of wire fraud, two counts of mail fraud, and ten counts of money laundering. He was found not guilty of one count of obstruction of justice. Each count of wire and mail fraud carries a penalty of not more than 20 years in federal prison, and a fine of the greater of up to $250,000 or twice the gain or loss from the offense. Each count of money laundering carries a penalty of not more than 10 years in federal prison, and a fine of the greater of up to $250,000 or the value of the property involved in the transaction. At sentencing, the Judge will also consider entering an order of asset forfeiture, including all property constituting or derived from proceeds traceable to the commission of the offense, or a money judgment equal to the total proceeds taken.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case was prosecuted by First Assistant U.S. Attorney Robert Troyer and Assistant U.S. Attorney Mathew Kirsch.
Lisbon Man Sentenced to Nine Years in Prison for Possesing Firearms Stolen in Burglary SpreeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD McALLISTER, 43, of Lisbon, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by five years of supervised release for stealing and possessing numerous firearms.
According to court documents and statements made in court, in November 2010, McALLISTER and Mark Missino possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 2010, McALLISTER had been convicted of multiple felony offenses in several states, including burglary, robbery, breaking and entering, and making terroristic threats with intent to terrorize another. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
McALLISTER and Missino have been detained since November 18, 2010, when they were arrested in Massachusetts. On June 6, 2013, McALLISTER pleaded guilty to one count of possession of firearms by a previously convicted felon. Missino, 46, of Waterford, pleaded guilty to the same charge on January 30, 2014, and awaits sentencing.
McALLISTER and Missino also pleaded guilty in state court to several charges related to the series of residential burglaries.
Judge Underhill ordered McALLISTER’s 108-month federal sentence to run concurrently with his state sentence. McALLISTER is scheduled to be sentenced in state court on April 2, at which time he is expected to receive a sentence of 25 years, execution suspended after 16 years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Lester Sentenced to PrisonRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, KEITH EDWARD LESTER, 44, of Sidney, was ordered to serve a term of 30 months in prison followed by 3 years supervised by U.S. District Judge Susan Watters. The sentence is a result of Lester's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Joe Thaggard stated in early 2013, member of the Montana Division of Criminal Investigation (MDCI), the Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking ring operating in Sidney, Montana. The investigation disclosed that the Defendant and his son, Kyle Lester, were associated with the drug trafficking ring and were distributing methamphetamine in and around Sidney;
In June 2012, members of the MDCI and the Sidney Police Department interviewed the Defendant. The Defendant stated that, in July 2012, Kyle Lester met Robert Armstrong. The Defendant stated that Robert Armstrong began to provide methamphetamine to Kyle Armstrong shortly thereafter. The Defendant further stated that, in approximately September 2012, he met Armstrong.
The Defendant stated that, after meeting Armstrong, he then began to receive methamphetamine from Armstrong. The Defendant stated that he, in turn, distributed that methamphetamine in and around Sidney.
In July 2013, members of the MDCI and the Sidney Police Department interviewed Kyle Lester. He confirmed that Robert Armstrong was an associate who provided methamphetamine to him. Kyle Lester stated that he provided some of that methamphetamine to the Defendant for redistribution.
Lead Defendants Sentenced in Drug Conspiracy and Money Laundering CaseRead the Press Release
United States Attorney James L. Santelle announced today that the lead defendants in an eighteen (18) defendant indictment who were charged with various drug-trafficking and money laundering offenses have been sentenced to lengthy prison sentences by the Honorable Rudolph T. Randa.
The recently sentenced defendants are identified as Lamond a/k/a “Lamont” Clayton (age: 50) of Milwaukee who was sentenced to 91 months in prison and Chara Hortman-Brown (age: 37) of Milwaukee who was sentenced to 168 months in prison. Both Clayton and Horton-Brown pled guilty to drug and money laundering conspiracies.
This prosecution involved a second generation of the Edwards family, a north-side family run drug organization, with several of the same defendants and offspring of others, involved in the most recent criminal activity. This family based organization distributed multi-kilograms of cocaine and heroin, in Milwaukee, and elsewhere from January 2010 to December 2012. In addition, Clayton, Hortman-Brown, and others, in part, through structured deposits to financial institutions, laundered the illegal cash proceeds.
Law enforcement officers from the Wisconsin Department of Justice - Division of Criminal Investigation, Drug Enforcement Administration, Internal Revenue Service, Milwaukee High Intensity Drug Trafficking Area, United States Marshals Service, and the City of Milwaukee Police Department participated in this investigation. This case is being prosecuted by Assistant United States Attorney Gail J. Hoffman.
Lake County Man Indicted in Eight Armed Robberies of Retail Stores Across Lake and Northern Cook CountiesRead the Press Release
CHICAGO — A Lake County man is now facing federal charges for allegedly committing eight armed robberies, which netted more than $1,700, over 10 days last August of retail stores across Lake County and northern Cook County. In one of the robberies, shots were fired from the getaway car, but no one was injured. The defendant, LEROY REGAN, initially faced state charges filed in Lake County following his arrest last summer, but he was indicted on federal charges this week after the case was adopted from the state under the umbrella of Project Safe Neighborhoods. A second defendant, JEFFREY VALENTINE, was charged with committing the last of the eight robberies with Regan.
Regan, also known as “Outlaw,” 38, of Grayslake, was charged with eight counts of robbery and eight counts of brandishing or discharging a firearm in a 16-count indictment that was returned by a federal grand jury on Tuesday. Regan, who is federal custody without bond, pleaded not guilty on Wednesday before U.S. District Judge Matthew Kennelly, who set trial for Oct. 20. If convicted of a single gun count, Regan faces a maximum of life imprisonment.
Valentine, aka “Goldie,” 31, of Chicago, who is currently in state custody, was charged with one count of robbery. He is scheduled to be arraigned on April 3 in U.S. District Court.
“I am pleased with the cooperative teamwork of state and federal investigators and prosecutors that resulted in this federal indictment. We are all working toward the same goal of justice and will continue to coordinate so that, in appropriate cases, a state investigation may turn into a federal prosecution,” said Lake County State’s Attorney Mike Nerheim.
According to court records, in each of the robberies, the suspect entered the store wearing a hooded sweatshirt with the hood pulled up over his head and brandishing a handgun. After taking money from the cash register, the robber fled the store.
The indictment alleges that Regan committed the following robberies in August 2013:
- Aug. 5 ― Dollar General store, 1917 Martin Luther King Jr. Dr., North Chicago;
- Aug. 6 ― Family Dollar store, 1701 Martin Luther King Jr. Dr., North Chicago, approximately $131 stolen;
- Aug. 8 ― Citgo gas station, 2135 Green Bay Rd., Waukegan, approximately $300;
- Aug. 8 ― Taco Bell restaurant, 3200 North Lewis Ave., Waukegan, approximately $180. Two customers were shot at from a fleeing vehicle as they attempted to get the license plate of the auto;
- Aug. 11 ― 7-11 store, 37763 North Green bay Rd., Beach Park, approximately $422;
- Aug. 12 ― Thornton’s gas station, 55 Skokie Valley Rd., Highland Park, approximately $145;
- Aug. 14 ― Family Dollar store, 1106 Washington St., Waukegan, approximately $398; and
- Aug. 15 ― 7-11 store, 500 Skokie Blvd., Wilmette, approximately $160 and six to eight cartons of cigarettes. Valentine was charged with this robbery alone.
Regan was arrested in Waukegan on Aug. 17, 2013, following an intensive investigation by the Waukegan and Wilmette police departments. The Highland Park Police Department and the Lake County Sheriff’s Department also assisted in the investigation, which was joined by the Bureau of Alcohol, Tobacco, Firearms and Explosives, leading to the federal charges.
Each count of robbery carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years (10 years on the charge of discharging a firearm) in prison and a maximum of life on any one count, and conviction on one or more subsequent gun counts carries a mandatory minimum of 25 years consecutive to any other sentence imposed. 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 Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is being represented by Assistant U.S. Attorney Joseph Thompson.
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.
Jury Finds Former Texas Man Conspired to Distribute CocaineRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury found Dominique Jackson guilty of one count of conspiracy to distribute five kilograms or more of cocaine, United States Attorney David J. Hickton announced today.
Dominique Jackson, 26, formerly of Denton, Texas, was tried before Senior United States District Judge Donetta W. Ambrose in Pittsburgh.
According to Assistant United States Attorney Amy L. Johnston, who prosecuted the case, the evidence presented at trial established that from in and around July 2010, and continuing thereafter to on or about Oct. 7, 2010, Jackson conspired with others to possess with intent to distribute and distribution of five kilograms or more of cocaine.
Judge Ambrose scheduled sentencing for July 14, 2014, at 10:00 AM. The law provides for a total sentence of not less than 10 years in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation, the Pennsylvania Office of Attorney General, the Allegheny County Sheriff's Office, the McKeesport Police Department, the Clairton Police Department, the Allegheny County Housing Authority Police Department, the Pennsylvania State Police, the Allegheny County Police Department, and the Munhall Police Department conducted the investigation that led to the prosecution of Dominique Jackson.
Japanese Citizen Pleads Guilty to International Bank Fraud ConspiracyRead the Press Release
OAKLAND – Yasuhiro Watanabe pleaded guilty in federal court in Oakland today to conspiracy to commit bank fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Watanabe admitted that, between 2009 and early September 2013, he engaged in a scheme to defraud Compass Bank and Bank of America. The scheme involved multiple participants, and victimized bank branches in the Northern District of California, Nevada, and Arizona, among other places. According to the plea agreement, approximately once a month, Watanabe recruited individuals in Japan to travel with him to the United States for the purpose of opening bank accounts at Compass Bank and Bank of America. Once the accounts were opened, Watanabe funded the accounts by causing a $1,000 - $2,000 wire transfer to be made, from bank accounts in Japan, to the newly-opened accounts held in the names of Watanabe’s coconspirators. For their role in the scheme, Watanabe typically paid his coconspirators’ travel costs, and a fee of approximately $1,000. Watanabe directed his coconspirators to obtain debit cards for the accounts and give them to Watanabe. He then used the cards in Japan to purchase goods valued in amounts in excess of the funds on deposit. Watanabe then will sell those goods for cash. Watanabe’s fraud scheme caused combined losses to Compass Bank and Bank of America of over $550,000.
Watanabe, 39, of Japan, was initially charged by complaint on Oct. 25, 2013. On Feb. 11, 2014, he was charged by Information with one count of conspiracy to commit bank fraud in violation of 18 United States Code, Section 1349. Under the plea agreement, Watanabe pleaded guilty to that sole count.
Watanabe has been in federal custody since his arrest at Seattle – Tacoma International Airport on Oct. 27, 2013.
Watanabe’s sentencing hearing is scheduled for Friday, July 11, 2014, at 9:30 a.m. before the Honorable Jon S. Tigar, United States District Court Judge, in Oakland. The maximum statutory penalty for each count, in violation of 18 United States Code, Section 1349, conspiracy to commit bank fraud, is 30 years’ imprisonment, and a fine of $1,000,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas E. Stevens is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Watanabe information )
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on March 18, 2014 and entering pleas of Not Guilty were:
- DEBRA McKINNEY, a 47-year-old resident of Corvallis, appeared on charges of wire fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, McKINNEY faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-11
- JAMES LESLIE VAUGHN, a 48-year-old resident of Charlo appeared on Clean Water Act violations and obstruction of justice. If convicted of the most serious charges contained in the indictment, VAUGHN faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Environmental Protection Agency and Montana Department of Environmental Quality. PACER Case Reference: 14-09
Appearing before U.S. Magistrate Judge Strong in Great Falls on March 18, 2014 and entering pleas of Not Guilty were:
- CHARLES W. PREE, a 48-year-old resident of Browning, appeared on charges of wire fraud, theft of government property and false statements. If convicted of the most serious charges contained in the indictment, PREE faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference: 14-08
- JOANNE STILL SMOKING, a 21-year-old resident of Browning, appeared on charges of wire fraud, theft of government property and false statements. If convicted of the most serious charges contained in the indictment, STILL SMOKING faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference: 14-08
Appearing before U.S. Magistrate Judge Ostby in Billings on March 20, 2014 and entering pleas of Not Guilty were:
- JAMES EDWARD DEMPSTER, a 33-year-old resident of Big Timber, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DEMPSTER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The investigation was a cooperative effort of the Drug Enforcement Administration, Montana Division of Criminal Investigations, Sweet Grass County Sheriff's Office, Montana Highway Patrol, Sidney Police Department and Richland County Sheriff's Office. PACER Case Reference: 14-26
- BRIAN KETIH SALMON, a 44-year-old resident of Williston, ND, appeared on charges of possession with intent to distribute methamphetamine and conspiracy to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SALMON, faces 40 years imprisonment, $5,000,000 in fines and 5 years supervised release. The investigation was a cooperative effort of Montana Division of Criminal Investigations, the Drug Enforcement Administration and the Federal Bureau of Investigation. PACER Case Reference: 14-23
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 20, 2014 and entering pleas of Not Guilty were:
- PAUL WENCEWICZ, a 47-year-old resident of Polson, appeared on charges of conspiracy to advertise child pornography. If convicted of the charge contained in the indictment, WENCEWICZ faces 30 years imprisonment, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort of the Federal Bureau of Investigation, Homeland Security Investigations, Montana Division of Criminal Investigations, and Montana Internet Crimes Against Children Task Force. PACER Case Reference: 14-14
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana Man Pleads Guilty to Unlawfully Possessing Firearm in Wabash CountyRead the Press Release
Follow @SDILNewsLevi M. Glick, 28, of Princeton, Indiana, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4, 2013, alleged that Glick possessed a .357 caliber revolver in Wabash County on July 8th. Prior to that date, Glick had been convicted of a felony offense, making it illegal under federal law for him to possess firearms or ammunition.
Sentencing was set for June 19, 2014, at 10:30 a.m. at the United States District Courthouse in Benton. At that time, Glick faces up to 10 years in federal prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Mt. Carmel, Illinois, Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Illegal Immigrant Sentenced to 92 Months in Prison for Distributing Drugs in Scott County, MississippiRead the Press Release
Jackson, Miss - Ana Laure Topete Ramirez, 33, an illegal immigrant living in Los Angeles, California, was sentenced by U.S. District Judge Henry T. Wingate to a term of 92 months in federal prison for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Gregory K. Davis. Ramirez previously pled guilty to distributing methamphetamine into the Brusha Community of Scott County, Mississippi.
Ramirez was charged following an extensive investigation by state and federal authorities into the trafficking of drugs into Scott County by a large scale methamphetamine ring operating out of California, Texas and elsewhere. The investigation was conducted by the Bureau of Immigration and Customs Enforcement, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Mississippi Bureau of Narcotics. Seventeen individuals were convicted and over five kilograms of methamphetamine was seized along with multiple firearms. The case was prosecuted by Assistant U.S. Attorney Erin Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Grand Island Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced today that James B. Haugh, 57, of Grand Island, Nebraska, was sentenced on March 21, in Lincoln, Nebraska, to seven and a half years in prison by United States District Judge John M. Gerrard, for receipt and distribution of child pornography. After his release from prison, Haugh will be required to serve a 5 year term of supervised release and be registered as a sex offender. Haugh was found guilty by a jury in December of last year following a 3 day jury. In addition, United States District Court Judge John M. Gerrard ordered that the property used to commit the crime be forfeited to the United States.
Haugh came to the attention of investigators of the Nebraska Attorney General’s Office through a proactive investigation conducted by the Nebraska Attorney General into the receipt and distribution of child pornography through file sharing software. Investigators used automated software to determine that a computer utilizing a specific IP address was sharing child pornography through the Internet.
The investigation led to the execution of a search warrant on December 28, 2012, at Haugh’s residence in Grand Island, Nebraska. A forensic examination of a computer and other storage media seized at the residence revealed numerous videos child pornography that had been received and distributed between January 3, 2009 and December 28, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Nebraska Attorney General’s Office.
Garland, Texas, Man Sentenced to 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Christian James Gieseke, 39, was sentenced yesterday, by U.S. District Judge Jane J. Boyle, to 20 years in federal prison to be followed by a 10-year term of supervised release. Less than a week prior to the start of his trial last summer, Gieseke pleaded guilty to one count of receipt of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to the factual resume filed in the case, Gieseke admitted that on a date, sometime between September 1, 2010, and June 7, 2012, while at his Garland, Texas, residence, used a camera to produce images of Jane Doe 3 and/or Jane Doe 4 engaging in sexually explicit conduct while one or both was naked in the shower. He further admitted that he knew they were minors. He further admitted that he downloaded the images and viewed them on his laptop computer.
Gieseke also admitted that he produced, or attempted to produce, images and/or video of two other minor girls.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorneys Lisa J. Miller and Leigha Simonton prosecuted.
Four Mexican Nationals Indicted for Fake Documents ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Mexican nationals have been indicted for their roles in a conspiracy to produce and distribute counterfeit identification documents to illegal aliens.
Eriberto Moises Medina-Aranda, 39, of Rayville, Mo., his half-brother, Cesar Mujica-Aranda, 24, of Liberty, Mo., and Bernardino Bautista-Hernandez, 31, of Kansas City, Mo., and Ulises Montiel-Lazcano, 34, of Merriam, Kan., all of whom are citizens of Mexico, were charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, March 21, 2014. The indictment was unsealed and made public today upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that Medina-Aranda, Mujica-Aranda, Bautista-Hernandez and Montiel-Lazcano participated in a conspiracy to produce false government identification documents between Sept. 1, 2013, and Feb. 21, 2014. They are also charged together in one count of aiding and abetting each other to produce counterfeit alien registration receipt cards (also known as lawful permanent resident cards) and other documents that are used as evidence of authorized stay or employment in the United States (including Social Security cards).
In addition to the conspiracy, Medina-Aranda and Mujica-Aranda are charged together in one count of possessing implements to create identification documents with the intent to produce false identification documents.
Medina-Aranda is also charged with one count of being an illegal alien in possession of firearms and ammunition and one count of being a felon in possession of firearms and ammunition. Medina-Aranda, who has a prior felony conviction and is illegally in the United States, allegedly possessed a Smith & Wesson semi-automatic rifle, a Marlin Firearms rifle and ammunition in February 2014. He is also charged with one count of illegally reentering the United States after having been deported and after having been convicted of a felony.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government the illicit proceeds derived from the alleged conspiracy as well as items that were seized by law enforcement officers, including $8,156 seized from Montiel-Lazcano at the time of his arrest, $1,840 seized from Mujica-Aranda’s residence, five computer towers, printers, four cameras, cell phones, digital media storage devices, and the rifles and ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI); the Social Security Administration, Office of Inspector General; the Kansas Department of Revenue, Office of Special Investigations; the Missouri Department of Revenue, Compliance & Investigations Bureau; the Missouri State Highway Patrol and the Clay County, Mo., Prosecuting Attorney.
Former President of Russian Steel Producer’s U.S. Subsidiary Indicted for Hiding Assets in Secret Swiss Bank AccountsRead the Press Release
Victor Lipukhin, formerly a resident of St. Charles, Ill., was indicted yesterday by a federal grand jury in Kansas City, Mo., for attempting to interfere with the administration of the internal revenue laws and filing false tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. The charges relate to Lipukhin hiding millions of dollars in several Swiss bank accounts held at UBS AG.
According to the indictment, Lipukhin formerly served as president of Severstal Inc. (USA), a subsidiary of AO Severstal, the largest steel producer in Russia. He lived in St. Charles from at least 2001 through mid-2007.
Lipukhin, a Russian citizen and former lawful permanent U.S. resident, kept between approximately $4,000,000 and $7,500,000 in assets in two bank accounts with UBS in Switzerland from at least 2002 through 2007. In 2002, he and another individual opened a UBS bank account in the name of Old Orchard, a sham Bahamian entity. The account was initially funded with over $47,000,000 transferred into the account from a previously maintained UBS account in the Bahamas. In 2003, the other individual left the account, leaving Lipukhin as the sole owner and signatory. Lipukhin also maintained another account at UBS in Switzerland in the name of Lone Star, another sham Bahamian entity. He directed virtually all transactions in the accounts, typically through a Bahamian national who served as the nominee director of the Old Orchard and Lone Star entities to help conceal Lipukhin’s ownership and control. However, he failed to report his ownership of these accounts and failed to report any income earned in these accounts on his tax returns.
According to the indictment, in order to further conceal his ownership of the undisclosed UBS accounts, Lipukhin utilized fictitious mortgages through an entity called Dapaul Management, controlled by a Canadian attorney, to conceal his purchase of real estate in the United States with funds from the UBS accounts. This includes his purchase of a historic building at 18 N. Fourth St, in St. Charles, Ill., for $900,000 in the name of Charlestal LLC, a domestic entity controlled by Lipukhin. He also transferred funds from his UBS accounts to the Canadian attorney for ultimate transfer to a domestic Charlestal bank account in order to conceal the source of the funds, then used the funds in the Charlestal account to pay for various personal expenses and to withdraw cash for personal use. Finally, Lipukhin impeded the administration of Internal Revenue laws by attempting to prevent an automobile dealer from filing a Form 8300 – which is required for certain cash transactions over $10,000 – with the IRS in order to report Lipukhin’s cash payment to purchase an automobile.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Lipukhin faces a potential maximum sentence of three years imprisonment on each count.
U.S. citizens and permanent residents are required to report income from any source on their tax returns, regardless of whether the source of the income is inside or outside the United States. Further, U.S. taxpayers who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are also required to disclose the existence of the account on Schedule B, Part III of an individual income tax return. They must also disclose the existence of the account by filing a Report of Foreign Bank and Financial Accounts with the U.S. Treasury.
Assistant Attorney General Kathleen Keneally of the Tax Division commended the agents from IRS –Criminal Investigation who investigated the case and Trial Attorney Timothy J. Stockwell of the Tax Division, who is prosecuting the case.
Former Lake Orion Resident Sentenced for Tax OffenseRead the Press Release
A former resident of Lake Orion was sentenced to a year in prison yesterday for income tax evasion, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
U.S. District Judge Denise Page Hood imposed sentence on Brett Loren Kelly, 53, who now lives in Bradenton, Florida.
The case arose from Kelly’s failure to report approximately $1.8 million in income for the 2009 tax year. He earned the funds by performing financial consulting, and deposited the funds into a corporate account called Fidelity Capital Group, LLC. While earning these funds, Kelly lived an affluent lifestyle, but did not file tax returns and paid no taxes.
The court also ordered Kelly to pay restitution to the IRS for tax liabilities in the amount of $181,212 for the years of 2007 through 2009, which he paid before sentence was imposed. His term of imprisonment will be followed by two years of supervised release.
“Kelly thought he had successfully disguised his income by diverting it into an undisclosed account," said Carolyn Weber, Acting Special Agent in Charge of IRS Criminal Investigation. "He should never have underestimated the IRS Criminal Investigators who were able to follow the money and bring him to justice."
U.S. Attorney Barbara McQuade stated that, “With tax season upon us, this case demonstrates that individuals who fail to file tax returns and pay their taxes like the rest of us will face criminal charges.”
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.Former Georgia Department of Revenue Employees Indicted for Accepting BribesRead the Press Release
ATLANTA - Brenda Joyce Davidson, Gwendolyn Lockett, Sheryl Monique Taylor, and Keresa Foster, have been arraigned on indictments returned by a federal grand jury on March 12, 2014, charging them with accepting cash bribes in exchange for issuing Georgia car titles.
“These defendants are charged with taking official actions that were motivated by their personal financial gain instead of their duty to serve the citizens of this state with integrity,” said United States Attorney Sally Quillian Yates. “Thanks to the collaborative efforts of federal and state law enforcement agencies, the defendants are no longer in a position to subvert Georgia’s car titling system for their personal gain.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption at all levels erodes the public’s trust placed in not only those individuals but also the organization they represent. The FBI will continue to provide significant investigative resources toward public corruption related matters, noting that it is one of the FBI’s top criminal investigative priorities.”
Staci Guest, Director of the Office of Special Investigations, stated: “The suspect’s indictments show how serious the State of Georgia is at finding individuals who erode public trust and confidence. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat individuals who commit fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: Davidson, Lockett, Taylor, and Foster were all customer service representatives at the Georgia Department of Revenue’s Motor Vehicle Division, responsible for processing and issuing car titles and registration documents. In 2012 and 2013, each of the defendants accepted bribes from individuals they believed to be customers in need of car titles. The individuals were actually FBI agents posing as customers or other individuals working under the direction of the FBI. Soon after accepting the bribes, each defendant accessed Georgia’s official car titling databases to process, print, and provide the fraudulent car titles. The defendants would meet with the purported customers outside of normal business hours and at various locations throughout the metropolitan Atlanta area. During those meetings, the defendants would accept cash bribes, obtain titling paperwork, and provide the fraudulent titles.
At the time the defendants provided the car titles, they knew or suspected that the titling paperwork was incomplete or fraudulent. On one occasion, a defendant accepted a cash bribe in exchange for processing and printing a car title. The defendant soon discovered that she could not print the car title because the Department of Revenue changed its title printing policy for individual car owners. Later, in order to circumvent the Department of Revenue’s title printing restrictions, the defendant accessed Georgia’s car titling database to obtain the name of a defunct car dealer, provided that dealer’s name to the purported customer, and processed fraudulent paperwork containing the dealer’s name despite knowing that the dealer was not involved in the unlawful transaction.
Brenda Joyce Davidson, 55, Gwendolyn Lockett, 49, Sheryl Monique Taylor, 31, and Keresa Foster, 44, all of the Atlanta, Ga. area, were arraigned before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Revenue.
Assistant United States Attorney Nekia S. Hackworth is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Fresno Pastor Arraigned on Fraud IndictmentRead the Press Release
FRESNO, Calif. — Alvin Dickson, 52, of Oakland, was arraigned in Fresno today on a federal indictment charging him with social security fraud and theft of government property, United States Attorney Benjamin B. Wagner announced. Dickson was arrested at his home on March 5, 2014. He made his first court appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland.
According to the indictment returned by the grand jury on January 30, 2014, between July 2005 and April 2013, Dickson received Social Security Disability Insurance Benefits totaling approximately $113,000. At the same time he was receiving the benefits, and unknown to the Social Security Administration, he was working as the Pastor of Mt. Pleasant Missionary Baptist Church in Fresno.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
The next court appearance for Dickson is a status conference before Magistrate judge Sheila K Oberto on May 19, 2014 at 1:00 p.m.
If convicted, Dickson faces a maximum statutory penalty of 10 years in prison for theft of government property, five years in prison for Social Security fraud, and a $250,000 fine for each charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Dell Employee Pleads Guilty to Fraud SchemeRead the Press Release
Marci 21, 2014Herbie Morrow, 39, of Richmond Heights, Missouri, formerly of Nashville, pleaded guilty today to federal fraud and conspiracy charges, announced David Rivera, United States Attorney for the Middle District of Tennessee. Morrow was charged on March 7, 2014, with two counts of accessing a protected computer in furtherance of fraud and one count of conspiring to access a protected computer in furtherance of fraud.
At the plea hearing, Morrow, a former employee of Dell, admitted to conspiring with another former Dell employee to defraud Dell by using corporate computers to create fraudulent discounts. Morrow also acknowledged conspiring to access Dell account websites in order to use the fraudulent discounts to purchase more than $293,000 worth of Dell merchandise, including laptop computers and computer accessories, at substantially reduced prices or for free. Morrow admitted that a co-conspirator sold the fraudulently obtained merchandise via a company known as Tech Geek Sales, and split the resulting profits with Morrow.
U.S. District Court Chief Judge William J. Haynes, Jr. scheduled the sentencing hearing for June 9, 2014. Morrow faces a maximum sentence of 5 years in prison and a maximum fine of up to $250,000 on each count. In addition, Morrow will forfeit the proceeds of the fraud and pay restitution to Dell.
Marcus Culver, 31, of Nashville, also a former Dell employee, was also charged in this case and is currently awaiting trial. The information charging Culver is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.This case was investigated by the United States Secret Service and is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Cook County Official Sentenced to 51 Months in Prison for Steering Contracts in Return for Nearly $35,000 in KickbacksRead the Press Release
CHICAGO ― A Cook County official was sentenced today to 51 months in federal prison for steering four county contracts, each just under $25,000, to four acquaintances and then taking a portion of the contract payments as kickbacks from each of them, totaling $34,700. The defendant, EUGENE MULLINS, who was director of the Cook County Department of Public Affairs and Communications between March 2008 and November 2010, was sentenced after being convicted of three counts of wire fraud and four counts of bribery at trial last September in U.S. District Court.
Mullins, 50, of Chicago, a former Chicago police officer, was also ordered to pay restitution and forfeiture, both in the amount of $34,700. He was ordered to begin serving his sentence on June 19 by U.S. District Judge Amy J. St. Eve.
“Public corruption does not pay and has significant consequences,” Judge St. Eve said in imposing the sentence after finding that Mullins obstructed justice by committing perjury in his testimony at trial.
The four individuals who received county contracts and returned a portion of the payments to Mullins were each charged with misprision of a felony for concealing Mullins’ fraud and kickback scheme. Each of them entered into pretrial diversion agreements and were placed on probation, were ordered to pay full restitution to the county, and testified as government witnesses at Mullins’ trial. They are: Gary Render, Michael L. Peery, and Clifford Borner, all of Chicago, and Kenneth Gregory Demos, of Oak Park.
Evidence at Mullins’ trial showed that between January 2010 and January 2011, he used his county position to submit and cause others to submit false documents to the county to assist the four vendors in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the proceeds for his own benefit.
Cook County contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
During 2010, Mullins schemed to fraudulently steer the following contracts: a $24,980 disaster grant contract to Render, who paid Mullins $9,000; a $24,985 energy grant contract to Peery, who paid Mullins $12,000; a $24,995 census contract to Borner, who paid Mullins $5,000; and a $24,997 census contract to Demos, who paid Mullins $8,700.
Evidence also showed that Mullins told the individuals who received the contracts that he could arrange for a subcontractor to perform some of the work in exchange for a portion of the county payments they received. In fact, the money that Mullins received from the individuals was not used for any subcontracts. Instead, Mullins used it for his own benefit, while Render, Peery, Borner, and Demos performed little or no work for the county.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Anita Alvarez, Cook County State’s Attorney; and Patrick Blanchard, Cook County Inspector General.
The government was represented by Assistant U.S. Attorneys Lindsay Jenkins and Sarah E. Streicker.
Florissant Woman Sentenced on Tax and Fraud ChargesRead the Press Release
St. Louis, MO - EVELYN SILAS, Florissant, MO, was sentenced to 15 months in prison on 13 counts of tax and fraud charges today by United States District Judge Catherine Perry.
According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC). Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers. In all, Silas caused more than $90,000 in tax loss. Silas kept a large percentage of the refunds generated by the fraudulent returns for herself
The case was investigated by IRS-Criminal Investigation with assistance from the EEOC-Office of the Inspector General. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Florida Resident Sentenced in Connection with Fraudulent International Lottery SchemeRead the Press Release
Angela Althea Peart was sentenced in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. Peart was sentenced by U.S. District Court Judge K. Michael Moore for the Southern District of Florida in Miami to serve 33 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014.
Peart’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. So long as criminals continue to line their pockets with the money of our nation’s seniors, we will be there to prosecute them and bring them to justice.”
“International lottery fraud aimed at stealing from elderly victims cannot, and will not, be tolerated by the Department of Justice,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will seek to hold accountable those who participate in illegal lottery schemes, including those in the U.S. who facilitate schemes directed from abroad.”
A federal grand jury in Miami returned an indictment against Peart and co-conspirator Charmaine Anne King on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014. Co-defendant King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud and two counts of wire fraud. King’s sentencing is scheduled for April 17, 2014.
As part of her guilty plea, Peart admitted that beginning in or around March 2012 and continuing through, in or around November 2013, she was a member of a conspiracy to fraudulently enrich herself by keeping victims’ money for her own benefit without paying any lottery winnings. Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
Peart also admitted that as part of the conspiracy, victims were told that they must make a payment of several thousand dollars in order to collect their purported lottery winnings. The victims were told to send their payments to Peart and others. Peart acknowledged that she received victims’ funds, kept 10 percent of the money received from victims and then sent the rest to another member of the conspiracy. Victims never received any lottery winnings.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
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.
Felon in Possession of Firearm Sentenced to 47 Months ImprisonmentRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Salomon Mejia Preciado, age 31, was sentenced to 47months imprisonment for being a felon in possession of a firearm. He was sentenced to a consecutive sentence of 9 months imprisonment for violating a condition of supervised release.
According to information disclosed during the court proceedings, in 2005, Preciado was sentenced to ten years imprisonment for conspiracy to distribute a controlled substance and distribution of a controlled substance. He was subsequently released from prison and was required to serve a five year term of court supervision. Thereafter, on April 29, 2013, a Yakima police officer conducted a traffic stop of a vehicle Preciado was driving. The officer observed items in the vehicle which appeared to have been stolen. The officer obtained a search warrant for the vehicle. During the execution of the search warrant, the officer recovered several stolen items including a stolen Glock handgun. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives worked with the Yakima Police Department and determined that Preciado was prohibited from possessing firearms. An indictment was subsequently issued which charged him with being a previously convicted felon in possession of a firearm.
Senior United States District Judge Wm. Fremming Nielsen sentenced Preciado to 47 months imprisonment to be followed by three years of court supervision following his release from Federal prison. Due to the possession of the firearm, the Defendant was also found to be in violation of supervised release and sentenced to a consecutive term of 9 months of imprisonment.
Michael C. Ormsby said, "Convicted felons who possess firearms present a significant danger to the public. Local and Federal law enforcement officers in the Eastern District of Washington are dedicated to work together to protect our communities from such offenders. This case is just one example of the cooperative and successful efforts by Federal law enforcement officers and the Yakima Police Department."
This investigation was conducted by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-2072-WFN
03-CR-2129-WFNFederal Court Shuts Down Florida Tax Return PreparerRead the Press Release
A federal court in Fort Lauderdale, Fla., permanently barred Keisha Stewart, a tax preparer in Plantation, Fla., from preparing federal tax returns for others, the Justice Department announced today. Stewart agreed to the civil injunction order, and a stipulated final judgment of permanent injunction was entered against her by the court on March 20, 2014.
The complaint alleged that Stewart prepared federal income tax returns for customers that inflated income or included fictitious income to qualify her customers to receive or to maximize the earned income tax credit; claimed false tax credits that are refundable or decrease the amount of tax on her customers' returns, including phony education credits (American Opportunity Credit) and residential energy credits; falsely claimed head of household status on behalf of customers who did not qualify in order to improperly decrease their reported tax liabilities; and claimed false dependents on behalf of customers and also claimed the child and additional child tax credits on their behalf.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Keisha Stewart, et al.
Stipulated Final Judgment of Permanent Injunction
Elkville Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn March 21, 2014, Charles L. Scott, a/k/a “Boomer, 43, of Elkville, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Scott, who had previously pled guilty to the methamphetamine offense, was sentenced to 70 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between March 2012 and March 2013 in Jackson and Perry Counties. Evidence at the plea and sentencing hearings established that Scott was involved with others in the manufacture of methamphetamine. On March 13, 2013, Scott received severe burns while manufacturing methamphetamine inside an Elkville residence. Scott’s sentence was enhanced based on the substantial risk of harm created by his criminal conduct. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Murphysboro Police Department, Pinckneyville Police Department, DuQuoin Police Department, and Illinois State Police Methamphetamine Response Team.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Eight Arrested This Week in Long-Term Investigation into Drug and Gun TraffickingRead the Press Release
SACRAMENTO, Calif. — Eight defendants were arrested this week in a wide-ranging drug and gun trafficking investigation, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the indictments on March 13, 2014, charging the defendants with various drug and gun trafficking offenses. The indictments were unsealed following the arrests of each defendant.
These cases are the product of a long-term investigation by the FBI Safe Streets Task Force and ATF, along with officers from the Sacramento Police Department; California Highway Patrol; and California Department of Corrections and Rehabilitation, Department of Parole and Special Service Unit; and the California Gang Intelligence Initiative.
“We are thankful for continued, active collaboration with our state and local law enforcement task force partners who share our commitment dismantling criminal networks that pose a serious threat to the communities we serve,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Disruption of illegal drug and weapons trafficking is essential to ensure the safety and vitality of our neighborhoods.”
Andre Nicholas Amaya, 33, of Sacramento, was charged with three counts of distribution of methamphetamine in Sacramento County. He was arraigned on March 20, 2014, the same day as his arrest. His next court date is set for April 17, 2014.
(docket # 2:14-cr-72 MCE)Joseph Darosa, 21, of Elk Grove, is charged with five counts of distribution of methamphetamine in Sacramento County. He was arraigned after his arrest today. His next court date is May 6, 2014.
(docket # 2:14-cr-71 JAM)Ruben Luis Vega, 27, of North Highlands, is charged with two counts of distributing methamphetamine in Sacramento County. He was arrested on March 19, 2014, and arraigned the next day. His next court date is April 16, 2014.
(docket # 2:14-cr-68 KJM)Antonio Reyna, 33, of Sacramento is charged with being a felon in possession of a Ruger .223-caliber rifle. Reyna was arrested on March 19, 2014 and arraigned the next day. His next court date is April 15, 2014.
(docket # 2:14-cr-0LKK)John Greer, 31, of Carmichael, and Julius White, 32, of Sacramento, are charged with unlawfully transferring a Winchester sawed-off shotgun. They were arraigned and their next court date is April 18, 2014.
(docket # 2:14-cr-073 GEB)Donald Brown, 23, of Sacramento, is charged with two counts of being a felon in possession of a firearm: .22-caliber semi-automatic pistol and a Norinco rifle.
(docket # 2:14-cr-074 MCE)Benjamin Martinez, 30, of Sacramento, was arrested today on a criminal complaint, charging him with distribution of methamphetamine. He made an initial appearance before Magistrate Judge Dale A. Drozd. His next court date is April 3, 2014.
(docket # 2:14-mj-063 DAD)Five of the indictments were part of an Organized Crime Drug Enforcement Task Force. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
All defendants are in custody. At arraignment, the defendants entered pleas of not guilty. If convicted, the defendants face sentences from five years to life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed there is no early release on parole in the federal system.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Duke University Health System, Inc. Agrees to Pay $1 Million for Alleged False Claims Submitted to Federal Health Care ProgramsRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina Thomas G. Walker and North Carolina Attorney General Roy Cooper announced jointly that Duke University Health System, Inc. (Duke University Health System) has agreed to pay $1 million to resolve allegations under the U.S. and North Carolina False Claims Acts that it made false claims in conjunction with certain services provided to beneficiaries of Federal health care programs (Medicare, Medicaid, and TRICARE).
Duke University Health System is a non-profit corporation that operates three hospitals: (1) Duke University Hospital, (2) Duke Regional Hospital (formerly known as Durham Regional Hospital), and (3) Duke Raleigh Hospital (formerly known as Duke Health Raleigh Hospital). Duke University Health System allegedly made false claims to Medicare, Medicaid, and TRICARE by (1) billing the government for services provided by physician assistants (PA’s) during coronary artery bypass surgeries when the PA’s were acting as surgical assistants (along with graduate medical trainees), which is not allowed under government regulations and (2) increasing billing by unbundling claims when the unbundling was not appropriate, specifically in connection with cardiac and anesthesia services.
“Allegations of health care fraud will be zealously pursued in North Carolina,” said U.S. Attorney Thomas G. Walker. “We encourage our citizens to report potential health care fraud to the appropriate authorities. Duke Univesity Health System was forthcoming with information, and was cooperative in the investigation and resolution.”
“Health care fraud like this wastes tax dollars, harms patients who need care, and drives up medical costs for all of us,” said North Carolina Attorney General Roy Cooper. “We’re working closely with federal officials to root out this kind of fraud in North Carolina and make wrongdoers pay.”
"Hospitals that try to make profit by misrepresenting to Medicare and Medicaid about the services they provide will instead pay large settlements to the government for their misdeeds," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. "If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]."
“The DCIS, in concert with our law enforcement partners, places a high priority on pursuing allegations of fraud involving the Defense Department’s health care system, to ensure that America’s Warfighters receive top quality health care, while preserving precious taxpayer dollars,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Leslie Johnson, a former employee of Duke PRMO, LLC d/b/a Patient Revenue Management Organization. Duke PRMO is controlled by Duke University Hospital System, and provides billing, collection, and administrative services to Duke University Health System.
This case was handled by the United States Attorney’s Office for the Eastern District of North Carolina, the North Carolina Attorney General’s Office, Medicaid Investigations Division, the Department of Health and Human Services’ Office of Inspector General, and the Department of Defense Criminal Investigative Service. The government’s investigation was led by Assistant U.S. Attorney Joshua B. Royster and North Carolina Assistant Attorney General Stacy M. Race.
The lawsuit is captioned United States of America and State of North Carolina ex rel. Leslie Johnson v. Duke University Health System, Inc, et al., 5:12-CV-822-BO. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Drug Trafficker Pleads Guilty to Murdering Two Men over Stolen ProfitsRead the Press Release
SAN DIEGO – Roberto Ochoa of Tijuana pleaded guilty in federal court today, admitting that he slashed the throats of two fellow drug traffickers whom he believed had stolen methamphetamine and cocaine proceeds from their organization.
Ochoa entered a guilty plea to two counts of an Intentional Killing during the course of a Drug Trafficking Conspiracy before U.S. District Judge Dana M. Sabraw.
Ochoa was indicted in November 2011 along with a dozen others who were accused of drug trafficking and money laundering offenses. To date, eight have pleaded guilty, including Ochoa. Seven have been sentenced. Two are fugitives; the other cases are pending.
According to court records, in December 2011, Drug Enforcement Administration (DEA) agents initiated an investigation into a San Diego-based narcotics distribution cell. During the course of the investigation, agents identified a number of people that worked for this cell, including the defendant Roberto Ochoa.
On October 19, 2012, the defendant and others interrogated Hector Gonzalez and Rodolfo Robles at a home located on Multnomah Ct., in San Jacinto, California, about the theft of narcotics proceeds.
At this time, the defendant and another individual used knives to cut the throats of Gonzalez and Robles. Gonzalez and Robles died as a result of their wounds. On November 9, 2012, Riverside County Sheriff’s Officers responded to this address in order to conduct a welfare check and discovered the two bodies.
Sentencing was set for June 6, 2014, at 9 a.m. before Judge Sabraw.
DEFENDANT Case No. 12CR4711-DMS Roberto Ochoa Age: 35 Tijuana, Mexico CHARGESCount 1: Title 21, United States Code, , Section 848(e)(1)(A) Intentional Killing during the course of a Drug Trafficking Conspiracy, in violation of Title 21, United States Code.
Maximum penalties include: Life imprisonment or death and a mandatory minimum
20- year sentence; maximum $2 million fine; mandatory special assessment of $100 per count and a term of supervised release of at least 5 years and up to life.Count 2: Title 21, United States Code, , Section 848(e)(1)(A) Intentional Killing during the course of a Drug Trafficking Conspiracy, in violation of Title 21, United States Code.
INVESTIGATING AGENCY
Maximum penalties include: Life imprisonment or death and a mandatory minimum
20- year sentence; maximum $2 million fine; mandatory special assessment of $100 per count and a term of supervised release of at least 5 years and up to life.Riverside County Sheriff’s Office
Drug Enforcement Administration
Federal Bureau of Investigation
Homeland Security Investigations*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Drug Dealer Sentenced to over 10 Years in Prison for Distributing Heroin and OxycodoneRead the Press Release
Also Sentenced to 10 Years in Prison for Making and Illegally Possessing an Explosive Device
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced John Frank Jenkins, age 30, of College Park, Maryland, today to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to Jenkins’ plea agreement, from at least January 2011 through December 2012, Jenkins and his co-conspirators distributed oxycodone. From the spring of 2011 through the summer of 2012, Jenkins and others forged prescriptions for oxycodone, which they then presented to different pharmacies, obtaining 180 oxycodone pills approximately twice a week. Jenkins and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Jenkins began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. After making repeated calls to the customer and being unsuccessful in collecting the debt, in December 2012, Jenkins and a co-conspirator carried one of the pipe bombs to the home of the customer who owed Jenkins money, placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Drexel Man Charged in Identity Theft RingRead the Press Release
Benjamin Easley, 36, of Drexel Hill, Pennsylvania was charged yesterday by Indictment with three counts of bank fraud and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Easley oversaw three separate bank fraud schemes in which he recruited people to pose as true account holders to access their accounts, drove them around to the banks, and gave them false identity documents to use to access the accounts. The indictment alleges that Easley and his co-schemers made off with approximately $232,570 from the banks in question.
Easley faces a maximum sentence of 96 years’ imprisonment, including a two year mandatory term of imprisonment, a five year period of supervised release, a $3,750,000 fine, and a $600 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Found Guilty of First-Degree Felony Murder in 2011 Shooting in Northeast Washington-Shooting Followed Carjacking and Robbery-Read the Press Release
WASHINGTON -David E. Warren, 27, of Washington, D.C., has been found guilty by a jury of first-degree felony murder while armed and other charges for the 2011 killing of a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The verdicts, which were returned March 19, 2014, followed a three-week trial in the Superior Court of the District of Columbia. The jury convicted Warren of two counts of first-degree murder while armed during the commission of two separate felonies, second-degree murder while armed, kidnapping while armed, armed carjacking, armed robbery, and related weapons offenses. The Honorable Rhonda Reid Winston scheduled sentencing for June 6, 2014.
According to the government’s evidence, shortly before 11 p.m. on May 13, 2011, the victim, Ervin L. Griffin, 32, pulled his SUV into the 1200 block of 18th Street NE, shortly after meeting several young women at a nearby bus stop. While Mr. Griffin was sitting in his SUV, which was parked in the middle of the street, Warren approached and told Mr. Griffin to leave.
Eventually, Mr. Griffin pulled into an alley off of the 1200 block of 18th Street NE, where Warren entered the passenger side of Mr. Griffin’s SUV and took his keys. Warren, armed with a semi-automatic firearm, then went to the driver’s side of the SUV, pulled Mr. Griffin out, and demanded money. Warren, along with others, then walked Mr. Griffin up an alley and into a yard behind 1218 18th Place NE, where Mr. Griffin was shot and killed.
Surveillance video from the Metropolitan Police Department’s closed circuit television cameras showed the events leading up to Mr. Griffin’s murder, and showed Warren and others exiting the alley where the murder took place within a minute after the murder.
A co-defendant, Montez Warren, 32, the brother of David Warren, was acquitted by the jury of all charges. The final verdicts in his case were returned on March 20, 2014.
In announcing the conviction of David Warren, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Thomas Royal, William Henderson, and Paul Howell; Victim/Witness Advocate Marcia Rinker; and Paralegal Specialists Kelly Blakeney and Mia Beamon. Finally, he thanked former Assistant U.S. Attorney B. Michael Ortwein, who investigated and indicted the case, and Assistant U.S. Attorneys Michelle D. Jackson and Holly R. Shick, who prosecuted the case.
14-068Defendant Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Eddy Marin, 52, of Davie, was sentenced today in West Palm Beach by U.S. District Judge Kenneth A. Marra to ten months in prison, followed by one year of supervised release. Issues regarding the forfeiture of certain funds obtained by the defendant through his criminal activity was continued to a later date. Marin pled guilty on October 18, 2013 to conspiracy to obstruct justice, in violation of Title 18, United States Code, Section 1512(k).
According to the factual statement admitted by the defendant in connection with his guilty plea, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of IRS-CI went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. In fact, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and others knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including the defendant Eddy Marin.
The factual statement further alleges that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendant took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent their availability for use in those proceedings. Marin further admitted that he committed perjury during a deposition in connection with those proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan, and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Clearfield County Man Sentenced for Violating Federal Firearms LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Irvona, Pa., has been sentenced in federal court to five years probation, the first 18 months of which must be served by conditions of home confinement, and 250 hours of community service on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Justin D. McElheny, 36.
According to information presented to the court, from Dec. 2007 to Oct. 15, 2011, McElheny stole 72 firearms, including revolvers, pistols and rifles of various calibers, from East Coast Gun Sales. In addition, during the same time McElheny was in possession of the stolen firearms, he was an unlawful user of Percocet, Oxycontin, Roxicet and Vicodin.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department for the investigation leading to the successful prosecution of McElheny.
According to Mr. Hickton, McElheny was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
California National Guardsmen Sentenced to Prison for Stolen Machine GunsRead the Press Release
SACRAMENTO, Calif. — Stephen Gooden, 40, of Stockton, was sentenced on Thursday by United States District Judge Morrison C. England Jr. to one year in prison and a $1,000 fine for possessing a machine gun, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gooden and Luis Castro, 28, of Sacramento, were members of the California National Guard and stole two M-4 machine guns from the National Guard’s armory in Lodi. Gooden then sold the machine guns to non-authorized persons in Stockton. ATF agents recovered the machine guns in an undercover operation.
“Today's sentencing reflects the true partnership among federal law enforcement agencies,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “No criminal stands a chance against our MPFU agents working shoulder to shoulder with the ATF and other agencies. We hope that the sentence imposed today will deter others from engaging in similar illegal activity.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Army Criminal Investigation Command. Assistant United States Attorneys Paul Hemesath and Heiko Coppola prosecuted the case.
On August 22, 2013, Castro was sentenced for his involvement in the theft and sale of the machine guns to 20 months in prison.